The NIL era has flipped college sports upside down, changing the game like never before. Player compensation is booming, and schools are fighting to stay ahead. Now, a 9-4 SEC powerhouse, Alabama, is making its move. A new bill is on the table, one that could give its athletes a serious edge. But Bama isn’t the first to pull this play. Their biggest rival did it first, setting the stage for a new wave of competition. The battle for NIL supremacy is heating up, and the race to the top is only getting started.

And you know, Alabama is making waves in the NIL world. According to On3’s Pete Nakos, the state is pushing for a game-changing tax break. On Feb. 13, On3NIL’s X post confirmed that Rep. Joe Lovvorn introduced a bill to wipe out state income tax on NIL earnings. The post wrote, “An Alabama bill has been filed that would exempt college athlete NIL compensation from state income tax.” Right now, those profits take a 2% to 5% hit. But if this bill goes through, athletes get to keep more cash in their pockets. It’s a power move—one that could give Alabama schools a major edge in recruiting.

Moreover, Lovvorn is making one thing clear—Alabama takes college sports seriously. “One common thread shared among Alabamians is their love for collegiate athletics,” he said. With powerhouse programs and a winning tradition, success runs deep in the state’s DNA. But the NIL era is changing the game, and Alabama isn’t sitting back. “Exempting NIL earnings from state income tax gives Alabama a competitive edge,” Lovvorn added. The goal? Bring in top talent, boost education, and stack more championships.

But what’s at stake? Cold, hard cash. If this bill passes, athletes in Alabama won’t have to pay state income tax on their NIL earnings. Without the exemption, a $5 million deal could cost an athlete anywhere from $100,000 to $250,000 in taxes. But with the new rule? They keep every penny. That means more money in their pockets and a huge recruiting advantage for Alabama schools.

However, you already know Alabama isn’t the first to make this move. Earlier this month, Georgia jumped into the NIL race with a bold proposal of its own. On Feb. 4, State Senator Brandon Beach and four co-sponsors filed Senate Bill 71. The goal? Give Georgia and Georgia Tech a leg up in recruiting battles. It’s a simple strategy with big implications.

And Beach isn’t mincing words. “I just think if we’re going to compete with Texas, Tennessee, and Florida, who have no income tax, we’ve got to make sure Kirby Smart and Brent Key at our two major universities have the tools in their toolbox to be able to compete for these five-star athletes,” Beach said. The message is clear: this bill isn’t just about money—it’s about staying in the fight. “That’s all this bill does, is help Georgia and Georgia Tech be competitive with states that do not have an income tax.”

But here’s the real twist—this idea didn’t come from Georgia or Georgia Tech. It came from an unexpected source: Nick Saban himself. “I had dinner at Lake Burton with Nick and Terry Saban and my wife and I and another couple, and he loves Kirby Smart like a son,” Beach revealed. “And he said, ‘If you want to help Kirby until they figure out all this NIL stuff, one thing you could do is eliminate the income tax on NIL athletes.’ So I got the idea actually from Nick Saban.” Looks like Saban’s fingerprints are all over this one. A true mastermind move—helping his former protégé while keeping Alabama in the NIL arms race.

However, Georgia lawmakers have a history of backing their own. In 2016, after consulting with Kirby Smart, the state tightened open records laws to shield athletic department data. Now, they’re doubling down with NIL reforms. And Beach is confident this bill has the votes to pass. With Lieutenant Governor Burt Jones — a former Bulldog from 2000 to 2002—leading the state senate, the support runs deep.

“I feel very strongly that it’ll pass. It’s going to go to committee next week, and then I’ll get it out [to the rules committee] and I serve on rules. We’ll get it out and get it on the [Senate] floor and debate it and pass it,” said Beach. Confidence is high, and momentum is building.

However, the NIL era keeps delivering shockwaves, and the surprises are far from over.

Is Alabama going to see any advantages?

Alabama’s NIL playbook is coming together, and key players are making it happen. State representatives Chris Blackshear and Danny Garrett helped shape the proposed law, pushing for a major win for college athletes. If passed, the bill takes effect on October 1, 2025, but here’s the kicker—it applies retroactively from January 1, 2025, through 2027. And now, Alabama isn’t alone in this fight. More states are stepping up, looking for every edge against the NCAA.

You know, on Tuesday, the U.S. Department of Education’s Office for Civil Rights scrapped key guidelines from the Biden era. These rules dictated how revenue would be split across different sports under the House v. NCAA settlement. Now? It’s back to the drawing board. With millions on the line and schools fighting for every dollar, the battle over NIL’s money is continuing.

As of now, Texas and Missouri have already stepped up, passing bills to shield their programs from NCAA investigations. Missouri took it even further—allowing high school recruits to lock in NIL deals and start cashing in before they hit campus. Meanwhile, NCAA President Charlie Baker is pushing hard for a federal NIL law. And the stakes are about to get even bigger. The House v. NCAA settlement, set to take effect July 1, will shake up college sports. Schools will split $20.5 million in revenue sharing, with Power Four programs expected to pocket up to $17 million for football alone.

The NIL fight just took another twist. In a bold statement, Craig Trainor slammed the Biden administration’s last-minute guidance. “The NIL guidance, rammed through by the Biden Administration in its final days, is overly burdensome, profoundly unfair, and it goes well beyond what agency guidance is intended to achieve,” he said. The controversy? The administration argued that NIL deals between schools and athletes should be treated like financial aid—meaning they must be split evenly under Title IX. But with no solid legal backing, that argument just got tossed aside.

Now, to be honest, if this bill passes, Alabama gains a serious edge—pulling in top recruits and keeping its stars at home. So, the NIL game is evolving, and the cash is pouring in faster than ever.