Arkansas adds 3% concessions fee to fund expenses from $2.8B NCAA settlement

FAYETTEVILLE, Ark. (KNWA/KFTA) — The Arkansas Razorbacks will introduce a 3% surcharge on all concession sales at home athletic events, beginning with Saturday’s football game against Ole Miss.

This fee aims to help fund additional scholarships as part of the House v. NCAA settlement, which is anticipated to take effect next year, Arkansas athletics director Hunter Yurachek wrote in a letter on Oct. 31.

This surcharge will apply not only to concessions but potentially to other unspecified items sold at home games as well.

‘Shocked’: Ty Washington talks after getting dismissed from Razorback football team

According to the Razorbacks’ recent NCAA financial report, a revenue category labeled “Program, Novelty, Parking and Concession Sales” generated over $3.1 million during the fiscal year 2023.

Should the settlement be finalized, several significant changes will be enacted:

Institutional Revenue Share: Universities will be permitted to compensate student-athletes for their Name, Image, and Likeness (NIL) directly from generated revenues.

This change is projected to contribute approximately $22 million annually to Razorback Athletics.

Roster Limits and Scholarships: The settlement will eliminate sport-specific scholarship limits, replacing them with roster caps.

This adjustment will allow for the addition of 75 to 100 scholarships across the university’s 19 sports programs, translating to an estimated financial impact of $3 million each year.

NIL Back Damages: NCAA Division I student-athletes who competed between 2016 and 2024 may be eligible for back damages, with the NCAA and its member institutions expected to pay nearly $2.8 billion over the next decade.

Razorback Athletics and other SEC institutions will experience a reduction in annual revenue distribution of about $1 million for the next ten years.

Yurachek stated that Arkansas will conduct a “comprehensive budget review” to seek new revenue sources and identify opportunities for greater efficiency. The aim of this review is to achieve $15 million in annual savings and increased revenue.

“We need to consistently capitalize on additional revenue opportunities while responsibly managing the resources we have been given,” Yurachek wrote.

ASPSF now accepting applications for Spring 2025 single parent scholarships

Yurachek also announced that the Arkansas men’s basketball program will experience a “comprehensive reset on ALL seating within Bud Walton Arena” before the 2025-26 season. This indicates an overhaul of seating equity akin to the changes made at Baum-Walker Stadium ahead of the 2022 season.

“There has not been a comprehensive re-allocation of seating within Bud Walton Arena since it opened in 1993,” Yurachek noted. “Details of the plan are being finalized and will be provided in January to allow fans to make informed decisions on their annual fund commitments.”

In accordance with new NCAA regulations this year, Arkansas has added corporate logos to the playing surfaces at Reynolds Razorback Stadium and Bud Walton Arena. Advertisers at both venues include Bentonville-based Walmart and Springdale-based Tyson Foods.

Additional advertising opportunities are being considered at other locations, Yurachek wrote.

Read Yurachek’s full letter here.