In the 2024 fiscal year, Ohio State University’s athletic department reported operating expenses totaling $292.3 million, setting a new record for Division I public schools.
This figure represents a significant increase from the previous fiscal year, where expenses were approximately $274.9 million.
Breakdown of Expenses
A substantial portion of these expenses is attributed to salaries and benefits, particularly stemming from coaching contracts and staff changes. The university’s financial summary for the nine months ending March 31, 2024, indicates that increases in athletic expenses were primarily due to these factors.
Additionally, debt servicing for athletic facilities contributed significantly to the overall expenses. In the previous fiscal year, the university allocated $45.3 million towards athletic facilities debt, which included principal payments for new facilities such as the Schumaker Complex and the Covelli Center. While specific figures for 2024 are not detailed, it is reasonable to infer that similar commitments continued.
Revenue and Deficit
Despite generating substantial revenue, the athletic department faced a budget deficit in the 2024 fiscal year. Reports indicate a deficit of nearly $38 million, marking a notable financial challenge for the department. This shortfall is attributed in part to a reduced number of home football games in the fall, which traditionally serve as a significant revenue source.
Historical Context
In the 2023 fiscal year, Ohio State’s athletic department reported record-breaking revenue of approximately $279.5 million, with expenses around $274.9 million, resulting in a surplus. The subsequent shift to a deficit in 2024 underscores the volatility and financial challenges inherent in managing a large-scale collegiate athletic program.
Future Outlook
Looking ahead, Ohio State President Ted Carter has expressed confidence in the athletic department’s financial resilience. Despite the reported deficit and anticipated increases in expenses for 2025, Carter believes that the department will remain profitable without the need to cut any sports programs. This optimism is grounded in the department’s historical financial performance and its strategic initiatives aimed at revenue generation and cost management.
Conclusion
Ohio State University’s athletic department’s record operating expenses in 2024 highlight the significant financial commitments associated with maintaining a competitive collegiate sports program. While the reported deficit presents challenges, the administration’s proactive approach and confidence in future profitability suggest a strategic focus on sustaining and enhancing the program’s success.
