Penn State Athletics Latest Fiscal Report

[Richie O]

via Ben Jones

Unpacking Penn State Athletics' latest fiscal report

Guess what, football is expensive

benjonesonpennstate.substack.com

 

[Obliviax]

Looks like we made $5.6m profit overall. From Ben Jones

Unpacking Penn State Athletics' latest fiscal report

Guess what, football is expensive

benjonesonpennstate.substack.com

 

[bdgan]

What am I missing? It says $220 million revenues

$50m tickets
$42m media
$15m parking & concessions
$20m other

That's a lot less than $220m

 

[doctornick]

What am I missing? It says $220 million revenues

$50m tickets
$42m media
$15m parking & concessions
$20m other

That's a lot less than $220m

It looks like $136+ M (for men's) and $8M (for women's) is attributed to specific sports. While $75+ M is "not related to specific teams" which I would imagine is stuff like NLC donations.

 

[LMTLION]

Looks like we made $5.6m profit overall. From Ben Jones

Unpacking Penn State Athletics' latest fiscal report

Guess what, football is expensive

benjonesonpennstate.substack.com

Looks like we’re doing better fiscally than OSU.

 

[Obliviax]

Looks like we’re doing better fiscally than OSU.

yes. but the notation is that tOSU only had six home games this season due to the new B1G. That will change to 8 home games and will bring in a ton of value. I haven't looked but am assuming we do better with wrestling, hockey & WVB and they do better with basketball for men and women.

 

[doctornick]

I Went Through Penn State's 2023-24 Athletics Financial Report So You Don't Have To

Here's how much money Penn State made in 2023-24.

stuffsomerssays.com

This seems to break down a lot of the numbers well and compares it to the year prior.

 

[PSUNYGNYY]

yes. but the notation is that tOSU only had six home games this season due to the new B1G. That will change to 8 home games and will bring in a ton of value. I haven't looked but am assuming we do better with wrestling, hockey & WVB and they do better with basketball for men and women.

So two additional home games would bring in 38 million for OSU?

 

[lazydave841]

So two additional home games would bring in 38 million for OSU?

No.

I read somewhere they bought out a basketball coach and that partially inflated this.

 

[Obliviax]

No.

I read somewhere they bought out a basketball coach and that partially inflated this.

Plus the playoff money, diluted as it is, came in 25, not 24.

 

[Lionsfan1000]

Does the athletic department actually cut a check for $24M to the university for the cost of athlete tuition or is this just an imputed cost, based on scholarships awarded and tuition? If the latter, then, on a cash flow basis, the tuition expense is $0, and mostly additional profit, as the actual incremental cost of educating scholarship players is negligible to the university.

 

[SLUPSU]

yes. but the notation is that tOSU only had six home games this season due to the new B1G. That will change to 8 home games and will bring in a ton of value. I haven't looked but am assuming we do better with wrestling, hockey & WVB and they do better with basketball for men and women.

The report ends in June 2024, before this season. Also, wrestling loses a bunch of money for PSU.

 

[CJFisJoePaII]

Looks like we made $5.6m profit overall. From Ben Jones

Unpacking Penn State Athletics' latest fiscal report

Guess what, football is expensive

benjonesonpennstate.substack.com

The $5.6 million surplus isn't going to last long with the advent of "revenue sharing".

 

[PSUNYGNYY]

The $5.6 million surplus isn't going to last long with the advent of "revenue sharing".

And that poses another question. So if OSU reports a loss in revenue and PSU has a profit, does that even the playing field by us offering additional money to athletes from revenue that OSU can’t?

 

[sss]

No. I guarantee these numbers are very fluid. If we suddenly made 100m i tickets instead of 50m, the expenses would go up to match. OSU will have no problem paying players this year, and the next, and the next....

 

[Obliviax]

The report ends in June 2024, before this season. Also, wrestling loses a bunch of money for PSU.

It says wrestling made $2.4m but it doesn't say the cost of the program.

 

[SLUPSU]

It says wrestling made $2.4m but it doesn't say the cost of the program.

The next page down shows total operating expenses at $4.4m

 

[bdroc]

It looks like $136+ M (for men's) and $8M (for women's) is attributed to specific sports. While $75+ M is "not related to specific teams" which I would imagine is stuff like NLC donations.

$75m in donations? More than media revenues?

 

[bdroc]

The next page down shows total operating expenses at $4.4m

That's why so many schools have dropped wrestling.

 

[pasmokin2002]

The next page down shows total operating expenses at $4.4m

I do not believe PSU allocates any of its B1G tv revenue to wrestling (or any other sport other than football and basketball) and if so that could explain why it can’t get even. Someone will surely correct me if I’m wrong, but that was my understanding.

 

[bdroc]

The $5.6 million surplus isn't going to last long with the advent of "revenue sharing".

It's going to force schools to drop non revenue sports (and/or increase ticket prices, add student activity fees, etc).

 

[rrdd2021]

The report ends in June 2024, before this season. Also, wrestling loses a bunch of money for PSU.

Seriously, almost every college program - except CF and MBB - loses money and most depend on the football profits, If a bigtime athletic department is losing money, look for some cutting of some programs.

 

[Lion_Backer]

It's going to force schools to drop non revenue sports (and/or increase ticket prices, add student activity fees, etc).

I wonder how much savings could be garnered if they regionalized a portion of the non revenue sports instead of eliminating them.

The lessons and achievements that those athletes earn will obviously not be diminished as much as if they eliminated the programs entirely.

And if you try to make your fanbase fund all of your sports primarily through your football program, you are placing an inordinate amount of pressure on these young men and their coaches to win championships in order to justify every attempt made to maximize revenue from the sport.

JMO

 

[bison13]

Womens basketball is 8th in revenue out of the women's sports, pathetic. Losing almost 5M /yr., hate to say it but that should be the first program to go

 

[PSUSignore]

Looks like we’re doing better fiscally than OSU.

Their deficit was a one off. Their fiscal year was one that went from 8 home games the year prior to 6, and including a major coaching buyout for someone they fired, I think their men's basketball coach. I wouldn't read much into it.

 

[PSUWrestlingFanSince2011]

Womens basketball is 8th in revenue out of the women's sports, pathetic. Losing almost 5M /yr., hate to say it but that should be the first program to go

Not gonna happen

 

[PSUWrestlingFanSince2011]

Pat Kraft deserves a raise

 

[bdroc]

Womens basketball is 8th in revenue out of the women's sports, pathetic. Losing almost 5M /yr., hate to say it but that should be the first program to go

I don't think title IX won't allow that to happen. Gotta have same # of women's and men's sports. We could probably get rid of men's & women's fencing, golf, tennis, etc.

 

[bison13]

I don't think title IX won't allow that to happen. Gotta have same # of women's and men's sports. We could probably get rid of men's & women's fencing, golf, tennis, etc.

Not gonna happen

As a high school AD and former college athleteI’m well aware of that, I’m just saying how terrible it is that such a high profile sport for women is so far in the hole.

 

[IANit]

The next page down shows total operating expenses at $4.4m

Yeah, we're the top team in the sport. Let's drop the program because SLUPSU thinks it costs too much. I guarantee it brings more into the university than it takes out.

 

[Lion_Backer]

Yeah, we're the top team in the sport. Let's drop the program because SLUPSU thinks it costs too much. I guarantee it brings more into the university than it takes out.

I believe that PSU set a viewership record for wrestling last year with 388,000 people watching a dual meet. Does PSU pro rate the payment from the B1G Network based on wrestling or any other sports actual viewership?

The truth is that the B1G is now a national conference. And if the non revenue sports want to compete on the national stage, then they are going to have to increase the interest and popularity of their respective sports.

The system as presently constructed is unsustainable. Some fiscal restraint needs to a higher priority in bringing the cost of providing the sport more in line with the revenue that it generates.

And like with any other product, if you want to grow the size of your operating budget, then you need to grow the size and popularity of the product that you are marketing.

There has been a recent focus placed on sustainability in marketing of a wide array of products. Perhaps it's time to discuss sustainability as it applies to collegiate sports. Instead of eliminating opportunities for student athletes to participate in sports, we need to come up with a plan that ties the growth of the sport to the increased allocation of assets.

Regionalizing vs elimination should be the preferred option when considering maintaining non rev sports.

 

[jferretti]

Just for a point of comparison. Add 100 million to the revenue and expense numbers for PSU and then you will have matched the University of Texas at Austin. Incredible.

 

[SLUPSU]

Yeah, we're the top team in the sport. Let's drop the program because SLUPSU thinks it costs too much. I guarantee it brings more into the university than it takes out.

Don't be a dipshit and read into a post something that isn't there, I'm a huge fan of our wrestling program.

 

[bdroc]

I guarantee it brings more into the university than it takes out.

What's your basis for saying that?

Attendance for PSU wrestling is about 65,000 a year and most matches aren't televised.

The one thing PSU has going for it is that the Big Ten is the premier wrestling conference in the country.

 

[christoph]

Does the athletic department actually cut a check for $24M to the university for the cost of athlete tuition or is this just an imputed cost, based on scholarships awarded and tuition? If the latter, then, on a cash flow basis, the tuition expense is $0, and mostly additional profit, as the actual incremental cost of educating scholarship players is negligible to the university.

Yes. They pay the university. It’s not funny money

 

[IANit]

Don't be a dipshit and read into a post something that isn't there, I'm a huge fan of our wrestling program.

My apologies. I am as well.

 

[IANit]

What's your basis for saying that?

Attendance for PSU wrestling is about 65,000 a year and most matches aren't televised.

The one thing PSU has going for it is that the Big Ten is the premier wrestling conference in the country.

I don't have exact figures, but the success of Penn State wrestling under Cael Sanderson has made it kind of ground zero for Olympic Wrestling. The trials themselves last year had an estimated $7 million impact on the local economy. I would imagine that USA Wrestling pays something for PSU hosting it. But there's also undoubtedly a fair bit of goodwill that comes from having a championship program.