SBD/July 11, 2013/Colleges

Univ. Of Colorado Looks To Cut Discretionary Costs After $7.5M Shortfall

CU's $7.5M shortfall was in part due to paying off terminated coaches salaries
Univ. of Colorado interim AD Ceal Barry yesterday said that each program in CU's athletic department has been "asked to cut 10 percent of its discretionary costs to help make up for" a $7.5M shortfall this year, according to John Henderson of the DENVER POST. Barry said that the cuts "will not affect tuition, room and board, salaries or game guarantees, among major expense areas." Barry said that the shortfall for FY '12-13 was "primarily the result of paying off salaries to terminated coaches." Barry: "We operated at a deficit this last fiscal year. If nothing changes, we'll be at July 1, 2014, sitting in the same position. That's why we had to identify patterns on how we spend money." Henderson notes the athletic department is "working to pay off" $20M in previous debt, "mostly from a costly transition moving from the Big 12 to the Pac-12." CU officials also are "trying to raise" $50M toward a $170M "facilities upgrade while at the same time searching for a new athletic director." Barry said that the 10% cut "is a request, not an order." But, she said, "I'll certainly watch how they behave and watch their expense reports" (DENVER POST, 7/11).

GROWING CORN: In Omaha, Lee Barfknecht reports the Univ. of Nebraska is "projecting a 9 percent increase in sports revenue for the coming year, which will make Husker athletics close to" a $93M business annually. NU AD Shawn Eichorst yesterday said that the "expected revenue hikes" of about $7.6M are "solid based on three things." Eichorst said, "Increased seating in football, increased seating in volleyball and increased seating in basketball. It's going to be great come fall when we start setting all-time attendance records.” NU's expected budget "puts it about 25th nationally and in the middle of the pack in the Big Ten." Eichorst: "We're in really good shape financially. Supporters of this university would be proud of how we have managed our business" (OMAHA WORLD-HERALD, 7/11).
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