Greg Byrne: Sales tax will be charged on tickets from now on

[BamaNation]

Fine. Will add $50-$500+ per season per seat depending on your level, but I've never been a fan of the excuse that "everybody else is doing it so we're going to do it, too." Just a note, though, AD Byrne: Winning cures a lot of ills. This bad medicine goes down a lot easier if we're not 9-4 and not missing playoffs.

Also, FIFY.

Dear xxxxxx,

As we navigate the evolving landscape in college athletics, we are working diligently to ensure we continue to uphold the standard of excellence that is expected at Alabama.

Related to this effort, we are making you aware of a change that many of our peer universities already administer and will be reflected in your upcoming season ticket renewal application. Effective this fall, the athletics department will no longer cover the 10 percent sales tax on athletic tickets. With this change, you will see the addition of state and local sales tax – which is set by and paid to the respective tax authorities – on your 2025 Football TIDE PRIDE and season ticket renewal application that is set to be distributed next week. Please note that sales tax will only apply to the ‘ticket’ portion of the overall cost and does not apply to the TIDE PRIDE contribution.

While there have been numerous changes in college athletics over the last few years, one thing that remains constant and crucial to Alabama’s distinct success is the strong support that our fans provide to our student-athletes highly paid players and coaches. We will continue to make game days in Tuscaloosa second to none, invest in our fan experience, and achieve historic success.

We are grateful for your unwavering support and loyalty to Alabama Athletics.

Roll Tide,
Greg Byrne
Director of Athletics
The University of Alabama

 

[Bamabuzzard]

Wait a minute, so the university has been footing the sales taxes for the tickets rather than the customer paying them? This isn't the same as what Tennessee and others are doing by charging a 10% "athletic fee" to go into the NIL collective.

 

[BamaNation]

Wait a minute, so the university has been footing the sales taxes for the tickets rather than the customer paying them? This isn't the same as what Tennessee and others are doing by charging a 10% "athletic fee" to go into the NIL collective.

I think it's just semantics in that the "price included taxes" previously and this is a way to raise prices without saying you were raising prices.

For example.

Previously:
Ticket package: $450
Taxes: $50 ( a hidden cost "covered" by UA Ath Dept)
Total package price: $500 (i.e. $450 + $50)

Now:
Ticket package: $500
Taxes: $50 (explicitly stated)
Total package price: $550

 

[Elefantman]

Is sales tax in Tuscaloosa 10 percent? Maybe the city and county could excuse the tax seeing how much money they make each game day.

 

[Bamabuzzard]

I think it's just semantics in that the "price included taxes" previously and this is a way to raise prices without saying you were raising prices.

For example.

Previously:
Ticket package: $500
Taxes: $50 ( a hidden cost "covered" by UA Ath Dept)
Total package price: $500

Now:
Ticket package: $500
Taxes: $50 (explicitly stated)
Total: $550

That's what I'm saying, in scenario number one, the university is paying the $50 sales tax on behalf of the fan leaving the fan to pay $500. In scenario two the fan is paying the sales tax because now their price is $550. If they've been doing scenario one all along they're idiots. What business covers the sales tax for the customer? That's millions of dollars in lost revenue by the university if this is what's been going on.

 

[BamaNation]

Is sales tax in Tuscaloosa 10 percent? Maybe the city and county could excuse the tax seeing how much money they make each game day.

Per YondaTax: https://yondatax.com/state-sales-tax-rates/alabama/tuscaloosa/

Alabama State sales tax rate	4%
Tuscaloosa sales tax rate	3%
Tuscaloosa County sales tax rate	3%
Minimum combined sales tax rate value	10%

 

[BamaNation]

That's what I'm saying, in scenario number one, the university is paying the $50 sales tax on behalf of the fan leaving the fan to pay $500. In scenario two the fan is paying the sales tax because now their price is $550. If they've been doing scenario one all along they're idiots. What business covers the sales tax for the customer? That's millions of dollars in lost revenue by the university if this is what's been going on.

I don't think that's what they've been doing, really. I think, like a gas station, tax has been embedded in the stated cost. Now they're taking that stated cost that included the embedded tax amount and explicitly adding the 10% tax. It's a price increase without saying it is and blaming it on "taxes" and "peers".

They may not really look at it like that, but I'm not stupid.

 

[Cruloc]

Meh, I haven't been to a game in well over a decade....good luck to you all.

 

[Bamabuzzard]

I don't think that's what they've been doing, really. I think, like a gas station, tax has been embedded in the stated cost. Now they're taking that stated cost that included the embedded tax amount and explicitly adding the 10% tax. It's a price increase without saying it is and blaming it on "taxes" and "peers".

They may not really look at it like that, but I'm not stupid.

Okay now I see, you corrected the figures. Yeah, they're just blaming taxes and it has nothing to do with taxes. The "tax" is an athletic fee to fund the school's NIL collective. Which I think is the best way to go about it. I don't like it, but in today's landscape, it's the easiest way to get millions of dollars into your coffers.

 

[BamaNation]

Meh, I haven't been to a game in well over a decade....good luck to you all.

You need to do your part.

 

[Tide&True]

Golden Goose officially dead

 

[Cruloc]

You need to do your part.

I need my plasma.

 

[cdub55]

As long as he doesn't add a sales tax to the whiskey in my kitchen and the television in my living room I am ok with this new endeavor by Mr. Byrne.

 

[Bamabuzzard]

Just for kicks and giggles, if on average the price of a ticket for a home game is $75 the athletic fee tax on that would be $7.50. If there were 90,000 in the stadium that's $675,000 for that game. For simplicity purposes, expound that out over eight home games and there's $5.4 million that tax has contributed to the NIL collective.

 

[Crimson1967]

Is sales tax in Tuscaloosa 10 percent? Maybe the city and county could excuse the tax seeing how much money they make each game day.

Might not be a good look if a luxury item like football tickets are tax free while things like food and other basic necessities are not.

 

[cdub55]

I need my plasma.

Godspeed...

 

[davefrat]

In the legal "pay to play era" someone's got to come up with the pay money, right?

 

[Cruloc]

 

[cdub55]

Just for kicks and giggles, if on average the price of a ticket for a home game is $75 the athletic fee tax on that would be $7.50. If there were 90,000 in the stadium that's $675,000 for that game. For simplicity purposes, expound that out over eight home games and there's $5.4 million that tax has contributed to the NIL collective.

So what you are saying is, if we are good stewards of our money and save wisely, in two years or 16 home games we might can afford the going rate for a top tier QB coming out of High School...

 

[Isaiah 63:1]

Based on observable evidence since 2021, I'd say the university has done a poor job adapting to the changing landscape of collegiate athletics, particularly football. This is not surprising. Leaders in one environment rarely are the first to see and adapt to a new one, precisely because of their success in the previous. It will be interesting to see if the university can adapt before slipping back into the pack...