The Mississippi House recently passed a bill that would make name, image, and likeness earnings tax-exempt for college athletes in the state. If the measure becomes law, players at programs like Ole Miss Rebels football and Mississippi State Bulldogs football could keep the full value of their NIL deals rather than paying state income tax.
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Cam Newton believes that type of rule could become a massive recruiting advantage, especially in the hyper-competitive SEC. But before celebrating the potential impact, he raised an interesting scenario that could push the conversation even further.
“My biggest question is this,” Newton said while discussing the bill. “Does this apply to high school students too?”
That question reflects the rapidly evolving landscape of NIL. In several states, high school athletes are now allowed to profit from their name, image, and likeness before ever stepping on a college campus. Newton suggested that if Mississippi’s tax exemption also applied to those players, it could dramatically change recruiting decisions for families.
“Most states now are making it able for high school students to start to take on NIL money,” Newton explained. “So what does that look like if I’m a parent and my child is in school and I’m dictating where he or she goes based off taxes?”
From Newton’s perspective, the math alone could make the decision easy for some athletes. A large NIL contract could look very different depending on the tax structure attached to it.
“When you see a $2 million check,” he said, pausing before continuing, “what you supposed to be getting snipped at might not always get snipped at. Two million really is one sometimes. But with no taxes…”
The bill’s supporters argue that the change is necessary because other states are already creating similar advantages. Florida, Texas, and Tennessee have no state income tax at all, while Arkansas passed legislation in 2025 that exempts NIL earnings from state taxes. If Mississippi joins them, five SEC states would effectively offer athletes the ability to keep far more of their NIL income.
Representative Trey Lamar, one of the bill’s supporters, said the goal is simple: make Mississippi schools more competitive when recruiting elite talent.
“NIL is taking the country by storm,” Lamar said while presenting the proposal. “Other states are doing it, and I believe it’s time that Mississippi starts doing this as well.”
Not everyone in the legislature agreed. Some lawmakers questioned why athletes should receive special tax treatment compared with other workers in the state. Representative Dan Eubanks voiced concern during the debate, asking why NIL earners should be treated differently from any other employee.
Still, the bill ultimately passed the House after a heated discussion.
Newton believes the broader debate reflects something people outside the region sometimes misunderstand about college football culture in the South.
“For the people who don’t understand football in the South, that’s the question they ask,” Newton said when discussing whether the sport has become too serious. “But since the beginning of time, football in the South has been almost like a religion.”
With NIL deals already reaching into the millions for top prospects, the stakes in recruiting have never been higher. If Mississippi’s tax-free NIL proposal becomes law, it could give programs like Ole Miss and Mississippi State a powerful new pitch when trying to land the next generation of star athletes.
