A Look Inside What Penn State Spends on Sports
Penn State athletics generated $165 million in total revenue, $101 million of that from football, during 2020 fiscal year despite cancellations of the NCAA basketball, wrestling, and hockey tournaments because of the COVID-19 pandemic.
Two key factors contributed to Penn State's nearly $7.2 million budget surplus for fiscal year 2020, which became more important last fall. The football team generated a record revenue total during its 2019 season, leading to a $53 million program surplus, and the overall athletic budget was $2.5 million lower than in the previous fiscal year. Those totals helped Penn State's athletic department remain self-funding and withstand the financial impact of COVID late in the fiscal year.
"In unprecedented times, Penn State athletics continues to be a strong, self-supporting unit,” Athletics Director Sandy Barbour said in a statement. "We saw modest gains in revenues, despite unanticipated revenue losses due to the cancellation of the NCAA men’s basketball tournament. We were able to implement cost-control measures in [fiscal year] 2020 to assist us in minimizing our anticipated revenue shortfall in FY 2021. We remain vigilant in our expense management while creating conditions for success for our students and achieving comprehensive excellence throughout ICA."
Penn State recently released its 2020 financial report, which covers the period from July 2019-June 2020. Penn State's current fiscal year will end June 30 and will be significant, since it includes the 2020 football season.
The athletic department has estimated its revenue shortfall for fiscal year 2020 at $73.5 million. Through expense reductions and the use of a $27 million reserve fund, Barbour said the athletic department lowered its estimated 2020 deficit to an estimated $20.5 million. During a virtual edition of the Penn State Coaches Caravan, Barbour said that the athletic department will take an $18-$20 million loan from the university.
The return of a full Beaver Stadium in 2021 will be a vital revenue driver for the athletic department. The latest financial filing underscored that point.
The 2020 filing includes the 2019 football season, in which Penn State went 11-2 and won the Cotton Bowl. The football team generated a record $101,791,729 in total revenue that season, which included $37.6 million in ticket sales.
Penn State also spent a record $48.8 million on the football team in FY 2020, generating a surplus of $53 million. The team's financial success buoyed a department that generated a record $165 million in total revenue.
Here's a look at some of the football team's most impactful numbers:
- Football accounted for 87.4 percent of athletic department ticket sales, which totaled $43 million.
- Football accounted for about half ($9 million) of contributions made to athletic teams. Penn State reported $9.2 million in contributions revenue not related to specific teams.
- Football accounted for $35.6 million of the program's reported $42.1 million in media rights revenue.
- The program reported nearly $10 million in bowl revenue; $7.5 from the Big Ten and $2.4 million from expense reimbursements and ticket sales.
- Football generated $6.5 million in parking and concession sales.
What does it cost to run a football team? Some numbers:
- Gameday expenses: $5.9 million
- Scholarships: $4.7 million
- Administrative/support staff salaries (does not include coaches): $4.5 million
- Guarantees to visiting teams: $3 million
- Overhead and administrative expenses: $3 million
- Bowl expenses: $2.8 million
- Travel: $1.4 million
- Recruiting: $1.1 million
- Bowl coaching bonuses: $662,048
- Meals: $637,770
- Severance payments: $570,672
According to the financial report, two Penn State teams generated a surplus for the fiscal year in addition to football. Both did so despite having their postseasons canceled:
- Men's basketball:$3,158,775
- Men's ice hockey: $1,014,99
Here are some of the key numbers Penn State reported for FY 2020:
- Total revenue: $165,077,390
- Total expenses: $157,908,311
- Surplus: $7,169,079
- Football surplus: $53,023,119
- Men's basketball surplus: $3,158,775
- Women's basketball deficit: $3,444,017
- Other teams' total deficits: $13,679,268
