A newly released study found that the University of Tennessee athletic department generates more than $1 billion in economic activity each year, underscoring the enormous financial footprint of Volunteers athletics beyond the playing field. According to an economic and community impact report released Aug. 27, Tennessee Athletics generated an estimated $1.15 billion in economic impact across the state during fiscal year 2025. The study was conducted by Tripp Umbach, an economic impact research firm hired by Tennessee Athletics to examine spending associated with the athletic department, construction projects and visitors attending sporting events.
Of the $1.15 billion statewide impact, approximately $410.2 million came from direct spending, including employee payroll, athletic department operating expenses and capital projects. Another $739.8 million was attributed to indirect and induced economic activity as money spent by the university, employees, contractors and visitors circulated through Tennessee’s economy. The report estimated that Tennessee Athletics supported more than 8,000 jobs statewide and generated approximately $53.9 million in state tax revenue.
The impact was particularly significant in Knoxville and Knox County, where Tennessee’s major athletic facilities, including Neyland Stadium and Food City Center, draw hundreds of thousands of fans throughout the year. The study estimated that Tennessee Athletics generated $931.5 million in total economic activity in Knox County alone, supporting approximately 6,576 jobs. Spending by fans and other visitors attending UT sporting events accounted for an estimated $316.5 million in local economic activity, benefiting hotels, restaurants, retailers, transportation providers and other businesses.
The latest numbers also illustrate how dramatically the economic footprint of Tennessee Athletics has expanded over the past decade. A previous Tripp Umbach study using 2014-15 financial and attendance data estimated UT Athletics’ statewide economic impact at $463.9 million annually. The new $1.15 billion estimate is nearly two-and-a-half times that amount. With Tennessee continuing to invest heavily in athletic facilities while football, basketball and other programs attract large crowds to Knoxville, the report portrays the Volunteers and Lady Vols not simply as major college sports programs, but as a significant economic engine for both East Tennessee and the state as a whole.
