Executive order curbs college athletes’ earnings: How this affects Kentuckians

LEXINGTON, Ky. (FOX 56) — A signed order by President Donald Trump prohibits college athletes from being considered employees of their university. Now Kentucky leaders are weighing in.

The executive order that was signed on Thursday is part of an NIL (name, image, and likeness) crackdown due to the lack of guidance, creating what Trump called “an out-of-control, rudderless system in which competing university donors engage in bidding wars for the best players, who can change teams each season.”

“Absent guardrails to stop the madness and ensure a reasonable, balanced use of resources across collegiate athletic programs that preserves their educational and developmental benefits, many college sports will soon cease to exist,” Trump’s order says. “It is common sense that college sports are not, and should not be, professional sports, and my administration will take action accordingly.”

The order still allows athletes to earn money through brand deals and endorsements, but prohibits “pay to play” arrangements.

Earlier in 2025, Sen. Max Wise of Campbellsville sponsored a bill to update Kentucky’s NIL rules. He said the president’s order is an effort to bring structure back to college sports.

“I was glad to see the president is engaged in this topic. And I think, you know, for the general viewers out there, the executive order is not law. It’s not binding. But I do think that he’s wanting to put this on course for the upcoming U.S. Congress to make sure that something is being done or being looked at,” Wise said.

The University of Kentucky is among the schools making NIL adjustments, becoming the first school in the nation to convert its athletic department into a limited liability company, Champions Blue LLC, to generate more revenue for athletes.

It’s unclear if the order warrants any changes to UK’s new system.