Athletic directors at the nation’s biggest sports schools are bracing for a potential financial crisis related to the coronavirus pandemic.
According to a survey released Thursday by LEAD1, an association of athletic directors from 130 major college football schools, 63% forecast a worst-case scenario in which their revenues decrease by at least 20% during the 2020-21 school year. Even an abbreviated football season could cause schools to lose that much.
LEAD1 and Teamworks, a company that created an app designed to help keep teams and athletic departments connected, conducted the survey of more than 100 ADs from schools in Division I’s Football Bowl Subdivision. “The State of Athletics in the Face of the Coronavirus” provides a sobering glimpse of the top concerns for the wealthiest athletic departments in the country.
The NCAA canceled winter and spring sports on March 12, separating thousands of college athletes from teammates and coaches and leaving them unable to practice and compete.
Athletic directors surveyed said their greatest concerns about their athletes over the next three months were academic progress, mental health and a lack of resources for them while off campus.
And then there are the financial concerns.
Canceling the men’s Division I basketball tournament cost the NCAA $375 million it was scheduled to distribute to its member schools.
Asked for their worst-case scenario analysis, 65% of the athletic directors said revenue for the 2019-20 fiscal year would drop from 0-20%, including 35% expecting a decrease ranging from 0-10%.
Some schools are already taking steps to deal with this year’s shortfalls.
Trying to make up $5 million in lost revenue from basketball tournament cancellations, Iowa State has announced a one-year, temporary pay reduction for coaches and certain staff to save more than $3 million. The school will also suspend bonuses for coaches for a year to save an additional $1 million.
“I’ve talked to many of my peers and they want to do what we just did,” Iowa State athletic director Jamie Pollard said Friday.
Wyoming athletic director Tom Burman announced on Twitter he would be reducing his salary by 10% through Dec. 31.
In the LEAD1 survey, 40% of the 95 ADs who responded said they approve and strongly approve when asked if they believe high earners should voluntarily offer to make a personal financial sacrifice during the crisis; about 15% disapproved or strongly disapproved.
Football season is six months away and for most FBS schools it is by far the biggest revenue driver. Any disruption to the football season could be devastating to college sports because that revenue funds just about every other athletic program.
“We often hear from ADs and MMR (multi-media rights) sellers that around 85% of revenue comes from football,” said Matt Balvanz, senior vice president for analytics for Navigate, a sports marketing consulting firm.
