AROUND NIL THIS WEEK | FEB 10, 2025

Alabama moves to cut state income tax on NIL earnings, tapping recruiting advantage

Feb 12, 2025—Alabama Rep. Joe Lovvorn has introduced HB240, the Competitive Edge NIL Tax Cut Act, exempting student-athletes’ NIL earnings from state income tax. The bill aims to give Alabama’s colleges a recruiting advantage, keeping top talent in-state and fueling championship runs. Alabama was an early NIL adopter but adjusted after NCAA v. Alston. Rep. Danny Garrett supports a sunset provision to adapt to rapid NIL changes. Rep. Chris Blackshear calls NIL a key factor in winning titles, likening it to business incentives. If passed, Alabama’s programs could gain a major edge in the NIL era. MORE

Golf NIL High School Boys No. 6 Tyler Watts of Huntsville, Alabama at the 2024 U.S. Junior Amateur Championship at Oakland Hills Country Club | ZUMA Press/Alamy

U.S Education Department kills Biden’s NIL equity rule for athlete revenue-sharing

Feb 12, 2025—The Trump administration has scrapped Biden’s NIL pay equity rule, which required schools to distribute NIL and revenue-sharing payments proportionally between men’s and women’s sports under Title IX. The Department of Education called it “overly burdensome” and argued Title IX doesn’t mandate equal athlete pay. Without it, schools plan to allocate 75% of revenue-sharing money to football players. Senator Ted Cruz praised the repeal, while critics warn it undercuts women’s sports. A lawsuit from 32 Oregon female athletes could challenge the decision in court. Meanwhile, Trump has also banned transgender athletes from women’s sports and hinted at dissolving the Department of Education entirely, making the future of Title IX a legal battleground. MORE