Wisconsin’s athletic department projects revenue losses of $ 60 million to $ 70 million if the Badgers play a conference-only 10-game season and losses of more than $ 100 million if the next soccer season is canceled due to the pandemic of coronavirus.
In a letter to Wisconsin fans posted on the athletic department website Thursday, athletic director Barry Alvarez wrote: “Regardless of what our fall season is like, we face a huge financial challenge. I don’t think it’s an ornament. Saying the experience we love Badgers and the legacy of our extraordinary athletic department is at risk. “
A Wisconsin spokesperson told ESPN that the financial model assumes limited capacity in local soccer games, but did not specify what percentage.
Álvarez said the Badgers have projected an operating budget of $ 140 million for the 2020-21 academic year.
“I think we will reach a monumental crossroads in the coming days,” Álvarez wrote. “We will have two options: stay ahead of the class or stay behind. Everything we pride ourselves on – competing at the highest level, developing world-class student-athletes and lifting trophies – depends on our ability to financially support our student athletes. “
Wisconsin officials told the Wisconsin State Journal that the athletic department would have to draw on its reserve funds to make up the difference. According to the report, the reserve fund had $ 190 million at the end of the 2018-19 fiscal year.
The top 25 highest-paid athletic department employees are receiving voluntary 15% reductions in wages, and all employees participate in a job-sharing program that reduces their hours by 20% or 50%.
The Badgers have also paused a $ 77 million renovation of Camp Randall Stadium, have restricted travel and have frozen all hires.
“These steps have allowed us to avoid difficult decisions that other schools have already had to make, such as cutting sports or laying off employees,” Alvarez wrote. “We have taken many steps, but we will have to do much more.”
In 2018-19, the Wisconsin soccer program accounted for about 58% of the department’s $ 157.7 million revenue, according to the university’s most recent financial report to the NCAA. The Badgers generated $ 24 million in ticket sales and $ 8.3 million from soccer-related contributions, as well as $ 45.6 million from media rights, $ 9.4 million from bowl revenue and $ 5.3 million from sales. of the program, parking and concessions.
If the season is not played, the Badgers would save money on some expenses, including team travel ($ 1.3 million in 2018-19), opponent’s guarantees ($ 3.1 million), game expenses ($ 1 million), and bowl expenses ($ 2.1 million). Much of his $ 40.4 million in expenses, such as student student aid for athletes, coaching salaries, and facility debt service, are fixed costs.
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