Is $77.5M Good?

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

at work this week a new fiscal year has begun and in keeping with our commitment to fiscal responsibility and transparency I am pleased to share this annual report with you on the financial results of this past year as well as a look ahead at our FY 2017 budget.

Thanks to the collective efforts of our fans, donors, student-athletes, coaches and staff, K-State Athletics, Inc., produced a balanced budget in FY 2016 and achieved a surplus for the seventh consecutive year while also setting a new cash contributions record through the Ahearn Fund annual giving program.

The department’s actual FY 2016 cash operating revenue of $77.5 million exceeded our budgeted goal of $70 million. Though our annual outside audit is not yet finalized, operating revenue is expected to significantly exceed operating expense. This positive result, required by bond covenants, along with those of prior years, has helped the department aggressively invest back into all 430-plus Wildcat student-athletes through needed and strategic facility upgrades.

Overall cash gifts to the department in FY 2016 totaled $28.3 million, of which a record $18.1 million was designated for the Ahearn Fund annual giving program which surpassed its goal by $1 million!  Since July 1, 2009, you have contributed more than $200 million in outright gifts, all of which has been directly invested toward K-State’s Vision of a Model Intercollegiate Athletics Program.

K-State Athletics remains one of just a few dozen universities nationwide, and the only institution in Kansas, to operate without the use of state tax or university tuition dollars. In the midst of a transformational and challenging time for intercollegiate athletics, which includes many prominent schools across the country recently reporting annual operating deficits and ballooning debt, the collective spirit and support of nearly 250,000 K-State friends and alumni across the country and around the world has enabled the department to experience among the most successful seven-year periods in its history while completing $210 million in athletics facility upgrades in a fiscally responsible manner.

Moving forward, the K-State Athletics, Inc., Board of Directors has approved the department’s FY 2017 budget of $72.7 million, a $2.6 million increase over the previous year’s budget and a $29 million increase from the 2010 budget of $44.1 million. Click here to see both sides of our 2016-17 “Budget Card,” our eighth version of what has become a nationally recognized symbol of K-State’s commitment to transparency in athletics.

Again this year, KSA's largest revenue sources are the combined ticket purchases and contributions from loyal fans and Ahearn Fund donors, targeted at $32.8 million, coupled with $31 million in projected Big 12/NCAA revenue shares. Big 12 revenues have nearly tripled since 2009, but we must always remember that grass-roots participation and dedication of Wildcat fans and donors remains the largest source of support for K-State student-athletes. Thank you!

On the expense side, we again have an increase in our student-athlete support line (up $1.2 million from FY14), which accounts for additional nutritional expenses permitted under recent NCAA legislation allowing institutions to provide additional meals and snacks to student-athletes, while we have an increase of approximately $1.6 million in operating/recruiting costs and $800,000 in scholarship costs as we enter into the second year of providing “full cost of attendance.” We should all be proud of the leaps forward over the last few years nationally in the quality and real value of the unique opportunity for student-athletes to compete and learn at the highest level of intercollegiate athletics.

I appreciate our coaches and staff for continuing to make budget-conscious decisions each and every day as well as all of Wildcat Nation for filling our stadiums all year long and participating in the Ahearn Fund.

Our annual debt service payment actually will slightly decline this year both in dollar amount and percentage of our budget, while the “Administration" line item for FY17 will be about $4.2 million. Our annual institutional support fee, which we pay to the University to help provide administrative support such as legal services to K-State Athletics, will increase to $475,000 in FY17, while the department will transfer a total of approximately $7.5 million in tuition, fees, support and other payments to the University and affiliated units.

You also may remember that in addition to completing a four-year plan to eliminate $1.6 million in direct institutional support of athletics a year early in 2013, we also plan to assume full responsibility for utility payments for athletic facilities. Direct and indirect university support of athletics was 6.1 percent of our budget in FY10. In FY16 it became zero. Being the only Regents institution in Kansas, and just one of a few dozen nationally, to operate in the black without any state tax or university tuition dollars or subsidies is evidence of our commitment to our second goal, providing Value to the University, Community and State.

[steve dave]

seems good

[KITNfury]

Are we still one of the lowest on the conference?

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Paging Dax, Paging Dr. DAX

[scottwildcat]

Are we still one of the lowest on the conference?

Probably.

[wetwillie]

We are almost at Alabama's 2004 budget levels so I would say we are making progress.

[CyberToothCat]

Are we still one of the lowest on the conference?

You've probably already seen this. It's last year's revenue rankings compiled by USA Today. Only ISU was below us, and that was just barely. (TCU and BU are private, so maybe...  )

Anyway, given our small revenue change from last year to this year, it's likely we are now the lowest in the league. Iowa State now has a 60,000 seat stadium so they prob have more ticket sale revenue than we do for the current year.

http://sports.usatoday.com/ncaa/finances/

[Trim]

Kansas State Athletics is in a rare class when it comes to fiscal responsibility

http://www.kstatesports.com/news/se-fan-support-helps-k-state-maintain-budgetary-balance-07-10-2016

 

[sonofdaxjones]

K-State is on the lower end of P5 schools.   That said there's a bunch of P5 schools that need millions in institutional support in order to break even.   K-State also is not doing neat little tricks like calling forgiven debt operating revenue, and isn't turning in Equity in Athletic reports that are counting capital contributions as operating revenue.  Like some other schools.  K-State does not count capital contributions as operating revenue. 

[Tobias]

doing things the right way

[Trim]

I'm gonna need to make some more ms paint banners.

[KITNfury]

If Powerball gets to a billion again, I'm ok with buying $77M in different number combos and seeing what happens. We could platinum plate everything.

[BMWWcat]

Isn't our budget lower because we don't have as many sports as well? Like softball, swimming, gymnastics?

[KITNfury]

Isn't our budget lower because we don't have as many sports as well? Like softball, swimming, gymnastics?

I would guess that's why our expenses are lower.

[HerrSonntag]

Isn't our budget lower because we don't have as many sports as well? Like softball, swimming, gymnastics?

I would guess that's why our expenses are lower.

You budget based on expected expenses.

[KITNfury]

Isn't our budget lower because we don't have as many sports as well? Like softball, swimming, gymnastics?

I would guess that's why our expenses are lower.

You budget based on expected expenses.

Income has no play here?

[ednksu]

Isn't our budget lower because we don't have as many sports as well? Like softball, swimming, gymnastics?

I would guess that's why our expenses are lower.

You budget based on expected expenses.

Income has no play here?

Don't be a rube.  We know Wildcat softball, gymnastics, and swimming would be revenue generators.