Texas Football's Record - Breaking NIL Budget, Arkansas Enacts Tax Free - NIL Law, University of Houston Launches UH Themed Snacks & More | NIL Newsletter #325

May 05, 2025

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The University of Texas is set to spend between $35 million and $40 million on its football program for the 2025 season, a significant increase from the previous $20 million budget.
This surge includes a $20.5 million revenue-sharing allocation, positioning Texas as the most expensive college football team in the nation.
A substantial portion of the budget is dedicated to Name, Image, and Likeness (NIL) deals, although these are considered a one-time expenditure.
Star quarterback Arch Manning's NIL valuation stands at $6.6 million, despite none of it stemming directly from the university.
Texas boasts the nation's top recruiting class and is ranked second in ESPN's early projections for the upcoming season, trailing only Ohio State.
Concerns about the sustainability of such high costs are growing, especially as potential legal changes could shift athlete compensation to direct payments from schools rather than the current NIL system.
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Arkansas has become the first U.S. state to exempt student-athletes' NIL income from state income tax under the newly enacted Arkansas Student-Athlete Publicity Rights Act.
Signed into law by Governor Sarah Huckabee Sanders and retroactive to January 1, 2025, the legislation applies to NIL payments and university revenue-sharing, ensuring confidentiality of financial details.
The move aims to enhance college sports recruitment by providing Arkansas schools a competitive edge, especially compared to nearby states like Texas and Tennessee that also lack a state income tax.
Experts believe the law enhances Arkansas’s appeal to athletes looking to maximize their earnings.
However, NIL earnings will still be taxable at the federal level.
Other states such as Alabama, Georgia, and Louisiana have introduced similar legislation but haven’t enacted it yet.
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The University of Houston (UH) has launched a new line of UH-themed snacks through a collaboration between its athletics department, the NIL platform LinkingCoogs, and Victory Snacks.
This initiative, named "HoustonTX Snacks," includes a variety of snacks and beverages featuring creative Houston-centric names such as Shasta's Peanut Butter Crunch, H-Town Mesquite Ham Bites, Space City Sour Rings, and Bayou Pineapple Bursts.
Sold through Victory Campus, a new division of Victory Snacks, the partnership marks UH as the first university in the U.S. to participate in this program.
A portion of the proceeds will support UH’s NIL fund.
Other universities like Alabama, Oklahoma, Notre Dame, and Fresno State are in talks to join the program in 2025.
Products are available for pre-order online starting from Wednesday.
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Nebraska QB Dylan Raiola Signs with Adidas – Nebraska quarterback Dylan Raiola has secured a groundbreaking NIL deal with Adidas, marking a new chapter for Nebraska football. 🔗 LINK
LSU Courts AJ Haulcy with $1M NIL Offer – Houston Cougars safety A.J. Haulcy is attracting attention from top programs, with LSU reportedly offering a near $1 million NIL deal. 🔗 LINK
Marquette WBB Seniors Return Amid NIL Eligibility Changes – Marquette's women's basketball seniors Abbey Cracknell and Lee Volker are returning for the 2025-26 season, influenced by recent NCAA eligibility and NIL rights changes. 🔗 LINK
Utah Utes Discontinue Beach Volleyball Amid NIL Settlement Concerns – The University of Utah has announced the discontinuation of its beach volleyball program, citing challenges related to the impending House v. NCAA settlement. The move eliminates 19 potential scholarships, aiding the university's compliance with anticipated roster limits and financial obligations under the new NIL revenue-sharing framework. 🔗 LINK

Former President Donald Trump is reportedly considering issuing an executive order to regulate NIL practices after a meeting with Alabama football coach Nick Saban.
Saban expressed concerns about the current NIL system creating an unbalanced playing field, advocating for national legislation to standardize rules.
Senator Tommy Tuberville supports Trump's potential involvement, suggesting his influence could help bring necessary regulation to NIL issues.
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