From the attachment at the bottom of today's letter. It could have been a lot worse.
Iowa State Athletics FY21 Budget Narrative ==================================================================== Projecting the FY21 financial position of the Department of Athletics has been extraordinarily challenging due to the multiple uncertainties surrounding the various sport’s playing seasons. The budget, which will be submitted to the State of Iowa Board of Regents for the fiscal year ending June 30, 2021 was prepared using 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 ten (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 our institution. We have assumed all 10 games will be played.
• We will play six (6) home football games and stadium capacity will be limited to approximately 25,000 fans due to social distancing procedures.
• 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 other than football.
• 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.
• We will continue to evaluate further operational expense savings, including additional payroll reductions. Using these assumptions we expect to incur a budget deficit of approximately $17.5 million for FY21. This projected shortfall will be funded 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 we are unable to reach these attendance targets or the football or basketball seasons are postponed, shortened, or cancelled, the revenues in these forecasts will be further reduced (or in some cases eliminated). Should any of those scenarios occur, further salary reductions will be required, including potential layoffs. While not currently under consideration, a further decrease in revenue from current forecasts could result in elimination of sports, and our department would require additional assistance to remain financially sustainable.
Iowa State Athletics FY21 Budget Narrative ==================================================================== Projecting the FY21 financial position of the Department of Athletics has been extraordinarily challenging due to the multiple uncertainties surrounding the various sport’s playing seasons. The budget, which will be submitted to the State of Iowa Board of Regents for the fiscal year ending June 30, 2021 was prepared using 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 ten (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 our institution. We have assumed all 10 games will be played.
• We will play six (6) home football games and stadium capacity will be limited to approximately 25,000 fans due to social distancing procedures.
• 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 other than football.
• 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.
• We will continue to evaluate further operational expense savings, including additional payroll reductions. Using these assumptions we expect to incur a budget deficit of approximately $17.5 million for FY21. This projected shortfall will be funded 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 we are unable to reach these attendance targets or the football or basketball seasons are postponed, shortened, or cancelled, the revenues in these forecasts will be further reduced (or in some cases eliminated). Should any of those scenarios occur, further salary reductions will be required, including potential layoffs. While not currently under consideration, a further decrease in revenue from current forecasts could result in elimination of sports, and our department would require additional assistance to remain financially sustainable.
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