The Trump Effect: Are Major Shifts in Sports Law Coming?

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Mark Conrad
Hello and welcome to the Sports Business Podcast with Prof. C, the podcast that explores the world of professional, collegiate, amateur, and Olympic sports. I’m Mark Conrad, or Prof. C from Fordham University’s Gabelli School of Business, where I serve as Professor of Law and Ethics and the Director of the Sports Business Initiative. As we all know, a new administration will come to Washington on January 20th and it is a safe bet that the political landscape will change.

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Mark Conrad
Coupled with both houses of Congress under Republican control, Donald Trump will assume the White House with the ability to alter policies adopted during the Biden Administration. This may apply to the world of professional and non-professional sports. What will be changed? Here are a few of my thoughts. Probably the most direct shift will be the Federal government’s policy on transgender athletes’ participation in sports teams in their transitioned sex.

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Mark Conrad
Trump has made it clear that he wishes to roll back protections for transgender students in schools that receive Federal funding. This would come at a time when over 20 states have enacted laws barring transgender participation. The incoming Trump Administration’s position, spearheaded by Linda McMahon, the secretary of education-designate, would be counter to the proposed rules issued by the Biden Administration. In 2023,

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Mark Conrad
the Education Department’s Office of Civil Rights proposed a rule prohibiting schools from banning transgender athletes from participating in their new gender identity. Instead, it would allow schools to prevent a transgender student from playing if their participation affected competitive fairness, safety, or some other stated objectives of the sport. It was a middle of the road approach, but, maybe sensing the political landscape,

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Mark Conrad
the rule was not implemented by the time of the election. With Trump’s victory, it is almost guaranteed that this proposal will be shelved and replaced by a policy prohibiting this practice. My guess is that the change will be challenged in court as a violation of Title IX of the Educational Amendments of 1973, which bans discrimination based on gender in schools receiving federal funds.

00;03;03;02 - 00;03;45;12
Mark Conrad
Since most colleges and universities receive some kind of federal funding, this change would have significant effect on transgender female students. Another issue to watch is whether the NCAA can persuade the new administration and the new Congress for immunity from antitrust laws. While the transgender rules can be done without legislation, an antitrust exemption must be passed by Congress. As we know, the NCAA has been a defendant in a number of antitrust challenges to its governance, including the Supreme Court decision in Alston v. NCAA.

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Mark Conrad
Its governance structure is severely altered in this new era of college sports and the organization wants to avoid more costly antitrust litigation. Sen. Ted Cruz (R-Texas), who will chair the Senate Commerce Committee, vowed on a recent podcast, to prioritize solving the “future and viability of college athletics.” Cruz has sponsored legislation that would establish a national name, image and likeness standard, provide the NCAA an antitrust exemption, and declare that college athletes are not employees of their universities.

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Mark Conrad
However, the new president has not taken a position on this issue and there is no guarantee that this legislation will pass both Houses of Congress before coming to the President’s desk. A reconstituted National Labor Relations Board could decide that student athletes cannot be considered employees. Golf is a passion of the incoming President and has been interested in the proposed merger of the PGA Tour and LIV Golf,

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Mark Conrad
the Saudi-backed golf association. There have been antitrust concerns if this deal is consummated, but it is more likely that a Trump justice department will not block it. Other sports issues to watch will be less direct, but potentially important. Would changes in the tax laws affect the sale of sports teams; will Trump’s penchant for interjecting himself in cases where athletes engage in what could be called political acts emerge once again?

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Mark Conrad
But one thing is sure: a president who enjoys the spotlight will get plenty of it as the U.S. will host the men’s World Cup final in 2026 and the Los Angeles Summer Olympic games in 2028. You can bet that Donald Trump will be at the championship soccer match and the opening ceremonies of the Olympics. And he will soak up every minute of his camera appearances.

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Mark Conrad
Any thoughts? Send them to me at [email protected]. Thank you for listening. Until next time, this is Prof. C for the Gabelli Sports Business Initiative.