NCAA Powerhouse Schools Face Potential Revenue Cap on NIL Payments

The “Name, Image, and Likeness” (NIL) revolution has transformed collegiate athletics, giving players more control over their earnings and futures. However, President Trump’s executive order may shift the balance, potentially limiting player earning potential or establishing a commission to investigate athlete compensation.

The end goal is to support power conference schools in their efforts to limit high-profile players from joining smaller programs due to financial considerations. Legislation may introduce an earning cap on NIL payments and classify athletes as “non-employees,” as advocated by player groups.

This comes after the 2020 case of House vs. NCAA, which resulted in a $2.75 billion settlement. Congress is working on its own bill to curb NIL spending, with negotiations underway for a proposed cap on NIL payments from schools. It’s unclear what this amount would be, but it’s expected to be significantly lower than current spending levels.

Notable figures like Nick Saban have expressed concerns about the rise of NIL-based payments, prompting conversations with President Trump. Powerhouses like Alabama are losing their recruiting edge due to lower NIL commitments, making it harder for them to attract top recruits. The proposed legislation would represent a significant shift in power dynamics in college football.

The implications of a Trump order on the NIL revolution and its impact on players remain uncertain, but one thing is clear: governmental intervention could fundamentally alter the landscape of collegiate athletics.

Source: https://www.sbnation.com/college-football/2025/7/17/24469317/president-trump-nil-executive-order-college-football