Athletics Department Considers Raising Football Ticket Prices in 2015
To combat a net loss of $1.3 million over the last year, Penn State’s Intercollegiate Athletics department outlined a five-point plan today to weather the budget issues it’s currently facing, including raising the price of football tickets in 2015.
During their report to the Board of Trustees’ Committee on Finance, Business, and Capital Planning this morning at the Penn Stater, new Athletic Director Sandy Barbour and Associate Athletic Director of Finance Rick Kaluza outlined the issues and possible solutions. The athletic department is in the midst of a series of three $10 million loans, and ended the last year with only $5.2 million in its cash reserve. According to Kaluza, the department’s budget projections are hamstrung by the lack of money from the Big Ten’s bowl games and currently flat revenue streams.
According to the press release, there are five possible solutions:
- Improve football attendance beyond the 88 percent capacity at which it currently sits;
- Potentially increase football ticket and parking prices;
- Concession enhancements;
- University reduction of interest payments related to the $60 million fine;
- Exercise caution in major maintenance and capital expenditures over the five years.
According to Barbour, the next five years will be crucial for the budget of Intercollegiate Athletics. Barbour is no stranger to handling athletic departments in tough financial straits. In June 2013, Cal’s athletic department was a whopping $445 million in debt due in part to a failing licensing campaign for its stadium renovations.
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