Donald Trump administration takes major NIL decision despite gender bias allegations

Earlier this week, the United States government, under the auspices of the new Trump administration, issued a significant new decision regarding NIL. Name, image and likeness rights have been an important legal battle even before their inception. But with this week's announcement, new issues have arisen causing critics of the government to claim gender bias.

Trump administration NIL decision

NCAA President Charlie Baker will be tasked with monitoring ongoing shifts in the Title IX significant of NIL deals. (Photo Credit: IMAGN)

On Wednesday, an official with the Trump administration advised that prior NIL guidance provided by the Biden administration had been revoked. That guidance had advised schools that future payments under NIL agreements with student-athletes could be considered financial aid. Accordingly, schools were cautioned that such funds should be shared proportionally between men's and women's teams.

The old guidance was rescinded mid-week. The government indicated that prospective NIL deals were not subject to Title IX. Accordingly, the government claims no ability to enforce equality of NIL funds between male and female athletes.

Title IX and Prior Guidance

The Biden guidance arose out of Federal Title IX, which prohibited sex discrimination within educational programs. That act, passed in 1972 under the administration of U.S. President Richard Nixon, required schools to provide varsity athletic opportunities proportionate to the school's gender statistics.

Title IX could be an area of potential impact with NIL rights, which were initially established in June 2021 after successful litigation by student-athletes. Before NIL rights were established, schools had unique rights to utilize a player's image for financial gain. For decades, universities sold jerseys which were selling because of the number of well-known players who wore them.

However, in the pre-NIL world, players could not receive compensation for such sales. The players were also strictly limited in terms of gaining compensation from endorsements or public appearances. But the opening of the gates has led to a veritable flood of NIL funds, particularly in the NCAA's top revenue sports of college football and men's basketball.

Critics Respond to Announcement

Critics have alleged that the Trump administration's announcement will harm the future of women's sports and likely lead to numerous Title IX challenges. Some critics note that the announcement seems inconsistent in light of the Trump administration's concern with keeping transgender athletes out of female sports.

Smith College economics professor Andrew Zimbalist said,

"It's incomplete and misleading and it doesn't align with Trump's ... support... of Title IX, which is where he says he cares about women's sports and doesn't want women playing against biological men."

Meanwhile, many critics of the NCAA's slack enforcement have suggested that governmental involvement in the NIL arena could help the long-term future of college athletics. In any case, new developments are almost certain to occur shortly.