Ohio University Athletics Director Jim Schaus has no short-term plan to alleviate the department's $1.8 million budget deficit for next year.
Schaus inherited the deficit from the previous director, Kirby Hocutt, and insists that the department should be back in the black within at least five years.
His five-year strategy, Bobcat Renaissance, includes plans to build an indoor practice facility and to renovate The Convocation Center. The plan is still in its early stages, and many details, including how it will address the deficit, are still unknown.
Bobcat Renaissance plans will not be funded through institutional funds.
Instead
external money from donors will pay for the renovation and construction projects Schaus said.
In 2007, donors contributed more than $740,000 to the athletics department. There will be a significant increase in fundraising initiatives in the upcoming years, Schaus said.
By stepping up fundraising efforts and pumping money into programs, Schaus said OU can expect higher performance and higher revenue.
If we can find ways of having our sports programs become more successful we are going to be able to generate more revenue
Schaus said.
The primary beneficiaries will be the department's two largest moneymakers ' football and men's basketball.
These two sports are critical to our budget
Schaus said. Their success fosters the other sorts of revenue that we have ' fundraising
ticket sales
merchandise sales and sponsorships.
In 2007, basketball and football revenues totaled $3.9 million. In 2008, officials expect a 3 percent drop in revenue and 14 percent rise in costs for the programs.
Budget deficits at other Division I schools are not uncommon, Schaus said.
According to the 2004-06 NCAA Revenues and Expenses of Division I Intercollegiate Athletics Programs Report, in the 2006 fiscal year, only 19 of the 119 institutions had positive net revenue. The median deficit was more than $7 million. Alleviating such a large deficit will take time, support from donors and realigning of priorities and expenditures, said Schaus.
The strategy also includes how the teams allocate funds.
For instance, funds from the Bobcat Club, which serves as the fundraising umbrella of Ohio Athletics, previously went to a variety of programs within the athletic department. Part of the strategy will be to reallocate funds toward athletic scholarships, which are among the largest 2008 expenditure at $5.8 million and previously came solely from institutional funds.
A related initiative will gauge how the athletics program affects the school as a whole and the local economy, said Dan Hauser, assistant athletic director of external operations.
Hauser and members of the Athens Tourist Bureau will conduct a study during the 2008-09 football season to show how sports games can benefit the university and local economy. The study will be completed in 2009.
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