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This Weeks Issue

Iowa athletic department, earlier facing $1.8M cut, sees total drop to $300K

The University of Iowa athletic department, faced earlier this month with the possibility of a $1.8 million cut in funds to support its women’s sports, will now face only a $300,000 reduction.

The original recommendation of a $1.8 million cut came as part of proposed plans for a $12 million reduction in university general education fund expenses. However, after evaluating the proposal and the general education fund, only $2 million in expense reductions from the fund will be necessary for the coming school year, meaning athletics now faces only a $300,000 cut.

The general education fund is composed mainly of state appropriations and tuition. It is used to pay for core university items such as salaries, student support services and facility maintenance. While the amount of money in the fund has increased annually, overall university expenses have increased at a faster rate, creating the need for cuts.

Money from the fund has been used to pay some of the cost of having women’s athletics, which up until four years ago was a separate department from men’s athletics. The remaining money for women’s sports has come from revenue generated by the men’s department, specifically football and basketball.

Since the men’s and women’s athletic departments were merged, the support from the general education fund has been gradually reduced. Last year, the athletic department received about $2.3 million from the fund. Aside from that general fund support, the athletic department is expected to be self-sufficient and doesn’t receive revenue from sources such as student fees.

While $300,000 is not a lot when you consider that the department’s overall budget is in the $40 million range, Iowa AD Bob Bowlsby said the department also is projecting an $800,000 increase in tuition, room and board fees this coming school year.

Like many state universities, Iowa has seen expenses grow at rates greater than projected in recent years.

For now, the athletic department will do what it’s always done when faced with having to trim its budget, Bowlsby said: develop a combination of revenue enhancements and expense reductions. One potential saving will come as athletic department staffers retire. “We just won’t refill those spots and will redeploy staff into those positions,” Bowlsby said.

The budget situation this year is manageable, Bowlsby said, but he cautioned there could come a time when “we have to make quality versus quantity judgments,” as it relates to sports. “We haven’t had to do that yet, but I certainly couldn’t rule it out as a possibility,” he said.

MIZZOU, LEARFIELD TALKING: The University of Missouri athletic department is close to reaching an eight-year extension with Learfield Communications, its multimedia rights holder.

The new deal will have an increased financial component and include inventory in Mizzou’s new basketball arena, the Paige Sports Arena, which is scheduled to open in October, said Missouri associate athletic director Mario Moccia.

Missouri is going into the last year of a three-year extension. The department has been receiving more than $2 million a year under the existing deal.

Learfield rights at Missouri include radio game broadcasts, coaches shows and corporate sponsorship sales.

CLASS NOTES: Brian Florko, general manager of TCU’s athletics marketing arm, has accepted a position with Learfield Communications to become assistant general manager at Purdue Sports Properties in West Lafayette, Ind. Florko has been working at TCU for five years, two as assistant athletic director for marketing and three as the general manager for the marketing arm formed by ESPN Regional, TCU’s multimedia marketing rights holder. He accepted the Learfield position to be closer to his family. His last day at TCU will be Friday. … The University of Nevada has created the Wolf Pack Sports Network with the addition of stations in three markets: Las Vegas (KSHP-AM), Sacramento (KFIA-AM) and Nevada City-Grass Valley, Calif. (KCEE-FM). The three stations join Nevada’s flagship station, ESPN 630 AM in Reno, Nev. Each station is tentatively scheduled to carry at least nine football games and 17 men’s basketball games plus postseason games for both sports this coming school year.

Contact Jennifer Lee at jlee@sportsbusinessjournal.com.

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