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Prisoner's dilemma

Let us read it for you. Listen now. Your browser does not support the audio element. Gov. Sarah Sanders recently signed an amendment to the Arkansas Student-Athlete Publicity Rights Act into law. When she did so, Arkansas became the first state to exempt name, image, and likeness (NIL) earnings from state income tax liability. Many […]

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Prisoner's dilemma

Let us read it for you. Listen now.

Gov. Sarah Sanders recently signed an amendment to the Arkansas Student-Athlete Publicity Rights Act into law. When she did so, Arkansas became the first state to exempt name, image, and likeness (NIL) earnings from state income tax liability. Many other states appear to be following in Arkansas’ footsteps.

Because NIL allows student-athletes to use their personal brands to earn income, schools with more robust NIL opportunities have a recruiting edge. By exempting NIL earnings from income taxes, this new law aims to provide Arkansas’ college sports programs with an advantage over rivals.

Unfortunately, this new law means the state of Arkansas has walked right into a prisoner’s dilemma.

The prisoner’s dilemma is a particularly useful game-theory model for understanding strategic behavior. In the classic model, two criminals are suspected of committing a major crime. The police have evidence to convict each criminal of a minor crime, but do not have enough evidence to convict either one of a major crime. The police separate the two criminals where each criminal has a decision to make: Remain quiet or inform on the other.

The outcome for each criminal, though, depends on the actions of the other. Consider two criminals, Tom and Jerry. If both remain quiet, each will serve a one-year jail sentence for the minor crime. If one informs while one remains quiet, the informant will receive immunity while the other receives a five-year jail sentence. If both inform, each receives a four-year jail sentence.

To decide what he will do, Tom considers both his own self-interest and Jerry’s actions. Should Jerry remain quiet, Tom can avoid jail altogether by informing. Should Jerry inform, Tom can reduce his prison sentence from five to four years by also informing. No matter what Jerry does, Tom’s best option is to inform. We arrive at the same conclusion if we consider Jerry’s decision process.

Because each criminal has the incentive to inform on the other, both Tom and Jerry receive four-year prison sentences. But this is not the best outcome they could have achieved. Tom and Jerry would have been better off if they remained quiet and received only one-year prison sentences. That is, the competition between the individuals led to a worse outcome for the group than cooperation would have.

This prisoner’s dilemma model can be applied to the competition between states over NIL tax policy. Consider SEC football foes Arkansas and Georgia. Each state must decide whether to tax or exempt NIL earnings. If neither state exempts NIL earnings from taxation, each football program will attract its natural share of talent based on the caliber of the team, the playing time recruits can expect, coaching quality, and the proximity of the team to players’ families, among other factors. If one state taxes NIL earnings, the other state has an incentive to exempt them. The exempting state can increase its share of talent because recruits keep more of their NIL payments.

If instead, one state exempts NIL earnings, the other state still has an incentive to exempt NIL payments. To do otherwise would be to risk losing talented recruits to the program where players keep more of their NIL earnings. If both states exempt NIL earnings from taxation, both teams will earn their natural share of talent as before, but will do so at a fiscal cost. (In this case, both states give up tax revenue they previously collected.)

Just as in the classic prisoner’s dilemma, both the state of Arkansas and the state of Georgia have the incentive to exempt NIL earnings from state tax liability, regardless of what the other state does. The Arkansas and Georgia football teams will attract their natural share of talent, but the states will both forgo tax revenue.

The competition for the best recruits will lead Arkansas and Georgia to a worse outcome than they would have obtained by agreeing not to exempt NIL earnings from income-tax liability.

Solving the prisoner’s dilemma requires that the states cooperate with each other rather than compete. The dilemma, though, is that each state has a strong incentive to break any agreement to resist exempting NIL earnings from taxation.

The solution, then, is to turn to federal legislation to set a national standard for NIL policy that is enforceable. This is why we have seen the likes of SEC Commissioner Greg Sankey and former Alabama football coach Nick Saban head to Washington.


Jacob Bundrick is a lecturer of economics at the University of Central Arkansas. The views expressed are the author’s and do not necessarily reflect the views of UCA.

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Tennessee Guard Sues to Have NCAA Four-Year Restriction Lifted

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Shelby Schultz named to 2025 CSE DI Freshman All-American Team, top freshman on the All-American Team

Story Links STEPHENVILLE, Texas – The honors keep rolling in for the freshman southpaw as she was named to the 2025 CSE DI Freshman All-American Team.   In 2023, College Sports Evaluation (CSE) developed a method for selecting All-American honorees based solely on objective data, with the aim of recognizing […]

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STEPHENVILLE, Texas – The honors keep rolling in for the freshman southpaw as she was named to the 2025 CSE DI Freshman All-American Team.
 

In 2023, College Sports Evaluation (CSE) developed a method for selecting All-American honorees based solely on objective data, with the aim of recognizing athletes who deserve national attention—regardless of the school they attend or the conference in which they compete. The only factor considered in the All-American selections is in-game data, analyzed by CSE’s Data & Analytics Team.
 

Schultz is one of four freshman pitchers to earn the honor and holds the lowest aFIP out of the four at 2.426 and leads the pack. aFIP is Adjusted Fielding Independent Pitching. This stat considers only what the pitcher can control (Ks, HRs, BBs, & HBPs) and doesn’t account for above or below-average defensive play behind the pitcher. The adjustment made to FIP considers the average offensive rating of their opponents. Offensive rating is determined by the average number of runs scored. If pitchers play against teams with an above-average offensive rating, their FIP would improve.
 
The freshman ace for the Purple and White is just one of 51 Division I softball players to earn the honor and just one of 17 to be named to the freshman team.
 
The rock slinger for the Texans ended her first collegiate season leading the team in low ERA (2.44), wins (15), appearances (33), complete games (7), saves (3), innings pitched (143.2), and strikeouts (173). In the nation Schultz ranks 15th in strikeout-to-walk ratio (4.81), 26th in strikeouts per seven innings (8.4) and 27th in total strikeouts (173). She also ranks 59th in saves with three.
 
With her efforts in the circle early in the season, the southpaw became the first freshman since 2017 and first in the Texans Division I era to earn the victory in their freshman debut. April 4, 2025 was another historic day for the ace as she struck out her 100th batter of the season. Previously Withrow (2017) held the record for the fastest to hit 100 K’s at 25 appearances before Schultz shatter that doing it in just 19 appearances and becoming the first in the Purple and White’s Division I era to do so.
 
April 15 was another grand day for Schultz as she hit strikeout No. 125 followed by No. 150 just days later on April 25. Schultz ended the season sitting at 173 all-time strikeouts as she will look to take care of that in her first appearance of the 2026 season with the Texans.
 
In addition to the CSE honor, Schultz has been named WAC Freshman of the Year, All-WAC First-Team, WAC All-Tournament Team, NFCA All-Region Second Team and NFCA All-American Nominee.
 
For the latest news on the Texans, follow Tarleton Softball on Facebook, Instagram and X @tarletonsoftball.
 





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Jackson Cantwell’s NIL Deal Sparks Debate Across College Football

The Miami Hurricanes made a lot of waves when they gave 2026 top offensive line prospect Jackson Cantwell a massive NIL package. The high-school star committed to the Canes last week. Since then, plenty of people have weighed in on the deal that will allocate about 10% of their available money to a player who […]

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The Miami Hurricanes made a lot of waves when they gave 2026 top offensive line prospect Jackson Cantwell a massive NIL package. The high-school star committed to the Canes last week. Since then, plenty of people have weighed in on the deal that will allocate about 10% of their available money to a player who will not even be able to step on the field for a full season. There have been mixed opinions on the deal from college football sources. This is what they had to say…

“If you can pay it, do it. Go get that guy… If it’s coming out of the rev share, there’s no f—ing way. That’s a quarterback or a starting left tackle. Cantwell is going to start his career and be at best a quality starter. Not a great one. Not an elite one.”

“Yeah, but you can only have one of them. You have to invest up front, and that’s what the market is around. You gotta be damn sure (they’re the one).”

“I don’t find that to be the most effective way to build a roster long term. But in reality, yes, some teams are going to spend that on a premium position or two each class because either they badly need the position in the short term or maybe they just don’t want to play against them for three-plus years.”

“It’s an interesting case study.”

Miami’s aggressive NIL investment in Jackson Cantwell reflects a win-now mentality that’s becoming more common in the modern recruiting landscape. Whether it sets a new precedent or becomes a cautionary tale will depend on Cantwell’s development—and how well the Hurricanes manage the rest of their roster around him.



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Ole Miss Football Safety, Sought

Ole Miss safety Shamaar Darden has entered the NCAA Transfer Portal after two seasons in Oxford, according to 247Sports. Darden, who recently wrapped up his redshirt-freshman campaign with the Rebels, entered during the spring window last month. The Mississippi native was a full participant during the program’s Spring Camp, but has since made the move […]

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Ole Miss Football Safety, Sought

Ole Miss safety Shamaar Darden has entered the NCAA Transfer Portal after two seasons in Oxford, according to 247Sports.

Darden, who recently wrapped up his redshirt-freshman campaign with the Rebels, entered during the spring window last month.

The Mississippi native was a full participant during the program’s Spring Camp, but has since made the move to test the free agent market.

Darden signed with the Ole Miss Rebels in the 2023 Recruiting Cycle as a three-star prospect and. a Top-30 safety in the nation.

The Ole Miss Bio: “A unanimous three-star prospect by all major recruiting outlets … Listed as the No. 93 safety in the nation by On3 … Rated as No. 28 player in the state of Mississippi by 247Sports.

“Competed in three games and recorded nine total tackles, four being solo, three interceptions, two pass breakups and a quarterback hurry before suffering an ankle injury to end his senior season.

“Brought down 73 total tackles, 49 being solo, with three tackles for loss, eight pass breakups, one forced fumble and a blocked punt in 12 games as a junior.

“Tallied 87 career tackles, 56 solo tackles and 13 pass breakups for the Golden Waves … Chose Ole Miss over offers from Southern Miss, Jacksonville State and UTSA among others … Coached by Ty Hardin.”

Ole Miss has seen multiple departing Rebels via the spring window find new homes this month after stints in the NCAA Transfer Portal.

Where have the departing Rebels landed?

Pierce Clarkson: Quarterback

Clarkson, who transferred to Kiffin’s program during the winter window of the portal, elected to depart following less than five months in the Magnolia State.

After two seasons with Louisville, the 6-foot-1, 195-pounder made the move to Oxford after seeing limited playing time time with the Cardinals.

Then, he made the decision to hop back in the portal with the attention of multiple Power Four schools.

Ole Miss handed the keys to youngster Austin Simmons during Spring Camp where he will look to take over following the departure of Jaxson Dart.

It was Simmons and Clarkson who competed for meaningful reps with Kiffin and Co. ultimately rolling with Simmons, leading to the departure of the former Louisville signal-caller.

After a stint in the NCAA Transfer Portal, Clarkson has now found his new home after committing to the UCLA Bruins on Tuesday.

Akelo Stone: Defensive Lineman

Stone, who initially joined Lane Kiffin’s program after three seasons with the Georgia Tech Yellow Jackets, appeared in 11 games for the Rebels in 2024.

After double-digit appearances, Stone finished the season with 15 tackles, 2.0 tackles for loss, 1.5 sacks, one quarterback hurry and a pass breakup last season.

Stone played 286 snaps for the Rebels while taking reps with both the defensive unit and the special teams unit throughout his time with Ole Miss.

He wrapped up his stint in Oxford with 27 total tackles (12 solo), 2.5 tackles for loss, 2.5 sacks, four quarterback hurries, one forced fumble and a pass breakup across two seasons.

Now, he’s made his decision. Stone will make a return to the Georgia Tech Yellow Jackets for his final season of eligibility.

Other Departures to Know:
– OL Cam East: Tulsa
– Jordon Simmons: Georgia State
– Jordan Smart: Arkansas State

The 2025 NFL Draft Recap: Ole Miss Sees Multiple Rebels Selected

Ole Miss Lands Commitment From Sought-After Transfer Safety

Super Bowl Champion, Ole Miss Star Wide Receiver AJ Brown Earns Prestigious Honor

Follow Zack Nagy on Twitter: @znagy20 and Ole Miss Rebels On SI: @OleMissOnSI for all coverage surrounding the Ole Miss program.

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Jackson Cantwell’s NIL Deal Sparks Debate Across College Football

The Miami Hurricanes made a lot of waves when they gave 2026 top offensive line prospect Jackson Cantwell a massive NIL package. The high-school star committed to the Canes last week. Since then, plenty of people have weighed in on the deal that will allocate about 10% of their available money to a player who […]

Published

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The Miami Hurricanes made a lot of waves when they gave 2026 top offensive line prospect Jackson Cantwell a massive NIL package. The high-school star committed to the Canes last week. Since then, plenty of people have weighed in on the deal that will allocate about 10% of their available money to a player who will not even be able to step on the field for a full season. There have been mixed opinions on the deal from college football sources. This is what they had to say…

An SEC Director of Player Personnel:

“If you can pay it, do it. Go get that guy… If it’s coming out of the rev share, there’s no f—ing way. That’s a quarterback or a starting left tackle. Cantwell is going to start his career and be at best a quality starter. Not a great one. Not an elite one.”

An ACC Director of Player Personnel:

“Yeah, but you can only have one of them. You have to invest up front, and that’s what the market is around. You gotta be damn sure (they’re the one).”

An SEC Director of Scouting:

“I don’t find that to be the most effective way to build a roster long term. But in reality, yes, some teams are going to spend that on a premium position or two each class because either they badly need the position in the short term or maybe they just don’t want to play against them for three-plus years.”

A Big 12 Director of Player Personnel:

“It’s an interesting case study.”

Miami’s aggressive NIL investment in Jackson Cantwell reflects a win-now mentality that’s becoming more common in the modern recruiting landscape. Whether it sets a new precedent or becomes a cautionary tale will depend on Cantwell’s development—and how well the Hurricanes manage the rest of their roster around him.

More Miami Hurricanes News:





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Videos

  Published by   Today, 5:01pm In Episode #1 of the ‘2025 Brooks NIL Program,’ follow high school standouts Joe Barrett, Ben Crane, Clemmie Lilley, Alexa Matora, Sidi Njie, Vincent Recupero, and Victoria Rodriguez as they take in their trip to Seattle and Brooks HQ. The group talks to Brooks sports marketing and product leads, seeing unreleased shoes and gear and giving their […]

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Published by   Today, 5:01pm

In Episode #1 of the ‘2025 Brooks NIL Program,’ follow high school standouts Joe BarrettBen CraneClemmie LilleyAlexa MatoraSidi NjieVincent Recupero, and Victoria Rodriguez as they take in their trip to Seattle and Brooks HQ.

The group talks to Brooks sports marketing and product leads, seeing unreleased shoes and gear and giving their feedback, share why they wanted to be part of the inaugural Brooks NIL class, and learn what it means to be a Brooks athlete and the unwavering support they’ll receive from the company.

Watch the Brooks NIL team compete live at the Brooks PR Invitational on Sunday, June 8 on RunnerSpace HERE >>

 
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