No cars, no condos: CHED sets limits on student-athlete perks

READ: Part 1 | What CHED’s student-athletes protection memo means after Ateneo tragedy

Philippine collegiate leagues have long made decisions and rules with minimal government regulation. But in 2015, the government passed the Student-Athletes Protection Act (Republic Act No. 10676) that mandated “the protection and promotion of the rights and welfare of student-athletes.”

Although it took the Commission on Higher Education (CHED) a decade to operationalize this law, with the Memorandum Order No. 13 released only last June 1, it’s notable for its clear guidelines.

“The memorandum does not only pertain to protection of student-athletes from unsafe training and competition environment that might result in injury or even fatalities. It also protects the student-athletes from commercialization, from exploitation, from unfair residency rules, from mental health issues, and even academic neglect,” said Dr. Lorenzo Lorenzo, the National Collegiate Athletic Association (NCAA) representative who helped draft the memorandum.

“For instance, the section defining commercialization enumerates what items schools can extend to [student-athletes].”

Lavish gifts

For decades, there have been rumors that highly touted recruits in collegiate leagues get lavish offers beyond the standard scholarship and stipends, with cars, houses, condominiums, and excessive cash allowances among the alleged perks. 

This time, the CHED Memorandum Order (CMO) lists specific benefits and incentives that student-athletes can receive, including:

• Tuition
• Board and lodging
• School and athletic uniforms, equipment
• Reasonable monthly living allowance
• Medical services and insurance
• Other benefits “to enhance academic and athletic performance”

“Anything beyond those items enumerated is defined as commercialization,” said Lorenzo. 

“For example, if the financial incentives extend to the family, or extravagant gifts and gadgets were given, or a car and a condo were given — those are items that are beyond what is provided for by the Republic Act. So, this is defined as commercialization.“

The CMO also specifies what cannot be given to student-athletes, with Section 18 prohibiting the following:

• Excessive cash allowances or stipends beyond what is reasonably necessary for educational, training, or living expenses
• Lavish gifts or incentives such as high-value gadgets and luxury items
• Luxury housing or accommodations, personal vehicles or similar privileges not ordinarily available to students
• Unjustified academic exemptions, automatic passing grades, or unauthorized privileges inconsistent with academic standards or procedures
• Preferential treatment such as priority access to resources or services creating inequity with the general student population

“Perhaps one of CMO No. 13’s strongest innovations is its detailed regulation against commercialization,” said NCAA basketball commissioner Rico Paolo Quicho said. 

“Section 19 likewise regulates commercial endorsements involving a student-athlete’s name, image, or likeness by requiring written consent from both the student-athlete and, where applicable, the parents or legal guardians,” he added. “These provisions reinforce the amateur nature of collegiate athletics.”

League officials, however, admit that supervising each school will be a difficult task. 

“It’s hard to monitor, so that’s the challenge with regard to policing the incentives. But we have actually already drafted [a rule] on maximum benefits that we parked because of this challenge,” said Rebo Saguisag, executive director of the University Athletic Association of the Philippines (UAAP).

“Suffice it to say, right now, for lack of enforcing power or monitoring power, or investigative body, in the meantime, we can start complying with CHED requirements insofar as the reportorial requirements are concerned.”

Quicho said documentation of the benefits, and communicating it “through official institutional policies or handbooks” can be a good start. 

“This promotes transparency and prevents arbitrary or discriminatory distribution of benefit,” he said.

A student-athlete, as defined by law

According to Article 5 of the CMO, a student-athlete must have a minimum of 12 units per semester in a two-semester school year, or nine units in trimester setups.

The CHED also requires student-athletes to have an academic standing of at least 60% to be considered eligible.

A student-athlete’s status, however, will be terminated upon signing any contract to play professionally, as determined by the rules of the Games and Amusements Board (GAB).

During the 2020 pandemic when varsity action got shelved, GAB issued special guest licenses to collegiate athletes to allow them to play in pro sports leagues. 

By 2024, however, the NCAA discontinued the practice, while the UAAP never adopted the policy.

“One of the most persistent issues confronting student-athletes is the tendency of some institutions to prioritize athletic success over academic achievement,” said Quicho.

“Student-athletes often miss classes due to training camps, tournaments, and travel schedules, resulting in learning gaps, delayed graduation, and academic underperformance.’ 

“In some instances, institutional pressure to maintain competitive sports programs may inadvertently encourage academic compromises,” he added. “This undermines the fundamental principle that participation in collegiate sports should complement, rather than replace, higher education.”

‘Incentives poison decisions’

Another issue top collegiate leagues deal with is “poaching,” or the sudden transfer of a student-athlete to another school within the league, which usually frustrates the alma mater that initially trained and honed  the players’ skills.

Back in 2012, Jerie Pingoy, a former two-time UAAP juniors’ basketball MVP with the FEU Baby Tamaraws, spurned his high school and transferred to a stacked Ateneo Blue Eagles team for college.

Pingoy had already committed to play for the Tamaraws in the UAAP, but surprisingly left for the Blue Eagles. This led to bitter disputes, and eventually, the league crafted the so-called “Pingoy Rule,” which required high school transferees to sit out for two years before playing for their new college team.

The UAAP had since revised its rule on transferees.

“First and foremost, the freedom to transfer cannot be curtailed, especially if the student-athlete is after quality education. Another legitimate reason would be the sports program or the coach,” said Saguisag.

“Other than that, we want to address exploitation or commercialization, as incentives seem to poison the decisions of these young student-athletes.”

Another controversial transfer involved Mason Amos, who starred for Ateneo for one UAAP men’s basketball season before suddenly transferring to rival La Salle in 2024.

The move prompted the UAAP to again revise its transfer rule, where an athlete will have one year of eligibility deducted, on top of the existing one-year residency rule. 

“If you sat out two years, we see how the skills of student-athletes have regressed, as well as physical fitness,” Saguisag said.

“I believe that the lawyers have studied [our rules], it’s permissible under current law, but the reason why we did that is when a person transfers, not for the legitimate reasons that I said, aside from commercialization, is to address the collegiality among member schools,” he added.

“The respect for other [schools]. Kung magkakasama tayo dito, sana wala namang ganyanan (We are all here together, let’s not do things like that)…because it leaves a bad taste in the mouth of each of the member schools.”

Report misconduct, exploitation

The CHED memorandum also gives student-athletes space to air grievances, as it requires schools to set up a complaints mechanism and policy.

In 2013, Mikee Bartolome, a decorated UAAP high school swimmer from the University of Santo Tomas, challenged a league rule after UST refused to allow her transfer despite passing the University of the Philippines’ college admission test.

With nowhere else to go, Bartolome sought a temporary restraining order and a Quezon City court granted it, allowing her to compete in UAAP Season 76.

But this time, student-athletes can now “report misconduct or exploitation.”

“An athlete’s grades, credentials, or academic documents cannot be withheld during a transfer, especially if they have no outstanding financial obligations to the school,” said Lorenzo.

Quicho added that CMO No. 13 subjects leagues and schools to “greater accountability.”

“They must register with the CHED, establish grievance mechanisms…investigate complaints, and comply with annual reporting requirements. These measures reinforce transparency and responsible governance throughout collegiate athletics,” he said.

CHED said student-athletes, parents or guardians, member schools or their alumni, and other stakeholders may file a complaint.

“Upon notice and hearing, CHED may impose the appropriate penalties under relevant laws, rules or regulations,” the memorandum states. 

After an investigation, a school found guilty of violating the rules will merit a maximum fine of P1 million and/or a ban from participation in their respective leagues.

The leagues themselves may be fined a maximum of P1 million if found liable for any violation.

“There’s a continuous review of our policies. And again, it’s a matter of enforcing them, which is really a big challenge, but we have to start somewhere,” said Saguisag. 

Quicho agreed that “the effectiveness of the memorandum will depend on consistent implementation, adequate institutional resources, meaningful enforcement, and ongoing monitoring to ensure that its protections translate into tangible improvements in the lives of student-athletes.”

CHED notes that the memorandum applies to all public and private schools, varsity leagues and inter-school competitions nationwide, off-campus activities, all persons involved in athletic programs, as well as foreign student-athletes. 

Schools and athletic organizations have six months to comply with the required initial documentation after the memorandum rollout in June.

But as Saguisag reminded: “Legislating on that matter is one thing. Enforcing and policing it is another matter.” – Rappler.com