That is Rutgers-esque territory. I hope the following makes your day a bit brighter, in a Schadenfreude kind of way.
Rutgers’ Athletics Deficit Reveals The Hidden Caste In The College Sports Hierarchy (forbes.com)
From the article:
Rutgers is a case in point. After six years in the Big Ten, its football team’s playing and financial performance remain abysmal. The athletics program ran a reported deficit of $45.2 million in fiscal year 2019. In the fiscal year 2020 budget, from before the coronavirus took hold, the projected revenues were $82.5 million, and the projected expenses were $102.8 million, yielding an apparent projected operating deficit of $20.3 million. But there’s more. On the revenue side, there’s an $8.3 million subsidy from the university and a $2.9 million subsidy from the state. Without these subsidies, the projected revenues fall to $71.3 million, and the projected deficit rises to $31.5 million. There were also contributions and gifts to athletics of $4.5 million. To the extent that some of these gifts may have substituted for donations to the university’s general fund, the deficit would be still larger. Another $12.5 million came from student fees—a different form of subsidy at the students’ expense.
But it gets worse. As part of the price for being admitted to the Big Ten, Rutgers had to renovate its stadium at a cost of around $160 million. And from its annual operating losses since 2003, the athletics program has also accumulated a debt of $444.5 million. Hence, total borrowing for athletics is over $600 million, yet the athletics department’s budget reports spending only $10.9 million on interest and principal! Thus, there seems to be another $20 million to 30 million in unreported debt service costs. The athletics department budget does acknowledge a capital and maintenance expense of $16.5 million, but they put it below the line. Add all this up, and the actual deficit in fiscal year 2020 begins to push $70 million—all before the landing of Covid-19.
It is so good to be an Orange fan!
