Bill O’Brien’s quest to fill Beaver Stadium and rally the troops during the Coaches Caravan wasn’t entirely for show as Penn State athletics lost just shy of $6 million during 2012-13 per a financial report released Friday (the press release cleverly referred to it as “expenses exceeding revenues” instead of a loss, of course).
Penn State released a copy of its annual financial report to the NCAA that showed among many other figures that the athletic department was $5.9 million in the red. The exact figure of $5,985,736 noted on the final page of the 41-page release.
The report notes that total revenues of $104.75 million were used against an operating cost of $110.74 million. Athletic department reserves were used to make up the difference between the two numbers.
Penn State football was still unsurprisingly the department’s main source of revenue with a net profit of $34.1 million for the 2012 season. That figure is down from 2011 and 2010 when Penn State brought in $47.8 million $43.9 million respectively.
Penn State will continue to pay annual $12 million installments required to cover a $60 million fine imposed by the NCAA. The upgrade of the Beaver Stadium scoreboards will cost an estimated $10 million. The university says the athletic program will miss out on a projected $21.6 million over the same five year span due to Big Ten conference sanctions that prohibit Penn State from collecting its share of money generated by football bowl games.
Big Ten and NCAA sanction are subject to change and have been modified once already.
In September, Penn State announced plans to take out a loan worth $30 million to help mitigate losses.
So as now head coach James Franklin continues his pitch to fill Beaver Stadium each week, it isn’t just for his team. It’s for the athletic department as a whole. Each percentage point of attendance against capacity at Beaver Stadium is valued at $350,000 on ticket sales alone.
Penn State men’s basketball is the second highest revenue generator bringing in a net revenue of just over $7 million in 2012.
You can read the full report below: