At Tennessee, they are adding a ‘talent fee’ to the price of sports tickets. At Arkansas, they will charge 3% more at the concessions stands. At Michigan and Michigan State, athletic directors sent letters alerting boosters that winning is going to start costing more. And, in a first, Clemson is going to start adding an athletic surcharge to tuition bills.
Winning at big-time college sports has never been free, but in a rapidly changing era in which players are allowed to earn money and be paid by their own schools, it has never been clearer that fans will be picking up a bigger part of the tab.
“College athletics hasn’t professionalized as much as I think it was capable of,” said Nels Popp, a University of North Carolina sports-business professor who believes most schools still rely on fans’ emotional, long-held school ties more than bottom-line marketing strategies. “And now, I think this is forcing them in that direction.”
When the NCAA reluctantly approved payments to players for use of their names, images and likenesses (NIL) in 2021, boosters who used to give to schools and their athletic departments started funneling money to collectives — independent organizations that raised the money and paid the athletes. Those collectives are becoming more and more closely linked to the universities.
Under terms of a $2.8 billion lawsuit settlement that is on track to take effect next year, the NIL deals will remain in full force and the schools themselves will be dealing with other multimillion-dollar changes to their bottom lines, including:
— Each school with the money to do it will be allowed to share as much as $22 million in annual revenue with athletes — money they get from tickets sales, TV contracts and other sources. They can share less, but top recruits will be front of mind in the arms race for talent.
—The amount the NCAA pays more than 350 Division I schools every year is going to drop. The organization is on the hook to cover some $1.2 billion in damages under the settlement and the rest will be covered by conferences that will see less money shared each year from the NCAA and its lucrative men’s basketball tournament.
— Schools will be allowed to offer more scholarships across all sports and that costs money. For instance, a school could offer up to 20 additional scholarships for a total of 105 in football. Michigan athletic director Warde Manuel said adding scholarships across sports could add $29 million in education costs to the department’s bottom line. And that’s on top of the revenue sharing.
“Maintaining a high level of support for our 29 NCAA athletic programs will take an elevated commitment from everyone,” Manuel wrote to Wolverines fans last month.
One possibility for Michigan might be placing advertising inside of Michigan Stadium, a practice the Wolverines have steadfastly avoided over the decades. The school also sent out a recent survey asking, among other questions, if fans were willing to pay between $3,000 and $4,000 for a new tranche of chairback seats, which are rare outside of club sections at The Big House.
Not all fans are signing on amid ‘donor fatigue’
In 2023, it cost two fans an average of around $180 to attend a college football game and about $340 to go to an NFL game. After all, college sports didn’t have to worry about the biggest expense on a pro team’s budget — player salaries.
NIL started chipping away at that, and once the terms of the lawsuit settlement go into effect, that dynamic will shift even more. Michigan State AD Alan Haller told Spartans fans his department’s ‘25-26 budget will include between $25 million to $30 million in added expenses.
“As a department, we will continue to explore new opportunities for both revenue generation and cost containment,” Haller said. “However, without a doubt, your continued generosity and involvement will be paramount to our quest for excellence.”
Some fans will undoubtedly keep writing checks to keep the players — and hopefully, the wins — coming, along with retaining their “rights” to buy a certain number of tickets for football games.
