For the first time ever, college football programs are on the hook for paying their players, leaving schools scrambling for ways to find the money and save where they can.
Case in point: Michigan, which has announced an expected $27 million deficit for the coming year, including a $20 million figure in revenue sharing.
The school said it will make some cuts to its staff and hopes to raise additional money by hosting outside events like concerts, but former Ohio State coach Urban Meyer sees this as the overture to some real problems facing college football in the future.
“One of the best brands and the biggest brands in college sports, the Wolverines, had a 10 percent cut in personnel and are expecting a $25 million loss of money on their budget at the end of the year…
“That, to me… red flags are all over the place on that one,” Meyer said on The Triple Option podcast.
Michigan is looking at making cuts of around $10 million for the upcoming year, including a reduction of its TV revenue and cutting down on travel expenditure.
Taking roster changes into consideration, the school is set to add up to 82 scholarships across 19 sports this year, adding estimated costs of $6.2 million.
It’s a stark reminder of the structural changes facing college sports in the age of revenue sharing, as schools are set to spend up to $20.5 million with athletes, with football players expected to receive the bulk of that figure.
Needing more money means getting creative about finding it.
“Now you’re starting to hear about private equity coming in. You’re starting to hear about the student fees,” Meyer said.
“There’s a couple schools out there that are getting ready to slam the students with a big bill. I can guarantee you the staffs are being challenged. The ADs are being challenged. Creativity is gonna be the word of the day on how to raise revenue.”
We already saw a preview of what that creativity might entail, when it emerged that LSU is considering selling advertisements that will be sewn into its football players’ jerseys.
SEC commissioner Greg Sankey seemed resigned to the fact that such moves will be necessary for some programs going into the future in an effort to raise money.
“We’ve had jersey patches in bowl games,” Sankey has said.
“I would anticipate there’s going to be a continuing push (for new revenues), and we’re going to have to come to some agreement in this new environment on where those limits exist.”
That idea has naturally aroused some intense negative reaction from fans, but as schools face ever-greater pressure to locate more money, any possible solution will be on the table.
—
