The Athletic Department released Sept. 15 its audited financial statements for the 1998-99 fiscal year. Athletic Director Tom Goss said the total budget of $46 million reflects an operating deficit for the year of approximately $2.8 million$756,000 more than was announced in June.
The deficit will be covered by the departments reserves, which totaled more than $20 million as of June 30, Goss said.
This deficit will not affect our proposed budget for 19992000, added Goss. We have put together a conservative budget and implemented new budget monitoring and control procedures for the coming year. I am confident we will be able to meet it.
Goss explained that the figures released in June were forecasts, and not audited results. These are not finalized until after the books are closed in August. Forecasting is not an exact science, he noted. Our projections were based on a number of assumptions about revenue and expenses, some of which turned out to be inaccurate.
Projections differed from final results for a number of specific expenses and revenues, including:
The department, however, did do better than expected in a number of areas, including higher than projected revenue in spectator admissions, licensing royalties, TV and radio income, corporate sponsorship and concession sales, and lower-than-expected administrative and other expenses. The net effect of these increases in areas was an improvement of $436,000 over projections.
Its important to note the long-term financial health of our department, Goss said. Despite the volatility of the business, we are one of the few major college athletic programs to be financially self-sufficient, and we are committed to living up to these expectations in the future.
For fiscal year 199798, the Athletic Department achieved an operating surplus of $5.9 million, resulting in a $3.1 million operating surplus over a two-year period.