Tennessee to add surcharge to tickets to pay athletes

The University of Tennessee will charge fans a 10% “talent fee” on tickets to help pay student-athletes. This decision is a part of the new revenue-sharing plan that is on pace to begin in 2025.

BREAKING: Tennessee plans to increase tickets by 10%-15% by 2025 due to the new revenue sharing rules. 💵

Players will soon be getting a portion of ticket revenue, so every school will be doing this.

Once again, the Vols are ahead of the curve… 📈 pic.twitter.com/6YKv6jqMxx

— Tennessee Volunteers (@Volology) September 17, 2024

Adapting to New Systems

The NCAA revenue-sharing plan is part of a settlement between the NCAA and power conferences in the House vs. NCAA case that would allow schools to share up to $22 million of their annual revenue with athletes.

For schools like UT, about $30 million will be needed each year to support revenue sharing and increase scholarships. This is the reason behind the rise in ticket prices.

The program estimates that roughly $7.5 million will be accounted for via this “talent fee”.

Unprecedented Athletic Dominance

In 2023, UT athletics saw its highest operating revenue stream in history at more than $200 million. This figure broke the old record by almost $50 million.

At many larger universities across the country, football serves as the primary source of funding for various other sports. The Vols have achieved 15 consecutive sellouts at Neyland Stadium and topped the SEC in total home attendance in 2023, drawing 713,405 fans, which averages to 101,915 per game.

Most importantly, Tennessee is experiencing notable success outside of football. The Volunteers became the first school in SEC history to win a conference championship in men’s basketball, baseball and softball in the same year.

Additionally, their baseball team took it a step further by winning the College World Series in June. It was the school’s first baseball national championship in program history.

The Fan’s Perspective

Ticket renewals will start Thursday and run through the end of February. UT is providing fans the option to divide their payments over 10 months. This offer looks to help ease the impact of the cost increase.

Ultimately, ensuring that fans can adapt to this change as easily as possible is vital in maintaining support and trust. Sports broadcaster Vince Ferrara spoke about the dynamic between these business decisions and the fans it affects.

As the industry continues to trend in this direction, programs will continue to look for innovative ways to adapt to changes.