Ohio State’s 2024 fiscal year athletics budget deficit is close to $38 million.

Ohio State University’s athletic department, home to one of the most successful and lucrative college sports programs in the nation, is facing an unexpected financial challenge. The school’s fiscal year 2024 has been marked by a budget deficit close to $38 million—a significant shortfall for a department that typically thrives on revenues generated from major college sports like football and basketball. While Ohio State’s athletic programs continue to enjoy national recognition and have historically been cash cows for the university, the deficit raises serious questions about the future financial health of the department, how it might impact programs, and how the university will adapt to these challenges moving forward.

The $38 million budget deficit is not just a number on a balance sheet. It represents the strain that COVID-19, inflation, shifting media deals, increased travel costs, and growing operational expenses have placed on university athletic programs nationwide. Ohio State’s predicament provides a snapshot into the broader challenges facing college athletics, especially in the wake of the pandemic, as schools attempt to balance profitability with the demands of maintaining competitive, high-quality programs.

In this article, we will examine the causes behind Ohio State’s athletics budget deficit, the potential consequences for the program, and what the university plans to do to address the shortfall. Additionally, we will explore how this deficit fits into the larger landscape of college sports finances and the future of athletic departments in the post-pandemic era.

1. Overview of Ohio State’s Athletic Department

Ohio State University’s athletic department is one of the most prestigious and financially successful programs in college sports. Known for its powerhouse football team, which regularly competes for national championships, and other successful programs like men’s basketball, women’s basketball, volleyball, rowing, and track and field, Ohio State’s athletic program has long been a source of pride for the university. The department generates millions of dollars annually through ticket sales, sponsorships, media rights, and merchandise.

For many years, the department has been financially self-sustaining, meaning it does not rely on university funds to operate. Instead, it has been a significant contributor to the university’s bottom line. The Ohio State Buckeyes football team, in particular, has been a gold mine, often bringing in tens of millions of dollars each season from ticket sales, television rights, and merchandise. The success of Ohio State’s athletic programs has allowed the department to operate with a high level of financial autonomy, reinvesting revenues into coaching salaries, facilities, scholarships, and other necessary resources to maintain competitiveness.

However, the financial landscape for college athletics began to change in 2020 with the onset of the COVID-19 pandemic. The sports world was temporarily shut down, and when play resumed, the revenue streams that athletic departments typically rely on were disrupted.

2. The COVID-19 Impact on Athletic Budgets

The COVID-19 pandemic had a massive impact on college sports, with Ohio State being no exception. During the pandemic, nearly every athletic department across the country experienced some degree of financial hardship. For Ohio State, the disruptions included:

• Limited or no attendance at events: For a school like Ohio State, where football games and other athletic events draw tens of thousands of fans, the lack of in-person attendance in 2020 and beyond had a significant impact on revenue. Ticket sales, parking, concessions, and other game-day revenues were drastically reduced or eliminated altogether.
• Loss of postseason opportunities: Many college sports, including basketball, missed out on postseason opportunities during the pandemic. While Ohio State’s football team was able to compete in the College Football Playoff, other sports faced canceled or postponed seasons. This meant the loss of critical revenue streams from championship games, tournaments, and postseason appearances.
• Media Rights and Sponsorships: Television and broadcasting deals were also disrupted as sports schedules were altered or shortened. While Ohio State continued to benefit from media rights agreements, the financial instability in the media landscape left some uncertainty in the short term.
• Increased operational costs: The pandemic forced athletic departments to adjust how they operated. Increased safety measures, testing protocols, and changes to travel schedules added unforeseen costs that had to be absorbed by the athletic programs. Ohio State, like many others, was faced with unexpected expenses during a time when revenue was declining.

Despite these challenges, Ohio State was able to manage its finances relatively well during the first year of the pandemic, thanks to its substantial reserve funds and the continued success of its football program. However, as the economic impacts of COVID-19 lingered into subsequent years, Ohio State’s athletic department began to feel the strain more acutely. The 2024 fiscal year, with a projected $38 million deficit, appears to be the culmination of these financial pressures.

3. Increased Expenses and Rising Operational Costs

As college sports have evolved, so too have the costs associated with running major athletic programs. For Ohio State, the financial pressures are not just a product of pandemic-related disruptions, but also the rising operational expenses that come with maintaining a top-tier athletic program.

• Coaching Salaries: One of the most significant costs for Ohio State, and other elite programs, is the compensation for their coaching staff. In particular, the football and basketball programs have extremely high coaching salaries, with head coaches often earning multi-million dollar contracts. Ryan Day, the head coach of the football team, is among the highest-paid coaches in college football. While these salaries reflect the value of top-tier talent, they also contribute significantly to the overall budget.
• Athletic Scholarships: Another substantial cost for the athletic department is the funding for athletic scholarships. Ohio State offers full scholarships to its student-athletes, covering tuition, room, board, and other expenses. As the cost of tuition and living expenses continues to rise, the athletic department must increase its budget to ensure that it can continue to offer these scholarships to recruits.
• Travel and Logistics: As Ohio State competes on a national stage, travel costs for away games, recruiting, and training camps have also risen. The pandemic initially reduced some of the travel demands, but as sports resumed normal operations, these expenses spiked. Airfare, hotel accommodations, and meals for the team all add up, especially with the expanded travel schedules in certain sports.
• Facility Maintenance and Upgrades: Maintaining and upgrading facilities is another significant cost for athletic departments. Ohio State has some of the most state-of-the-art athletic facilities in the country, including Ohio Stadium (the “Horseshoe”), Value City Arena, and multiple practice facilities. These facilities require constant maintenance and occasional upgrades to stay competitive with other major programs. Over the last few years, Ohio State has invested heavily in improvements to its athletic infrastructure, including new locker rooms, training rooms, and technology.

4. The Role of Media Rights and Sponsorships

One of the primary revenue sources for Ohio State’s athletic department has traditionally been media rights deals, which bring in millions of dollars annually. Ohio State benefits from lucrative deals with television networks like ABC, ESPN, and Fox, as well as conference agreements through the Big Ten Network. These deals were designed to ensure that top programs like Ohio State would continue to receive significant payouts from television contracts.

However, the financial landscape of media rights has shifted in recent years. The rise of streaming platforms, changing viewership habits, and the increasing demands of college athletics have forced schools to reconsider their media strategies. The Big Ten‘s recent deal with NBC is expected to bring more revenue, but the competition for attention in the crowded sports media space is fierce.

The changing nature of broadcasting, as well as competition from other revenue sources like sponsorships and NIL (Name, Image, and Likeness) deals, means that revenue projections can be volatile. Ohio State’s financial shortfall this fiscal year is partially tied to the unpredictability of these deals and how the department adapts to new media consumption trends.

5. Impact on Programs and Future Planning

The $38 million deficit raises important questions about the long-term sustainability of Ohio State’s athletic department. While the program remains one of the most profitable in the country, this deficit cannot be ignored. The university is already taking steps to address the shortfall, including:

• Cost-cutting measures: Ohio State has already implemented cost-cutting measures to trim down the deficit. These measures might include reducing travel expenses, scaling back on certain capital improvement projects, or renegotiating contracts with suppliers and vendors to ensure cost efficiency.
• Increased fundraising: Ohio State’s athletic department is one of the best-funded in the country, but the budget deficit highlights the need for additional fundraising efforts. The department may turn to alumni, donors, and major sponsors to help close the gap. This could involve more targeted appeals for contributions toward specific athletic programs or facility improvements.
• Program prioritization: In times of financial strain, athletic departments may have to prioritize which sports or initiatives receive funding. While football and men’s basketball will likely continue to receive the bulk of the budget, Ohio State may need to evaluate how resources are allocated across other sports. This could mean cuts to certain non-revenue-generating programs, or changes to the scope of resources available for other teams.
• Long-term financial stability: Ohio State will need to think strategically about its future financial health. This could involve reevaluating its media rights contracts, seeking new revenue streams from emerging technologies, and finding ways to better manage expenses in the coming years.