Actually, whether the students are athletes or not. In-state students are partially subsidized by the state. A good way to think of it is to say that the out of state tuition is the true tuition and the state pays for some of that for in state students.
In regards to athletes, since the state does not help pay for the out of state athletes, their scholarships cost the University/ Athletic more money.
Short answer: No, out of state athletes are more expensive.
Not being a smart @$$ but I thought we got more out of state athletes because TN isn't stacked with talent like other states. Interesting question though. Ok guys I'm off to work!