NIL has been a major talking point in college athletics for years at this point. Revenue sharing has recently been in the news with the House v. NCAA settlement speculation. If the settlement is approved, schools would be allowed to pay their student athletes about $22 million a year, beginning in the 2025-2026 school year. With the new roster caps included in the settlement, the actual payouts could actually reach around $30 million.
This clearly affects programs of all sizes, as the new model would allow for big money programs to spend more than anyone else. It was reported in the summer Ohio State University had an NIL budget for their football team of around $20 million for the 2024 season. Now, the University of Tennessee has a plan to alleviate some potential budget issues with a “talent fee” surcharge being added to all season tickets and single-game tickets.
Plans to Supplement NIL and Combat Budget Constraints
In an interview with On3, Tennessee Athletic Director Danny White said the school will implement a plan to recoup $10 million of the revenue share through a “talent fee” surcharge. The fee would be added to all season tickets and single-game tickets.
“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.”
Schools are needing to come up with new and creative ways to pay their student athletes without taking away from the school budget. In most instances, donor money has been earmarked for other projects outside of athletics. With NIL and now the potential revenue sharing settlement, athletic departments and collectives are now getting clever with their fundraising.
NCAA Settlement Still Awaiting Approval
The settlement has still not been approved as of yet. Judge Claudia Wilkes recently declined to grant preliminary approval because it calls for the NCAA to police boosters. They have now gone back to the negotiating table to clarify the language of the settlement in order to avoid antitrust lawsuits. If approval is declined, schools could opt to take the case to trial.
Tennessee could not wait for the settlement to be approved in order to raise the money needed for their athletes. Danny White explained such in the On3 interview.
“You’re trying to solve a problem when you don’t know a lot of the details. We’re doing different scenarios all the time, but we can’t just put a 10 percent fee in the laps of our fans with a month before the season starts,” White said. “We have to be prepared. There are financial realities. In any scenario, it’s going to become more expensive to compete at the level we want to compete at.”
With schools and athletic departments needing to evolve in order to stay competitive, some have argued for several different solutions. From making student athletes employees of the school to reallocating earmarked donations, its obvious athletic departments are trying to do anything and everything they can think of. Outside of NIL, the revenue sharing is a school obligation few universities can take on without coming up with unique ideas.
For More Great Content
Are you desiring top-tier content that covers everything? From thrilling sports and intoxicating entertainment news to gaming tips and professional betting advice, Total Apex covers it all. Delve into our no-fluff articles to stay ahead of the game with the latest sports action, uncover the hottest trends in entertainment, and get the latest scoops in the gaming industry that will take your experiences to the next level.
Finally, our betting advice will give you a decisive edge over the competition and increase your odds of beating the books. Whether you’re looking to stay updated or gain a competitive edge, Total Apex is your one-stop shop for all things compelling and relevant. Don’t forget we cover Fantasy Sports, too!
Check out all our sites: Total Apex Sports, Total Apex Fantasy Sports, Total Apex Entertainment, Total Apex Sports Bets, and Total Apex Gaming. Out of the ashes of obscurity will rise a beast. Always remember to Respect The Hustle! Follow us on Twitter/X @TotalApexSports to stay informed.
