WEST LAFAYETTE – The numbers Purdue athletic director Mike Bobinski is about to present are real.
With no college football staged in the fall or throughout the 2020-21 fiscal year, the athletic department is headed toward a “potential loss that could be in the $50 million range, if things really fall apart from an opportunity to compete perspective.”
That’s a $50 million hit due to no media rights, ticket sales and other revenue generated through football. It’s a worst-case scenario and one Bobinski had to plan for.
“Those numbers are hard to say,” Bobinski told the Journal & Courier last Friday. “There's not enough levers we can pull, there’s not enough adjustments we can make and save those kinds of dollars within our annual operating budget.”
The numbers are coming to life after Monday’s developments.
The Detroit Free Press reported the Big Ten will cancel the league’s fall sports seasons, including football. An official announcement is scheduled for Tuesday, according to the newspaper.
Athletic departments across the Big Ten and the nation are bracing for limited or no revenue with the loss of football, and maybe other sports. The coronavirus already forced the cancellation of spring sports earlier this year and is threatening to do the same in the fall when most college campuses, including Purdue, are scheduled to open later this month.
Purdue’s original budget for 2020-21 was $103 million in revenue but later was reduced by $10 million after adjustments were made. Last week, the Big Ten announced its revised 2020 conference-only schedule, giving schools five home games and an opportunity to bring in revenue even with limited seating capacity expected.
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In a normal season, Purdue would have seven home games but was already facing one fewer before the coronavirus pandemic. The Big Ten also eliminated all non-conference matchups, meaning the Boilermakers lost two home games.
If the football season is shifted to the spring, can schools still generate the same revenue? That’s going to be a key question during the next several months. It’s likely a spring season would feature fewer games, cutting into the amount of money the television networks would pay the Big Ten to broadcast the games.
And the $50 million figure could grow if the men’s basketball season is canceled, postponed or limited. The same goes if there are no sports played during the academic year.
“It could get worse,” Bobinski said. “If we don’t have anything that happens in the course of a year, no one wants to get there in their mind, but everything is possible at this point. We understand it could be more significant.”
As Purdue looks for savings, everything will be on the table. Bobinski was asked if any coaches have offered to reduce their salaries to help out.
“A couple of coaches have said something to me and in full transparency, I have also told them, ‘I will come to you when we have a clear sense of what I might need to ask of you.’ ” That’s imminent,” Bobinski said.
“As we move toward the fall, it’s going to become clear as to what level of requests and adjustments we’re going to ask for. That’s around the corner.”
The athletic department did show a small profit of between $400,000 and $500,000 to close out the 2019-20 fiscal year. It’s a small percentage on a budget of around $100 million.
“That’s a small surplus,” Bobinski said. “Better than a deficit.”
Bobinski said the final payment from the Big Ten’s media rights wasn’t 100% intact, but “close enough to allow us to get to sea level.”
Mike Carmin covers Purdue sports for the Journal & Courier. Email mcarmin@gannett.com and follow on Twitter @carmin_jc
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No college football? Purdue athletics projected to lose $50 million - Journal & Courier
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