States pour taxpayer dollars into college sports as athlete pay, soaring costs squeeze budgets
States are directing millions in tax revenue and budget support to athletics as public programs face rising expenses and higher athlete payments.
- States are increasingly using tax revenue to support college athletic departments as universities face rising costs, with North Carolina, Wisconsin, and Louisiana directing millions through sports betting taxes and facility debt relief.
- Legal settlements since last year allowed schools to pay athletes directly, with the NCAA cap rising to $21.3 million this school year, forcing athletic programs to generate more revenue to remain competitive.
- Wisconsin lawmakers allocated $14.6 million for facility debt at the University of Wisconsin-Madison, while New Jersey's budget provides $5 million for "events attraction and marketing" at Rutgers, freeing universities to redirect funds elsewhere.
- Amy Privette Perko, CEO of the Knight Commission on Intercollegiate Athletics, warns that without spending restraints, public funding could "finance the next stage of the arms race," as competitors argue this creates pressure on other states.
- Pending U.S. Senate legislation, the Protect College Sports Act could increase athlete payment caps to $50 million annually, potentially reducing third-party NIL demand while further intensifying the financial competition among schools.
54 Articles
54 Articles
States are pouring taxpayer dollars into college sports as athlete pay strains budget
A legal settlement last year allowed higher education institutions to directly pay athletes a total of about $20.5 million annually, on top of any scholarships and other NIL deals they receive
States pour taxpayer dollars into college sports as athlete pay, soari
Win or lose, the North Carolina Tar Heels already will be in elite company when they kick off the college football season against Texas Christian University in a game played in Dublin. They will be among a small but growing number of athletic programs receiving taxpayer funding from their home states. With universities competing to pay athletes millions of dollars, some states now are propping up their strained sports budgets in ways not previou…
Associated Press News
States pour taxpayer dollars into college sports as athlete pay, soaring costs squeeze budgets
A growing number of states are providing tax dollars to university athletics. The move comes as major college sports programs now are paying millions of dollars to athletes.
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