this is from espn's college basketball blog, and deals with money problems at the University of Maryland athletic department...
According to a story in the Washington Post this week, Maryland's athletic department has long balanced its budget at the end of each fiscal year by "utilizing fundraising revenue kept in independent foundation accounts to pay for expenses." Lately, however, the money in those foundation accounts has failed to keep pace with expenses. Maryland, it seems, is in the red. (No Maryland flag puns intended.)
That situation prompted university president Wallace D. Loh to
announce the formation of a 17-member commission designed to help the athletic department solve its financial issues. And there are myriad issues at work. WaPo has a bevy of dire-sounding statistics:
Revenues for both [men's basketball and football] has either stagnated or declined over the past six years, according to financial documents the athletic department filed to the NCAA. Season ticket sales have declined in both sports, department officials have said. At the same time, the athletic department over the past decade made several improvements to facilities used by revenue and non-revenue generating sports. Two of those projects — a new basketball arena and major renovations to the football stadium — largely contribute to the department’s debt, which currently exceeds $83 million.
Additionally, according to financial reports, the athletic department lost more than $64 million from 2005 to 2010 on the 24 sports other than football and men’s and women’s basketball. The athletic department lost more than $13 million in the fiscal year 2009-10 — the most recent report available — on those 24 sports.
In April, Maryland Athletic Director Kevin Anderson said in the past two to three years, the school’s athletic department has lost between 2,000 and 3,000 donors, adding to the department’s financial problems.