BleedGopher
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Per Andy:
Tennessee is preparing for a world in which schools pay athletes directly by charging fans a “talent fee” to pass along to the players.
Though the House v. NCAA settlement that would usher in the era of revenue sharing has yet to be approved by a federal judge, Tennessee athletic director Danny White told On3 that his school will implement a plan to add a 10 percent surcharge to all season and single-game ticket sales. If the settlement is approved, schools would be allowed to pay about $22 million a year to athletes beginning in the 2025-26 school year.
White estimates that with the new roster caps included in the settlement — which would raise the number of available athletic scholarships — the actual cost is closer to $30 million a year. Tennessee hopes to recoup about $10 million of that through the surcharge, which will come in addition to a football ticket price increase averaging 4.5 percent across all seats. Knowing any hike in ticket prices would produce consternation, White and his team decided the best way to handle this one was to explain which part of the new money will be earmarked for the players.
“It’s a talent fee, and it’s going directly to the talent,” White said. “It’s going to our student athletes as part of this new world order in college sports. So I know our fans will embrace it.”
White said the best comparison is restaurants charging large groups an automatic fixed gratuity atop the price of the meal. Tennessee might be the first school to add such a fee, but expect plenty of copycats. As college sports’ economic model evolves, schools will need to find a way to fund player compensation without forcing donors to choose between players and the capital projects and administrative costs they’ve traditionally helped fund.
www.on3.com
Go Gophers!!
Tennessee is preparing for a world in which schools pay athletes directly by charging fans a “talent fee” to pass along to the players.
Though the House v. NCAA settlement that would usher in the era of revenue sharing has yet to be approved by a federal judge, Tennessee athletic director Danny White told On3 that his school will implement a plan to add a 10 percent surcharge to all season and single-game ticket sales. If the settlement is approved, schools would be allowed to pay about $22 million a year to athletes beginning in the 2025-26 school year.
White estimates that with the new roster caps included in the settlement — which would raise the number of available athletic scholarships — the actual cost is closer to $30 million a year. Tennessee hopes to recoup about $10 million of that through the surcharge, which will come in addition to a football ticket price increase averaging 4.5 percent across all seats. Knowing any hike in ticket prices would produce consternation, White and his team decided the best way to handle this one was to explain which part of the new money will be earmarked for the players.
“It’s a talent fee, and it’s going directly to the talent,” White said. “It’s going to our student athletes as part of this new world order in college sports. So I know our fans will embrace it.”
White said the best comparison is restaurants charging large groups an automatic fixed gratuity atop the price of the meal. Tennessee might be the first school to add such a fee, but expect plenty of copycats. As college sports’ economic model evolves, schools will need to find a way to fund player compensation without forcing donors to choose between players and the capital projects and administrative costs they’ve traditionally helped fund.
Tennessee to add 10 percent 'talent fee' to ticket prices to raise money to give to players
Tennessee plans to add a 10 percent "talent fee" to ticket prices that would be used to pay players starting in 2025.
Go Gophers!!
