Power 5 Athletic Department Debt- Rutgers Is Low Compared to Peers

[Knight Shift]

This does not fit the narrative propagated by our "friends" in the NJ Media outlets. How could this be?

Source:

Sportico’s Intercollegiate Finance Database

Sportico is maintaining an interactive, real-time database that tracks the official balance sheets of public FBS university athletic departments.

www.sportico.com

 

[yesrutgers01]

Just Shut Up! This ruins everything everyone likes to tell us. So! JUST SHUT UP!!!!!

LOL

The funny thing is- we ran up our debt and our reward was being invited to a $100 million a year conference...I think we work out to be the winners based on ROI...

 

[Knight Shift]

Just Shut Up! This ruins everything everyone likes to tell us. So! JUST SHUT UP!!!!!

LOL

The funny thing is- we ran up our debt and our reward was being invited to a $100 million a year conference...I think we work out to be the winners based on ROI...

I'm a bit puzzled by the debt situations of Michigan and Ohio State. One would think they would be in better shape?

 

[yesrutgers01]

I'm a bit puzzled by the debt situations of Michigan and Ohio State. One would think they would be in better shape?

I have a gut feeling they have no problem holding that dept while applying all the funds they receive in other directions. And sure they have a way that the debt offsets those funds.
One thing I am sure of- both University's could pay off their debts if they wanted to.

 

[dconifer0]

I don't really follow this stuff, but I'm surprised about Maryland being in the "lowest debt" row, same way. The usual narrative is they are taking on water...

 

[Jerseylegends]

I'm a bit puzzled by the debt situations of Michigan and Ohio State. One would think they would be in better shape?

I have to remind myself that it's the entire athletic department. I'm guessing only basketball and football bring in money. The others would have been expenses for the schools anyway.

 

[RUTGERS95]

This does not fit the narrative propagated by our "friends" in the NJ Media outlets. How could this be?

Source:

Sportico’s Intercollegiate Finance Database

Sportico is maintaining an interactive, real-time database that tracks the official balance sheets of public FBS university athletic departments.

www.sportico.com

and the way we account for expense and rev is not consistent with other depts which actually makes our worse. We've 2 rev sources that absconded by other cost centers!!!!!!

we're fine, fk the haters

 

[mdk02]

I don't really follow this stuff, but I'm surprised about Maryland being in the "lowest debt" row, same way. The usual narrative is they are taking on water...

Have they built a new facility or done a major improvement in the last 20 years? Rutgers has done that with both SHI and Jersey Mike's and is still on the lower though SHI is a smaller facility than some the high debt schools.

 

[dan15701]

I don't really follow this stuff, but I'm surprised about Maryland being in the "lowest debt" row, same way. The usual narrative is they are taking on water...

Here is the tricky part with this data. Not all schools use the same accounting practices and methods. For example at Penn State the basketball arena is “owned” by the school and not athletics. Therefore debt for renovations would not be included in this even though athletics may be the driving force behind the move. This is common especially with facilities that are used outside of athletics like natatorium because they are often used for physical education classes.

 

[dan15701]

I'm a bit puzzled by the debt situations of Michigan and Ohio State. One would think they would be in better shape?

Debt doesn’t mean you are in a bad place. A better measure would be debt to income ratio. Ohio State might have $300 million in debt but it also has $200 million a year in income. So it not a huge deal compare to say Oregon State with say $100 million in debt but only $40 million a year in revenue.

 

[Knight Shift]

Debt doesn’t mean you are in a bad place. A better measure would be debt to income ratio. Ohio State might have $300 million in debt but it also has $200 million a year in income. So it not a huge deal compare to say Oregon State with say $100 million in debt but only $40 million a year in revenue.

They don't publish the debt.
However, Rutgers' revenue from football is near the lowest for all P5 schools-Cal is almost double Rutgers. Maryland is over $56M:
Rutgers: $22,673,284
Michigan: $142,767,461

Rutgers:
Total Revenue: $125,478,340
Total Expenses: $153,523,767
Deficit: (-28,045,427)

Michigan:
Rev: $225,548,280
Exp: $232,323,521
Profit: ($4,012,999)

 

[yesrutgers01]

It is sort of like- you have 10k debt and make 30k a year and you call one of those 800 numbers
or
You make $3 mil per year and have a $1.5 mil mortgage(tax benefits) Car payment- (maybe 1k per month but a 100+k debt) own 3 properties- that carry another $1 mil in debt...etc etc etc

Debt is never the number to really look at

 

[Ridge 22]

Really hard to compare and evaluate these numbers. As noted above, accounting practices vary by school. It's not apples to apples to apples across schools at the department level (ie football and/or athletics).

 

[yesrutgers01]

Really hard to compare and evaluate these numbers. As noted above, accounting practices vary by school. It's not apples to apples to apples across schools at the department level (ie football and/or athletics).

and how good their finance and accounting depts are. lol

 

[yesrutgers01]

Really hard to compare and evaluate these numbers. As noted above, accounting practices vary by school. It's not apples to apples to apples across schools at the department level (ie football and/or athletics).

I would say some of the most successful companies in the world carry the highest debt

 

[Knight Shift]

and how good their finance and accounting depts are. lol

University of Arizona ring a bell? Their President resigned or was forced out today

 

[BeantownKnight]

I would say some of the most successful companies in the world carry the highest debt

By that logic, Cal is one of the most successful college football programs.

 

[cubuffsdoug_rivals]

They don't publish the debt.
However, Rutgers' revenue from football is near the lowest for all P5 schools-Cal is almost double Rutgers. Maryland is over $56M:
Rutgers: $22,673,284
Michigan: $142,767,461

Rutgers:
Total Revenue: $125,478,340
Total Expenses: $153,523,767
Deficit: (-28,045,427)

Michigan:
Rev: $225,548,280
Exp: $232,323,521
Profit: ($4,012,999)

Shouldn't that debt issue grow smaller as Rutgers gets a bigger piece of the media pie? I know expenses will go up, but to go from $46 million (media revenue) to over $70 million (new media revenue minus payback), and close to $100 million by the end of the media deal should reduce the problem.

 

[Ridge 22]

and how good their finance and accounting depts are. lol

They all have the same set of rules to follow, and the amounts in total are all ultimately entirely comparable. This is more about a policy election within the rules. In this case, primarily where to allocate common expenses such as interest on stadium debt. The debt is the debt, but which department gets hit with it varies by institution. Not right or wrong, just not always the same approach. Unless you were to be able to see it all on an adjusted basis to bring them all inline, the numbers are much less meaningful and generally seem to be brought forward when someone is trying to support their spin and make a particular school look bad (usually Rutgers).

 

[RUScrew85]

Debt doesn’t mean you are in a bad place. A better measure would be debt to income ratio. Ohio State might have $300 million in debt but it also has $200 million a year in income. So it not a huge deal compare to say Oregon State with say $100 million in debt but only $40 million a year in revenue.

Lookit the big brain on Dan!

 

[RUdude]

Have they built a new facility or done a major improvement in the last 20 years? Rutgers has done that with both SHI and Jersey Mike's and is still on the lower though SHI is a smaller facility than some the high debt schools.

football facility $150M opened in 2022...very nice....

https://fanbuzz.com/college-football/maryland-terrapins-football-facility-inside-look/

 

[yesrutgers01]

They all have the same set of rules to follow, and the amounts in total are all ultimately entirely comparable. This is more about a policy election within the rules. In this case, primarily where to allocate common expenses such as interest on stadium debt. The debt is the debt, but which department gets hit with it varies by institution. Not right or wrong, just not always the same approach. Unless you were to be able to see it all on an adjusted basis to bring them all inline, the numbers are much less meaningful and generally seem to be brought forward when someone is trying to support their spin and make a particular school look bad (usually Rutgers).

I think you missed my point...debt is still debt- but what is the deficit? I mean- If I make $5 mil a year and I have a yearly debt of $1mil vs I make $50k a year and have a yearly debt of $15k...

And regardless- almost all our debt comes from things that were instrumental in not only getting into a $100 mil sports conference but getting into one of the most prestigious research collective of Universities in the world.

I trade $100 mil every day for that, and have no problem carrying that debt either

 

[Brisket and Bourbon]

If revenue - expenses = a positive number….thats good. RUs -$28M is bad…they should do a metric of the same schools and rank them top to bottom based on revenue - expenses. Thats a FAR better measure of an ADs ability/robustness.

 

[RU#1fan]

I have to remind myself that it's the entire athletic department. I'm guessing only basketball and football bring in money. The others would have been expenses for the schools anyway.

This.
As with all College Athletics the non FB and BB programs are a major drain on the School’s Budgets. A bit surprised our Annual Football operating expenses are nearly $50 million per year. The Revenue should grow as we continue to improve on the football field.

 

[Fat Koko]

Division I universities report debt to the NCAA. Athletics related debt and total institution debt are disclosed.

The debt reality at Rutgers is the university and the Big Ten made loans to fund Rutgers athletics, at dollar numbers never before seen. These loans are not counted in the Rutgers debt figures reported above.

The Big Ten universities with the big debt have the athletic department profits to serve that debt. Rutgers athletics does not have any money to pay its debt, instead relying on student fees and transfers from the university to meet the debt obligations.

 

[Retired711]

They don't publish the debt.
However, Rutgers' revenue from football is near the lowest for all P5 schools-Cal is almost double Rutgers. Maryland is over $56M:
Rutgers: $22,673,284
Michigan: $142,767,461

Rutgers:
Total Revenue: $125,478,340
Total Expenses: $153,523,767
Deficit: (-28,045,427)

Michigan:
Rev: $225,548,280
Exp: $232,323,521
Profit: ($4,012,999)

It seems to me these are the most revealing numbers. The level of debt is important, but not nearly as much so. A millionaire may have a huge mortgage on a house, but his revenue might still exceed his expenses (including debt service). I might have no mortgage, but have expenses exceeding my revenue. His debt is greater than mine, but he's still in better financial shape. In other words, net income matters more than the level of debt. Indeed, the reason why Rutgers athletics has so little in debt is that our income isn't great enough to afford the interest we would have to pay to service more debt.

 

[Panthergrowl13]

LOL!!!!

I wonder about the accuracy of the chart and if accurate, its great for Pitt (No Debt).

Playing its football games in the comfort of Acrisure Stadium and not having to invest $$$$ in Stadium upkeep and renovations may have real financial benefits. Stadium is used 7 times a year (28 hours Total).

It has been reported Penn State will be spending $750 million to upgrade Beaver Stadium.

Receiving less sports money in the ACC doesn't appear to be a problem for Pitt.

If possible, it is always better to spend more money on Research Facilities which can be used 365 days with a better ROI than Stadiums.

HAIL TO PITT!!!!

 

[soundcrib]

Our donations are so weak.

 

[Ridge 22]

I think you missed my point...debt is still debt- but what is the deficit? I mean- If I make $5 mil a year and I have a yearly debt of $1mil vs I make $50k a year and have a yearly debt of $15k...

And regardless- almost all our debt comes from things that were instrumental in not only getting into a $100 mil sports conference but getting into one of the most prestigious research collective of Universities in the world.

I trade $100 mil every day for that, and have no problem carrying that debt either

Yes, debt is still debt. But where is that debt being allocated to? The university general fund? Athletics? The answer is it varies by school. Same on other aspects of the financials. Yes, the totals are the totals, but once you look at them by department, it is no longer comparable due to varying accounting practices, which was my point. Regardless, I agree with you that debt is not a bad thing and you need to invest to grow.

 

[JerseyNoles]

LOL!!!!

I wonder about the accuracy of the chart and if accurate, its great for Pitt (No Debt).

Playing its football games in the comfort of Acrisure Stadium and not having to invest $$$$ in Stadium upkeep and renovations may have real financial benefits. Stadium is used 7 times a year (28 hours Total).

It has been reported Penn State will be spending $750 million to upgrade Beaver Stadium.

Receiving less sports money in the ACC doesn't appear to be a problem for Pitt.

If possible, it is always better to spend more money on Research Facilities which can be used 365 days with a better ROI than Stadiums.

HAIL TO PITT!!!!

Playing games in a rented stadium sucks compared to having your own
I understand why you guys did it but the old Pitt Stadium was a classic

Receiving 500 less than your peers over the next 12 years would be catastrophic to the majority of programs wishing to compete for championships

If mid to low level bowls are your jam and getting blown out by good teams on a regular basis is ok, then the ACC is a perfect spot

 

[Fat Koko]

If revenue - expenses = a positive number….thats good. RUs -$28M is bad…they should do a metric of the same schools and rank them top to bottom based on revenue - expenses. Thats a FAR better measure of an ADs ability/robustness.

Athletic department financial performance

Nebraska $13,960,972
Iowa $7,115,331
Indiana $5,619,263
Ohio State $4,600,783
Purdue $4,516,499
Michigan $4,012,999
Wisconsin $3,702,749
Minnesota $1,724,809
Penn State $126,352
Maryland $23,044
Illinois ($4,463,779)
Michigan State ($11,196,556)
Rutgers ($28,045,427)

Source: NCAA Financial Reporting System

 

[Fat Koko]

and the way we account for expense and rev is not consistent with other depts which actually makes our worse. We've 2 rev sources that absconded by other cost centers!!!!!!

we're fine, fk the haters

Please show how Rutgers accounting is inconsistent with other university athletic departments leading to worse numbers.

 

[rurichdog]

This does not fit the narrative propagated by our "friends" in the NJ Media outlets. How could this be?

Source:

Sportico’s Intercollegiate Finance Database

Sportico is maintaining an interactive, real-time database that tracks the official balance sheets of public FBS university athletic departments.

www.sportico.com

I'm sure Killingsworth will be afforded a multi-page Sunday rebuttal in the NJ media.

 

[Knight Shift]

Athletic department financial performance

Nebraska $13,960,972
Iowa $7,115,331
Indiana $5,619,263
Ohio State $4,600,783
Purdue $4,516,499
Michigan $4,012,999
Wisconsin $3,702,749
Minnesota $1,724,809
Penn State $126,352
Maryland $23,044
Illinois ($4,463,779)
Michigan State ($11,196,556)
Rutgers ($28,045,427)

Source: NCAA Financial Reporting System

Does anyone recall what Rutgers received as its B1G share last year, and do we get a full share this coming year?

 

[Ridge 22]

Please show how Rutgers accounting is inconsistent with other university athletic departments leading to worse numbers.

See my posts above. It has been explained numerous times, and really isnt all that confusing.

 

[Fat Koko]

See my posts above. It has been explained numerous times, and really isnt all that confusing.

Ridge, can you show me numbers or policies?

 

[Fat Koko]

Does anyone recall what Rutgers received as its B1G share last year, and do we get a full share this coming year?

Fiscal year 2023

Media Rights $44,137,387
Conference Distributions (Non Media and Non Football Bowl) $4,048,754
Conference Distributions of Football Bowl Generated Revenue $7,734,857

Total $55,920,998

Full share was received in fiscal year 2023.

 

[Morrischiano2]

Fiscal year 2023

Media Rights $44,137,387
Conference Distributions (Non Media and Non Football Bowl) $4,048,754
Conference Distributions of Football Bowl Generated Revenue $7,734,857

Total $55,920,998

Full share was received in fiscal year 2023.

Yes but....we are paying off the loan to the BiG through fiscal year 2027. So we won't get a true full net share until 2028 (given future anticipated higher rev share).

 

[Knight Shift]

Yes but....we are paying off the loan to the BiG through fiscal year 2027. So we won't get a true full net share until 2028 (given future anticipated higher rev share).

And have the "new" media rights distributions kicked in yet with the additions of USC, UCLA, UW and UO? Was it $70M or $80M per team?

And Pat Hobbs said he was working on reworking our "deal" we made upon entry to the B1G, and not sure where that stands. It would seem if those $70-80M figures are right, the media rights "should" cover our deficit, provided our spending does not get out of control. Mind you, we are spending for the Lax field and then the new football practice facility.

 

[Ridge 22]

Ridge, can you show me numbers or policies?

No, I dont have access to them. Nor do I care enough to do the legwork even if it was possible. I am just telling you the way it works, as someone who is a CPA, and who once interned in the Rutgers accounting office. The main point being that the accounting practices are largely equivalent across schools at the total university level (as they have to be, as they all follow the same rules), but not necessarily so at the department level between one school to another (due the varying practices of how those revenues and expenses are allocated out between departments). There is more leeway in the latter. For example, stadium or facilities debt doesn't always go to athletics. Where are donations applied, etc.,, etc.