The opposite of a reserve fund

Jeebus“(T)he Rutgers athletics department received nearly $47 million in subsidies from the university’s allocations fund to make up for a shortfall in the approximately $79 million athletics budget during the 2012-13 season.”

Jeebus, Jeebus.

The nearly $47 million subsidy from an institution that partially relies on taxpayer funds means the state university subsidized 59.5 percent of the athletics department’s total allocations. That’s the largest percentage since 2005 — a 15.8 percent spike from last year — and its total allocated revenue is an amount that is greater than the total athletic operating revenues of all but 53 of Division I’s 228 public school athletics programs in 2011-12.

Jeebus, Jeebus, Jeebus.

Although the student fees subsidy increased 3.8 percent from last year, direct-institutional support more than doubled from the $18.5 million that the university provided in 2012. The more than $37.1 million is almost double the greatest amount of direct institutional support any Division I public school has received in a single year since 2004-05, and it would have covered the total operating expenses of 164 Division I public-school athletics departments in 2011-12.

But Jim Delany’s gonna make it all better.

A $1.26 million drop in ticket sales and $2.8 million less in contributions helped contribute to a $4 million overall decrease in generated revenue. Rutgers officials are confident the ticket figure, which at $8.7 million dropped to its lowest point in six years, will soar next year thanks to a schedule that includes traditional Big Ten football powers Penn State, Michigan and Wisconsin.

Rutgers’ President expects the athletics department to be financially independent within the next six years once it begins receiving the full share of the Big Ten’s per-school distribution in 2020.  He better hope those cable subscribers show up in droves.

There are days when I can’t bitch about Greg McGarity’s fiscal prudence.

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13 Comments

Filed under Big Ten Football, It's Just Bidness

13 responses to “The opposite of a reserve fund

  1. gastr1

    The academic side of the university’s worst nightmare. I can hear the tormented screams from here.

  2. dawg3fan4

    This is also something to note when discussing paying college athletes.

  3. Scorpio Jones, III

    This may be an old wives’ tale, but I have been told this would be illegal in Georgia, that no university general funds can be used for athletics.

    I blame The Outlaw Jersey Whale…road closings are expensive up dere, ya know?

    • Dog in Fla

      Jersey is a beautiful and amazing place. It’s a fucking paradise on fucking earth. Soon, thanks to the Delany and traffic slow jams, the people of Jersey won’t have the Scarlett Knights or the Outlaw Jersey Whale to carry around on their backs.

      • Scorpio Jones, III

        Worst, roughest, paved roads in the known world…proly from spending all that money on Rutgers football. :)

  4. South FL Dawg

    Didn’t Rutgers also have to fire their basketball coach last year? And they also hired a new AD? Mark Richt might have something to say about consistency while you’re at it ……