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Don't let one facet of NIL drive your decisions
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Don't let one facet of NIL drive your decisions
And why it’s important to look at NIL holistically

Former Arkansas football player Landon Jackson (Photo Credit: Getty Images)
When it comes to NIL, it’s not all about money.
Nor is it about one specific part aside from money.
It’s about a combination of NIL offerings, guidance, opportunities, etc.
For example: A bill exempting NIL earnings from state income tax has been signed into law in Arkansas.
So student-athletes that play for Arkansas-based colleges will see more of their hard-earned NIL dollars going back into their pocket. (Approximately 4.4% according to current Arkansas state tax rates.)
However, should a student-athlete choose an Arkansas-based program solely because of this?
Not necessarily
What are schools offering in terms of full NIL offerings?
When student-athletes inquire about NIL with potential schools, they should ask more questions that just about money, including (but not limited to):
What NIL education is being provided?
Will the school help me land NIL deals?
What NIL resources are available to me?
Do I have access to NIL industry experts through the school?
Read the fine print
In the Arkansas instance, state taxes are exempt. However, student-athletes are still responsible for paying federal taxes on NIL funds.
An additional question to ask is, “What financial and tax services are provided to me for my NIL earnings?”
How much money are you really saving?
If a student-athlete ultimately decides on an Arkansas-based school solely for not paying state income tax on NIL funds, they should research the dollar amount coming back to them.
Is it worth it for a high-level QB signing a $500,000 yearly deal? Probably. (This puts ~$20,000 back in the athlete’s pocket.)
Is it worth it for an athlete to not pay state tax on a few $200-500 deals? Maybe not.
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