Athletics projects budget surplus

Updated 10:00 AM July 29, 2005

Athletics projects budget surplus

By Bruce Madej
Department of Intercollegiate Athletics

The Department of Intercollegiate Athletics presented to the Board of Regents
July 21 a budget that projects an operating surplus of $9.3 million and capital expenditures of $5.6 million for the year ending June 30, 2006. The department also announced FY 2005 projections of an operating surplus of $13.8 million and capital expenditures of $11 million for the year that ended June 30.

"We are pleased to project an operating surplus for fiscal 2006, which would be the fifth straight year of operating surpluses," Athletics Director William 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 comes at a significant financial commitment."

The favorable results for FY 2005 resulted from $6 million in football season ticket transfers under a program that expired in April this year, and greater than expected licensing revenues and annual donations, 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 facility projects, transfer additional money to the department's deferred maintenance fund, and set aside funds received from the ticket transfer program for future facility projects.

Total revenues for FY 2006 are budgeted to be $73.3 million, $2 million less than projections for FY 2005. The revenue reduction primarily is due to the absence of donations related to ticket transfers offset by a seven-game home football schedule. Total operating expenses for FY 2006 are budgeted at $64 million, approximately
4 percent higher than the projections for the year that just ended.

Athletics projects budget surplus

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