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Home > Blogs > Buckeyes Beat > Archives > 2009 > January > 20 > Entry
Could Ohio State be caught up in economic problems?
During the 2007-08 academic year, the Ohio State athletic department pulled in $117.9 million in revenues (including $65.2 million from the football program).
During the same period, the department spent $98.9 million, for an excess of about $19 million.
Those numbers, though, don’t make OSU impervious to the current economic issues affecting other parts of the country. Football coach Jim Tressel has said as much:
Ohio State football coach Jim Tressel said athletics director Gene Smith talked with the staff in December about upcoming cuts.
“We have to tighten our belts just like everyone else’s in the midst of tightening theirs,” Tressel said at the American Football Coaches Association in Nashville, Tenn.
Could it go deeper, into the football program specifically, beyond the bottom line? That’s the suggestion from a recent New York Times story on recruits.
The story, in short, says that recruits could start turning to schools closer to their hometowns to cut down on family travel costs and other money issues when living far away from mom and dad. The main example is a player named Morgan Moses, a Richmond, Va., offensive lineman considering, among others, Alabama, Tennessee and Ohio State.
But the economy has begun to factor into his family’s discussions about how far he will go from their home in Richmond, Va. While his mother, Marion, said she wanted her son to choose the right university for him, she said the family’s ability to watch him play would “make a big impact on the decision.”
One reason for Ohio State’s decision to cut could lie in the debt tied to its massive facilities construction and upgrades of the past decade. OSU personnel have said the debt is well under control, but like with many companies, revenue and expenses aren’t the only major concerns. You can’t miss debt payments.
I doubt there will be a noticeable difference on the field, of course. But behind the scenes, the Ohio State bean counters are keeping a closer eye on their own action.
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Comments
By Mary
January 20, 2009 8:36 PM | Link to this
I wonder if these numbers reflect any continuing debt on the stadium refurbishment and any athletic expenses that are currently accounted on the academic or university side of the house. Also, I wonder what would be the impact if the federal tax code is changed so that athletic donors do not get their hefty tax breaks for their donations. Maybe some of these donations are drying up anyway and are feeding some of the concerns.By bunny
January 23, 2009 5:34 AM | Link to this
Seeing as Tressel got a big raise to choke in big games maybe just maybe he is overpaid. Kids struggle to pay tuition and vest is overpaid.By barking bulldog
January 29, 2009 6:52 AM | Link to this
OSU will continue to dominate on the football field and will therefore receive good finiancial support from alums and businesses that support OSU football. The football program will continue to do the heavy financial lifting for the athletic department. Long live the vest!