From the Desk of Hunter Yurachek: Oct. 31, 2024
Dear Razorback Nation:
For those of you who closely follow our program you are aware that Razorback Athletics and Intercollegiate Athletics are in a transformative time. Name, Image and Likeness (NIL), the transfer portal, conference realignment and numerous litigation challenges to the traditional collegiate model have caused seismic shifts in the landscape we have known for decades.
We could spend plenty of time discussing the merits of the old system vs. the new system. However, as the leader of Razorback Athletics, I have challenged our administration, coaches and staff to focus on the road ahead and how we can best position ourselves to build on the tremendous success of our program, while also meeting the increased financial demands of this new intercollegiate athletics world. As leadership expert John C. Maxwell noted, “Change is inevitable. Growth is optional.” Just as we have throughout our history, we plan to adapt and not just grow but succeed!
The recent preliminary approval by the U.S. District Court in Northern California of the House vs. NCAA class action lawsuit potentially provides a clearer idea of a framework of what intercollegiate athletics programs may look like moving forward. The final approval hearing is scheduled for April 7, 2025.
If the settlement is approved, here are a few of the key changes that will take effect:
• Institutional Revenue Share
Institutions will be permitted to compensate student-athletes for use of their Name, Image and Likeness directly from Department of Athletics’ generated revenues. The projected annual financial impact for Razorback Athletics will be approximately $22 million.
• Roster Limits and Scholarships
As part of the settlement, sport-by-sport scholarship limits have been eliminated. Instead, newly established roster caps will be used for each sport. This will provide the flexibility to allocate additional scholarships for the benefit of student-athletes in each of our 19 sports programs. Currently, we anticipate the addition of 75-100 scholarships, collectively, within our program. The projected financial impact for Razorback Athletics will be approximately $3 million per year.
• NIL Back Damages
As part of the settlement, all NCAA Division I student-athletes who competed from 2016-24 are eligible for back damages. The NCAA and its member institutions will pay nearly $2.8 billion in damages to those student-athletes impacted over the next 10 years. To help cover our portion of those damages, our 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. 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.
Thanks to the generosity of Razorback Foundation members, season ticket holders, our corporate sponsors and Razorback fans, we have been in position to re-invest revenues back into our sports programs, leading to unprecedented success, collectively during the past six seasons, including 36 SEC Championships, eight NCAA Championships and four years in the top 20 of the Learfield Directors’ Cup standings.
In anticipation of these changes, we have been working for months to identify opportunities to reduce operating expenses, maximize revenue and supplement the generous support provided by those who have invested in our program. Some of those efforts are visible while others have been occurring behind the scenes.
• Comprehensive Budget Review
The department initiated a comprehensive budget review to explore new sources of revenue support as well as identify ways to operate more efficiently. A budget committee and seven budget sub-committees were formed to review and evaluate every area of our program. 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.
• Corporate Logos on Playing Surfaces
Following a NCAA rules change and due to the generosity of two homegrown iconic brands, Tyson Foods, Inc. and Walmart, we have been able to add logos to both the field at Donald W. Reynolds Razorback Stadium and Nolan Richardson Court at Bud Walton Arena. Additional revenue, through corporate branding opportunities within other athletic venues, is currently being explored.
While these and other initiatives will assist in our efforts, they by themselves will not get us to where we need to go. Our short- and long-term success will require a more comprehensive approach that will involve all of us who cheer on the Razorbacks.
As such, in the coming days and months we will be taking additional steps in that effort.
• Student-Athlete Scholarship Enhancement Fee
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. 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.
• Razorback Men’s Basketball Reseating Plan
The Razorback Foundation in conjunction with our department will implement a comprehensive reset on ALL seating within Bud Walton Arena in time for the 2025-26 men’s basketball season. The plan is designed to enhance Annual Fund revenue for the Razorback Foundation and create a more equitable process for Razorback Foundation members to select season ticket locations.
There has not been a comprehensive re-allocation of seating within Bud Walton Arena, since it opened in 1993. 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. If there is an interest in making a year-end positioning gift to improve your priority, please contact the Razorback Foundation.
The reseating plan will be based on the existing seating configuration of Bud Walton Arena. As we continue to focus our efforts on addressing the many changes within collegiate athletics, a revised timeline for potential renovations to Bud Walton Arena has not been established.
• Special Event Opportunities
Following the recent success of the Garth Brooks Concert at Donald W. Reynolds Razorback Stadium and the Alan Jackson Concert at Bud Walton Arena, we continue to pursue the opportunity to bring similar select entertainment events to our University Community. These events must make financial sense and we will work with University administration to ensure that special events hosted do not create an undue burden on our campus infrastructure.
We are grateful for the loyal support of our fans and the resources they have provided to allow our student-athletes and coaches the opportunity to represent our University and the state of Arkansas in the most competitive conference in the nation. As we move forward together, our goal is to not only meet these new challenges, but to continue to compete and win in the SEC and nationally.
Go Hogs!
Hunter Yurachek
Vice Chancellor
Director of Athletics
