EDITORS/NEWS DIRECTORS:

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. The financial battle for the best athletes has strained many athletic departments, which are now running deficits.

North Carolina and Louisiana are earmarking sports betting taxes for their universities. Wisconsin has added money in its state budget for athletic costs at its flagship university. And Connecticut has created a tax credit program to benefit university athletics.

Analysts see the state funding efforts as an emerging trend.

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READ AP'S STORY

States pour taxpayer dollars into college sports as athlete pay, soaring costs squeeze budgets

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STATES THAT PROVIDED TAXPAYER FUNDS OR MADE OTHER CHANGES

More states than these have considered using taxpayer dollars.

CONNECTICUT: Seeking to drum up athletic revenue, Connecticut lawmakers authorized the University of Connecticut to issue vouchers for state tax credits equal to half the amount of donations, sponsorships and licensing endorsements. The program generated $1.7 million in its first four months, according to a university report.

FLORIDA: Though not providing new state money, the governing board for Florida’s universities last year authorized institutions to transfer up to $22.5 million to athletics. Florida State University did so almost immediately, and other schools have since followed.

LOUISIANA: Louisiana also hiked its sports wagering tax and earmarked about $2.2 million to each of its 11 public universities in conferences with Division I football programs.

NEW JERSEY: New Jersey’s new budget allots $5 million for “events attraction and marketing” at Rutgers’ flagship campus. A university spokesperson declined to say if the money would be used for athletic programs.

NORTH CAROLINA: When North Carolina launched online sports wagering in 2024, it earmarked part of the tax revenue for athletic departments at 13 public universities. But the two largest institutions — the University of North Carolina at Chapel Hill and North Carolina State University — were excluded.

That changed in July under a new state budget that raises the sports betting tax. Those two schools now are projected to receive $3 million each this year and $5.8 million next year.

WISCONSIN: Wisconsin lawmakers approved $15 million for athletic costs at the University of Wisconsin.

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SUGGESTED REPORTING THREADS

— Ask your college athletic department executives if there is any new money coming from state lawmakers to ease the scramble for money. Other revenue streams might include jersey patches, corporate sponsorships (on-field logos and naming rights) and facilities upgrades, including new entertainment districts built around stadiums.

— Check annual student fees and athletics ticket prices for your colleges to see if they have gone up since the beginning of the NIL era in July 2021.

— Explore on-campus relationships between your colleges and companies like Learfield, Playfly, Van Wagner and JMI Sports that specialize in marketing and leveraging college sports into new revenue. Contracts should be subject to FOIA requests as needed.

— Track fundraising to your colleges’ athletics funds to look for trends since 2021.

— Ask your schools if they are planning any multimedia days for their athletes to brand themselves and meet their NIL obligations. Ask to attend for a feature if so.

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READ ADDITIONAL AP COVERAGE

— The playbook for college sports revenue is expanding from logos and fees to entertainment districts

— States pour taxpayer dollars into college sports as athlete pay, soaring costs squeeze budgets

— A left tackle can make $4M in college football, not the NFL. Is this pay for play?

— Cash-hungry college sports programs are starting nonprofits to make money to stay competitive

— NIL is just the latest chapter in the long and uneven history of compensation in college sports

— Inside Tennessee’s NIL ‘carwash’ day, a multimedia smorgasbord to help athletes cash in

— College sports advocates press philanthropy to buffer NIL’s commercial pressure on women’s sports

— College athletes are now eligible for big time payments. Will nonprofits benefit?

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