More and more colleges and universities athletic departments are cutting sports programs, as the financial impact of the pandemic is becoming devastatingly clear. Even with the onset of this clarity, it comes without factoring in a $4 billion loss if the 2020 football season is canceled.
A development that would forever alter collegeiate-level sports.
Colleges and universities have suffered hundreds of millions of dollars in losses already. A number that could expand to astronomical levels as decisions are made regarding whether to return students to campuses across the United States this fall.
An array of financial moves have been completed already:
- The Mid-American Conference announces multiple scheduling changes
- Cincinnati drops men’s soccer program
- Old Dominion drops wrestling program
- Furman drops baseball and men’s lacrosse
- Bowling Green drops baseball
- Central Michigan drops men’s track and field
- Akron drops men’s cross country, men’s golf and women’s tennis
Athletic directors are refunding tickets for spring sports and student fees for the spring semester. Almost all of these institutions have instituted hiring freezes, layoffs, mandatory furloughs and pay cuts.
Patrick Rishe, director of the sports business program at Washington University in St. Louis, said to ESPN that he believes the upcoming football season will be played, even if it’s during the spring, because of “astronomical financial implications” for athletic departments if it is canceled.
Rishe assessed that the 65 Power 5 schools would by and large lose more than $4 billion in football incomes, with $1.2 billion of that because of lost ticket income. Government funded school Power 5 athletic divisions on normal made almost 50% of their all out working income from football, with about 14% originating from football ticket deals alone.
Anywhere from 75 up to almost 85% of all revenues to our departments are derived directly or indirectly from football, Oregon State athletics director Scott Barnes said
Even more remarkable: In a multibillion-dollar industry, fewer than half of FBS athletic departments have financial reserves in place that could be used during this type of crisis.
The SEC generated $432 million from TV and radio partners in 2017-18. The Pac-12 generated $339 million from TV, the ACC generated about $277 million and the Big 12 generated about $237 million. The Big Ten’s most recent filing didn’t specify revenue from TV, but its current media rights deals with ESPN, Fox and CBS were worth $2.64 billion over six years, or $440 million annually, according to NBC Sports.
The pandemic is the “greatest academic and operational challenge” in Rutgers history, said the institution’s president Robert Barchi
Intercollegiate sports, and particularly football and men’s basketball, have often been called a university’s front porch. They provide a plethora of public relations and marketing opportunities they offer through media exposure. Winning teams have historically led directly to increases in admission applications and financial contributions from alumni and fans.
This article was written citing information and media from FOX Sports, NBC Sports, ESPN and the AP. For more college sports, follow us on Twitter @MWSNsports or like our page on Facebook.
