State funds cover facilities and overhead, freeing university budgets for athletes
The University of North Carolina at Chapel Hill’s athletics program is receiving $3 million from state sports betting taxes for the first time this year, according to the AP. The allocation comes as the Tar Heels prepare to open the college football season against Texas Christian University in a game played in Dublin.
Wisconsin lawmakers approved $15 million for athletic costs at the University of Wisconsin. Connecticut and Louisiana also are using tax dollars to support college athletics, and the AP reported that more states have considered similar measures.
The funding flows to facilities and administrative costs that schools would otherwise bear — not directly to athletes. By taking on those overhead expenses, the states free universities to use their own budgets for other purposes, including athlete compensation.
The mechanism reflects the strain on university athletic budgets as schools compete to pay athletes millions of dollars. Some states are stepping in to prop up programs in ways not previously seen, the AP reported.
Daniel McIntosh, faculty director of the sports business program at Arizona State University, said the dynamic amounts to competitive pressure among states. “Once one state provides that kind of assistance, schools in competing states can argue that they are being placed at a competitive disadvantage, which could create additional pressure on legislatures to respond,” McIntosh said.
The four states identified by the AP represent a small but growing share of the country’s major athletic programs. The AP described the pattern as an emerging trend, and sports business analysts said the competitive dynamic McIntosh outlined is likely to draw the attention of more state legislatures.