Penn State Athletics Joins the $200 Million Club
Penn State has joined a select group of college athletic departments in the $200 million club, one that last year included only Ohio State, Texas, Alabama, Michigan and Georgia. According to its 2023 financial filing, Penn State generated a record $202.2 million in athletics operating revenue while spending a record $202 million. That places Penn State in elite company nationally.
According to the 2023 USA Today database, just five university athletic departments generated more than $200 million in revenue for the 2021-222 fiscal year. Ohio State topped the list at $251.6 million. And only two programs, Ohio State and Texas, spent more than $200 million. During that fiscal year, Penn State also set records in athletics revenue ($181 million) and expenses ($170.5 million).
Penn State's latest financial report covers the fiscal year from July 2022 to June 2023, which includes the Nittany Lions' 11-2 football season and Rose Bowl victory over Utah. It also represents the first year of Athletic Director Patrick Kraft's tenure. Kraft assumed the role July 1, 2022, promising across-the-board upgrades in athletics spending. His first financial report reflects that.
Penn State increased spending year-over-year for women's sports by 17.6 percent (to $28.8 million) and for men's sports by 13 percent (to $98 million). Penn State spent $62.7 million for football operations, an 8.9 percent increase over the previous season, when the Nittany Lions went 7-6 and played in the Outback Bowl.
"I'm very energized," Kraft said in December. "I'm excited about our future. I truly believe we haven't even gotten started yet. I think it takes two years, really, to get the foundation established where people aren't like tiptoeing around me. ... We are really starting to get into a stride to get into where we go."
Some other noteworthy line items from Penn State's 2022-23 financial report, with a caveat: Penn State Athletics supports 31 varsity sports without financial assistance from the University or its general student fund:
• The significant spending increases meant Penn State Athletics reported a surplus of $126,352. During the previous fiscal year, Penn State reported a surplus of nearly $10.7 million.
• Penn State football generated a record $109.6 million in operating revenue, more than half of the athletic department's total revenue. The program reported $41.9 million of that revenue from football ticket sales.
• Coaching salaries for all sports increased more than $6 million, to $38.6 million. The football coaching pool went from $15.7 million to $17.9 million, and men's basketball salaries increased nearly 85 percent to $6.1 million. The fiscal year represented the first season for former men's basketball coach Micah Shrewsberry.
• Penn State made substantial investments in recruiting. The overall athletic budget for recruiting increased 51 percent to nearly $4.8 million. Penn State football nearly doubled its recruiting budget, from $1.5 million to $2.9 million.
• The growing size of Penn State's athletic department reflected in its sizable pay increases. Salaries for support staff and administration increased 27 percent to $39.3 million.
• Penn State football generated $9.6 million selling parking passes, programs, concessions and "novelty" items. That was about 18 percent higher than the previous year. One contributing factor? Penn State began selling beer at Beaver Stadium in 2022.
• Penn State reported $40.8 million in athletics contributions, about $1.5 million more than the previous fiscal year. But contributions to the football program fell almost $2 million, to about $7.4 million.
• Penn State reported $40.1 million in media rights revenue, $34.1 million of which was attributed to football. Penn State also reported about $5 million in NCAA distributions, $3.2 million in Big Ten distributions and a $7.7 million share of Big Ten bowl revenue.
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