UNC’s athletic budget numbers should not be mistaken for reality.
The university released some impressive profits from its football program and almost break-even athletic department, but it is important to note that was for the 2019-20 fiscal year, which for the most part was pre-COVID.
By selling out every home game in his first season back in Chapel Hill, Mack Brown’s football program raked in almost $50 million in revenues, which after expenses contributed a $19 million surplus to the department’s modest fiscal shortfall of $2.6 million. And that included a first installment of $3 million for Larry Fedora’s buyout.
Remember, all of those numbers accountedfor full capacities at Kenan Stadium, the Smith Center and other home sports venues, although there was Carolina’s share of up to $50 million for the ACC that was lost from the cancelled NCAA tournament.
Last August, Athletic Director Bubba Cunningham projected as much as a $52 million loss for 2020-21, when only 7 percent of capacity was allowed for football and basketball has no home fans.
With another hit of Fedora’s settlement, Cunningham is relying on budget cuts in recruiting and travel, hiring freezes, salary reductions and furloughs for employees to make a dent in the loss column and reduce the damage to about $30 million.
And Cunningham is not sure what to project for 2021-22, when there still looks to be a limit to how many fans can attend games, perhaps 30 percent in football and basketball which would mean more significant losses in those sports. For sure, the main source of revenue will still be ESPN television rights fees that are split between the 15 conference schools but next year excludes the portion of Notre Dame’s NBC rights for when the Irish “joined” the conference for COVID season.
Suffice to say it may be 2023-24 before Carolina can balance whatever the budget turns out to be by then. Cunningham has said the university has agreed to loan money to the athletic department to cover the debts in place of dropping any of its 28 varsity sports, which other major college programs have done.
UNC is committed to making that the absolute last resort.
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