Oregon State is reaffirming its commitment to reaching a Power conference level of funding by presenting an athletics budget of $91.6 million for the 2024-25 academic year, marking an 8.8% decrease from the previous year’s budget of $99.7 million. This reduction comes as a response to the loss of a significant revenue stream of $25-30 million annually from media rights following the Pac-12’s dissolution, which led to Oregon State and Washington State being left without a conference for at least the upcoming school year and likely the following year as well.
While Oregon State’s budget places it toward the lower end among schools in the Big 10, SEC, ACC, and Big 12 conferences, it notably exceeds the spending levels of Group of 5 schools. For instance, in 2023, the highest budget among G5 schools was $76.5 million, significantly lower than Oregon State’s proposed budget.
In contrast, Washington State has proposed a reduced budget of $74 million for the 2025 fiscal year, down from $85 million in the previous year. These reductions primarily involve freezing some non-essential positions and implementing operational cuts, such as delaying hiring in marketing and facilities departments. Additionally, savings are being realized through differences in coaching contracts, with a $3 million gap between former football coach Jonathan Smith’s contract and his successor Trent Bray’s.
Despite these budget adjustments, Oregon State’s athletic department remains sizable, with only a slight decrease in the number of employees from the previous year.
Oregon State University expects a $1 million rise in ticket sales revenue compared to last year, although it has often surpassed $10 million in revenue from 2000 to 2020. Barnes expressed concerns several months ago about reaching a $10.5 million budget for ticket revenue.
“We anticipated notable losses in ticket sales and other areas. However, considering our current ticket sales and football renewal rates, we’re expecting similar results,” Barnes remarked.
The increase in ticket sales is partly due to having seven home football games this year, compared to six last year. Despite Reser Stadium’s reduced capacity due to construction and one game held in Portland in 2023, ticket sales amounted to $9.95 million. This year, with seven home games and around 12,000 additional seats, including premium options, the sales potential is higher.
The FY2025 budget anticipates $27.33 million in revenue from the Pac-12 and NCAA, mainly from sources like College Football Playoff revenue, NCAA basketball tournament shares, and Pac-12 settlement funds. Additionally, television revenue from football is included, though Barnes declined to disclose the exact figure due to negotiation sensitivities.
Miscellaneous income of $13.76 million comprises revenue from multimedia rights, concessions, camps, royalties, and licensing. A significant portion of the $11.53 million from Our Beaver Nation revenue stems from mandatory donations for football season tickets.
Lottery proceeds and institutional support see substantial increases in revenue for FY2025. Oregon State successfully advocated for increased proceeds from the Oregon Lottery, resulting in a rise from $530,000 to $7.65 million. Institutional support will also increase by $9.5 million to cover scholarships, up from $8.4 million last year.
Looking ahead, Barnes stated that the school will break even for FY2024, which began with a budget of $95.3 million but ended up at $99.7 million. In FY2023, Oregon State reported a deficit of $6.84 million despite generating revenues of $91.59 million, according to NCAA reports released in January.
Leave a Reply