In their NCAA report released on Monday, Ohio State Athletics reports a $37.7 million loss.

On Monday, Ohio State Athletics released its NCAA financial report, revealing a staggering $37.7 million loss for the 2023-2024 fiscal year. This news has caught the attention of fans, analysts, and university officials alike, as it highlights the financial realities facing collegiate athletic programs in an era where revenue generation is increasingly tied to factors outside traditional gate receipts and ticket sales. The size of the loss is particularly notable for a program as high-profile as Ohio State, one of the largest and most successful athletic departments in the country.

The loss, the first in recent history for Ohio State, underscores a series of pressures and challenges that are affecting college athletics in general, including the growing costs of athletic programs, the changing landscape of media rights, and the evolving nature of NIL (Name, Image, and Likeness) deals. While the $37.7 million loss is significant, it also reflects a broader trend in college sports that could have long-term implications for how programs like Ohio State operate financially.

Ohio State Athletics: A Historical Overview of Financial Strength

Ohio State has long been a leader in college athletics, both in terms of on-field success and financial stability. With a program that spans across 36 varsity sports, including powerhouse teams like football, basketball, and men’s and women’s soccer, Ohio State has consistently ranked among the top earners in NCAA athletics. According to the NCAA’s financial reports from previous years, Ohio State has typically posted revenues well above $200 million annually, with profits used to fund scholarships, coaching salaries, facilities, and general program operations.

In 2022, the Ohio State Athletic Department generated over $200 million in revenue, with football accounting for a significant chunk of that total. The Buckeyes’ success on the football field, coupled with the widespread popularity of the team, generates not only gate revenue but also substantial television and sponsorship income. Additionally, Ohio State has invested in state-of-the-art facilities, recruitment, and marketing to maintain its competitive edge across all sports.

Despite this strong financial background, the financial loss in the 2023-2024 fiscal year represents a departure from this long-standing trend. For many, the loss begs the question: What went wrong for one of the wealthiest athletic programs in the country?

Factors Contributing to the Loss

Several factors have contributed to Ohio State’s $37.7 million deficit. While the full breakdown of the loss has not been made public, a closer look at some of the key drivers behind this financial shortfall is essential to understanding the broader financial challenges facing major athletic programs.

1. Declining Football Revenue

Football remains the primary revenue driver for most major athletic programs, and Ohio State is no exception. Historically, the Buckeyes’ football team generates upwards of $100 million per season, including ticket sales, concessions, merchandise, media rights, and sponsorships. However, in 2023-2024, Ohio State experienced a drop in football revenue, which has been attributed to several factors.

First, the team’s performance on the field did not quite live up to expectations, especially given the high hopes for a national championship after a successful 2022 season. The loss to Michigan in the regular season and a disappointing finish in the College Football Playoff (CFP) contributed to a less-than-optimal fan experience, which in turn affected ticket sales, merchandise sales, and other ancillary revenues. With fewer wins, especially in high-profile games, the Buckeyes’ ability to generate revenue from home games was negatively impacted.

Additionally, the financial landscape of college football is undergoing significant changes, particularly with the upcoming expansion of the College Football Playoff to 12 teams starting in 2024. The new format reduces the emphasis on a traditional bowl system, which could diminish the revenue earned from postseason games. While Ohio State still managed to secure a spot in the CFP, the overall revenue potential of postseason games has decreased with the dilution of the playoff field.

2. Increased Operational Costs

Another factor contributing to Ohio State’s financial loss is the increasing operational costs of running a top-tier athletic department. Over the past decade, many schools have poured significant resources into upgrading their athletic facilities, with Ohio State no exception. The department has invested millions in renovations and new construction, including upgrades to the football stadium, the Schottenstein Center, and other athletic venues. While these improvements are crucial for maintaining a competitive advantage and attracting recruits, they come with high capital expenses, ongoing maintenance, and staffing costs.

Beyond facilities, Ohio State’s coaching salaries have continued to rise, particularly in high-profile sports like football and basketball. Coach Ryan Day, for example, is one of the highest-paid coaches in college football, with an annual salary that reflects the premium placed on winning championships. However, salaries for coaches, staff, and support personnel have also increased across the board, adding to the overall expenditure of the athletic department. These rising costs, combined with the loss of some revenue streams, have contributed to the department’s budget shortfall.

3. NIL Deals and Changing Revenue Streams

The introduction of NIL deals in 2021 fundamentally altered the financial landscape for college athletes. While NIL provides opportunities for athletes to profit from their name, image, and likeness, it has also placed new demands on athletic programs and their budgets. Schools like Ohio State, with high-profile athletic programs, are facing pressure to support athletes with lucrative NIL deals.

In Ohio State’s case, the athletic department has had to invest significant resources into securing and managing NIL opportunities for its athletes. The university has partnered with NIL collectives to ensure that its top athletes, particularly in football, receive fair compensation for their name, image, and likeness. However, the increasing costs associated with NIL deals—especially in competitive sports—have placed additional strain on the athletic department’s finances. While NIL can be a revenue generator in some cases, the initial outlay required to ensure athletes’ participation in this new era has been a considerable financial burden.

Moreover, NIL deals have led to a rise in player transfers and a more competitive recruiting environment, which requires universities to allocate more money toward recruitment and retention. For programs like Ohio State, maintaining a competitive roster has become more expensive, especially with high-profile recruits expecting generous NIL compensation.

4. The Impact of COVID-19

Though the pandemic is in the rearview mirror for most aspects of college life, its financial repercussions continue to affect athletic departments. In 2020 and 2021, many programs faced massive revenue losses due to limited fan attendance, canceled seasons, and disrupted schedules. Ohio State, which relies heavily on gate receipts from home football games, was not immune to these challenges.

Although Ohio State managed to recover some of its losses in 2022-2023, the long-term effects of the pandemic continue to linger. The economic disruption caused by COVID-19 altered revenue projections and made it difficult for programs to return to pre-pandemic levels of profitability, especially given the added financial pressures of NIL, increased coaching salaries, and rising operational costs.

5. The Broader Financial Landscape of College Sports

Ohio State’s financial difficulties are not unique in the world of college athletics. Many other high-profile programs are experiencing similar challenges as the business of college sports continues to evolve. With the NCAA’s new TV and media rights contracts becoming increasingly complicated and the redistribution of money in college football and basketball, major athletic departments are facing new financial realities. The shift to more regionalized scheduling, the ongoing rise in player compensation, and the growing reliance on streaming platforms for broadcasting games all contribute to an atmosphere where traditional revenue models are becoming outdated.

The changing landscape of college sports also presents a dilemma for schools like Ohio State, which are caught between the demands of maintaining a premier athletic program and adjusting to these new financial realities. As more schools push for conference realignment, media rights expansion, and player compensation, it’s possible that the financial losses experienced by Ohio State in 2023-2024 could be part of a larger, systemic shift in the industry.

Looking Forward: The Future of Ohio State Athletics

Despite the reported $37.7 million loss, Ohio State Athletics remains a financial powerhouse with numerous assets and opportunities to recover. The 2025 fiscal year offers the department a chance to rebalance its budget, particularly with the expected revenue boosts from football’s transition into the expanded College Football Playoff and the continued success of programs like men’s and women’s basketball.

Ohio State will need to adapt to the new financial realities by finding creative ways to generate revenue, managing the costs of NIL and player compensation, and possibly adjusting its budget structure to account for the unpredictability of the modern college sports landscape. As the NCAA and major conferences navigate this new era, Ohio State will continue to be at the forefront of discussions around financial sustainability in college athletics.

Ultimately, while the $37.7 million loss is a significant financial setback for Ohio State Athletics, it also serves as a wake-up call for the future of college sports. The department will need to evolve in response to both internal and external pressures to maintain its competitive edge and financial health in the coming years. For now, the Buckeyes will continue to be a prominent force in college sports—but navigating the financial complexities ahead will be essential to their continued success.