In Tennessee, a ‘talent fee’ is being added to the price of sports tickets. Arkansas plans to charge an additional 3% at concession stands. Michigan and Michigan State athletic directors have warned boosters that the cost of winning is on the rise. Clemson is introducing an athletic surcharge on tuition bills for the first time.
Big-time college sports have never been free, but the financial burden on fans is increasing in an era where players can earn money and be paid by their schools. “College athletics hasn’t professionalized as much as I think it was capable of,” said Nels Popp, a sports-business professor at the University of North Carolina. He suggests that schools still rely heavily on fans’ emotional, long-held school ties more than on bottom-line marketing strategies. This changing landscape is, according to Popp, pushing schools toward more professionalized revenue models.
When the NCAA approved payments to players for the use of their names, images, and likenesses (NIL) in 2021, boosters who once contributed directly to schools began channeling money through collectives—independent organizations structured to raise funds and pay athletes. These collectives are becoming increasingly intertwined with universities.
A $2.8 billion lawsuit settlement is poised to take effect next year, keeping NIL deals intact while introducing multimillion-dollar changes:
— Schools with sufficient funds will be able to share up to $22 million in annual revenue with athletes, sourced from ticket sales, TV contracts, and other revenue streams. The top recruits will heavily influence this redistribution.
— The NCAA will decrease the amount of money it distributes to over 350 Division I schools annually due to a $1.2 billion payout in damages, with conferences covering the remaining settlement amount. Consequently, less money will be available from the NCAA’s lucrative men’s basketball tournament.
— Schools will be permitted to offer more scholarships across all sports, a costly endeavor. For example, a school could increase football scholarships to a total of 105. Michigan athletic director Warde Manuel estimated that additional scholarships could add $29 million in education costs to the department’s expenses—excluding 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 option Michigan is considering is placing advertising inside Michigan Stadium, breaking a long-standing tradition. The school also surveyed fans about the possibility of paying between $3,000 and $4,000 for a new tranche of chairback seats, which are typically reserved for club sections at The Big House.
However, not all fans are on board amid ‘donor fatigue.’ In 2023, it cost about $180 for two fans to attend a college football game, compared to $340 for an NFL game. College sports avoided the costliest expense of pro teams—player salaries. But with NIL and the upcoming lawsuit settlement, this dynamic is changing. Michigan State AD Alan Haller indicated that the ’25-26 budget would include an additional $25 million to $30 million in 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.”
While some fans may continue to financially support the players and the team’s success, retaining their right to buy game tickets, others are hesitant. Mike Bouchard, a Michigan State fan, expressed his reluctance, highlighting the high cost of education. “There’s absolutely no way I’m going to dig into my pocket over and above that amount. Tell them to use their hundreds of millions in endowments,” he said. Similarly, Ann Arbor resident Michael Ketslakh said, “I think it’s excessive. It’s bad for the sports.”
Rick Karcher, the faculty athletics representative at Eastern Michigan, emphasized that fans are often willing to absorb the costs because they view athletics as separate from the university, unlike in professional sports where profits go to billionaire owners.
Schools are seeking various ways to manage higher costs. Texas Tech, for instance, added $14.7 million to its athletic budget this fiscal year—a $9 million increase from the previous year. “If any unit on this campus was facing a 20-something-percent cut in their revenue, we would have to look at how we might respond, and we will in this case,” said school President Lawrence Schovanec.
Not all schools follow the same model. Florida sports are managed by the University Athletic Association, which not only funds the sports but also contributes back to the school. A student-produced story revealed that UF sports revenue was the eighth highest in the nation, bolstered by significant contributions from major boosters.
Despite the focus on large donations, smaller contributions are essential to keep college sports running. Tennessee garnered attention when AD Danny White announced a 10% ‘talent fee’ for 2025 football ticket renewals, in addition to a 4.5% ticket price increase. “That connection between resources and competitiveness has never been tighter,” said White. “Only now we have the ability to share these resources with our athletes.”
Arkansas AD Hunter Yurachek highlighted the critical nature of revenue maximization when announcing a 3% concession fee increase. Clemson, known for not charging fees or ticket prices to students, aims to raise $7 million to $8 million by adding a $150 ‘athletic fee’ per semester to tuition. “I think it’s kind of ridiculous,” said Clemson student Sam Gault, but acknowledged that the fee may be justified given the school’s successful sports teams.
The pursuit of big wins comes with big costs, and the sustainable funding of competitive teams is far from certain. As Popp from North Carolina pointed out, athletic departments need to figure out what financial concessions fans are willing to make.
