Report: University of Cincinnati sports needs millions to compete


The University of Cincinnati's sports program will need up to $11 million in new funding every year to be competitive in the Big East Conference, but it still is running a deficit every year and owes millions of dollars from past overspending.


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A new report also shows that UC's Athletic Department is losing about $3.5 million a year and has amassed a $24 million debt, mainly from a shortfall in construction of the Varsity Village complex on campus.

• Read the All-University Athletics Task Force Report (PDF)

While the success of UC's football team has raised the program's visibility, it has not erased the financial challenges, the report said, noting that the university seems united behind a vision of a sports program that can compete at the highest levels.

"Achieving this vision will be a costly investment during difficult economic times," according to the report, which was written by a task force of administrators not affiliated with the sports department and delivered to UC President Greg Williams this week. "The institution should seek to maintain a balance of priorities as it seeks to appropriately fund athletics."

The report comes at a tumultuous time for UC sports. The football team was unbeaten until losing in the Sugar Bowl New Year's Day and losing coach Brian Kelly to Notre Dame.

Athletic Director Mike Thomas has cut $1.7 million out of its budget last year, including scholarship funding for several men's sports.

UC will start construction soon on a new sports complex along Jefferson Avenue that will include football practice fields, but a potential expansion of Nippert Stadium - and whether UC can afford a project that could cost up to $50 million - looms over the program.

At the same time, UC spends less than any other Big East Conference school on athletic staffing and operating budget, the report said.

The task force, charged last year with recommending ways to fund UC's athletic program in the long term, recommended several ways to create more revenue, including:

Expanding the number of full-price season-ticket holders at Nippert Stadium.

Restructuring scholarships to shift more money to athletics.

Transferring the $24 million debt to the University as a whole.

In a statement, Williams said the recommendations would be part of UC's budget planning for the year that starts July 1.

http://news.cincinnati.com/article/AB/20...to+compete

WE have a billion dollar endowment we just need teh new Presidnet and Board to restructure the debt.

This article reports old data. There is nothing new in this report other than the possible move of the debt to Varsity Village to the university. This would be a positive development for the athletic department and would give the athletic department a real opportunity to move forward. Don't worry about UC. The new President is committed to athletics. We are building a new 15 million dollar practice facility. We have a study in place to look at expanding Nippert or building a new stadium.

Go Bearcats!! Go Big East.

Debt of schools is going to be a huge issue over the next couple of years and there are a lot of schools that are going to be in trouble. I saw an article about the University of Illinois (as a whole) being pretty desperate.

State funding is going to continue to decrease (the amount of states in desperate financial situations is increasing rapidly) and restructuring loans is going to be difficult with banks on the brink, bailout money or no (not that it's not their own fault for being there).

My prediction: First you'll see schools drop lower tier sports and stop putting money into basketball/football. They'll use whatever revenue they bring in to put toward their general funds rather than reinvest in athletics.

Later, if the economy behaves as I expect, you'll see a lot of schools actually closing as well as see the revenue from the major sports drop considerably.

UC being in debt and strapped for cash is nothing new. They broke the bank when they redesigned the entire campus and then built the Varsity Village project. UC spent about a billion dollars on construction in less than a decade. If anything, the financial situation is better now than it was 2 years ago. Hasn't seemed to hurt much in football.

And yes, there is a billion plus endowment and UC has raised an additional 700 million in its private capital contribution drive that is a little over a year old.

The "billion plus" endowment has almost no connection to athletics. At many schools (including UC), endowment funds are closely tied to various schools and projects and not easily diverted to athletics, i.e., if someone gave a $10 million endowment for the med school, you can't use that money to add seats at Nippert.

What is UC's athetics endowment? That's a better question.

The endowment is for many things. For example someone gives money to the business school for scholarships. This money cannot be diverted. The donors would not take too kindly if the original purpose of the money was not fulfilled plus they may not give again. It would cause a lot of future donations to not be made if the University started ignoring donation intended area.

(01-10-2010 03:26 PM)tj_2009 Wrote:  The endowment is for many things. For example someone gives money to the business school for scholarships. This money cannot be diverted. The donors would not take too kindly if the original purpose of the money was not fulfilled plus they may not give again. It would cause a lot of future donations to not be made if the University started ignoring donation intended area.

UC has a lot of donors to the sports department. That's how UC is building the indoor practice facilities, and that is why UC has Varsity Village. That is why people are saying that the endowment will help the program.

No, but the billion dollar capital fund drive intended to augment the already billion dollar endowment can be used any way except for new building construction projects. Renovations are allowable per the language (including stadium expansion). They already have 3/4 of a billion committed. Not losing sleep.

(01-07-2010 06:12 PM)DFW HOYA Wrote:  The "billion plus" endowment has almost no connection to athletics. At many schools (including UC), endowment funds are closely tied to various schools and projects and not easily diverted to athletics, i.e., if someone gave a $10 million endowment for the med school, you can't use that money to add seats at Nippert.

What is UC's athetics endowment? That's a better question.

UC was given the vast majority of its 100+ million dollar bill for Varsity Village by private donors. UC's new 15.5 million dollar athletic facilities upgrade was given by private donors. I know it's hard for people to believe, but Cincinnati will be just fine. They don't need to use med school endowment to add seats to Nippert. And, yes, some of the endowment can be used for Nippert expansion. So, it doesn't matter what UC's athletics endowment is, that question is a moot point.

I think Cincy will be fine in the long run.

Weird title for thread...as actual title should read: "Can the rest of the Big East keep up with the 2-time defending Big East Champions?"

PS. The investment of their Varsity Village will pay "dividends" for decades and decades to come.