Ohio State athletics projecting multi-million dollar loss in revenue

Credit: DaytonDailyNews

Big Ten postponed the season in August

Credit: DaytonDailyNews

Ohio State Athletics is projecting a loss of $107 million in revenue as a result of the coronavirus pandemic.

The school made that announcement Wednesday, one week after the Big Ten opted to play a football season this fall, a move that could preserve a significant chunk of revenue not included in the latest estimate.

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After bringing in $210 million last year, Ohio State is projecting roughly $73 million in revenue this year from the following sources:

* Development -- $28.6 million

* NCAA, Big Ten basketball tournament, bowl games -- $13.4 million

* IMG/Learfield -- $5.8 million

* Investment income -- $4.6 million

* University golf course -- $4.6 million

* Trademark/licensing -- $2 million

* Camps, clinics -- $1.7 million

* Men’s home basketball games -- $1.1 million

Ohio State reported receiving more than $45 million in media rights fees in the most recent fiscal year, but how much broadcast partners including ESPN, Fox Sports, CBS and the conference’s network provide this year is still being worked out according to the school’s announcement.

Most noteworthy in the announcement is the revelation none of the school’s 36 varsity sports are to be cut.

“Our student-athletes are our primary responsibility,” OSU director of athletics Gene Smith said in a statement. “They have and will continue to come first. We have put together a responsible and conservative budget for this fiscal year, which assumes full support for our student-athletes. In the midst of this devastating pandemic, we remain committed to providing a safe and excellent academic and athletic experience for all of our student-athletes.”

Ohio State reports having already saved $5.6 million in cuts made earlier in the year as a result of a hiring freeze, stopping merit increases, elimination to travel, pause of some planned projects and other spending restrictions.

Furloughs, salary cuts and reductions in staff size are expected to save another $7 million.

Not having to pay guarantees for nonconference games that were canceled earlier this year will result in a $3 million savings, and the school expects a $3.4 million savings in game-day expenses with fewer games and few if any fans expected to be able to attend.

Twenty-five full-time positions are to be eliminated, and more than 300 employees are to be furloughed.

Additionally, the school hopes to save $9.6 million in savings through a short-term debt restructuring, $4 million on administration/support unit operating budgets, $3 million in facility operations and $6.1 million in sports' operating budget cuts.

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