Colleges Start Paying Athletes July 1, Up to $20.5M Annually, Trump Advances NIL Executive Order Amid Private Equity Interest

Starting July 1, 2025, college sports entered a new era as schools were permitted to directly pay student-athletes, ending a 50-year resistance that included extensive legal battles. This shift marks the beginning of revenue sharing in college athletics, allowing athletes to receive payments potentially up to $20.5 million annually. The change has sparked renewed interest among athletic departments in private equity funding to support these payments. Concurrently, the White House, under President Donald Trump, has been working on an executive order related to Name, Image, and Likeness (NIL) regulations for several months, aiming to establish national standards and clarify the status of college athletes, particularly to avoid them being classified as employees. However, college sports leaders remain largely unaware of the specifics of this executive order, and discussions continue regarding legislation and enforcement, including negotiations over traditional NIL collective deals that could lead to a “softer cap” on athlete compensation.