When I first caught wind of legislation cropping up in three states, proposing tax breaks for college athletes’ earnings from their name, image, and likeness (NIL), I couldn’t help but roll my eyes.
Take Illinois, for instance. Representative Travis Weaver recently brought House Bill 3871 into play, aiming to free college athletes from having to shell out state income tax on their NIL money. Around the same time, Georgia’s Senator Brandon Beach, alongside four other senators, introduced what’s been dubbed the Kirby Smart Bill, aspiring to enact the same change for athletes in Georgia. Meanwhile, in Alabama, Representatives Joe Lovvorn and Chris Blackshear tabled an almost identical proposal.
Initially, the very notion struck me as overkill. Surely, a state can’t simply decide to win at all costs, right?
But these things warrant a closer look. So, I decided to chat with the legislators championing these bills to see if it was anything more than an example of skewed societal priorities.
Surprisingly, I was persuaded it’s a pursuit worth considering.
Weaver spoke of how a coach, two athletic directors, and a deputy athletic director from Illinois touched base, highlighting that state income tax was becoming a sticking point in recruitment efforts. Schools in states like Florida, Texas, Tennessee, and Washington—all with no income tax—were drawing recruits away from Illinois. This was evident to those on campus.
Having attended Alabama as an undergrad, Weaver appreciates firsthand the impact college sports can have on both the institutions and the states they serve.
“Every NCAA Tournament run by a basketball team spikes applications by 10 percent,” Weaver noted. “A bowl game appearance for a football team? That’s a 15 percent bump. However, many of our mid-tier universities are battling declining enrollments.”
Beach shared a moment when he was at dinner with none other than former Alabama coach Nick Saban, who mentioned a Missouri bill passed in August 2023 that let high school athletes earn NIL income, as long as they were committed to stay local. Georgia’s Power 4 coaches, Kirby Smart and Brent Key, have ties to Saban, having worked under him at Alabama.
“If you want an edge, check out what Missouri did,” Beach recalled Saban advising. “They were losing talent to Texas and Texas A&M.” Beach admitted, “I’d love to take the credit for the idea, but it was Saban who sparked it in me.”
Attempts to reach Lovvorn’s and Blackshear’s offices didn’t yield a response.
Beach believes average Georgians might not grasp the full impact NIL has on recruiting. “My goal was to make sure Georgia and Georgia Tech remain competitive,” he conveyed.
He also pointed out that Carson Beck, Georgia’s ex-quarterback who transferred to Miami, could potentially save over $200,000 in taxes—a significant sum, albeit not his primary reason for transferring.
That said, Georgia hasn’t ranked lower than third nationally in recruiting since NIL became a thing in 2021, tax or not. And a lack of income tax isn’t a magic fix for states either—Florida State’s 2-10 record in 2024 is a case in point, despite a $12 million player budget.
Generally, the South, where I’ve always called home, boasts a well-known passion for football, and folks here will almost anything to win. Handing a championship coach a rock-solid $95 million deal? That kind of decision isn’t uncommon.
Yet, there’s pushback. Beach has received ample feedback from constituents who feel the tax break is excessive. Weaver faces a similar barrage, having clocked around 50 bills since joining the state senate in January 2023. This particular one, though, has sparked perhaps unprecedented reaction.
“They say, ‘I pay taxes; why not them?’ That’s the gut feeling,” Weaver shared. “But when we break down the strategy, I see nodding heads. Folks come around. Sure, it benefits athletes, but it’s really an investment in our state’s future. We’re betting on athletes to boost our economy.”
When Weaver explains to critics how exempting these dollars can boost Illinois teams’ chances in national tournaments or establish a stronger football presence, they start to see the financial benefits outweigh just the loss in taxes.
Some eye-opening data caught Weaver’s attention: for every eight students leaving Illinois for college elsewhere, only one comes in. Strong sports programs, whether on the field or court, are like a charm for both enrollments and alumni engagement.
“I can’t think of a bill with a bigger return on investment,” Weaver asserted. “Increased enrollments, sales tax from merchandise, gas, hotel stays, you name it.”
Beach emphasized, “A successful football team can flood the state coffers with millions.”
The impact isn’t uniform across states, but one truth remains: the financial hit is minimal. Weaver predicts tax loss would hover around $750,000.
Weaver’s proposal didn’t initially limit which portion of NIL earnings were untaxed, but he’s contemplating capping it at $100,000. So, deals like Beck’s at Miami wouldn’t completely escape state taxes.
“It’s fair to question why someone working tirelessly for $60k in a factory pays taxes while a 19-year-old earning $2 million doesn’t,” Weaver explained. “Hence, the $100,000 cap feels more justified.”
While Weaver must keep election viability in mind, I’ll say it: even the hardest-working factory employee won’t sway the state’s economy much.
But a star quarterback?
Just look at history. Baylor pegged Robert Griffin III’s 2011 Heisman season at being worth $250 million to them. Johnny Manziel brought Texas A&M an estimated $37 million in media value over just a couple of months in 2012. Undoubtedly, modern Heisman phenomena like Caleb Williams, Jayden Daniels, and Travis Hunter boost their states similarly.
Beach’s proposal is one step in a larger goal to wipe Georgia’s state income tax, a mission shared with Lt. Gov. Burt Jones.
“We’ll take it incrementally,” Beach explained. “We can’t drop from 5.39 percent to zero overnight.”
Aligning political success with the state’s athletic achievements doesn’t hurt come election time.
There are legal hurdles to navigate towards the bill’s fruition. Neither Beach nor Weaver was keen on predicting its odds but remained hopeful.
At first glance, excusing athletes from taxes seems ludicrous. Yet, it’s clear even skeptical minds must admit, there are far worse ideas bouncing around legislative corridors than giving up a small tax fraction for a potential massive payoff.
(Photo of Georgia Bulldogs and coach Kirby Smart: Jonathan Bachman / Getty Images)
