US President Donald Trump Warns 'Out Of Control' NIL System Could Cause College Bankruptcies, Calls For Caps On Payments & Reform In US Sports

Washington: US President Donald Trump said the current NIL system in college sports has become “out of control” and warned that, without reforms, it could create serious financial problems for many colleges, potentially leading to bankruptcies and other difficulties.

Also Watch:

He argued that the situation could particularly affect women’s sports, Olympic sports and college programs outside football, while also creating financial pressure within football.

He also criticised the possibility of professional athletes returning to college to earn large amounts through NIL deals and competing against much younger players, describing the situation as both “dangerous and unfair.”

Trump welcomed what he described as a bipartisan Senate vote on the issue and thanked senators from both parties for recognising its importance.

College athletes were not always permitted to earn money from their athletic abilities. The landscape changed in 2021, when the NCAA introduced rules allowing student-athletes to benefit financially from the use of their name, image and likeness, commonly known as NIL. The term “NIL” refers to an individual’s legal right to control how their name, image and likeness are used, including for commercial purposes.

"Great news on NIL, in other words, straightening out the horrible situation taking place with respect to College Sports. It is out of control and will lead to bankruptcies and disaster for many Colleges. If nothing is done, it is also very bad for Women's Sports, all Olympic Sports, and everything else other than Football — But even Football is bad because, without "caps," all Colleges will be financially consumed and, in many cases, it will ruin them," Trump said on Truth Social.

"We can't have Professional Athletes going back to College for Big Dollars, and playing against much younger competitors. It's both dangerous and unfair! I want to thank all of the United States Senate for a very Bipartisan Vote," he added.

Trump further stated that both Republicans and Democrats understand the importance of addressing the NIL and college sports issue. He described the vote as vital to the future of sports in America and said he was looking ahead to the final Senate vote and subsequent consideration by the House of Representatives.

Trump also thanked Coach Nick Saban, New York Yankees executive Randy Levine, and others from the sports community for helping advance the issue. He further claimed that the proposal has 91% public support, saying that Americans want the matter resolved.

"Both Parties know the importance of it. The only two Republicans that we lost were, surprisingly, from the Great State of Florida, Ashley Moody and Rick Scott, but I believe they will come along. This Vote is vital to future Sports in America," Trump said.

"I look forward to the Final Vote in the Senate next week and, ultimately, our House of Representatives. Thank you very much to Coach Nick Saban, Randy Levine of The New York Yankees, and all of the others, especially those involved with Sports, that helped! This issue is polling at 91% — THE PEOPLE OF AMERICA WANT IT DONE. MAKE AMERICA GREAT AGAIN! President DONALD J. TRUMP," he concluded. 

(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)