Tennessee saw an operating loss of $6.5M in FY '18 -- largely because of $13.8M in buyout costsGETTY IMAGES
The Univ. of Tennessee athletics department "expects to be back in the black" for the FY that ends on June 30, according to Blake Toppmeyer of the Knoxville NEWS SENTINEL. UT Exec Associate AD & COO Reid Sigmon said that the athletics department is "projecting a $405,401 operating surplus" for this FY. That comes after UT "endured an operating loss" of $6.5M in the previous FY -- largely because of $13.8M in "buyout costs that came with firing" the football coaching staff and former AD John Currie. The athletics department, as of June 7, "projected an operating revenue" of $135.3M for this FY, with "projected operating expenses" of $134.9M. That includes $1.5M in "projected severance costs." UT AD Phillip Fulmer said that the department "aims to increase its reserve fund, which currently stands" at $10.8M. Sigmon said that UT's athletics reserve fund "ranks toward the bottom of the SEC." Fulmer said that during his days as UT's football coach, the athletics department "prioritized putting excess funds into improving UT’s facilities rather than building its reserve fund." The reserve fund was "as low as $400,000" for the FY ending June '14. It had reached $18.4M two years later "before declining" (Knoxville NEWS SENTINEL, 6/24).
