Looks like the University of Tennessee’s athletic department is bleeding:
The department reported revenues totaling $106,485,376 against expenses of $110,466,652, creating a deficit of 3.98 million. The shortfall, which the department said in a release was “anticipated,” shrank a reserve nest egg of approximately $5.5 million that athletic director Dave Hart has voiced concern over throughout his first year at UT.
“We didn’t know the degree it would be, but we knew all year that we were probably going to have some deficit this year,” said UT Chancellor Jimmy Cheek at a two-day board of trustees workshop in Nashville. “We have reorganized the athletics department, we have downsized the department, so those all had some cost savings with them.
“We will continue to look at all operations and see where we can reduce expenditures this year. We’re also going to work as hard as we can to increase revenue this year, and that’s from ticket sales, athletic competitions and donors. At same time need to make critical investments to make sure our programs are moving in a positive direction.”
In case you’re not good with numbers, let me help you: this ain’t good.
In 2010, Alabama’s football program alone generated revenues of $78 million and the overall athletic department had profits of about $13.9 million.
Tennessee’s athletic department’s financial condition reminds me of the ole U.S.A. We don’t have a revenue problem, we have a spending problem. How in the world did they spend $110 million?
Make no mistake about it, all of this will have an effect on how Derek Dooley’s job performance is viewed this year. Losing games and wallowing around in mediocrity does not help fill the coffers.