Facing $147M deficit, ISU Athletics halts Hilton Coliseum renovation, upping ticket prices

• Threatened with a $147 million budget deficit by 2031, Iowa State Athletics this week disclosed big cuts, including 'indefinitely postponing' the Hilton Coliseum renovation.
• ISU ticket prices also are expected to climb thanks to the negative effects of 'transformational changes in college athletics'
• University of Iowa Athletics, meanwhile, is anticipating a 10 percent increase in Big Ten Conference revenue — reaching a record $82.7 million.

AMES — Iowa State University Athletics — facing a $147 million budget deficit through 2031, or just under $25 million annually over the next six years — is rolling out painful concessions, including indefinitely postponing construction of a new wrestling practice facility and a $25 million Hilton Coliseum renovation.

“In the past two years, there have been several transformational changes in college athletics that will result in $30 million in recurring annual financial repercussions to the athletics department beginning this year,” ISU athletics reported in its 2026 budget report to the Board of Regents, made public this week.

Although it has identified about $8.7 million in annual budget savings, the $24.5 million annual funding gap is expected to culminate in a $147 million net deficit by 2031 — putting the Cyclones in an all-hands-on-deck situation.

“ISU is engaging with the Big 12 Conference, ISU Foundation, sponsors, donors and other partners to explore additional opportunities to create growth in revenue sufficient to overcome future anticipated revenue shortfalls and to otherwise support the continued success and viability of the ISU athletics program,” department officials reported.

“ISU views this effort as one of the top priorities and challenges facing the university.”

Changes threatening ISU Athletics include realignment of the Big 12 Conference from 10 to 16 teams; the House vs. NCAA settlement allowing revenue sharing with student athletes; and adjustment of the distribution model for College Football Playoff revenue, which Iowa State describes as “negatively impacting the Big 12 Conference.”

Given the challenges, Iowa State told the board it has made several tough budget decisions, including:

“The most significant savings have resulted from reducing travel costs for Olympic sports,” athletics officials reported.

The landmark NCAA vs. House settlement threatening Iowa State took effect July 1, allowing college athletics programs going forward to directly compensate student athletes for their name, image, and likeness.

The deal allows schools to start sharing revenue with players up to an annual cap of $20.5 million in the current 2026 budget year — with the cap increasing about 4 percent, or $1 million, annually through 2035, according to media reports and trade publications.

“Historically, (ISU) Athletics operated as a self-sufficient operation transferring the funds necessary to cover operating costs in the current fiscal year,” according to the board report. “Prior to FY 2025, under the current administration, ISU Athletics had not incurred an operating deficit other than the COVID impacted season, which was absorbed by cash reserves.”

To balance its current 2026 budget, ISU Athletics needed a one-time $26.7 million transfer from the ISU Foundation.

“Going forward the cash reserves for athletics within the Foundation will not be sufficient to cover an operating deficit for FY 2027 and beyond,” ISU officials report.

Breaking down specific line items, Iowa State is expecting NCAA and conference revenue to drop $2.2 million this year — largely due to the House settlement and the NCAA’s need to absorb the costs, “thereby reducing the net revenues available to distribution to member schools.”

Given the increase in expenses — largely due to the $20.5 million in student-athlete revenue sharing — the total budget is projected to swell 24 percent to $141.1 million.

“Football travel expense will increase as the football program plays a total of six road games this season compared to five in the prior season,” officials reported, noting, “ISU was invited to lead off the college football season in Ireland for one of the road games due to recent competitive success.”

UI, UNI Athletics

The University of Iowa Department of Athletics for fiscal 2026 also budgeted the $20.5 million revenue-sharing expense — bringing its total budget to $169.6 million, up 12.7 percent over last year.

“The budget increase largely correlates to revenue sharing with student-athletes,” UI officials reported to the board.

But unlike Iowa State, UI Athletics is anticipating a 10 percent increase in Big Ten Conference revenue — reaching a record $82.7 million — thanks to a renegotiated television contract.

“Most primary revenue sources are anticipated to increase in FY 2026,” officials said, pointing to a projected 14 percent jump in football revenue due to “ticket price adjustments and increased sales estimates based on the home schedule.”

UI Athletics again this year committed $2.5 million toward repayment of a $50 million loan from the main campus to quell the department’s losses during COVID.

And University of Northern Iowa Athletics — which is not self-supporting like the other public universities — did not budget the optional revenue sharing with student athletes.

“Since UNI Athletics does not receive substantial revenues from conference distributions and other sources, and similar to other comparable universities, the university provides athletic support for scholarships and operations,” officials reported.

That main-campus contribution is budgeted to increase from $5 million in fiscal 2025 to $5.4 million this year, according to board documents.

‘Hilton Coliseum’s aging infrastructure’

Iowa State Athletics first brought a $25 million proposal to renovate its 54-year-old Hilton Coliseum to the Board of Regents in 2019 — planning at the time to widen the concourse corridors and update its concessions to offer a broader variety of food.

“Hilton Coliseum’s aging infrastructure and congested concourses need to be addressed in order to continue to provide the experience expected by fans and patrons,” Iowa State officials said in 2019, when proposing the project they said would be covered by athletics revenue and private donations. “Currently, the facility is served by antiquated mechanical equipment, outdated elevators, and portable concession stands that constrict concourse circulation and ADA accessibility.”

The 14,384-seat facility — built in 1971 — was renovated in 1981, 1994, and more than 20 years ago in 2002. Home to Cyclones basketball, wrestling, gymnastics, and volleyball, Hilton is part of the Iowa State Center — an athletic and cultural event complex central to Iowa State’s new CyTown development project, which it also began exploring in 2019.

Forging ahead with that project, Iowa State recently signed a 30-year management deal for the 48-acre development that highlights a PILOT — or payment in lieu of taxes — agreement with the City of Ames.

That deal allows Iowa State to reinvest collections back into CyTown — although it stipulates money can’t go toward "any improvement to Hilton Coliseum other than improvements to the building envelope (roof, windows, doors), mechanical systems, or seating.“

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com