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Courts keep rewriting college sports rules, and the chaos is just getting started

Matt Boose,
 April 26, 2026

College athletics sits at the edge of a financial and structural cliff, and a string of federal court decisions is accelerating the fall. That is the thrust of a recent column by Charles Gasparino in the New York Post, which argues that judges have inserted themselves into the business of college sports with rulings that threaten to remake the entire enterprise, often with little regard for the downstream wreckage.

Gasparino's central claim is blunt: the judiciary, by treating college athletes more like professional employees than student competitors, has opened a Pandora's box that neither the NCAA nor Congress seems able to close. The result, he writes, is a landscape where billion-dollar television contracts, Name Image and Likeness (NIL) deals, and transfer portal free agency have collided to produce something that barely resembles the amateur model fans grew up watching.

The court rulings that broke the dam

The column traces the current disorder back to the Supreme Court's unanimous 2021 decision in NCAA v. Alston. That ruling struck down NCAA limits on education-related benefits for athletes, with Justice Brett Kavanaugh writing a concurrence that went further, questioning whether the NCAA's entire compensation model could survive antitrust scrutiny. Gasparino describes Kavanaugh's concurrence as a signal flare that emboldened plaintiffs' lawyers and athlete advocates to push for full-blown employee status.

Since Alston, lower courts and the National Labor Relations Board have taken up the cause. Gasparino points to the NLRB's pending efforts to classify certain college athletes as employees, a move that would entitle them to collective bargaining rights, workers' compensation, and potentially employer-provided benefits. He frames these developments as judicial and regulatory overreach that Congress has failed to preempt with legislation.

The pattern of federal courts intervening in areas where elected officials have stalled echoes dynamics playing out across Washington. In one recent example, federal judges clashed over birthright citizenship as a Trump executive order reached the Supreme Court, illustrating how the judiciary increasingly fills vacuums left by legislative inaction.

NIL money and the transfer portal gold rush

Gasparino devotes considerable space to the NIL marketplace, which emerged after the NCAA dropped its ban on athletes profiting from their name, image, and likeness in 2021. What was sold as a modest reform, he writes, quickly became a de facto pay-for-play system. Collectives, often run by wealthy boosters, now funnel millions to top recruits. Gasparino reports that some football and basketball players command NIL packages exceeding $1 million per year, with the money flowing through entities that operate with minimal transparency.

The transfer portal compounds the problem. Athletes can now switch schools with relative ease, and Gasparino argues this has turned roster management into a bidding war. Programs with deeper pockets poach talent from smaller schools, creating a competitive imbalance that dwarfs anything the old recruiting system produced.

Gasparino quotes one unnamed athletic director describing the current environment as "the Wild West," where compliance officers struggle to distinguish between legitimate NIL deals and what amounts to pay-for-transfer arrangements that the NCAA technically still prohibits but cannot effectively police.

The employee question looms largest

The column's sharpest warnings center on employee classification. If athletes at major programs are deemed employees, Gasparino writes, schools would face obligations under federal labor law, Title IX, and state employment statutes that could cost hundreds of millions of dollars annually. He cites estimates from athletic directors and conference officials suggesting that full employment status for athletes could make most athletic departments financially unviable outside the top 20 or so revenue-generating programs.

Gasparino notes that the Dartmouth men's basketball team voted to unionize in 2024, a first for college athletics. While Dartmouth has contested the result, the case remains a live wire. If the NLRB ultimately certifies the union, it would set a precedent that could ripple across Division I.

The financial stakes are staggering. Gasparino references the House v. NCAA settlement, a proposed $2.8 billion deal that would allow schools to share revenue directly with athletes for the first time. The settlement, if approved by a federal judge, would reshape college sports economics. But Gasparino argues the settlement itself is a product of litigation pressure, not a carefully designed policy framework, and warns it could generate as many problems as it resolves.

Courts stepping into policy territory where the political branches have stalled is not unique to sports. In a separate matter, a federal judge refused to revive DOJ subpoenas targeting the Federal Reserve, another instance where judicial decisions carry outsized consequences for institutional operations.

Congress sits on its hands

Gasparino reserves some of his sharpest criticism for Congress. Multiple bills addressing NIL regulation, athlete compensation, and employment status have been introduced since 2020. None has passed. He describes a bipartisan paralysis: Republicans worry about government overreach into private institutions, while Democrats face pressure from labor allies who want full employee rights for athletes.

The result, Gasparino writes, is that courts and regulatory agencies fill the void. Each ruling and each NLRB action creates new precedent in the absence of a coherent federal framework. He compares it to building an airplane while it's already in the air, except nobody agrees on the blueprint.

Gasparino argues that a narrow, targeted federal statute could preempt the patchwork of state NIL laws and give the NCAA a defensible antitrust framework. Without it, he predicts continued litigation and continued chaos. The longer Congress waits, the more the judiciary shapes a system it was never designed to manage.

That tension between judicial action and legislative paralysis has surfaced repeatedly in recent months. The Trump administration, for instance, raced to an appeals court after a judge halted White House ballroom construction, highlighting how executive priorities increasingly depend on courtroom outcomes when Congress fails to act.

What the money trail reveals

The financial numbers Gasparino presents paint a picture of an industry in rapid, uncontrolled transformation. The Big Ten's new media rights deal, signed in 2023, is worth approximately $8 billion over seven years. The SEC's deal with ESPN and ABC is valued at over $300 million per year. These contracts dwarf anything in the history of college athletics and have made the gap between the Power Four conferences and everyone else almost unbridgeable.

Yet Gasparino notes that even within the wealthiest conferences, most athletic departments lose money when you strip out institutional subsidies and student fees. Football and men's basketball generate the revenue. Every other sport operates at a loss. If athletes become employees, Title IX's equal-treatment requirements could force schools to extend compensation and benefits across all sports, multiplying costs in ways no current revenue model can sustain.

Gasparino raises the prospect of schools dropping non-revenue sports entirely, a scenario that would affect tens of thousands of athletes in sports like swimming, wrestling, gymnastics, and track and field. He calls it a "collateral damage problem" that courts issuing broad rulings have little incentive to weigh.

The conservative case for concern

For conservative readers, Gasparino's argument carries a familiar theme: unelected judges and federal bureaucrats are rewriting the rules for a massive American institution without democratic accountability. The NCAA, for all its flaws, operated as a private governing body. Courts have now effectively stripped it of enforcement power, and no replacement governance structure exists.

Gasparino frames this as a property rights and free association issue as much as a sports issue. Universities built athletic programs under one set of rules. Courts changed those rules retroactively through antitrust doctrine, and the House settlement would force schools to pay for past conduct that was legal at the time under NCAA bylaws.

The dynamic mirrors broader debates about judicial overreach in other policy areas. When the D.C. Circuit allowed Trump to restart White House ballroom work while ordering a trial judge to address national security gaps, it underscored how appellate courts sometimes must correct lower-court decisions that fail to account for practical consequences.

Where it goes from here

Gasparino does not pretend to have a clean solution. He acknowledges that the old amateur model was built on a fiction, that athletes generating billions in revenue deserved more than a scholarship and a meal plan. But he insists the current trajectory, driven by litigation rather than legislation, will produce outcomes worse than the system it replaced.

The House settlement awaits judicial approval. The Dartmouth union case continues. The NLRB's employee classification push grinds forward. And Congress remains gridlocked. Each of these threads could independently reshape college sports. Together, they represent a structural transformation happening without a plan, without a vote, and largely without public debate.

Gasparino closes with a warning that resonates beyond the sports page: when courts fill a legislative vacuum, the results tend to be rigid, unpredictable, and very difficult to undo.

College sports has survived scandals, pay-to-play schemes, and conference realignment wars. Whether it can survive a judiciary that treats a 100-year-old institution as just another antitrust defendant is a question nobody in Washington seems willing to answer.

About Matt Boose

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