OT: Fiscal year 2023 audited financial statements for Rutgers athletics

[Fat Koko]

Fiscal year ends June 30, amounts in millions

2022
Operating revenues $109.6
Operating expenses $138.4
Operating loss $28.8

2023
Operating revenues $125.5
Operating expenses $153.5
Operating loss $28.0

% change, 2023 versus 2022
Operating revenues 14%
Operating expenses 11%
Operating loss -3%

Notes:
* Large increases in media rights revenue, coaching salaries, and debt service drove the changes in operating revenues and operating expenses
* Auditor is KPMG
* 2024 Rutgers athletics budget is presented differently than 2022 and 2023 audited financial statements making comparison unreliable

 

[RU at the shore]

I see we are going in the right direction !!

 

[DJ Spanky]

Keep in mind that our Big 10 revenue will continue to increase through 2027 as we pay off the loan we took to bolster our revenue up until 2020. Part of our full share is being taken to pay off that loan.

 

[rutgersguy1]

Just some tangential news from around CFB.

 

[mdk01]

Just some tangential news from around CFB.

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Ve
Doesn't Texas have an equivalent of the Big 10 Network dedicated exclusively to UT? That would be a nice revenue source, along with their sold out stadium.

 

[NickRU714]

All these reports with huge deficits "when you remove institutional support" miss the story.

The university is SUPPOSED to be supporting athletics.

Who else is supposed to support all the non-revenue sports if not the University?

 

[Fat Koko]

All these reports with huge deficits "when you remove institutional support" miss the story.

The university is SUPPOSED to be supporting athletics.

Who else is supposed to support all the non-revenue sports if not the University?

The story at Rutgers athletics is not the presence of an operating deficit, it is the size of the deficit.

For fiscal year 2022, 107 FBS athletic departments reported financials. Rutgers operating performance ranked 107 out of 107, at the $28.8 million loss I stated above. Despite revenues rising double digits, Rutgers athletics lost $28.0 million again in 2023.

Rutgers students paid the athletic department $13.5 million in fees in 2023, likely the highest in the B1G. Rutgers was #1 in student fees to athletics in 2022.

This $13.5 million amount is more than enough to fund the salaries, benefits, and bonuses of the 21 head coaches not named Schiano and Pikiell.

 

[WhiteBus]

Ve
Doesn't Texas have an equivalent of the Big 10 Network dedicated exclusively to UT? That would be a nice revenue source, along with their sold out stadium.

Yes Longhorn Network. It expires this spring.

 

[applesktrack]

There was always rumors on this board that Rutgers calculates the deficit differently then other schools. They said that Rutgers calculates all athletics stadiums/fields/gyms as athletic expenses instead of university capital expenditures like other universities. Also they also always said that other universities charge the students for their student tickets as part of their tuition and it's counted as income instead of student aid and of course Rutgers did the opposite.

Now I have no clue if it's true but I could definitely see Rutgers doing that.

 

[WhichReligionIsRight]

Ve
Doesn't Texas have an equivalent of the Big 10 Network dedicated exclusively to UT? That would be a nice revenue source, along with their sold out stadium.

Not anymore. The LHN goes away when they join the SEC. No more special treatment for the 'Horns.

 

[WhiteBus]

There was always rumors on this board that Rutgers calculates the deficit differently then other schools. They said that Rutgers calculates all athletics stadiums/fields/gyms as athletic expenses instead of university capital expenditures like other universities. Also they also always said that other universities charge the students for their student tickets as part of their tuition and it's counted as income instead of student aid and of course Rutgers did the opposite.

Now I have no clue if it's true but I could definitely see Rutgers doing that.

True. Many Universities counts facilities and the expenses of the maintenance to the general fund

 

[Fat Koko]

True. Many Universities counts facilities and the expenses of the maintenance to the general fund

Rutgers was one of the worst offenders under Barchi. Rutgers counted loan proceeds as operating revenue, for example.

The NCAA in its "agreed upon procedures" requires each athletics department to create and submit audited financial statements certified by the university's leader. At Rutgers for fiscal year 2023, the audit was completed by KPMG and Jonathan Holloway certified the financial statements.

Page 25:

Indirect Institutional Support
Input value of costs covered and services provided by the institution to athletics but not charged to athletics including:
• Administrative services provided by the university to athletics but not charged such as HR, Accounting and IT.
• Facilities maintenance.
• Security.
• Risk Management.
• Utilities.

Today, universities must report facilities maintenance for athletics facilities in the financial statement submitted to the NCAA, even if these expenses are paid for by the university, not the athletics.

Same with debt service. When a university borrows money using the balance sheet of the university or state to say, renovate a sports facility, the debt service must be allocated to the athletic department in the NCAA reports.

 

[Pils86]

Keep in mind that our Big 10 revenue will continue to increase through 2027 as we pay off the loan we took to bolster our revenue up until 2020. Part of our full share is being taken to pay off that loan.

So we keep paying our buy-in while others come in this year and next as freebies? Are the RU attorneys that bad?

 

[Eagleton96]

Presenting the numbers as deficits is is a victory for opponents of college athletics right off the bat due to the framing. Other things that “cost money” at colleges are not presented as deficits. We don’t talk about the grounds and maintenance department as running a deficit. Having manicured grounds on campus is something that costs money and that we pay for because we like it. If you told me that the athletics department at Rutgers, all of it, cost $28 million, I’d say that sounds right, and that we got good value for it.

I wonder how big a deficit there is in the athletics department at Stockton or TCNJ? 10 mil? (In Edit: the figure is about 4mil at Stockton and they don't even have football even at DIII)

So it’s OK for Stockton to run a multimillion dollar deficit for it it’s athletics department that nobody cares about, but it’s scandalous for Rutgers to run a multi million dollar deficit when millions of people follow them.

 

[RU_DIO]

So we keep paying our buy-in while others come in this year and next as freebies? Are the RU attorneys that bad?

 

[koleszar]

Rutgers was one of the worst offenders under Barchi. Rutgers counted loan proceeds as operating revenue, for example.

The NCAA in its "agreed upon procedures" requires each athletics department to create and submit audited financial statements certified by the university's leader. At Rutgers for fiscal year 2023, the audit was completed by KPMG and Jonathan Holloway certified the financial statements.

Page 25:

Indirect Institutional Support
Input value of costs covered and services provided by the institution to athletics but not charged to athletics including:
• Administrative services provided by the university to athletics but not charged such as HR, Accounting and IT.
• Facilities maintenance.
• Security.
• Risk Management.
• Utilities.

Today, universities must report facilities maintenance for athletics facilities in the financial statement submitted to the NCAA, even if these expenses are paid for by the university, not the athletics.

Same with debt service. When a university borrows money using the balance sheet of the university or state to say, renovate a sports facility, the debt service must be allocated to the athletic department in the NCAA reports.

Not if you hold a couple classes in those facilities, then you can put it on the general fund and subvert the general agreed upon procedures. There's always a trick to accounting and a way around. You really don't think these schools can find friendly accounting firms and Presidents who don't mind seeing athletic's reported with minimal loses or huge gains?

 

[DJ Spanky]

So we keep paying our buy-in while others come in this year and next as freebies? Are the RU attorneys that bad?

Only UCLA and USC are getting in for free; Oregon and Washington have to buy in. But, yes, our attorneys are that bad. Holloway should have been in everyone's face the moment they said no boy in for the U's.

We've already paid our buy-in, but we took a loan against future payouts to boost our revenues from 2018-2020. That's what is reducing our payouts from 2021-2026.

 

[Fat Koko]

I wonder how big a deficit there is in the athletics department at Stockton or TCNJ? 10 mil?

Stockton budgets to spend $3.6 million on athletics and recreation in fiscal year 2024. Rutgers will spend roughly 2x on Greg's compensation as Stockton will spend on its entire athletics and recreation program.

Where did you get the "10 mil" number? Did you just make it up? Your figure is waaaay off target.

 

[DennisHajekRC84]

The story at Rutgers athletics is not the presence of an operating deficit, it is the size of the deficit.

For fiscal year 2022, 107 FBS athletic departments reported financials. Rutgers operating performance ranked 107 out of 107, at the $28.8 million loss I stated above. Despite revenues rising double digits, Rutgers athletics lost $28.0 million again in 2023.

Rutgers students paid the athletic department $13.5 million in fees in 2023, likely the highest in the B1G. Rutgers was #1 in student fees to athletics in 2022.

This $13.5 million amount is more than enough to fund the salaries, benefits, and bonuses of the 21 head coaches not named Schiano and Pikiell.

Student fees. Rutgers $2,912 Stockton $2,536 WOW!!

Why exactly do you care so much? Is it your money?

 

[Eagleton96]

Stockton budgets to spend $3.6 million on athletics and recreation in fiscal year 2024. Rutgers will spend roughly 2x on Greg's compensation as Stockton will spend on its entire athletics and recreation program.

Where did you get the "10 mil" number? Did you just make it up? Your figure is waaaay off target.

Huh? I was speculating and asking the question as indicated by the question mark after the 10 mil number. And by me saying “I wonder what Stockton’s budget is?” Was that not obvious enough?

Stockton’s budget being 4 mil vs 10 mil doesn’t change my point at all.

 

[Knight Shift]

Stockton budgets to spend $3.6 million on athletics and recreation in fiscal year 2024. Rutgers will spend roughly 2x on Greg's compensation as Stockton will spend on its entire athletics and recreation program.

Where did you get the "10 mil" number? Did you just make it up? Your figure is waaaay off target.

How much is Stockton's media rights deal due to their football program? Are you familiar with the concept you have to spend money to make money?

 

[Eagleton96]

How much is Stockton's media rights deal due to their football program? Are you familiar with the concept you have to spend money to make money?

I don’t think Stockton has football.

 

[Knight Shift]

I don’t think Stockton has football.

It was a facetious, rhetorical question for Fat Koko, who seems to be on the hunt for Rutgers being in the wrong here. As I don't have to explain to you, we see what we got when Rutgers went the cheap route with Flood, then Ash. Deep-sixed the program, setting back the program and revenue for years. Just look at Texas and Alabama--they made investments and reaped the rewards.

 

[DennisHajekRC84]

I don’t think Stockton has football.

No but imagine the travel expense the other day to drive 45mins thru the Pine Barrens to play Rowan in basketball.

 

[Eagleton96]

No but imagine the travel expense the other day to drive 45mins thru the Pine Barrens to play Rowan in basketball.

If the cost of Stockton athletics is 4 mil, and RU New Brunswick is 28 mil then the cost of RU athletics is 4.5 times bigger than Stockton. Is that justified and worth it? Considering the size of the fanbases, the number of people that follow it, the size of the student bodies, the role of RU as the flagship, the overall budgets of the two institutions, I would expect the cost of the RU athletics department to be more than 4.5X that of Stockton and those costs provide way more value.

And I say this as someone that has a varsity letter in lacrosse from Stockton.

 

[DennisHajekRC84]

If the cost of Stockton athletics is 4 mil, and RU New Brunswick is 28 mil then the cost of RU athletics is 4.5 times bigger than Stockton. Is that justified and worth it? Considering the size of the fanbases, the number of people that follow it, the size of the student bodies, the role of RU as the flagship, the overall budgets of the two institutions, I would expect the cost of the RU athletics department to be more than 4.5X that of Stockton and those costs provide way more value.

And I say this as someone that has a varsity letter in lacrosse from Stockton.

I do not know the answer to that nor do I hold any ill will against any of our schools. My Daughter is a Stockton Grad and my son is a Rowan Grad. Both doing well.

I was simply joking about travel expense associated with the sports programs vs. what Rutgers must spend to play games in the B1G.

 

[Eagleton96]

I do not know the answer to that nor do I hold any ill will against any of our schools. My Daughter is a Stockton Grad and my son is a Rowan Grad. Both doing well.

I was simply joking about travel expense associated with the sports programs vs. what Rutgers must spend to play games in the B1G.

Gotcha. You have to factor in the cost of some armed guards on the Stockton team bus to protect against the pineys and the Jersey Devil.

 

[ru66]

Some would say inexpensive admission to a sold out RAC is worth those athletic fees.

 

[Fat Koko]

If the cost of Stockton athletics is 4 mil, and RU New Brunswick is 28 mil then the cost of RU athletics is 4.5 times bigger than Stockton. Is that justified and worth it? Considering the size of the fanbases, the number of people that follow it, the size of the student bodies, the role of RU as the flagship, the overall budgets of the two institutions, I would expect the cost of the RU athletics department to be more than 4.5X that of Stockton and those costs provide way more value.

And I say this as someone that has a varsity letter in lacrosse from Stockton.

Your math continues to be off target by a mile.

The $4 million figure for Stockton is the Stockton athletics budget, in other words the 2024 fiscal year athletics operating expenses.

The $28 million figure for Rutgers is the actual 2023 fiscal year operating deficit for the athletics department. That is, $125.5 million of athletics operating revenue subtracted by $153.3 of athletics operating expenses equals the $28.0 million operating deficit.

The cost of Rutgers athletics is not 4.5x Stockton. It is 46x.

 

[NickRU714]

Your math continues to be off target by a mile.

The $4 million figure for Stockton is the Stockton athletics budget, in other words the 2024 fiscal year athletics operating expenses.

The $28 million figure for Rutgers is the actual 2023 fiscal year operating deficit for the athletics department. That is, $125.5 million of athletics operating revenue subtracted by $153.3 of athletics operating expenses equals the $28.0 million operating deficit.

The cost of Rutgers athletics is not 4.5x Stockton. It is 46x.

The cost to the university is what matters.
Frankly, Rutgers University is getting off cheap by only having to pay 4x for Athletics.

Rutgers University should be subsidizing 100% the cost of non-revenue sports just as a starter. Like Stockton does (I'm assuming).
Maybe 97% should be subsidized since I guess non-revenue sports have some (minimal) value to the Big Ten Conference payouts?

How much of that $28m subsidiary goes to football/basketball?
How much goes to football/basketball are allocated the 90% of Big Ten Conference payouts?

 

[Eagleton96]

Your math continues to be off target by a mile.

The $4 million figure for Stockton is the Stockton athletics budget, in other words the 2024 fiscal year athletics operating expenses.

The $28 million figure for Rutgers is the actual 2023 fiscal year operating deficit for the athletics department. That is, $125.5 million of athletics operating revenue subtracted by $153.3 of athletics operating expenses equals the $28.0 million operating deficit.

The cost of Rutgers athletics is not 4.5x Stockton. It is 46x.

I think my math is correct. My point here (and you seem to be repeatedly missing the point) is that we should be looking at the total net cost. Given that Stockton makes negligible revenue from their sports, we can assume that the full expense is the actual cost to the university. From a bottom line perspective, that's exactly the same as saying it's a deficit.

For Rutgers there is actual revenue and expenses. So as you astutely point out, you deduct revenue from expenses to arrive at total cost.

My entire point was that it's prejudicial framing of the debate to call the the bottom line cost at Rutgers a deficit and the bottom line cost at Stockton an expense or a cost. From an accounting and math perspective they are identical.

 

[Eagleton96]

The cost to the university is what matters.
Frankly, Rutgers University is getting off cheap by only having to pay 4x for Athletics.

Rutgers University should be subsidizing 100% the cost of non-revenue sports just as a starter. Like Stockton does (I'm assuming).
Maybe 97% should be subsidized since I guess non-revenue sports have some (minimal) value to the Big Ten Conference payouts?

How much of that $28m subsidiary goes to football/basketball?
How much goes to football/basketball are allocated the 90% of Big Ten Conference payouts?

My assumption is that hoops and football break even and most of the $28mil is to cover the rest of the sports.

 

[Fat Koko]

I do not know the answer to that nor do I hold any ill will against any of our schools. My Daughter is a Stockton Grad and my son is a Rowan Grad. Both doing well.

I was simply joking about travel expense associated with the sports programs vs. what Rutgers must spend to play games in the B1G.

Rutgers athletics spent $11,436,251 for team travel in 2023, a 19% increase compared to the $9,582,477 in 2022. Please note these amounts do not include recruiting travel expenses.

 

[Eagleton96]

Rutgers athletics spent $11,436,251 for team travel in 2023, a 19% increase compared to the $9,582,477 in 2022. Please note these amounts do not include recruiting travel expenses.

I think most on this board would be happy to go back to the days when college athletics was a regional thing. Nobody likes the conference realignment insanity. But the whole reason there is a movement to consolidate into large geographically spread out super conferences is because the increased travel expenses are more than offset by the increased revenue.

You seem to be having a consistent problem with basic accounting and budgeting. You need to look at income AND expenses to determine the cost/net/value/benefit.

 

[Fat Koko]

My assumption is that hoops and football break even and most of the $28mil is to cover the rest of the sports.

Determining profitability by sport is open to accounting gymnastics. Many TKR posters are falling off the balance beam and face planting high bar dismounts.

For instance, the allocation of media rights revenue favors football but what % of media rights $ should be given to men's basketball and the rest of the sports.

Another example is debt. If Rutgers borrows money to renovate the RAC, how does the debt service get split up by men's basketball, women's basketball, wrestling, and gymnastics.

 

[Eagleton96]

Determining profitability by sport is open to accounting gymnastics. Many TKR posters are falling off the balance beam and face planting high bar dismounts.

For instance, the allocation of media rights revenue favors football but what % of media rights $ should be given to men's basketball and the rest of the sports.

Another example is debt. If Rutgers borrows money to renovate the RAC, how does the debt service get split up by men's basketball, women's basketball, wrestling, and gymnastics.

Other than being generally rude, I'm not sure what point you are trying to make in this post.

 

[Fat Koko]

I think most on this board would be happy to go back to the days when college athletics was a regional thing. Nobody likes the conference realignment insanity. But the whole reason there is a movement to consolidate into large geographically spread out super conferences is because the increased travel expenses are more than offset by the increased revenue.

You seem to be having a consistent problem with basic accounting and budgeting. You need to look at income AND expenses to determine the cost/net/value/benefit.

Agree 100% with first paragraph. The Pinstripe Bowl was awesome. Super to see the team play a big neutral site game a short ride away.

Disagree with second paragraph. I will be considered a nerd by writing this, but I suspect I enjoy studying the business and financial situation of Rutgers athletics more than other TKR subscribers. How many TKR subscribers get the Rutgers athletics financial reports and contracts and then read them.

 

[Eagleton96]

Agree 100% with first paragraph.

Disagree with second paragraph. I will be considered a nerd by writing this, but I suspect I enjoy studying the business and financial situation of Rutgers athletics more than other TKR subscribers. How many TKR subscribers get the Rutgers athletics financial reports and contracts and then read them.

I can only judge you by the things you post here.

 

[DennisHajekRC84]

Rutgers athletics spent $11,436,251 for team travel in 2023, a 19% increase compared to the $9,582,477 in 2022. Please note these amounts do not include recruiting travel expenses.

IDK man but since you're on a crusade about this subject (for years now) and you have all that data why don't you do a deep dive on this and report back after considering Inflation, The team away schedules inclusive of # games and locations, where the eat, how many times they put cheese on the burgers, did they use the EZ pass lane or pay cash, etc.
In other words instead of throwing out these 30,000 foot bombs show where they did things that were wasteful and over the top. Take the institutional out of it and I'll buy into your "wolf" cries more.

 

[thegock]

If the cost of Stockton athletics is 4 mil, and RU New Brunswick is 28 mil then the cost of RU athletics is 4.5 times bigger than Stockton. Is that justified and worth it? Considering the size of the fanbases, the number of people that follow it, the size of the student bodies, the role of RU as the flagship, the overall budgets of the two institutions, I would expect the cost of the RU athletics department to be more than 4.5X that of Stockton and those costs provide way more value.

And I say this as someone that has a varsity letter in lacrosse from Stockton.

Did you play with JB?