Athletics projects 3rd straight budget surplus

The Athletic Department presented to the Board of Regents a proposed budget that projects an operating surplus of $1.7 million for the fiscal year ending June 30, 2004, but officials warned that the department could face financial hurdles in coming years.

The department also announced a projected operating surplus of $5.1 million for the fiscal year ended June 30, 2003, approximately a $3.3 million improvement over the budgeted operating surplus of $1.8 million. The Athletic Department is financially self-supporting, funding its activities through its own revenues.

"We are fortunate to project an operating surplus for fiscal 2004, which would be the third straight year of operating surpluses," Athletics Director Bill Martin said. "It is a continuous struggle to balance our revenue streams when the Athletic Department funds all of our sports to the full NCAA scholarship limit; our mission of competitive excellence requires a significant financial commitment."

The favorable results for fiscal 2003 resulted from greater-than-expected licensing revenues, annual donations and football admission revenues, said Jason Winters, chief financial officer of the Athletic Department. Winters also noted that the operating surplus allowed the department to accelerate capital expenditures for once-deferred facility projects.

Winters cautioned that while the Athletic Department projects an operating surplus for fiscal 2004, "it is primarily a result of a seventh home football game, and long-term financial stability has yet to be achieved. Going forward, fundraising and new revenue sources will become even more important to our ongoing financial health."

The department has budgeted for approximately $2.1 million in capital expenditures for fiscal 2004after spending approximately $5.7 million in fiscal 2003that will be funded by the cash reserves generated by the operating surplus. "While we are happy to have stabilized our operating cash flow, there are several more long-term facility renewal and renovation projects that we need to address going forward," Winters said.

Martin warned that the department still faces many financial challenges. "We must make a significant investment in our aging physical plant. Renovation and replacement timing will be depend upon our fundraising results," he said.

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