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Ohio St has a $41M accounting problem

crash_davis

By crash_davis
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crash_davis

crash_davis 23084

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i wonder how many other schools are in the same boat.

https://www.si.com/college/ohiostate/football/ohio-state-athletic-department-reports-41-million-deficit-amid-pandemic-2020-2021-fiscal-year?utm_source=reddit.com

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Ohio State Athletic Department Reports Roughly $41 Million Deficit Amid Pandemic

The Buckeyes had seasons cancelled or played in near-empty stadiums and arenas during 2020-21 academic year.
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Ohio State released a new financial report on Tuesday afternoon detailing the challenges its athletic department faced during the 2020-21 academic year, including seasons that were cancelled or games played in near-empty stadiums and arenas.

According to the report, the athletic department brought in $106,896,918 during Fiscal Year 2021, which ran from July 1, 2020, through June 30, 2021. That’s down from a record $233,871,740 the year prior.

The pandemic initially forced the cancellation of spring sports in March 2020, including the annual football spring game in April. That carried over to the fall, when the football team played just five regular season games and all athletic events were closed to fans, excluding family and working media.

Thus, the Buckeyes went from $65,978,534 in ticket sales to just $7,386 during the fiscal year.

Ohio State’s athletic department – which features 16 men’s teams, 17 women’s teams and three mixed teams totaling approximately 1,000 student-athletes – also saw its media rights revenue drop from $46.8 million to $40.6 million and football revenue drop from $115.5 million to $41.9 million.

“This was a most challenging year for our department and for everyone, and I am so proud of our student-athletes, our coaches and our support staff who continued to deliver at a championship level,” athletic director Gene Smith said. “Despite the difficulties we all faced working through the pandemic, we preserved our commitment to our student-athletes and the sports they love.”

Additionally, the department’s total expenses decreased from $215,209,566 to $170,551,920, while athletic-related endowments increased to $129 million from $98.6 million.

Part of those expenses included a $20 million one-time payment to reduce capital loan balances on two recently completed athletic buildings, which means the department’s actual deficit for Fiscal Year 2021 was roughly $41 million.

 

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Js1

Js1 85110

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COVID led to financial shortfall in Texas football, other sports (hookem.com)

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The Longhorns’ total revenue was down about $48.1 million — roughly one-fourth from the previous year — during the 2020-21 athletic year, according to audited figures obtained by the American-Statesman. Expenses were down, too, but the UT athletic department swung to a $14.6 million loss for the year after a long stretch of finishing in the black.

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As the pandemic continued, UT’s total revenue dropped to $152.7 million overall for the 2020-21 athletic year, according to the annual audit performed by the Austin-based accounting firm Maxwell Locke & Ritter. It’s the first time Texas has fallen below the $200-million revenue threshold since the 2016-17 athletic year. 

 

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MNLonghornFUKM

MNLonghornFUKM 8799

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They just poached Oklahoma State's defensive coordinator by paying him $2 mil a year, so they are obviously taking this very serious.

Lord knows how many 0s there are for the salaries of equipment managers, trainers, S&C coaches, any coach that isn’t a head coach, social media manager etc just to run the football program
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JMFP

JMFP 1117

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16 hours ago, jeevsie said:

Sometimes I get confused when these "visitors" use the word "our" on "OUR" board.

Surly is kind of the secrant of the big12. But with blackjack and hookers.

This is what I'm going to miss most after the breakup. We can find out more about our teams here than on our own censored message boards.

  • Hook 'Em 4
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Sbbruin

Sbbruin 21737

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We got that beat.

Slammed by double whammy, UCLA posts record $62.5 million in athletic department debt

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No fans plus fewer games has added up to big trouble for UCLA’s already grim athletic department finances.

The Bruins’ record $62.5-million deficit for the 2021 fiscal year, according to an unaudited statement of revenues and expenses obtained by The Times, reflected the many ways in which COVID-19 has bushwhacked schools from coast to coast.

“The impact of the pandemic continues to be felt at collegiate athletic departments across the nation,” UCLA athletic department spokesman Scott Markley said in a statement.

The shortfall also revealed several unique challenges that have saddled UCLA with a three-year deficit of $102.8 million, a staggering figure for a department that had not previously operated in the red since posting a negligible deficit in 2004.

 

 


The Bruins receive just a pittance from campus sources compared with other athletic departments; they do not pocket stadium sponsorship sales and recoup just a small percentage of sales from parking, concessions, merchandise and premium seating sales at the Rose Bowl; they pay a usage fee for games at Pauley Pavilion while receiving only a sliver of concession and merchandise sales; they receive no parking revenue at any venue while footing the bill for staffing; and they refused to enact furloughs or staffing cuts during the pandemic, a rarity at a time when other departments liberally slashed salaries and jobs.UCLA SPORTS

No. 7 UCLA defeats California to take top spot in Pac-12 standings

Jan. 27, 2022

Those issues were exacerbated by UCLA’s inability to host fans during the fiscal year that ended June 30, 2021, losing millions of dollars in ticket revenue. During the 2020 fiscal year, the school generated $14.7 million in ticket sales across all sports, a number that dropped to zero one year later with fans barred from the Rose Bowl and Pauley Pavilion.

Playing only seven football games in 2020 led to a 22.2% decrease in media-rights revenue from the previous fiscal year, the Bruins pulling in $14.47 million for the 2021 fiscal year. Media-rights revenue was down a nearly identical 22.3% for men’s basketball, to $2.55 million, after the Bruins played six fewer games in the regular season than they had the previous year.

ID CONTENT

 

 
UCLA tips off against Utah at an empty Pauley Pavilion on Dec. 31, 2020, during the COVID-19 pandemic.
(Marcio Jose Sanchez / Associated Press)

Under Armour’s termination of its record $280-million apparel deal with UCLA that provided the school roughly $11 million per year in rights and marketing fees was largely responsible for a 66.7% drop in royalties, licensing, advertisement and sponsorship revenue, which dropped from $24.19 million to $8.06 million.

The school’s replacement deal with Nike and Jordan Brand generates just $500,000 per year in cash compensation in addition to a product allotment that fluctuates from $6.5 million to $9.5 million over the six-year contract. (UCLA also may elect to adjust its compensation to receive a small cash increase in exchange for a reduction in gear.)

 


There were also pandemic-related costs, including about $2 million for coronavirus testing and another $1 million for shared testing costs among Pac-12 Conference schools.UCLA SPORTS

UCLA gymnastics coach Chris Waller has faced setbacks while pushing for championships

Jan. 27, 2022

The Bruins also continue to be dragged down by debt service on a cluster of new or renovated athletics facilities. In the 2021 fiscal year, the athletic department paid $9.04 million to service the debt on expansion and renovation of Pauley Pavilion and the Morgan Center in addition to the recently constructed Wasserman Football Center and Mo Ostin Center.

Given the size of UCLA’s deficit, creative solutions are welcome.

“We’ve looked at our budget both from a revenue-generation standpoint as well as operational expenses and are developing solutions along with [the] campus,” Markley said. “We have begun to enact many measures already, including with cost reductions and increased revenues from ticket packages and pricing” as fans returned to games last fall.

Additional savings have been achieved by limiting travel to away games out of conference to consolidate travel costs, among other measures. Football meals that cost $5.4 million as recently as the 2019 fiscal year have been slashed to $2.15 million thanks to efficiencies in pricing and quantity.

 


ltimately, the biggest savior could be the university itself. As in recent years, UCLA is covering its athletic department’s debt with a loan that must be repaid in full. But university officials could do more to keep the Bruins on equal footing with conference counterparts that have more highly prioritized their sports programs.UCLA SPORTS

Hernández: UCLA finds the gear that coach Mick Cronin sought in racing past No. 3 Arizona

Jan. 26, 2022

California, constantly jockeying with UCLA for the distinction of being known as the nation’s top state school, cut a $20.1-million check for athletics in the 2021 fiscal year as part of chancellor Carol Christ’s commitment to sports programs, according to a report in the San Jose Mercury News.

Contrast that with UCLA’s athletic department, which receives just $60,000 a year in direct institutional support in addition to about $2.5 million in student fees, a total that’s roughly half of the $5.2-million average among the Pac-12’s other public schools. (As private schools, USC and Stanford are not required to disclose their financial information.)

The Golden Bears also benefited from an anonymous $19-million donation, the Mercury News reported, nudging an athletic department that otherwise would have landed deep in the red into a $3.5-million surplus.

It was a Hail Mary for the bottom line. When all else fails, a fat check always helps.

 

https://www.latimes.com/sports/ucla/story/2022-01-29/ucla-posts-record-62-5-million-in-athletic-department-debt

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Slacks

Slacks 6791

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39 minutes ago, ButtFumble said:

this is only going to get worse with 10s of millions diverted from athletics departments to NIL payments

I don't think ADs even considered that, but I doubt most donors are prepared to donate the same amount to the AD while also giving a ton to NIL deals

it'll even out... won't need crazy ass capital projects that go over budget... just pay the players and keep a reasonable locker room and facilities.

  • Hook 'Em 1
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Js1

Js1 85110

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45 minutes ago, Cairn Horn88 said:

Even with the Horn's deficit, they still contributed several million to The University...forgot how much...but they did.  Now aggy, on the other hand, is probably still borrowing from the school to keep those jocks happy.

Still kicked back $6.8m to the University. 

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Tex Pete

Tex Pete 20179

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On 2/2/2022 at 2:29 PM, crash_davis said:

i wonder how many other schools are in the same boat.

https://www.si.com/college/ohiostate/football/ohio-state-athletic-department-reports-41-million-deficit-amid-pandemic-2020-2021-fiscal-year?utm_source=reddit.com

 

This is exactly why Nebraska tried to tell the Big 10 to fuck off last year with their idiotic Covid stance. They knew how much revenue they would lose. 

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