Rutgers’ struggles come at a steep price. The largest deficit in the Big Ten.
NJ Advance Media review provides clearest picture yet of how Rutgers compares financially to its Big Ten rivals.
Rutgers’ struggles come at a steep price. The largest deficit in the Big Ten
- Thread starter Tango Two
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Expect this to be a bigger issue this year as the President Trump President Musk NIH research funding cuts will leave a $100M hole in Rutgers’ budget.
There’s going to be pressure on athletics to cut spending- with no AD to push back.
There’s going to be pressure on athletics to cut spending- with no AD to push back.
I'm absolutely shocked our floundering, state E-newspaper would write this type of an article with such a blaring headline.
yawnRutgers’ struggles come at a steep price. The largest deficit in the Big Ten.
NJ Advance Media review provides clearest picture yet of how Rutgers compares financially to its Big Ten rivals.www.nj.com
This just in:
SHOCKING news ~
If Rutgers dropped football and basketball they would still lose millions on athletics every year!
SHOCKING news ~
If Rutgers dropped football and basketball they would still lose millions on athletics every year!
I am totally shocked that the defunct Star Ledger put this out.
The Athletic had an article on B10 athletic department financials excluding USC and NW. That’s probably why it’s come up.
It’s paywall but some excerpts:
Of those athletic departments, half finished the 2024 fiscal year with a deficit, and four of those eight were at least $15 million in the hole. Most of the shortfalls were covered by department reserves, university loans or institutional support. Private universities Northwestern and USC aren’t required by law to release their documents and do not.
Of the 13 public universities collecting Big Ten funding during fiscal 2024, 11 secured around $50.8 million as part of the league’s media contract plus $11 million or so for other disbursals, including bowl revenue. Maryland and Rutgers received lower amounts as part of their payback process after borrowing during their six years of non-vested membership.
With five Big Ten road trips and a nonconference game at Notre Dame, Ohio State played only six home football games in 2023, down from eight during the 2022 season. That led to a $14.5 million drop in overall ticket sales from 2022. Ohio State also paid $9.2 million in severance and other benefits to former coaches and administrators. The department covered the shortfall with reserves. With an expected jump of about $15 million more from the Big Ten’s coffers — budgets call for $75 million for each vested member in the current fiscal year — and eight home games in 2024-25, Ohio State’s deficit is a one-time situation.
Four programs, however, extended a concerning five-year financial trend. UCLA, which joined the Big Ten this year, spent nearly $51.9 million more than it made. Over the past five fiscal years, the department’s losses now total $200.61 million. Rutgers and Maryland continue to struggle financially while they reimburse the Big Ten for money borrowed between 2014 and 2020. Rutgers reported a $41.5 million loss, which leaves its department more than $139 million in the red over the past five years. The deficit has grown each year.
Maryland’s financial track has improved despite a nearly $5 million deficit reported for 2023-24. The Terrapins borrowed more than $125 million from the Big Ten against future earnings in the six years before they became fully vested. Then the COVID-19 pandemic wreaked financial havoc on their first year as a full member. Maryland is on track to receive full Big Ten payments in 2027 but has accumulated $32.7 million in losses over the past five years.
Michigan State’s financial portfolio has fluctuated over the last half-decade, during which time the athletic department’s shortfall totaled $44.8 million.
but a 38 percent surge in administration and support staff salaries in the last two years ($22.93 million in 2022, $31.62 million in 2024) has contributed to the financial plummet.
The eight public schools that generated a surplus in 2024 averaged $3.72 million in revenues over expenses. Nebraska, long the Big Ten’s model for fiscal responsibility, led with a $6.7 million surplus.
Twelve athletic departments have total debt exceeding $90 million, and six are north of $225 million, led by Illinois ($312.5 million) and Ohio State ($286.7 million). Michigan ($252.8 million), Penn State ($246.9 million), Washington ($244.4 million) and Iowa ($227.8 million) are next in line.
Many — but not all — of the Big Ten’s athletic departments are considered self-supporting, meaning they receive no direct university funds. UCLA claims no athletic debt, and Maryland lists $8 million, so their universities scrub away their financial shortfalls. UCLA received $30 million in direct institutional support and another $1.5 million in student fees. Maryland picked up nearly $12 million in student fees and $6.1 million in direct support. Rutgers, which charts its athletic debt at $51.4 million, received more than $21 million in student fees and direct institutional support.
Five departments — Michigan, Ohio State, Penn State, Nebraska and Purdue — obtained no financial support through fees or direct university support. Wisconsin, Iowa and Oregon collected small amounts for shared facilities, utility usage or other purposes. Indiana accepted a $26 million loan to cover football costs following coach Tom Allen’s dismissal. Illinois, Minnesota, Michigan State and Washington received fees or direct support totaling between $4 million and $11 million each.
It’s paywall but some excerpts:
Of those athletic departments, half finished the 2024 fiscal year with a deficit, and four of those eight were at least $15 million in the hole. Most of the shortfalls were covered by department reserves, university loans or institutional support. Private universities Northwestern and USC aren’t required by law to release their documents and do not.
Of the 13 public universities collecting Big Ten funding during fiscal 2024, 11 secured around $50.8 million as part of the league’s media contract plus $11 million or so for other disbursals, including bowl revenue. Maryland and Rutgers received lower amounts as part of their payback process after borrowing during their six years of non-vested membership.
With five Big Ten road trips and a nonconference game at Notre Dame, Ohio State played only six home football games in 2023, down from eight during the 2022 season. That led to a $14.5 million drop in overall ticket sales from 2022. Ohio State also paid $9.2 million in severance and other benefits to former coaches and administrators. The department covered the shortfall with reserves. With an expected jump of about $15 million more from the Big Ten’s coffers — budgets call for $75 million for each vested member in the current fiscal year — and eight home games in 2024-25, Ohio State’s deficit is a one-time situation.
Four programs, however, extended a concerning five-year financial trend. UCLA, which joined the Big Ten this year, spent nearly $51.9 million more than it made. Over the past five fiscal years, the department’s losses now total $200.61 million. Rutgers and Maryland continue to struggle financially while they reimburse the Big Ten for money borrowed between 2014 and 2020. Rutgers reported a $41.5 million loss, which leaves its department more than $139 million in the red over the past five years. The deficit has grown each year.
Maryland’s financial track has improved despite a nearly $5 million deficit reported for 2023-24. The Terrapins borrowed more than $125 million from the Big Ten against future earnings in the six years before they became fully vested. Then the COVID-19 pandemic wreaked financial havoc on their first year as a full member. Maryland is on track to receive full Big Ten payments in 2027 but has accumulated $32.7 million in losses over the past five years.
Michigan State’s financial portfolio has fluctuated over the last half-decade, during which time the athletic department’s shortfall totaled $44.8 million.
but a 38 percent surge in administration and support staff salaries in the last two years ($22.93 million in 2022, $31.62 million in 2024) has contributed to the financial plummet.
The eight public schools that generated a surplus in 2024 averaged $3.72 million in revenues over expenses. Nebraska, long the Big Ten’s model for fiscal responsibility, led with a $6.7 million surplus.
Twelve athletic departments have total debt exceeding $90 million, and six are north of $225 million, led by Illinois ($312.5 million) and Ohio State ($286.7 million). Michigan ($252.8 million), Penn State ($246.9 million), Washington ($244.4 million) and Iowa ($227.8 million) are next in line.
Many — but not all — of the Big Ten’s athletic departments are considered self-supporting, meaning they receive no direct university funds. UCLA claims no athletic debt, and Maryland lists $8 million, so their universities scrub away their financial shortfalls. UCLA received $30 million in direct institutional support and another $1.5 million in student fees. Maryland picked up nearly $12 million in student fees and $6.1 million in direct support. Rutgers, which charts its athletic debt at $51.4 million, received more than $21 million in student fees and direct institutional support.
Five departments — Michigan, Ohio State, Penn State, Nebraska and Purdue — obtained no financial support through fees or direct university support. Wisconsin, Iowa and Oregon collected small amounts for shared facilities, utility usage or other purposes. Indiana accepted a $26 million loan to cover football costs following coach Tom Allen’s dismissal. Illinois, Minnesota, Michigan State and Washington received fees or direct support totaling between $4 million and $11 million each.
Pretty bleak picture that no one seems too concerned about. None of these entities know how to manage a check book.
Including the Star Ledger
"The eight public schools that generated a surplus in 2024 averaged $3.72 million in revenues over expenses. Nebraska, long the Big Ten’s model for fiscal responsibility, led with a $6.7 million surplus"
This is a league wide issue. Sure, it's great to have a surplus, but that's clearly not much money when compared to the expense numbers.
This is a league wide issue. Sure, it's great to have a surplus, but that's clearly not much money when compared to the expense numbers.
How is this a league wide issue? Almost half the teams in the league generated surplus, Ohio State was negative due to a scheduling fluke which they had the reserves to pay. Most of the other teams with modest losses.
Only 3 teams were significantly in the red, including RU with 41.5M AFTEr receiving 28.6M in subsidies. That's over 70M. The deficit over the past 10 years is almost a half a billion.
Expenses are going to go up. Significantly. RU doesn't have the revenue generation that most others have. At some point the spending will have to reflect the revenue generation.
When is the B1G going to step up and offer a lifeline to RU and a couple of others?
Because the athletic departments are actually the marketing department and a fixed expense for the school. This has failed to be a story for many years now.
This is before having to pay players $20 million to keep up
Rutgers’ struggles come at a steep price. The largest deficit in the Big Ten.
NJ Advance Media review provides clearest picture yet of how Rutgers compares financially to its Big Ten rivals.
These articles always leave out the fact that football makes millions and that universities must fund at least nine women's sports to be in the NCAA.
Football and Mens Basketball are the best advertising the university (any university) has available. The money spent on these two programs pays for itself time and again by making the school prominent (even when losing) and building loyalty with the student body, alumni and surrounding businesses. Everything else is a money pit; but it's a federally mandated money pit - so there's nothing you can do about it other than go private and stop taking government money. We should have done that a long time ago (Duke/Stanford model), but we won't so it is what it is.
He’s busy running companies, the country and making babies with as many women as possible.
GO RU
