Tennessee Raises Ticket Prices to Fund College Sports Revenue Sharing

The University of Tennessee is raising its season ticket prices across all its sports by 10% to prepare for athletes starting to get a cut of the school's sports revenue.

• The university is calling its hike a "talent fee," which will help fund the proposed revenue share for its student-athletes.
• The move comes in anticipation of a proposed settlement involving three cases the NCAA is named in, which could go into effect as soon as July 1, 2025.

College Sports Revenue Sharing Settlement

The proposed settlement would give $2.78 billion in backpay to student-athletes and would allow schools to pay players up to 22% of the Power Five schools' average athletic revenue in a given year going forward.

• It would also get rid of a cap on scholarships.
• A judge has yet to approve the settlement and has expressed concerns over some of the terms.

Tennessee Athletic Department's Response to College Sports Changes

Tennessee athletic director Danny White said that as the collegiate model changes, the university needs to remain flexible and continue leading the way.

• He emphasized that the connection between resource and competitiveness has never been tighter.
• He also pointed out that the university now has the ability to share these resources with its student-athletes.

Impact of Changes on Tennessee Volunteers Fans

The changes will go into effect beginning with the 2025 football season and will also include a 4.5% hike on single-game tickets.

• This will likely impact the cost of attending Tennessee Volunteers games for fans.
• The university is already among the top athletic departments in the country, coming in at eighth overall for total operating revenue in the 2022-23 season.

Impact of Name, Image, and Likeness (NIL) on College Sports

College athletes have been permitted to profit off their name, image and likeness since 2021, which has dramatically changed college sports.

• Star athletes have been able to sign big endorsement deals, but universities have not started direct revenue sharing, which would benefit more student-athletes.
• This proposed revenue-sharing settlement could usher in a new era for college sports.

Potential Implications of College Sports Revenue Sharing

The potential impact of revenue sharing on college sports is significant, as it could change the landscape of the NCAA.

• It could lead to greater financial support for student-athletes.
• It could also create a more competitive environment for schools, as they would have more resources to attract and retain talent.