The University of Colorado athletic department ran $1.1 million in the hole last year and is preparing for a possible $1.7 million deficit this year, athletic director Mike Bohn said Wednesday.
It’s a long way from sustaining itself, which is what regents were wishing for when they requested an athletic department business plan.
“That would be nice,” Regent Steve Bosley said. “But is that a reasonable goal?”
The deficit predicted for this fiscal year does not include a $3 million payout to former football coach Gary Barnett, who was fired last month. The university has added a 12th game to next year’s season to bring in extra revenue to cover some of that cost.
Bohn presented a draft business plan to regents, outlining an aggressive push to boost ticket sales and donor support. The university has lost 5,000 season-ticket holders in the past two years and donations to the athletic department dropped 19 percent in three years.
“To change the culture does take some time,” Bohn said. “We didn’t get into this overnight and we won’t get out of it overnight.”
He said a $1.7 million loss this year is a worst-case scenario.
“What happens if men’s basketball goes on a 10-game winning streak?” he said. “Then it’s not $1.7 million, it’s zero.”
It’s not uncommon for Division I-A athletics programs to rely on university support to balance their budgets. About 60 percent of programs have operating deficits, according to Bohn’s business plan.
At CU, football is the only sport that makes a profit.
The football program generated $8.25 million in profit in 2005-06, subsidizing the university’s 16 other sports. Men’s basketball is projected to lose about $340,000, the business plan says.
The athletic department is slipping further into a deficit despite budget cuts this year, including the elimination of 3.5 staff positions, no raises for some staff and a 10 percent slash in travel and operating costs.
Bohn said he was thrilled with last month’s $1.5 million gift to the athletic department from mutual-fund guru Tom Marsico. And he told regents the new “Buff Club Cabinet” has 38 members.
“It can’t stop there,” Bohn said. “We’ve got to sell the seats that we have. This is our challenge. We’ve got to inspire people to be part of the games.”
It’s dangerous to concentrate too much on the athletic department’s finances, though, said senior vice chancellor Ric Porreca.
“The goal is to have a competitive, well-run program,” he said.
Regents questioned the department’s organization, saying there are too many people – 11- reporting directly to Bohn.
Bohn said the final draft of his business plan, expected in April, will detail organizational changes and address the financial impact of Barnett’s payout.
Staff writer Jennifer Brown can be reached at 303-820-1593 or jenbrown@denverpost.com.
