Ohio State’s athletic department reported an operating deficit of nearly $38 million during the most recent fiscal year, according to an annual financial statement submitted to the NCAA.
The athletic department spent a record $292.7 million from July 1, 2023, to June 30, 2024, while it also saw a dip in overall revenue.
It brought in $254.9 million in total operating revenues over the period, a decline of $24.6 million from the previous fiscal year, contributing to the budget shortfall.
The school had expected to be in the red since last summer. In an interview with The Dispatch, athletic director Ross Bjork forecast an eight-figure deficit.
But exact figures had not been provided until Ohio State released its revenue and expense report on Monday in response to public records requests by multiple media outlets.
“While last year’s budget impact is not ideal and there were unique circumstances at play, we have a robust expense and revenue plan that has been implemented and have made great progress in this ever-changing landscape of college athletics,” Bjork said in a statement issued as part of a news release. “We will make sure we operate with a balanced budget moving forward.”
The release added that the department expects reserve funds, along with past and future earnings to cover the $37.7 million deficit.
Lower ticket sales contributed to the decline in revenues as the Buckeyes played only six football games at Ohio Stadium in fall 2023, their fewest home games since 2004.
The revenue from football tickets was $47.9 million, a drop-off of $16.5 million from when they had eight home games in 2022. They returned to a slate of eight games last fall and also hosted a first-round game in the College Football Playoff in December.
The department was also down $8.7 million in royalties, licensing and sponsorships and $5.3 million in contributions, which include donations made to purchase tickets.
Part of a $17.7 million jump in spending resulted from severance payments of more than $9 million, including the buyout for former men’s basketball coach Chris Holtmann who was fired last February.
The school owes Holtmann more than $8.6 million in severance, according to a termination agreement signed in March.
Salaries and bonuses for coaches also increased, especially in football as Ohio State paid $28.5 million to coach Ryan Day and 10 primary assistants during the last fiscal year. Their compensation had been $21.8 million during the 2023 fiscal year.
The Buckeyes made a splashy hire last February by plucking Chip Kelly out of UCLA. As offensive coordinator, Kelly was one of two assistants making at least $2 million.
Gene Smith, who was the athletic director before Bjork took over for him, acknowledged he went “berserk” with the budget to help push football toward the top of the sport, approving the rise in spending.
The Buckeyes won a national championship last week with a win over Notre Dame in the CFP final.
Since USA TODAY Sports began tracking NCAA financial reports in 2005, Ohio State’s total expenses were the second-highest by a Division I athletic department, surpassing the high from the previous year when they spent $274.9 million, but less than $325 million Texas reported in spending later Monday.
Ohio State is likely to exceed $300 million in spending in the coming years as it begins to share revenues with athletes, the result of a settlement of three multibillion-dollar antitrust cases against the NCAA and the major conferences.
If a federal judge gives final approval to the settlement in April, schools would be permitted to share around $22 million with athletes beginning next fall.
Ohio State has been planning to pay the maximum total to athletes.
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