Georgia, SEC schools look to trim athletic department spending to make way for revenue share
As college athletics enters a transformative era with the impending implementation of athlete revenue sharing, Southeastern Conference (SEC) schools, including the University of Georgia (UGA), are reevaluating their financial strategies. The anticipated $20.5 million annual cap on revenue sharing per school, as outlined in the House v. NCAA settlement, is prompting institutions to balance competitive excellence with fiscal responsibility.
In the 2023–24 fiscal year, UGA’s athletic department reported total revenue of approximately $125.7 million. A significant portion of this revenue—around 93%—was generated by football and men’s basketball. Consequently, these two sports are projected to receive the bulk of the $20.5 million revenue sharing cap, with football alone accounting for an estimated $15.7 million. This distribution aligns with the broader trend across SEC schools, where football and men’s basketball together are expected to receive about 93% of the total revenue sharing pool.
The financial structure at UGA reflects a common pattern among SEC institutions. For instance, Texas A&M’s athletic department, facing challenges such as a $76 million buyout for a former football coach, is also preparing to allocate a significant portion of its revenue to football under the new revenue sharing model.
In response to the revenue sharing framework, SEC schools are exploring various strategies to manage their athletic expenditures. While specific plans for UGA have not been publicly detailed, the university’s historical spending patterns provide insight into potential adjustments. In the 2023–24 fiscal year, UGA allocated substantial funds to coaching compensation, support staff, and administrative overhead. For example, the football program’s expenses included $39 million in coaching salaries and $33 million for support staff, while administrative costs amounted to $20.4 million.
To align with the revenue sharing model, UGA may consider optimizing these expenditures. This could involve restructuring coaching contracts, streamlining support staff roles, and implementing cost-saving measures in administrative functions. Such adjustments would ensure that a larger share of revenue is available for distribution to athletes, in compliance with the new regulations.
The shift towards revenue sharing is part of a broader trend in college athletics towards greater financial equity and athlete compensation. However, this transition also presents challenges. Institutions must balance the need to remain competitive with the financial constraints imposed by the revenue sharing cap. This may lead to increased scrutiny of athletic spending and a reevaluation of priorities within athletic departments.
Moreover, the implementation of revenue sharing could impact the financial viability of non-revenue sports. With a significant portion of revenue directed towards football and men’s basketball, other sports may face budgetary constraints, potentially affecting scholarships, facilities, and program sustainability.
As UGA and other SEC schools navigate the complexities of the new revenue sharing model, strategic financial planning will be crucial. By optimizing expenditures and aligning spending with the revenue sharing framework, institutions can uphold their commitment to athlete compensation while maintaining the financial health of their athletic programs. The evolving landscape of college athletics necessitates a thoughtful approach to budgeting and resource allocation, ensuring that both competitive success and financial sustainability are achieved.
