Florida State‘s athletics department reported a budget surplus for the second consecutive year.
The Seminoles listed $161.1 million in operating revenue during the 2022 fiscal year (July 1, 2021-June 30, 2022) while operating expenses were $150.7 million, resulting in a $10.364 million surplus, according to the most recent annual NCAA financial report obtained by the Sentinel through a public records request.
It’s the highest revenue figures since 2017-18 when the department reported $168 million in revenue.
FSU reported a $7.81 million surplus in 2021, partly because of the department’s cost-cutting measures during the coronavirus pandemic.
Ticket sales increased 294% as home venues reopened to total capacity after being limited during the pandemic. Revenue went from $4.7 million in 2021 to $18.7 million in 2022.
The revenue surplus will help replenish the department’s financial reserves.
“During the COVID pandemic, our reserve fund really got tapped into and we want to make sure we have an ample reserve fund to offset any unpredictable challenges to our operation in the future,” said FSU athletics director Michael Alford. “Any surplus we’re going to put into that fund.”
According to Alford, much of the effort comes down to timing with the department seeing growth from donor contributions, ticket sales and media rights distribution ahead of what was budgeted for the fiscal year.
Athletic department budgets rebounded across the board for the most part in 2021-22, according to a report by Sportico, which compared financial statements from 63 public universities in the Football Bowl Subdivision. The average generated revenue increased 8.5% ($81 million) from 2017-18, while expenses climbed 7.3% ($93 million).
Florida State was No. 6 overall in total operating revenue among the 63 institutions and No. 9 in operating expenses.
Football generated 48% of the department’s revenue, or $77.8 million, during the 2022 fiscal year, with $15.1 million coming from ticket sales which is five times larger than the previous year ($3.5 million) when safety protocols and social distancing forced the university to limit stadium capacity to 20%.
Donor contributions were reported at $41.7 million, a 13% increase from 2020 when the department reported $36.7 million in contributions.
“We wouldn’t be able to be in this situation without [donor] support,” added Alford.
Florida State received $30.3 million in revenue from media rights, including radio, television, Internet and e-commerce. An increase of 16% from the previous year’s figure of $25.988 million. The Seminoles also received $10.7 million in conference distributions and $24.4 million in revenue from royalties, sponsorship and advertising.
Another source of extended revenue was $13.6 million in direct institutional support from the university.
“Coming out of the pandemic, people saw the vision and the direction we’re heading across the board,” said Alford. “We made a conscious effort to get out there and share our vision.”
Much of the Seminoles’ ability to post a budgetary surplus in 2021 centered on the department cutting its athletics budget by 20%. The cuts came from salary reductions to football coach Mike Norvell, men’s basketball coach Leonard Hamilton and former women’s basketball coach Sue Semrau.
After reporting coaching salaries, benefits and bonuses of $20.1 million in 2021, FSU saw those expenses increased to $25.6 million in 2022. It included a more than $3 million increase in football coaches’ salaries and bonuses, an $843,178 increase in women’s basketball and a $1.4 million increase in other sports.
Other areas to see an increase included recruiting ($1.6 million) and team travel ($9 million). The lack of travel impacted both during the pandemic season.
Gameday expenses also increased from $1.9 million in 2021 to $3.5 million in 2022. Those include everything from supporting officials to paying security and event staff and medical personnel.
“We’re also making sure we provide the very best for the student-athletes,” said Alford. “Some of the money I spent that we didn’t budget when I saw we were going to have this offset was spent on nutrition to make sure our student-athletes are getting what they need to compete.
“We’re investing in the right ways and make sure it goes back to the student-athlete experience.”
FSU reported a $26 million loss in the 2019-20 fiscal year, much of which came from $19 million-plus spent on former football coach Willie Taggart‘s contract buyout.
This article first appeared on OrlandoSentinel.com. Email Matt Murschel at mmurschel@orlandosentinel.com or follow him on Twitter at @osmattmurschel.
