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UTAD Provides '12-13 Financial Update

Aug 29, 2013

KNOXVILLE, Tenn. -- The 2012-13 fiscal year has closed for the University of Tennessee department of athletics, and the department is reporting a deposit of $25,588 to its cash reserve. UT Athletics reported revenues of $114,285,208 against expenses of $114,259,620.

In November 2012, Chancellor Jimmy G. Cheek announced that the money the athletics department has contributed to the campus will be reinvested in the athletics department. Relieving athletics of the commitment will allow the department to add an average of $6 million per year to its bottom line for a total of $18 million over three years. During the 2012-13 fiscal year, the University committed $14,241,211 out of that $18 million from a combination of cash transfers and the release of prior obligations.

"As I have said many times, a clean, successful, well-managed athletics program is of great benefit to the University of Tennessee," said Cheek. "A financial model for athletics that provides for long-term stability is essential, and an investment in the future of our athletics program, including building up the necessary reserve funds, remains a top priority.

"I believe in Dave Hart's leadership and efforts, and I believe the investment the University made in relation to the coaching staff transition and the addition of Butch Jones is one that will be of great benefit to the University of Tennessee for years to come."

Included in the expense total is $10,393,320 related to the transition in football coaching staffs. Total expenses also include a $1,787,778 payment to the University to cover operating expenses at Thompson-Boling Arena as well as $1,285,000 in transfers for parking garage debt service and for use of the UT system plane.

For the 2013-14 fiscal year, athletics is budgeting for $95 million in both expenses and revenues. The expense figure is almost $10 million less than the $104,250,000 in expenses budgeted for two years ago, during the 2011-12 fiscal year.

UT DEPARTMENT OF ATHLETICS FISCAL YEAR 2012-13 REVENUES

REVENUES'12-13 Total ($)`11-12 Total ($)
Tickets38,461,97737,753,467
Annual Fund Donations22,604,17023,652,836
Marketing/Media Rights9,207,8589,737,410
SEC Revenues20,992,40520,208,777
Concessions & Souvenirs2,532,6193,024,782
Licensing1,300,0002,800,000
Endowment Interest1,585,6751,385,533
Institutional Support11,434,0560
Student Activity Fees1,000,0001,000,000
All Other Athletic Revenues3,614,1405,450,972
Camp Revenues1,552,3071,471,599
 
TOTALS114,285,208106,485,376

UT DEPARTMENT OF ATHLETICS FISCAL YEAR 2012-13 EXPENSES

EXPENSES'12-13 Total ($)`11-12 Total ($)
Salaries and Benefits42,765,44737,285,629
     Operational Salaries/Benefits33,772,12736,860,629
     FB Transition Salaries/Benefits8,993,320425,000
Scholarships10,338,7119,259,062
Operations38,901,30538,970,147
Football Transition Other Expenses1,400,0000
Debt Service11,772,04610,523,881
Sales Tax2,849,1433,044,448
Amusement Tax1,510,7151,552,922
Arena Operating Expense1,787,7781,720,322
Transfers to University1,285,0006,392,000
Camp Expenses1,649,4761,448,241
 
TOTALS114,259,620110,466,652
 
Net Surplus/(Deficit)25,588(3,981,276)

During a 10-year period from the July 1, 2002 through June 30, 2012, the department of athletics recorded a surplus of $69,790,000. Of that total, $38,563,087 was paid in state and local taxes, including $13,219,926 from a total of a five percent amusement tax annually paid by no other peer institution in the conference or nationally.

Additionally, over that 10-year period, the department of athletics also contributed $39,966,915 to the university as financial support. A total of $10 million in student fees has been realized by the department of athletics during that time, resulting in a net transfer of $29,966,915 in financial support during that time period. These transfers were a result of agreements historic in nature that are no longer sustainable in the current financial climate.

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