Revenue based athletics like The University of Tennessee at Knoxville's athletic department generates its own revenue, primarily through ticket sales, media rights deals, sponsorships, and donations (like the Tennessee Fund).
It also manages its own expenditures related to athletic operations. The athletic department is financially self-sustaining and does not rely on state funding for operations, though there may be occasional state-related funding for capital projects or facilities.
As a public university, UT has a trustees, governor appointed, UT must adhere to state laws, regulations, financial reporting requirements and is under gov't oversight but indirectly operates under the general framework of state governance. However, the department itself manages its day-to-day operations and decisions without direct intervention from the state in normal circumstances.
With all this factual, how would universities like UT change over to a state employee situation without making their athletic departments be run directly by the government or government agency? If so, how would that work and how would that turn out for all involved from the players to the fans know how well governments take in money and use it so well to the benefit of the governed people?