College athletes are getting paid, and fans are starting to see a bigger share of the bill

It’s like that in Tennessee adding a “talent fee” to the price of sports tickets. In Arkansas, concession stands will charge 3% more. At Michigan and Michigan State, athletic directors sent letters warning organizers that victories would cost more. First, Clemson will start adding sports surcharge to tuition bills.

Victories in prestigious college competitions have never been free, but in a rapidly changing era where players can earn money and be paid by their own schools, it has never been clearer that fans will take a bigger share of the tab.

“College athletics haven’t professionalized as much as I think they could,” said Nels Popp, a sports business professor at the University of North Carolina, who believes most schools still rely more on emotional, long-term connections school fans than on the basics. -linear marketing strategies. “And now I think it forces them to move in that direction.”

When the NCAA reluctantly approved payments to players for use of their names, images and likenesses (NIL) in 2021, funders who donated to schools and their athletic departments began giving money to collectives — independent organizations that raised money and paid athletes. These collectives are increasingly closely linked to universities.

On A’s terms $2.8 billion settlement due to come into force next year, NIL contracts will remain in full force and schools themselves will have to grapple with other multi-million-dollar changes to their financial performance, including:

— Any school with the money to do so would be able to share as much as $22 million in annual revenues with athletes — money they receive from ticket sales, television contracts and other sources. They may share less, but the best recruits will be at the forefront of the arms race for talent.

— The amount the NCAA pays more than 350 Division I schools each year will decline. The organization is willing to pay about $1.2 billion in damages as part of the settlement, with the rest covered by conferences that receive smaller amounts each year from the NCAA and its lucrative men’s basketball tournament.

— Schools will be able to offer more scholarships in all sports, and that costs money. For example, a school can offer up to 20 additional scholarships for a total of 105 football scholarships. Michigan State athletic director Warde Manuel said adding scholarships in multiple sports could increase the department’s profits by $29 million in education costs. And all this apart from the distribution of income.

“Maintaining high levels of support for our 29 NCAA athletic programs will require a strong commitment from everyone,” Manuel wrote to Wolverines fans last month.

One option for Michigan State could be to place ads in Michigan Stadium, something the Wolverines have consistently avoided doing for decades. The school also sent out a recent survey that asked, among other things, whether fans would be willing to pay $3,000 to $4,000 for a new tranche of chair-back seats, which is rare outside the club sections at The Big House.

In 2023, it cost two fans averages about $180 to attend a college football game AND about $340 for an NFL game. After all, college athletes didn’t have to worry about the biggest expense in a professional team’s budget: player salaries.

NIL has begun to eliminate this, and once the settlement terms go into effect, this dynamic will change even more. Michigan State ADMINISTRATOR Alan Haller told Spartans fans his department’s budget for the 25-26 season will include $25 million to $30 million in additional expenses.

“As a department, we will continue to pursue new opportunities to both generate revenue and reduce costs,” Haller said. “But there is no doubt that your continued generosity and commitment will make a huge difference in our pursuit of excellence.”

Some fans will undoubtedly continue to write checks to keep the players – and hopefully the winnings – coming, while retaining their “rights” to purchase a certain number of football tickets.

A tour of the parking lot before this season’s Michigan-Michigan State game met others who seemed more reluctant.

“The price of education is out of control,” said Mike Bouchard, a Michigan State fan, citing the price tag of more than $55,000 for an out-of-state student to attend his alma mater. “There is absolutely no way I would dip into my pocket for more than that amount. Tell them to use their hundreds of millions to donate.

“Absolutely not,” Ann Arbor resident Michael Ketslakh said when asked if he would give more to support Michigan State athletics. “I think it’s an exaggeration. It’s bad for the sport.”