BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA SEPTEMBER 23, 2020
Contact: Brad Berg
FY 2021 UNIVERSITY ATHLETIC BUDGETS
Actions Requested: Consider approval of the FY 2021 university athletic budgets as presented in this
docket item.
Executive Summary:
Intercollegiate athletics hosts many events each year are enjoyed by Iowans and by non-residents who
come to the Regent campuses to attend games. These events contribute to vibrant communities, the
quality of life enjoyed by Iowans, and have a significant positive impact on Iowa’s economy.
Collectively, these events are one of the most significant means of an extended welcome to the Regent
Universities with the general public. These events provide a valuable relationship and connection with
each university’s faculty, staff, students, alumni and friends. Attendance at these events is often the first
introduction to the campuses for prospective students. Athletics plays a key role in student recruitment,
diversity enhancement, and provides a number of opportunities for underrepresented students, their
retention and graduation.
The COVID-19 pandemic has placed us in unprecedented times. As with all of society, Iowa’s Regent
Universities have undergone massive disruptions, and been forced to adapt their educational
environments based on current conditions. In addition to the other university budgets and finances, the
presence of the COVID-19 pandemic has also negatively impacted the athletic departments of Iowa’s
public universities.
While the Board at its July 29, 2020 meeting approved the other university budgets, the athletic budgets
were deferred until September due to the volatility of the fall sports schedules resulting from the
COVID-19 pandemic. The proposed FY 2021 athletic budgets for the three Regent universities are
included in the attachments.
BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA ATTACHMENT A
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FY 2021 ATHLETIC BUDGET – UNIVERSITY OF IOWA
The Iowa Athletic Department is a self-sustaining auxiliary enterprise and receives no General Education
Fund support. Given the projected effect of COVID-19 on revenues, the overall proposed budget for
FY 2021 is decreasing by approximately $100 million in comparison to the FY 2020 budget. The
department transferred $3.6 million from reserve funds in FY 2020 leaving a balance of over $4 million
in reserve.
The FY2021 budget assumes having normal winter and spring competitions, with reduced attendance
capacity. Additionally, this budget assumes not having fall sports in the spring, as a worst-case scenario.
If the circumstances change, there would be the potential for additional income and expenses for those
fall teams competing in the spring. Additionally, if the winter and spring sports do not compete, there
would be additional reductions in revenue and expenses. The Iowa Athletics Department is estimating a
$74.7 million deficit and will require outside assistance to bridge the financial shortfall.
Line item highlights are noted below:
Revenues:
• In general, overall FY 2020 revenues were down related to the effects of COVID-19.
• Football income is not expected in FY 2021, based the elimination of home contests.
• Men’s basketball, women’s basketball and wrestling revenues are anticipated to be lower due to
the residual effects of COVID-19.
• All other ticketed events are expected to be significantly lower due to COVID-19.
• Learfield multi-media income will also be lower in FY 2021 due to the residual effects of
COVID-19.
• Athletic conference revenue includes an estimate of NCAA funding and winter sport television
income.
• Foundation support is budgeted to be down in FY 2021, related to the residual effects of COVID-
19 on annual fund and project donations.
• Premium seat revenue will decrease in FY 2021 as a result of residual effects of COVID-19,
considering no home football contests, lower attendance and non-renewals in other sports.
• All other income streams are anticipated to be lower in FY2021 from the pandemic’s impact.
Expenses:
• Overall expense assumptions for FY 2021 include scholarship costs at similar levels to FY2020;
general salary and fringe benefit costs include contracted increases, as well as salary reductions
between 2%-15%; operations cost adjustments include reductions averaging 45%, relating to team
travel and recruiting expenses.
• Facility debt service for FY 2021 include savings from refinancing options.
• Expense reductions related to the recently announced sport sponsorship adjustments will mostly
be realized in the FY 2022 budget.
• The athletic department is responsible for paying the full cost of attendance for the scholarships it
awards. SUI Athletics awards the equivalent of approximately 300 scholarships at a cost of
approximately $13.9 million, which are included in the applicable sports expense lines.
BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA ATTACHMENT A
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FY 2020 FY 2020 FY 2021
Budget Actual Budget
INCOME
Men's Sports
Football 22,334,472$ 21,599,677$ -$
Basketball 3,667,288 3,283,937 900,000
Wrestling 600,000 928,014 200,000
All Other 66,600 1,451 19,500
Total Men's Sports 26,668,360$ 25,813,079$ 1,119,500$
Women's Sports
Basketball 325,000$ 366,818$ 150,000$
Volleyball 61,200 65,961 5,000
All Other 37,500 23,414 12,500
Total Women's Sports 423,700$ 456,193$ 167,500$
Other Income
Facility Debt Service/Student Fees 650,000$ 650,000$ 650,000$
Learfield Multi Media Contract Income 7,733,280 7,566,285 1,500,000
Athletic Conference 53,835,400 52,356,187 10,000,000
Interest 600,000 698,758 -
Foundation Support 17,157,939 15,493,418 6,946,130
Foundation Premium Seat Revenue 11,113,700 11,216,302 635,000
Novelties 3,560,000 2,913,013 1,500,000
General Income 3,120,000 2,951,212 705,000
Total Other Income 97,770,319$ 93,845,175$ 21,936,130$
TOTAL INCOME 124,862,379$ 120,114,447$ 23,223,130$
EXPENSES
Men's Sports
Football 29,683,284$ 30,397,569$ 23,878,558$
Basketball 7,859,284 7,667,568 7,362,497
Wrestling 1,990,264 1,899,880 2,104,127
All Other 6,823,880 6,529,302 5,885,085
Total Men's Sports 46,356,712$ 46,494,319$ 39,230,268$
Women's Sports
Basketball 5,287,889$ 4,810,160$ 4,851,070$
Volleyball 1,948,423 1,941,725 1,315,225
All Other 12,679,075 11,889,768 10,902,821
Total Women's Sports 19,915,387$ 18,641,653$ 17,069,116$
Other Expenses
Training Services 2,816,328$ 2,785,654$ 2,391,226$
Sports Information 820,982 698,327 495,701
Admin. & General Expenses 18,575,514 17,348,623 11,755,875
Facility Debt Service 21,837,123 21,837,123 17,105,063
Transfer-New Facility Costs/Reserves 1,500,000 - -
Academic & Counseling 2,057,850 1,943,603 1,772,096
Buildings & Grounds 10,982,483 10,365,145 8,155,352
Total Other Expenses 58,590,280$ 54,978,475$ 41,675,313$
TOTAL OPERATING EXPENSE 124,862,379$ 120,114,447$ 97,974,696$
The University of Iowa
Athletics Operating Budget
FY 2021
BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA ATTACHMENT B
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FY 2021 ATHLETIC BUDGET – IOWA STATE UNIVERSITY
The proposed FY 2021 ISU athletic budget is provided on the following page. Projecting the athletic
department’s FY 2021 financial situation is significantly challenging due to the uncertainties of the playing
seasons due to the pandemic. The budget was prepared with the following key assumptions:
• Significant decreases in media-related revenues and in attendance-related revenues across all
venues and all sports due to the COVID-19 pandemic.
• The Big 12 Conference will play a 10-game football schedule (rather than 12 originally scheduled).
The number of games played by Big 12 Conference members directly impacts the amount of
television revenue distributed by the Big 12 Conference to ISU. It is assumed all 10 games will be
played.
• The start of winter sports seasons are expected to be delayed resulting in fewer home games and
less television revenue generated by the Big 12 Conference.
• No attendance-related revenue for any sports or other events.
• A 10% salary reduction for athletics department employees.
• A 20% reduction in operating budgets.
• Approximately $2M in COVID testing expenditures for student athletes and staff.
• Evaluation of additional operational expense savings will continue and may include additional payroll
reductions.
With these assumptions, ISU projects a budget deficit of approximately $35 million for FY 2021. The
projected shortfall may be funded in part by accessing unrestricted resources held by the Department of
Athletics and/or the University. Any temporary use of unrestricted University resources will be repaid by
the Department of Athletics. If the football or basketball seasons are postponed, shortened or cancelled
the revenues in these forecasts will be further reduced (or in some cases eliminated).
The following are under consideration to begin addressing the significant financial challenge.
• Layoffs and/or additional payroll reductions
• Eliminating sports – while eliminating a sports program will not have an immediate direct impact on
the budget challenges, future savings may help repay any funding provided for this year’s deficit.
• Working with ISU to develop an operational plan for C.Y. Stephens as the revenues generated from
the auditorium are not sufficient to cover operational costs.
Additional FY 2021 budget variances to FY 2020 are outlined below.
Multi-media rights for FY20 were less than what was budgeted as the media rights holder delayed an
installment due for 60 days due to COVID 19. Receipt of that installment occurred in FY 2021.
Trademark and licensing revenue are budgeted to decrease as COVID-19 forced many retail stores to
close for an extended period.
Additional debt service is due to the addition of the Sports Performance Center.
Capital renewal projected to decrease due to reduced spending availability for projects from the
COVID-19 impact. All budgeted capital renewal spending relates to either deferred maintenance or
projects already in progress prior to the pandemic.
The athletic department is responsible for paying tuition on the scholarships it awards. ISU Athletics
awards the equivalent of approximately 236 scholarships at a cost of $8.6 million as reflected in the
budget.
BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA ATTACHMENT B
PAGE 5
FY 2020
Budget
FY 2020
Estimates
REVENUES
Ticket Sales:
Football 12,520,559$ 13,335,112$ -$
Men's Basketball 4,200,000 4,152,969 -
Women's Basketball 360,000 387,297 -
Wrestling 180,000 345,441 -
Other Sports 290,000 377,028 -
Ticket Sales: 17,550,559 18,597,847 -
Foundation Support 17,375,744 17,094,933 2,386,000
Conference & NCAA Revenue 39,877,000 36,497,165 31,000,000
Multi-Media Rights 5,057,144 2,822,316 5,375,000
Post Season Revenue 400,000 2,246,532 350,000
Student Fees 2,000,000 1,865,821 1,900,000
Licensing 1,200,000 1,192,452 1,000,000
Game guarantees 75,000 116,782 -
Ancillary Revenue 1,840,000 2,029,166 100,000
Other Revenue 2,175,000 2,581,666 1,325,500
TOTAL REVENUES 87,550,447$ 85,044,680$ 43,436,500$
EXPENSES
Sports Programs - Operations:
Football
$ 6,850,000 $ 6,821,324 $ 4,825,000
Men's Basketball 2,041,000 1,980,895 1,050,000
Women's Basketball 1,211,000 1,112,174 840,000
Wrestling 363,250 378,787 285,000
Other Sports 3,509,590 3,090,495 2,620,000
Sports Programs - Operations: 13,974,840 13,383,675 9,620,000
Sports Program Support Units:
Medical 950,000 607,343 1,900,000
Coaching Video 236,500 242,317 220,000
Sports Medicine 423,000 372,374 400,000
Academic Services 336,200 252,341 320,000
Other 607,000 648,169 475,000
Sports Program Support Units: 2,552,700 2,122,544 3,315,000
Internal Operations:
Admin Operations 1,436,000 1,218,332 1,100,000
Big 12 Expenses 2,947,000 - -
Flight Services 400,000 377,001 360,000
IT Operations 725,120 683,112 545,000
Other 405,965 364,709 350,000
Internal Operations: 5,914,085 2,643,154 2,355,000
Salaries & Benefits 31,847,073 32,019,714 29,940,614
Scholarships 8,175,663 7,840,207 8,636,000
External Operations 3,035,100 2,517,529 1,199,000
Facilities & Events 8,460,000 8,357,410 8,720,000
Postsea son 1,240,000 2,517,941 1,250,000
Debt Service 6,509,426 7,144,562 10,457,649
Capital Projects/Def Maint 5,757,000 6,457,278 2,953,000
TOTAL EXPENSES 87,465,887$ 85,004,014$ 78,446,263$
IOWA STATE UNIVERSITY ATHLETICS
BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA ATTACHMENT C
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FY 2021 ATHLETIC BUDGET – UNIVERSITY OF NORTHERN IOWA
The University of Northern Iowa’s FY 2021 proposed athletic budget provided on the following page
projects revenues of $12.8 million.
Assumptions used for the proposed budget include four home football games in Spring 2021 with limited
capacity due to social distancing. It is also assumed UNI will host nine home men’s basketball conference
games in Winter 2021, also with limited capacity. The budget assumes conference only schedules and
does not include any game guarantee revenue from non-conference games.
Across team and administrative accounts, UNI Athletics implemented salary reductions, reduced
operating budgets, and made other adjustments in response to known pandemic impacts at the time of
budget development. Future budget changes may be occur as circumstances change.
Additional line item highlights are provided below.
• Ticket revenue in all sports is expected to decline for the reasons described above.
• For FY 2020, the Panther Scholarship Club annual fund drive and "Rally in the Valley" auction event
support was less than the budget due to pandemic’s impact. While support from the Panther
Scholarship Club fund drive and the Rally in the Valley event are expected to remain consistent with
FY 2020 levels, alumni/foundation support for FY 2021 includes an approximate $880,000
fundraising initiative to help offset the negative impact of the pandemic and an additional $205,000
in foundation scholarships.
• NCAA distributions are estimated to be lower than a typical year due to the impact of the pandemic
on revenues.
• Since UNI Athletics does not receive substantial revenues from conference distributions and other
sources, the General University provides athletic support for scholarships and operations. The
budget reflects a reduction of approximately $0.2 million in university support for FY 2021.
• Scholarship costs of approximately $4.5 million for the equivalent of 190 scholarships are included
in the applicable sports expense lines.
BOARD OF REGENTS AGENDA ITEM 5
STATE OF IOWA ATTACHMENT C
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FY 2020 FY 2020 FY 2021
Original As of Jun-20 Proposed
Budget Actuals Budget
INCOME
Football 1,287,125 1,202,759 317,725
Men's Basketball 759,700 677,239 470,860
Men - All Other Sports 100,410 134,194 70,590
Women - All Sports 219,005 379,325 109,105
Subtotal - Sports 2,366,240 2,393,517 968,280
Other Income
Student Activity Fee 1,932,781 1,932,781 1,816,505
University Support for:
General Athletics Operations
3,352,886 3,412,962 3,210,647
Scholarships 1,283,481 1,283,481 1,283,481
Alumni/Foundation Support
1,832,500 1,380,649 2,535,400
Athletic Marketing 1,484,300 1,388,760 1,407,950
Athletic Conf/NCAA Support 1,436,400 1,160,361 1,111,600
Novelties - Outings 326,000 208,405 281,200
General 479,500 231,896 152,500
Subtotal - Other 12,127,848 10,999,295 11,799,283
TOTAL INCOME 14,494,088 13,392,812 12,767,563
EXPENSES
Men's Sports
Football 3,825,075 3,640,451 3,308,914
Basketball 2,674,956 2,685,288 2,149,224
All Other Men's Sports 1,307,220 1,319,211 1,230,585
Subtotal - Men's Sports 7,807,251 7,644,950 6,688,723
Women's Sports
Basketball 1,121,588 1,164,670 991,572
Volleyball 859,447 916,910 802,414
All Other Women's Sports 2,402,041 2,382,919 2,250,926
Subtotal - Women's Sports 4,383,076 4,464,499 4,044,912
Other Expenses
Athletic Training
179,495 170,249 149,509
Administration & General 1,794,324 1,805,944 1,541,934
Athletic Marketing & Sports Info 329,942 374,328 342,485
Contingency - - -
Subtotal - Other Expenses 2,303,761 2,350,521 2,033,928
TOTAL EXPENSES 14,494,088 14,459,970 12,767,563
University of Northern Iowa
FY 2021 Proposed Athletic Budgets