UTAD 13-14 Fiscal Results;14-15 Projections

Oct. 1, 2014

KNOXVILLE, Tenn. -- For the fiscal year ending June 30, 2014 (fiscal year 2013-14), the University of Tennessee's Department of Athletics (UT Athletics) has reported a net surplus of $60,880. UT Athletics reported total operating revenues of $103,542,111 and total operating expenses of $103,481,231 (see illustration #1). The net surplus has been placed in the UT Athletics' reserve that remains the lowest amongst peers in the Southeastern Conference.

Included in total operating revenues, UT Athletics recognized $31,477,399 in net ticket receipts and $24,908,676 in annual donations, or 30.4% and 24.1% of total operating revenues, respectively. The net ticket receipts figure reflects a financial offset for the remittance of $4,842,831 in total taxes associated with the sale of event admissions, including $1,634,191 in amusement taxes provided to the city and county.

During the fiscal year, UT Athletics transferred to the University $1,285,000, primarily due to a contribution of $1,125,000 for campus parking garage debt service. The University withheld making certain other historical transfers from UT Athletics in the amount of $2,071,534.

In November 2012, Chancellor Jimmy G. Cheek announced the reinvestment of $18 million over a three year period back to UT Athletics from previous athletically-generated revenues transferred from UT Athletics to the University. Entering fiscal year 2013-14, UT Athletics had a remaining balance from the reinvestment plan of $3,758,789. As a result of withholding the transfers to the University of $2,071,534 and by receiving a transfer from the University of $250,000, UT Athletics will enter Fiscal Year 2014-2015 with a remaining balance in the reinvestment plan of $1,437,255 (see illustration #2).

Prior to entering fiscal year 2014-15, UT Athletics approved a balanced operating budget consisting of total operating revenues and total operating expenses of $104,257,500 (see illustration #3).

ILLUSTRATION #1
FISCAL YEAR 2013-14 REVENUES & EXPENSES

OPERATING REVENUES

	Gross Ticket Receipts		$36,320,030
		less: state & local sales taxes	(3,208,440)
		less: city & county amusement taxes	(1,634,191)
	Net Ticket Receipts		31,477,399

	Annual Donations		24,908,676
	SEC Distributions		21,075,872
	Media Rights & Sponsorships		9,502,365
	Event Revenues		6,805,797
	Licensing Royalties		2,000,000
	Sports Camps Revenues		1,845,776
	Endowment Earnings		1,544,029
	Student Activity Fees		1,000,000
	Direct Support		250,000
	Other Revenues		3,132,197

TOTAL OPERATING REVENUES:			$103,542,111

OPERATING EXPENSES

	Compensation & Benefits		$35,525,838
	Sports Teams		16,632,616
	Debt Service		13,018,083
	Facilities & Events		12,853,298
	Scholarships		10,353,696
	External Relations		5,742,054
	General & Administrative		3,494,910
	Sports Camps Expenses		1,882,795
	Arena Contribution		1,783,327
	Transfers to University		1,285,000
	Other Expenses		909,614

TOTAL OPERATING EXPENSES:			$103,481,231

NET SURPLUS/(DEFICIT):			$60,880

ILLUSTRATION #2
RECONCILIATION OF $18 MILLION REINVESTMENT

FISCAL YEAR 2012-13

	Beginning Balance		$18,000,000

	Less:
		Transfer(s) from University	(11,434,056)
		Relief from Historical Transfers to University	(2,807,155)

	Ending Balance		$3,758,789

FISCAL YEAR 2013-14

	Beginning Balance		$3,758,789

	Less:
		Transfer(s) from University	(250,000)
		Relief from Historical Transfers to University	(2,071,534)

	Ending Balance		$1,437,255

ILLUSTRATION #3
YEAR 2014-15 OPERATING BUDGET

OPERATING REVENUES

	Gross Ticket Receipts		$37,190,750
		less: state & local sales taxes	(3,284,540)
		less: city & county amusement taxes	(1,682,211)
	Net Ticket Receipts		32,224,000

	Annual Donations		24,300,000
	SEC Distributions		25,149,147
	Media Rights & Sponsorships		10,013,353
	Event Revenues		5,835,000
	Licensing Royalties		1,300,000
	Sports Camps Revenues		1,236,000
	Endowment Earnings		1,500,000
	Student Activity Fees		1,000,000
	Other Revenues		1,700,000

TOTAL OPERATING REVENUES:			$104,257,500

OPERATING EXPENSES

	Compensation & Benefits		$35,857,888
	Sports Teams		18,132,581
	Debt Service		13,894,711
	Facilities & Events		11,805,650
	Scholarships		11,190,406
	External Relations		4,947,079
	General & Administrative		3,705,185
	Sports Camps Expenses		1,289,000
	Arena Contribution		1,800,000
	Transfers to University		1,285,000
	Other Expenses		350,000

TOTAL OPERATING EXPENSES:			$104,257,500

NET SURPLUS/(DEFICIT):			$0

University of Tennessee Athletics

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