Utah Athletics took on budget deficit before joining Big 12, per report

The University of Utah's athletics department reported a $17 million budget deficit for the 2024 fiscal year, marking its first significant shortfall in years, according to the Deseret News.

This deficit was primarily attributed to external factors, most notably the collapse of the Pac-12 Conference. The university's revenue, which had hit record highs of $115.7 million in FY22 and $126.3 million in FY23, dropped to $109.8 million in FY24.

The collapse of the Pac-12 began in 2022 when USC and UCLA announced their departure to the Big Ten. Subsequent moves by the Big 12, including securing a lucrative $2.3 billion media deal, left the Pac-12 without competitive television contracts.

By summer 2023, the conference's remaining schools, including Utah, were scrambling to secure their futures. The Pac-12’s best media rights offer was a streaming-only deal from Apple, valued at $25 million per school annually, far below expectations.

Utah ultimately joined the Big 12 alongside Colorado, Arizona, and Arizona State. However, the transition came at a cost. Utah reported a $6.87 million loss in conference distributions and faced additional expenses, including legal fees from the Pac-12 exit and its share of a $72 million repayment for past Comcast overpayments to the Pac-12 Network.

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The university noted that approximately 70% of its deficit stemmed directly from the Pac-12’s breakup. Other factors included increased travel costs and a rise in the published cost of attendance. Despite the challenges, Utah highlighted positive trends in ticket sales, donor numbers, and donations, according to the report.

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The full financial benefits of joining the Big 12, such as increased media revenue, won’t appear until the FY25 financial report. The deficit was covered using reserve funds, but the situation underscores the financial turbulence caused by conference realignment.