UNC athletics budget reveals narrow profit hopes for 2011-12
Posted August 2, 2011
A breakdown of the University of North Carolina athletics department proposed budget for the 2011-12 year reveals an estimated $200,000 operating profit.
The next fiscal year’s budget summary projects $72.4 million in revenue with $72.2 million in expenses according to the skeleton document given to WRAL News by UNC Tuesday.
The biggest projected sources of revenue are ticket sales and radio/television contracts which are expected to account for nearly 30 and 24 percent, respectively.
The document, which was presented on a spreadsheet with no mention of sub-category spending or source details, indicated that staff salaries and benefits make up the single biggest expense for the athletics department at UNC. This year’s projected budget estimates that over $23 million will be paid towards salary and benefits accounting for more than 32 percent of money going out.
UNC will be on the hook for paying two head football coaches this season, but UNC spokesperson Kevin Best says that they have accounted for that. According to Best, recently fired head coach Butch Davis will be making less money this year in a buyout than if he was retained which means theoretically there is room to increase the pay for interim head coach Everett Withers.
According to public records, Withers made $330,000 per year in each of his first two seasons as a defensive coach. Withers’ contract is currently being reworked to reflect the promotion and is expected to be announced in the coming days.
The football program is also looking for another coach to fill in at the vacated linebackers sport after Art Kaufman was promoted to defensive coordinator.
Davis’ buyout was not specifically figured into the outlined 2011-12 budget, but will be in future years. Davis is scheduled to make $590,000 in each of the next three seasons so long as he does not coach in the college or professional ranks in that time period. UNC will not owe Davis if he accepts a coaching position that earns him more than $590,000 per year.
Best said that the athletic department is self-sustaining and no taxpayer money is involved. He also said that the athletic department would only dip into the reserve fund if they had to and there is no way of knowing if or when that might happen.
UNC athletic's boosters, the Rams Club, provides money solely for facilities and scholarships.
The new $70 million Student-Athlete Center for Excellence, which also hosts The Blue Zone, will open this season in the east end zone at no cost to the athletics department. According to John Montgomery, executive director of the Rams Club, $35 million dollars will come from private donors and the other $35 million will come from Blue Zone ticket sales. General ticket sales will go to the athletics department.
According to Best, the football and basketball programs each account for 29 percent of all athletic department revenue.
Student fees are expected to make up nearly 10 percent of the athletic programs' revenue, bringing in more than $7 million. Direct sport expenses, which were not summarized on the budget spreadsheet, are anticipated to cost the department $12.4 million – or 17 percent of all expenses.
A category labeled “other” is budgeted to bring in nearly $8 million while costing less than $3.5 million. What that "other" might be was not detailed in the doculent released by the athletics department.