The vast majority of universities across the country are facing tremendous athletic budget issues as they prepare to move forward in 2020-21. Only a very few colleges and universities exceeded their annual expenses with revenue in 2019-20. The 2020-21 academic year will present some major challenges to many universities and the result will be a very different looking athletic landscape.
We have seen coaches at major universities and small colleges take 5-10% or more voluntary pay cuts. Coaches and staff have been furloughed or cut. Team and administrative budgets have been slashed. Athletic directors across the country are signaling miserable budget forecasts for this coming year even if football is played. Look no farther than the Big Ten and see that most every athletic program faced huge budget issues prior to the Big Ten canceling their fall seasons. Many high profile coaches have contracts expiring in the next 12-18 months. Universities that have always paid their coaches at the highest level of market value will be forced to seek major compensation adjustments from many of their coaches. Salary adjustments will need to be made all over the country.
When faced with reduced revenues and increased expenses due to coronavirus testing and compliance costs, the universities only have a few options if they hope to maintain and continue to provide the same level of athletic programs they have previously provided. One way to improve revenues is to find and secure additional funding through television, radio, and merchandise sales, and secure more donations and sponsorships. Not an easy avenue to navigate in these challenging times as many businesses and individuals are also struggling.
The other option is to reduce expenses across the board. This includes adjusting schedules, travel, equipment purchases, right sizing the athletic program, cutting support and administrative staff and coaches while looking at creative ways of reducing salary. This is already happening at several institutions and will occur long after the pandemic ends. Early buyouts of experienced employees will save money long term but some immediate savings could come from reducing salary of the major contracts in football and basketball. This could happen in renegotiating contracts or hiring coaches at lower salaries.
The loss of game day revenue will impact every phase of the athletic program. There are some people who say the remodeling of athletic departments is long overdue. Coach’s salaries have been out of whack for some time. But the coaches are not the only area salaries have become a major burden. Administrative staffs have tripled at some places and even assistants have an assistant.
The tremendous impact the pandemic is having on athletic budgets is one reason why so many observers are worried that schools and universities will make unsafe decisions and place their student-athletes safety and well being in jeopardy in order to support overwhelming costs. Make plans now to reduce cost, right size, secure additional funding and provide a clear path forward or your program.
Oh Geez Sports 