Iowa athletics to get budget increase for 2018

IOWA CITY — The Iowa Board of Regents released 2018 budgets for the three state universities on Tuesday, including those for the athletic departments.

The University of Iowa once again has the highest budget at a little more than $117 million for 2018, which is an increase of $3.6 million from 2017's budget. The Regents' annual report for state budgets outlined the revenue and expenses for UI in 2017, and highlighted a 'slight decrease in sports income,' which was 'offset by a significant increase in athletic conference revenues resulting from a new six-year television contract.'

The Regents set Iowa's budget at $102 million for 2017 and the report's estimate has 2017 income at $113 million. The estimate for those Big Ten revenues in 2017 is $36 million, and is expected to increase to $50 million for 2018.

Athletics Director Gary Barta said in early July the department has expected a number like that for a few years, so it's been earmarked for several things already, including the renovations to the Gerdin Learning Center, the launch of the Kinnick north end zone renovation — supplemented by donor gifts — and a renovation of the clubhouse at Finkbine Golf Course.

Given the changing nature of television and the way in which it is expected to be consumed and purchased, Barta said relying on that money has to be well thought-out.

'That includes Big Ten money, it includes ABC, it includes all the moneys from the Big Ten,' Barta said. 'You just have to be thoughtful about relying on one particular revenue source. Beyond that, I would say I see while the world of television might change and how it's delivered might change, the fact that fans still love the content. However the content is delivered and monetized, I think the Big Ten is in a great position to move toward that over the next 10 or 20 years.'

The Regents' report outlined other additions to the budget, including full cost of attendance for scholarships awarded. According to the report, UI athletics awards the equivalent of approximately 300 scholarships at a cost of approximately $13.4 million. The cost of attendance includes academic supplies, transportation and 'some personal costs as calculated by the financial aid office.'

Annual stipend amounts range from $2,392 to $3,570 and represent a total annual cost of approximately $990,000.

'The other thing we've done over the last couple years in anticipation of that money,' Barta said, 'is we've been hiring more athletic trainers. We hired a full-time nutritionist. We hired another sports psychologist. We added cost of attendance to our bottom line operating budget. We're spending close to $2 million more on food than we used to. With knowing the money was coming, and feeling very confident the number was going to be what it was, we've pretty much spent it all already in advance, in a thoughtful way.'

According to the report, expenses are projected to increase in 2018 thanks to changes in recruiting rules by the NCAA, the addition of the 10th football coach, contract salary increases — Coach Kirk Ferentz's new contract as well as offensive coordinator Brian Ferentz's raise and promotion, among others — and bonus estimates.

That slight decrease in income also stems in part from the $6.5 million settlement with former sports administrator Jane Meyer and former field hockey coach Tracey Griesbaum. As Barta said, those expenses are expected to return to more normal levels in 2018.

Barta said the money for the settlement came out of the department's reserve fund, which now sits 'at about $3 million,' after it was previously, 'as high as about $12 million. The events of the last two years have brought that down, but we'll build it back up.'

l Comments: (319) 368-8884; jeremiah.davis@thegazette.com