The Colorado State Athletic Department reported record revenue and football ticket sales in fiscal year 2024, after losing money for five of the past six years, according to financial reports Colorado recently filed with the NCAA. It is said to have brought in a “profit” of $1,000.
Colorado this week released its 2024 fiscal year report, which covers July 1, 2023 through June 30, 2024. That includes the first football season under coach Deion Sanders and Colorado’s last full fiscal year in the Pac-12 Conference. The coach-prime effect of Sanders’ hiring helped the department achieve record reported revenues of $146.6 million and football ticket sales of $31.2 million, breaking previous school records. This corresponds to about twice as much.
However, overall athletic department revenue includes contributions from the university in the form of direct institutional support ($27.1 million), indirect institutional support ($3.1 million), and student fees ($1.7 million). The allocated funding includes a school record $31.9 million. Without it, Colorado would still have recorded record revenues, but not enough to sustain reported spending.
“Organizational support was provided to offset costs associated with conference distribution shortfalls and legal settlements associated with conference realignment,” Colorado Athletic Department spokesman Steve Hurlburt said in a statement. said. “This support consists primarily of supplementary reserves and does not include tuition or state funding.As we begin a new era of collegiate athletics unprecedented in our history, universities are continually We will continue to explore long-term funding options for intercollegiate athletics to best position CU for success in an evolving landscape.”
Challenges ahead, especially if Deion Sanders leaves
The report highlights the power of the prime effect at the University of Colorado, and also suggests that the school faces a period of upheaval for college sports, especially if Sanders leaves for the NFL amid speculation about the NFL. It also shows the challenges to be solved. An ongoing House lawsuit and settlement with the NCAA allow schools to pay players directly for the first time, putting pressure on athletic departments to come up with the money.
In preparation for that, Colorado cut ties with 5430 Alliance (NIL), a third-party organization that paid Colorado athletes for the use of their names, images and likenesses.
Colorado State Athletic Director Rick George said in an email to supporters on Jan. 13 that the school is currently encouraging donors to donate to the athletic department’s fundraising department. He said that would make donations to third-party organizations “unnecessary.”
The now-defunct 5430 Alliance had a goal of $8 million in 2024 football budgets, a far cry from the estimated $20 million in NIL funds put together this season for the Ohio State University football team. The pressure to keep players paid was such that former Colorado State football staff member Trevor Riley sought $10 million in investment funds from Saudi Arabia before quitting in frustration. The school said it did not sanction the failed quest.
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Pac-12 conference turmoil is partially to blame
The largest revenue category in the report was football ticket sales and allocated college support. These ticket sales record the first-ever sold-out season at Folsom Field in 2023, when the Buffaloes finished 4-8, as well as a spring football game in April 2024.
According to the NCAA report, the allocated university aid money is only slightly more than the $31.89 million provided to athletics departments in fiscal year 2023, and the department received a then-record $127 million in revenue. Despite this, the company posted a deficit of $9.1 million. However, in previous years, the total support allocated by the university was typically only around $12 million.
The 2023 shortfall is due in part to a similarly overwhelming distribution from the Pac-12, including media rights. In fiscal year 2024, the Buffaloes’ overall media rights revenue ($16.6 million) was even lower than in fiscal year 2023 ($19.4 million) and fiscal year 2020 ($21.9 million).
The Buffs are now hoping conference streaming revenue will improve in the Big 12 Conference, which they rejoined last August. Colorado is expected to increase compensation for Sanders in addition to new costs to pay players. Sanders earned $5.7 million in guaranteed money last year and recently discussed hiring a new coach with Dallas Cowboys owner Jerry Jones. Colorado spent a record $12.5 million on football coach compensation in fiscal year 2024.
Meanwhile, according to an NCAA report, the NCAA’s “endowments,” or donations, fell from $29.3 million in fiscal year 2023 to $14.8 million in fiscal year 2024. It is said that it was about the same. Fiscal year 2023 includes approximately the first seven months after Mr. Sanders was hired in December 2022. Hurlburt said the last tranche of the endowment from the school’s Sustainability Excellence Initiative was used for debt repayment in 2023, resulting in a decrease in endowment in 2024.
But CU also set new school records in 2024 for revenue from royalties, license fees, advertising and sponsorships. This was $10.7 million, an increase from the previous year, which hovered around $6 million to $8 million.
Follow reporter Brent Schrotenboer @Schrotenboer. Email: [email protected]