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North Carolina

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.

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  • GunnyGoesArrrgh Aug 3, 1:57 p.m.

    I tried to buy four UNC season football tickets last year, and asked where I would be seated... View More

    — Posted by kdawg

    Wow! I've never had season tickets for anything, so I don't know if the way you were treated is "normal", but I'd feel exactly like you did, that's for sure. Sheesh. When you're going to part with that much hard-earned money, you have every right to know where your seats will be.

  • TruthBKnown Banned Again02 Aug 3, 1:28 p.m.

    Carolina is one of about five that make a profit. What is states profit!

    — Posted by jcd241959

    State actually does pretty well. It's one of the few things that Lee Fowler got right. Problem is, the only reason State does so well financially is because we weren't spending enough money in areas that would help us excel in athletics. In other words, Fowlup was a tightwad.

  • TruthBKnown Banned Again02 Aug 3, 1:26 p.m.

    Well take away that $1mm subsidy that the taxpayers pay for annual operation of the dean dome... View More

    — Posted by Riddickfield

    and take away all the state money for the Hurricanes arena and so is the pack.

    Big deal.

    — Posted by forautumn

    Every time I read a retahded post, I look up to see who wrote it, and 90% of the time, it's ForAutumn. But that's understandable since 100% of ForAutumn's posts are retahded.

  • FAN72 Aug 3, 1:16 p.m.

    I think revenue will be just fine after they hoist another banner in the Dean E. Smith Center... View More

    — Posted by gopack3000

    Why would NC State hoist their 2011-12 men's basketball national championship banner in the Dean... View More

    — Posted by TruthBKnown Banned Again02

    ....funniest comment you have made in a long time.... think NCSU will EVER raise a b-ball banner... View More

    — Posted by laxmom

    Every season is a new opportunity. There is no predestined entitlement to a National Championship. NC State has the same chance and potential to raise a NC banner as any other college/university. The past does not dictate the future. If it did, the UNC football program should be dead and buried as a result of the recent scandal.

  • kdawg Aug 3, 11:51 a.m.

    I tried to buy four UNC season football tickets last year, and asked where I would be seated before forking over a couple thousand dollars. I didn't expect great seats, just wanted to know the section number. The ticket office told me I had to join the Rams Club first, as THEY decide where patrons sit, and even then I would NOT be told in advance where the tickets would be located. Everything would be based on contribution level and preference. Annoyed at the likelihood of landing the worst seats in the entire stadium, I opted not to buy any tickets, and the athletic department lost out on several thousand in business. When a stuffy athletic department treats its own alumni like desperate dogs, and expects a bribe before they will even have a conversation with you about seating, they deserve the financial troubles they get. Good luck selling football tickets this year UNC! Let me know when your ticket agents are allowed to assign unused and unwanted season tickets again, instead of the Rams Grub.

  • laxmom Aug 3, 11:29 a.m.

    I think revenue will be just fine after they hoist another banner in the Dean E. Smith Center... View More

    — Posted by gopack3000

    Why would NC State hoist their 2011-12 men's basketball national championship banner in the Dean... View More

    — Posted by TruthBKnown Banned Again02

    ....funniest comment you have made in a long time.... think NCSU will EVER raise a b-ball banner again? doubtful ! get over it !

  • cwood3 Aug 3, 11:25 a.m.

    Had they not paid those parkeing tickets, they'd have even more in reserve.

    Cheatin has it's price. That price has not been paid yet. This number could change-down!!

  • wolfbearrtp2 Aug 3, 11:04 a.m.

    You state college fans can talk all you want until Roy rolls into town. All we'll hear then is... View More

    — Posted by truthmatterstome2

    Oh yeah, we're really jealous. Jealous of your cheating ways. LOL

  • kickmeoutroy69 Aug 3, 10:24 a.m.

    i figured they would make more money in the future......they quit paying players right?? oops, nevermind, Roy is still filling a team out.

  • jcd241959 Aug 3, 10:14 a.m.

    Carolina is one of about five that make a profit. What is states profit!

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NCCU 42
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PITT 28
GT 56
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MSU 35
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STAN 38
ORST 14
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DET 2
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OTT 2
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MON 3
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