Report: Rutgers Athletics Rang up Millions in Deficit Shortfall
According to a report by NorthJersey.com, Rutgers Athletics rang up a $73 million deficit in the last fiscal year as spending hit “an all-time high of $118 million” during the height of the COVID Pandemic. According to the report, students and taxpayers had to “cover the gap” via increases in annual student fees, contributions, and even loans. This comes as the University has struggled to meet the financial demands of the Big 10 Conference, which it joined back in the 2014-15 fiscal year.
Direct subsidies from the university to athletics more than doubled from the prior year to $27.6 million, according to the report. Even with that windfall of cash, the university reported a budget shortfall of more than $30 million.
In FY21, amid pandemic's impacts on revenue, Rutgers athletics program received $27.6M in university funds, $10.5M in student fees, $4.8 in govt support and still came up $30.4 million short of covering its expenses: https://t.co/La1gJVbZXl
— Steve Berkowitz (@ByBerkowitz) January 19, 2022
Rutgers received its first full share of Big Ten revenue in 2020-21 -- which included deductions for Covid testing and some of its debt to the conference.https://t.co/ffsHuDOpXR
— Abbott Koloff (@AbbottKoloff) January 18, 2022
One prickly issue the story brings to light is the University gave athletics a loan $21.5 million to cover operation costs during the last fiscal year. Last year, North Jersey.com reported that the institution had reported internal loans as “other operating revenue” – “a practice that is contrary to NCAA guidelines.” University President Jonathan Holloway is quoted in the story saying that the operation of borrowing internally through the university is “unsustainable,” and, there is consideration to forgive the loans in the future.
