Seven Home Games to Provide Additional Revenue

<?xml:namespace prefix="st1" ns="urn:schemas-microsoft-com:office:smarttags"?>Lincoln, Neb.- Revenue generated by having an extra home football game during the 2005 Nebraska football season will help offset the additional debt service incurred from the Memorial Stadium Improvement Project. The debt service was the most significant change in the Nebraska Athletic Department’s 2006 budget released on Friday.

Athletic Director Steve Pederson also reported that he expects to end the 2005 fiscal year approximately $75,000 in the black. This strong showing continues the tradition of fiscal responsibility set by Pederson when he assumed the athletic director position in 2003.

Pederson recently received approval from Chancellor Harvey Perlman for a 2006 budget of $62,644,547, an increase of about 10.4 percent from the projected 2005 budget. The increased 2006 budget is comprised of three main elements?additional debt service, costs associated with a seventh home football game and higher fuel/utility costs.

Nebraska will balance its 2006 budget through several sources, most notably the extra revenue generated by a seventh home football game during the 2005 season. Due primarily to the added home game, projected ticket sales in the 2006 budget come in at more than $24.3 million, an increase of approximately $3.2 million from the original 2005 budget. Pederson was able to present a balanced 2006 budget without increasing football ticket prices for season ticket holders.

The extra revenue generated with seven home football games should become a constant for the Nebraska athletic department. Earlier this year, the NCAA approved a 12-game regular-season football schedule beginning with the 2006 season, and Pederson has stated that Nebraska hopes to play seven home games each season.

The 2006 budget also reflected an increase of more than $500,000 in sponsorship money. The increased revenue in this area includes a recently approved new contract with adidas, and several other new corporate partnerships cultivated by the department’s marketing efforts.

The department’s biggest expense is the salary line item which equates to 32 percent of its operating expenses, followed by debt service (16 percent) and grants in aid (11 percent). <?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office"?>

 

University of Nebraska-Lincoln

Department of Intercollegiate Athletics

 

 

 

 

 

 

Budget Comparison: FY05-06 with FY04-05

 

 

 

 

 

 

 

FY05-06

 

FY04-05

 

Change

 

 

 

 

 

 

Ticket Sales

 $     24,309,241

 

 $     21,134,068

 

15%

Big XII and NCAA Revenues

 $       7,934,840

 

 $       7,952,340

 

0%

Sponsorships and Licensing

 $       7,377,783

 

 $       6,827,000

 

8%

Other Operating Income/Sales Tax

 $       8,368,254

 

 $       6,092,945

 

37%

Contributions from Booster Clubs

 $       1,924,742

 

 $       1,930,608

 

0%

Tranfers from University Foundation

 $     12,729,688

 

 $     12,818,903

 

-1%

Total Revenues

 $     62,644,547

 

 $     56,755,864

 

10%

 

 

 

 

 

 

Salaries and Benefits

 $     20,557,908

 

 $     20,043,223

 

3%

Administrative Overhead

 $       1,650,000

 

 $       1,678,000

 

-2%

Debt Service

 $     10,183,051

 

 $       6,627,053

 

54%

Facilities

 $          948,650

 

 $         949,725

 

0%

Recruiting

 $       1,094,760

 

 $       1,074,500

 

2%

Team Travel

 $       2,554,235

 

 $       2,508,493

 

2%

Scholarships and Student Support

 $       7,795,345

 

 $       7,357,653

 

6%

Guarantees

 $       1,362,200

 

 $       1,405,000

 

-3%

Contest Setup

 $       2,322,900

 

 $       2,263,950

 

3%

Capital Improvements/Outlay

 $       2,000,000

 

 $       1,800,000

 

11%

Utilities

 $       1,789,525

 

 $       1,361,730

 

31%

Other Operating Expense

 $     10,385,973

 

 $       9,686,537

 

7%

Total Expenses

 $     62,644,547

 

 $     56,755,864

 

10%