UConn athletic department lost $42 million in 2019

[Biff]

Courant Article : UConn athletic department lost $42 million in 2019 after decline in ticket sales and league revenue

"UConn ticket sales by sport:

Football: $1.7 million (down ~20 percent)
Men's bball: $3 million (down ~3 percent)
Women's bball: $2 million (down ~17 percent)
Other sports: $615K (down ~27 percent)

Total: $7.7 million (down ~15 percent)"

 

[pvdoggy]

Courant Article : UConn athletic department lost $42 million in 2019 after decline in ticket sales and league revenue

"UConn ticket sales by sport:

Football: $1.7 million (down ~20 percent)
Men's bball: $3 million (down ~3 percent)
Women's bball: $2 million (down ~17 percent)
Other sports: $615K (down ~27 percent)

Total: $7.7 million (down ~15 percent)"

That's what you get for not winning the NC 3 years in a row

 

[ochoopsfan]

UConn has a Football team?

 

[Carnac]

It's hard to believe that women's basketball lost more money than the football program. Fans are losing (have lost) interest in the football program that (is circling the drain/has players entering the transfer portal) has become a "money pit". I've noticed (when the TV camera spans the arena) that UConn is not the draw on the road they use to be. They use to pack arenas where ever they went. There were a lot of empty seats at the SMU and Memphis games.

The lost of revenue can also be attributed to losing some older fans that have either passed on, or can no long physically attend games. Increased ticket prices and parking fees may also play a role.

 

[Woof 101]

Why does this come out as something new? Same last year....

UConn athletic department in 2018: generated $40 million in revenue, spent $81 million in expenses

Revenue generated by UConn’s athletic department covered less than half of the department’s expenses during the 2018 fiscal year, according to the school’s annual NCAA financial s…

www.courant.com

Is there anyone possibly connected that does not know our situation? No attack on the OP.

 

[uconnfan68]

It's hard to believe that women's basketball lost more money than the football program. Fans are losing (have lost) interest in the football program that (is circling the drain/has players entering the transfer portal) has become a "money pit". I've noticed (when the TV camera spans the arena) that UConn is not the draw on the road they use to be. There were a lot of empty seats at the SMU and Memphis games.

The lost of revenue can also be attributed to losing some older fans that have either passed on, or can no long physically attend games. Increased ticket prices and parking fees may also play a role.

Sometimes greed isn’t good.

 

[KnightBridgeAZ]

It's hard to believe that women's basketball lost more money than the football program.

They didn't - Football lost over 13 million apparently and women's basketball less than $5 mil.

What the numbers show is that women's ticket sales were more than football sales - that is a YIKES.

And truthfully, it is a bit disingenuous to cite changes in ticket revenue as a significant driver of what, in the end, is a huge deficit due not to attendance (or lack there of) but due to a lack of revenue in the athletic department. I believe studies have shown that ticket sales are not the driving factor for athletic department revenue, but someone else would have to confirm this.

 

[pvdoggy]

They didn't - Football lost over 13 million apparently and women's basketball less than $5 mil.

What the numbers show is that women's ticket sales were more than football sales - that is a YIKES.

And truthfully, it is a bit disingenuous to cite changes in ticket revenue as a significant driver of what, in the end, is a huge deficit due not to attendance (or lack there of) but due to a lack of revenue in the athletic department. I believe studies have shown that ticket sales are not the driving factor for athletic department revenue, but someone else would have to confirm this.

Does anybody know the breakdown of the loss in the WBB program? What would they have to cut back on to move towards breakeven? I guess with less long-distance travel next year, the loss should narrow somewhat. I can't imagine a business would be able to run that way for very long.

 

[CTrefugee]

- Does this include TV revenue ? Without the women, there would be no SNY contract.
- There is no measure of the effect of each sport on alum donations.

 

[Lawrence]

Geno will help fix it...look at the recruits coming to the UCONN Women's team...

 

[KnightBridgeAZ]

- Does this include TV revenue ? Without the women, there would be no SNY contract.
- There is no measure of the effect of each sport on alum donations.

Usually I think schools have a formula for that. Here at Arizona (and an Rutgers before) I designate most of my gifts, however, one of the items that they asked a commitment to out here was a Capitol Fund, I think I agreed to 5 years. I recently agreed to 3 years specific donation to the WBB overseas trip (actual trip in 2020).

I am a small time donor, but I firmly believe that if I am enjoying the product I ought to donate and support the student athletes that are providing me the enjoyment.

 

[UcMiami]

If you read the article the breakdown is there:
WBB revenue 4.5M expense 8M - 3.5M in the red
FB revenue 3.3M expense 16.6M - 13.3M in red
MBB rev 6M expense 9.9M - 3.9M in red
Other sports rev 2.8M expense 25.8M - 23M in red

 

[bluedevil]

Drop football.......use the stadium for concerts and flea markets on weekends..get a sponsor like taco bell to fund basketball...patches on uniforms could say think outside the buns...have players charge for autographs and money going to pay off the deficit...play exhibition at the Vatican let the pope throw the ball for opening jump

 

[j66kicker]

Drop football.......use the stadium for concerts and flea markets on weekends..get a sponsor like taco bell to fund basketball...patches on uniforms could say think outside the buns...have players charge for autographs and money going to pay off the deficit...play exhibition at the Vatican let the pope throw the ball for opening jump

In a couple years players will be charging for autographs and keeping the money.

A large part of the expense shown is the full "cost" of scholarships, of which at least the tuition part is not really a "cash out" expense. There is some incremental cost to educate another student, but the huge football and "other sports" deficits include a lot of tuition which doesn't actually have to be "paid" per se.

 

[Gamecockfan77]

Let me ask this:

Where does the money come from to make up a 40m dollar annual shortfall?

I have a hard time seeing how that would be borne for one year, much less every year.

Maybe you have much better funding or endowment money than South Carolina.

Granted, the SEC money keeps South Carolina AD in the black, but I have a hard time imagining the AD being permitted to run 40m in the red.

 

[UcMiami]

Let me ask this:

Where does the money come from to make up a 40m dollar annual shortfall?

I have a hard time seeing how that would be borne for one year, much less every year.

Maybe you have much better funding or endowment money than South Carolina.

Granted, the SEC money keeps South Carolina AD in the black, but I have a hard time imagining the AD being permitted to run 40m in the red.

All state schools receive operating money from the state. How much and how it is allocated changes year to year. And the accounting of every school is somewhat fluid. It is difficult to know how facilities costs are accounted for in any budgeting and especially how that applies to athletics.

The athletic department also generates general and specific contributions that are probably not included in the above expenses and revenues so what the bottom line for the department is still a mystery.

Bottom line - not being in one of the P5 is a disaster for the department but how much of a disaster is hard to tell. Even the P5 schools have historically run significant red ink for their athletic departments, though with the new TV contracts that may no longer be true in the short term.

 

[Dooooooomed]

Let me ask this:

Where does the money come from to make up a 40m dollar annual shortfall?

I have a hard time seeing how that would be borne for one year, much less every year.

Maybe you have much better funding or endowment money than South Carolina.

Granted, the SEC money keeps South Carolina AD in the black, but I have a hard time imagining the AD being permitted to run 40m in the red.

That $42 mil number is a farce.

$17.7 mil is athletic scholarships (ie it isn't real money we're spending). $3.5 mil is XL/Rentschler rent (ie money going from 1 state entity to another). That right there is about $21 mil. Throw in the fact that UConn doesn't include the $11.2 mil profit from sponsorships/advertising/etc and there you have a highly inflated figure.

 

[CL82]

Where does the money come from to make up a 40m dollar annual shortfall?

 

[lne001]

Even the P5 schools have historically run significant red ink for their athletic departments, though with the new TV contracts that may no longer be true in the short term.

That was certainly true for Rutgers. Approximately six years ago their Athletic Department deficit was in the low $40 millions, and was a large sore spot with state media and government. Today I believe they stand at a deficit of $29 million, a deficit which will not disappear until they receive full B1G media monies in several years.

 

[stamfordhusky]

That $42 mil number is a farce.

$17.7 mil is athletic scholarships (ie it isn't real money we're spending).

How is providing room for 400+ students not real money? More professors are required to provide an education for those 400 students and/or they take spots that could go to paying students. Also they take dorm spots, eat meals, get expense money, etc.

If it cost nothing to provide scholarships, then every school - including UConn - would fund every sport with the maximum allowable number of scholarships. UConn doesn't do that, nor do most other schools.

 

[CL82]

How is providing room for 400+ students not real money? More professors are required to provide an education for those 400 students and/or they take spots that could go to paying students. Also they take dorm spots, eat meals, get expense money, etc.

If it cost nothing to provide scholarships, then every school - including UConn - would fund every sport with the maximum allowable number of scholarships. UConn doesn't do that, nor do most other schools.

You are assuming that
1) the university is operating at capacity so that there isn't room for a single additional student;
2) every dollar of tuition is necessary to pay for each student; and
3) every student pays full of out of state tuition.

None of those assumptions are accurate.

It is better accounting to have the only the marginal cost of each student athlete reflected as a charge against against the athletic department.

Also keep in mind that the athletic department raises brand awareness for the university which in turn attracts students. If we are charge the athletic department for the cost of student athletes, doesn't make sense to charge the academic portion of the university for this advertising and promotion?

Completely disagree with your last sentence.

 

[jumpstart]

Courant Article : UConn athletic department lost $42 million in 2019 after decline in ticket sales and league revenue

"UConn ticket sales by sport:

Football: $1.7 million (down ~20 percent)
Men's bball: $3 million (down ~3 percent)
Women's bball: $2 million (down ~17 percent)
Other sports: $615K (down ~27 percent)

Total: $7.7 million (down ~15 percent)"

Wow...I hate this kind of news for any athletic program. I think without the sports programs that schools always suffer. Hope the move into the Big East will offset this very quickly.

 

[HopJim]

Courant Article : UConn athletic department lost $42 million in 2019 after decline in ticket sales and league revenue

"UConn ticket sales by sport:

Football: $1.7 million (down ~20 percent)
Men's bball: $3 million (down ~3 percent)
Women's bball: $2 million (down ~17 percent)
Other sports: $615K (down ~27 percent)

Total: $7.7 million (down ~15 percent)"

A few thoughts and questions:
-If football went back to Division II, what would be the affect on both costs and revenue? When UConn was one of the top DII teams in US, appeared alumni support was high.
-If Women's basketball played all their home games on campus, would this mean less rent would be paid out? Not sure what perceived benefits come from playing in Hartford. Likely there is a rent and other associated cost line that is proportionally high with reduced attendance.
-Do the TV and related revenues get allocated to sports teams? Likely Women's Basketball not getting fair share.