The same reason every other state supports tacpx breaks.
Why were cities lining up to give amazon tax breaks? Why does California give Hollywood tax breaks?
Were colleges paying tax on the same revenue before nil?
Well let's see, Amazon & Hollywood are creating jobs for the residents.
Hollywood has been dying as more and more film/tv projects are shot in other states or overseas with more generous tax breaks/incentives.
Difference here is that the tax break for NIL doesn't really create any new jobs.
CFB is already played at the highest university level (may help winning a little bit).