The University of Arkansas this week announced a new 3% concessions fee that will go towards new budgetary expenses related to the NCAA's $2.8 billion settlement with current and former athletes, which is expected to pave the way for schools to directly pay student-athletes.
"Beginning this weekend, when fans purchase concessions and other items at Razorback sporting events, each transaction will include a three-percent fee that will be designated to the funding of the additional scholarships that will be implemented with final approval of the settlement," wrote Arkansas AD Hunter Yurachek in a post on the school's website. "If you purchase $10 worth of concessions, your total bill will be increased by 30 cents. This is a small but meaningful way that fans can help provide their support of current and future Razorback student-athletes."
In the post, Yurachek explained that to help cover the Razorbacks' portion of damages related to the settlement, the Arkansas Athletic Department and all SEC institutions will see a reduction in NCAA annual revenue distribution of approximately $1 million for the next 10 years.
"While these anticipated changes bring new opportunities and increased resources for former, current and future student-athletes, they also create significant new financial challenges for our program," Yurachek wrote. "Our current budget does not account for the potential increase in expenses or the reduction of distributed revenues. The University of Arkansas Department of Intercollegiate Athletics is one of only a handful of athletic programs in the nation that is financially, self-sustaining – meaning we receive $0 in funding from the state, university or a student athletics fee."
The Athletics Department has initiated a comprehensive budget review to explore new sources of revenue support, as well as identify ways to operate more efficiently, Yurachek explained.
"A budget committee and seven budget sub-committees were formed to review and evaluate every area of our program," he wrote. "The goal of the review is to identify a net positive change of $15 million in combined savings and increased revenues annually. We must continue to maximize additional revenue opportunities while also being dutiful stewards of the resources which we have been afforded."
