Arkansas NIL Laws: Rules for College and High School Athletes

Arkansas’s NIL Evolution

Arkansas has systematically dismantled regulatory barriers through “emergency” legislation, weaponizing state law as a recruiting tool against wealthier SEC rivals.

Arkansas has positioned itself as a bellwether for the NIL transition through aggressive legislative deregulation and innovative fan monetization. Act 589 (2023) declared an “emergency” allowing coaches to broker deals. Act 839 (2025) exempts NIL income from state income tax—neutralizing Florida, Texas, and Tennessee’s zero-tax advantage. The pioneering 3% “Talent Fee” on concessions crowdsources the $20.5M revenue-sharing cap. Arkansas Edge collective was internalized (October 2025) with a Director of NIL Strategy. High school athletes can monetize. Here’s the complete guide.

House Bill 1649 / Act 589 (2023) — Emergency Deregulation:

• Declared “Emergency Clause” (Section 7): Other states revising NIL laws to recruit players
• Amends Arkansas Code § 4-75-1303
• Institutional Facilitation: Universities can “identify, create, facilitate, and enable” NIL opportunities
• Coaches and ADs can legally act as deal-brokers
• Liability Shield: Institutions/coaches “shall not be liable” for damages related to athlete NIL
• Expanded definition: “Student-athlete” includes NLI signees (not just enrolled)

Act 839 (April 2025) — State Income Tax Exemption:

• Signed by Governor Sarah Huckabee Sanders
• Exempts NIL earnings from state income tax (retroactive to January 1, 2025)
• Neutralizes advantage of 0% tax states (Florida, Texas, Tennessee)
• Scope: Exempts income from institution/athletic association (revenue sharing)
• Note: Third-party endorsements (e.g., car dealership deals) still taxable
• Senator Bart Hester: “This bill is all about competition”

House v. NCAA Settlement (2025):

• Direct revenue sharing authorized (~$20.5 million annual cap)
• AD Hunter Yurachek committed to spending to full cap
• Cap becomes competitive “floor” for SEC schools

High School Status — Permitted:

• Arkansas allows high school athletes to monetize NIL
• Competitive advantage over Mississippi (which prohibits until NLI)
• Standard restrictions: No school logos, no pay-for-play

Why Arkansas Matters:

Arkansas is engineering competitive advantage against wealthier SEC programs through legislative creativity: (1) Act 839 tax exemption neutralizes Florida/Texas/Tennessee zero-tax states; (2) 3% concession “Talent Fee” crowdsources $20.5M cap from fanbase; (3) “Emergency” legislation removed regulatory friction faster than rivals; (4) In-house NIL management eliminates third-party fees. Senator Hester: “Prisoner’s dilemma”—if every state passes exemptions, all lose revenue but must compete.

Arkansas College NIL Rules

Arkansas college athletes benefit from aggressive deregulation allowing institutional facilitation, liability protection for coaches, and a state income tax exemption for NIL income from universities.

What Arkansas Law Guarantees:

• Universities can identify, create, facilitate, and enable NIL opportunities
• Coaches and ADs can legally broker deals for athletes
• Liability shield: Institutions/coaches cannot be sued for NIL-related damages
• State income tax exemption on institutional NIL payments (Act 839)

University of Arkansas — In-House NIL Model:

• “Arkansas Edge” collective (Blueprint Sports) launched November 2023
• Ended October 15, 2025—operations moved in-house
• “Director of NIL Strategy” appointed within athletic department
• Rationale: House settlement made third-party administrator fees inefficient
• AD Hunter Yurachek: NIL now “core business function” of athletic department

The 3% “Talent Fee” on Concessions:

• November 2024: 3% “Student-Athlete Scholarship Enhancement Fee” on concessions
• Every hot dog, soda, and beer at Razorback games subsidizes athlete payroll
• Bud Walton Arena reseating/reparking plan resets “cost of admission”
• Yurachek: Cost increases linked to “changing dynamics” of NIL/revenue sharing
• Model: Crowdsource $20.5M cap from general fanbase (vs. Tennessee’s 10% ticket surcharge)

“Sin Industry” Prohibitions:

• Adult entertainment (sexually oriented businesses)
• Alcoholic beverages, tobacco, electronic nicotine (vaping)
• Casinos, sports wagering, gambling
• Prescription pharmaceuticals and banned athletic substances
• Firearms and ammunition
• Note: Codified in state statute (vs. NY where discretion is with universities)

International Student-Athletes:

• F-1 visas prohibit “active” NIL (social media, appearances, commercials)
• “Passive” income (video game licensing, jersey royalties) may be permissible
• Violation = visa termination and deportation
• Creates “two-tiered locker room”—domestic teammates earn, ISAs cannot

Arkansas High School NIL Rules

Arkansas allows high school athletes to monetize their NIL—a competitive advantage over neighboring Mississippi, which prohibits until National Letter of Intent is signed.

Key Facts:

• Governing Body: Arkansas Activities Association (AAA)
• Status: Permitted with restrictions
• Competitive advantage: Mississippi prohibits HS NIL until NLI signing

What Arkansas High School Athletes Can Do:

• Sign commercial endorsements (no school affiliation)
• Monetize social media accounts
• Earn from autograph signings and personal appearances
• Build personal brand separate from school identity

Restrictions:

• Cannot use school logos, jerseys, uniforms, or facilities
• Cannot accept pay-for-play (performance-contingent compensation)
• Cannot accept NIL as recruitment inducement to transfer
• Cannot endorse “sin industry” categories

College vs. High School: Key Differences

Feature	College (Act 589 / Act 839)	High School (AAA)
NIL Status	Fully Legal + Tax Exempt	Permitted (restricted)
Institutional Pay	Allowed ($20.5M cap) - TAX FREE	Prohibited
Coach Facilitation	YES (coaches can broker deals)	Prohibited
Liability Shield	YES (institutions/coaches protected)	N/A
Third-Party NIL Deals	Unlimited (but taxable if not from U)	Allowed (no school connection)
School Logos/Uniforms	Allowed	Prohibited
Sin Industry" Ban	Codified in state statute	Yes
Pay-for-Play	Prohibited	Prohibited

The Key Distinction: Arkansas’s Act 839 (2025) exempts NIL income from state tax—neutralizing Florida/Texas/Tennessee’s zero-tax advantage. The 3% concession “Talent Fee” crowdsources the $20.5M cap from the fanbase. High school NIL is permitted—competitive advantage over Mississippi. Coaches have liability protection for roster decisions affecting NIL.

What Arkansas Athletes Can Do

College Athletes:

Receive direct revenue sharing from institution ($20.5M cap)—TAX FREE under Act 839; Receive coach/AD facilitation of NIL deals; Sign endorsement deals with brands; Monetize social media accounts; Earn from camps, clinics, and training; Sell autographs and merchandise; Make paid personal appearances; Hire agents and attorneys for NIL contracts; Use school logos and uniforms in NIL content; Receive fan support through platforms like RallyFuel.

High School Athletes:

Sign commercial endorsements (no school affiliation); Monetize social media accounts; Earn from autograph signings; Build personal brand separate from school; Prepare for college NIL opportunities.

What Arkansas Athletes Cannot Do

College Athletes:

Cannot endorse “sin industries”: adult entertainment, alcohol, tobacco, vaping, gambling, cannabis, prescription pharma, firearms; International students (F-1 visa): Cannot engage in “active” NIL—passive royalties may be permissible.

High School Athletes:

Cannot use school uniforms, logos, or facilities in NIL content; Cannot accept pay-for-play (performance-contingent); Cannot accept NIL as recruitment inducement; Cannot endorse “sin industry” categories.

Both:

College: Revenue sharing from university is STATE TAX FREE (Act 839); Third-party endorsements still subject to Arkansas state income tax (~3.9%) + federal + self-employment; Must maintain academic eligibility.

Compliance Requirements

For College Athletes:

Disclose NIL contracts to school compliance office; Work with in-house Director of NIL Strategy; Utilize coach/AD facilitation for deal-brokering; Verify deals avoid “sin industry” categories (codified in state law); File taxes: Revenue sharing (university) = state tax free; Third-party deals = taxable; International students: Consult international office—”active” NIL prohibited.

For High School Athletes:

NEVER use school logos, jerseys, or facilities; NEVER accept pay-for-play; NEVER accept NIL as recruitment inducement; Avoid all “sin industry” categories; Maintain strict separation from school identity.

For Parents:

For college: Review all contracts; Understand Act 839 tax exemption applies ONLY to institutional payments; Third-party endorsements still taxable at ~3.9% state + federal; Coaches are legally protected—cannot sue for roster decisions affecting NIL; For high school: Arkansas permits HS NIL (advantage over Mississippi); Ensure strict separation from school identity; Consider consulting an attorney for significant deals.

How Fans Support Arkansas Athletes

Arkansas has passionate Razorback fans—from Donald W. Reynolds Stadium to Bud Walton Arena—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable Arkansas fans to support athletes at:

• University of Arkansas – SEC
• Arkansas State – Sun Belt
• UALR, UCA – Various conferences
• All sports, not just football and basketball

The 3% “Talent Fee” — How Fans Already Support:

Every concession purchase at Razorback games includes a 3% “Student-Athlete Scholarship Enhancement Fee.” This fee directly funds the $20.5M revenue-sharing pool. You’re already supporting athlete compensation when you buy a hot dog or beer.

How It Works:

1. Create an account on RallyFuel.com or the mobile app
2. Select your Arkansas school affiliation
3. Browse verified athletes currently on your program’s roster
4. Fuel athletes you want to support
5. Track your support through your fan dashboard

How It Works: When you purchase Fan Fuel, you’re purchasing Conditional NIL Engagement Rights (CNERs). If conditions are met, RallyFuel or its affiliate offers an NIL Agreement to the athlete. If conditions aren’t met—for example, if an athlete transfers—you receive an automatic refund.

Conditional Protection: RallyFuel’s conditional model protects Fan Fuel with automatic refunds if athletes transfer or conditions aren’t met. Arkansas fans can support players without financial risk.

Important: Fan support through RallyFuel is voluntary and conditional. Fuel purchases are not charitable donations. RallyFuel is not a guarantor that any athlete will accept an NIL Agreement. Purchasing Fan Fuel does not guarantee athletic performance, playing time, or any specific outcome.

High School Athletes:

Arkansas high school athletes may pursue NIL opportunities provided they maintain strict separation from school identity. Arkansas is one of the states that permits high school NIL—a competitive advantage for in-state talent.

Learn More About the NIL Landscape

Name, Image, and Likeness plays an increasing role in college sports, and understanding how it works often requires more than individual articles or news updates.

RallyFuel is a platform focused on NIL-related topics across college athletics. It brings together information about athletes, NIL activity, and the broader structure behind modern college sports, helping readers explore the topic in more depth.

Visit RallyFuel

Frequently Asked Questions

Is NIL income tax-free in Arkansas?

PARTIALLY. Act 839 (April 2025) exempts NIL income received from the institution or athletic association (revenue sharing payments) from Arkansas state income tax. However, third-party endorsements (car dealership deals, social media sponsorships, etc.) remain taxable at ~3.9% state rate + federal + self-employment.

Can Arkansas high school athletes do NIL?

Yes. Arkansas permits high school NIL with restrictions (no school logos, no pay-for-play). This is a competitive advantage over Mississippi, which prohibits high school NIL until the athlete signs a National Letter of Intent.

What is the 3% “Talent Fee”?

In November 2024, AD Hunter Yurachek announced a 3% “Student-Athlete Scholarship Enhancement Fee” on all concession stand purchases at athletic venues. Every hot dog, soda, and beer sold at Razorback games directly subsidizes the athlete revenue-sharing pool. This crowdsources the $20.5M cap from the general fanbase.

What happened to Arkansas Edge?

Arkansas Edge (Blueprint Sports) launched November 2023 as the official NIL collective. On October 15, 2025, the university ended the relationship and moved NIL operations in-house with a “Director of NIL Strategy.” Rationale: House settlement made third-party administrator fees inefficient now that universities can pay athletes directly.

Can coaches help with NIL deals in Arkansas?

Yes. Act 589 (2023) explicitly grants institutions the right to “identify, create, facilitate, and enable” NIL opportunities. Coaches and ADs can legally act as deal-brokers. Additionally, coaches have a liability shield—they “shall not be liable” for damages related to athlete NIL (e.g., benching decisions affecting endorsement value).

What happens if an athlete I supported transfers?

If an athlete transfers or selects a different school during the conditional period, you receive an automatic refund to your original payment method. No manual request is required.

Arkansas: The Natural State Advantage

Arkansas has engineered competitive advantage against wealthier SEC rivals through aggressive legislative creativity. Act 839’s state income tax exemption neutralizes Florida, Texas, and Tennessee’s zero-tax advantage. The 3% concession “Talent Fee” crowdsources the $20.5M revenue-sharing cap from the fanbase. Act 589’s “emergency” deregulation allows coaches to broker deals with liability protection. Arkansas Edge was internalized to eliminate third-party fees. High school NIL is permitted—competitive edge over Mississippi.

For college athletes ready to maximize their NIL potential, RallyFuel provides fan-powered support with conditional protection. Explore verified Arkansas athletes and start fueling today.