An extra $10 million from university helps Wolf Pack athletics break even in FY22

For the second straight fiscal year, the University of Nevada sent a nearly eight-figure "budget allocation" to Wolf Pack athletics to ensure it'd break even financially.

Nevada Sports Net obtained the Wolf Pack's 2022 fiscal year NCAA financial report through a public record request last week, which shows the Wolf Pack producing $47,946,637 in revenue against $45,228,707 in expenses. That was a surplus of $2,717,930 but only after the university increased its direct institutional support to athletics by almost $10 million. And the surplus essentially covered the lost revenue from fiscal year 2020 that had carried over at the outset of the COVID-19 pandemic.

UNR also covered a more than $10,000,000 deficit shortfall from Wolf Pack athletics in fiscal year 2021 that was a result of COVID-19's impact of ticket sales (crowds were not allowed at Nevada football and basketball games that season). In fiscal year 2019, the president's office took over $8.25 million of historic debt/deferral accrued by Wolf Pack athletics, meaning since 2019 the university has covered more than $28 million in deficits accumulated by the school's athletic department.

The university's communications office told NSN the latest budget allocation — of $9,918,499.33 for fiscal year 2022 — was a result of the lingering impact of the COVID-19 pandemic on attendance. While Nevada football had no attendance limitations for the 2021 season, which is part of the 2022 fiscal year, the school did require proof of COVID-19 vaccination to attend men's and women's basketball games for the majority of the 2021-22 season.

Nevada football actually saw a marked increase in attendance for the 2021 season, drawing 21,575 fans per home game, its highest mark since 2015 (it averaged 16,180 fans per home game in 2019, the year before the COVID-19 pandemic). Men's basketball attendance, however, decreased from 8,721 fans per home game in 2019-20 (the year prior to COVID) to 7,056 fans per home game in 2021-22. That decrease is more likely a result of the team's struggles as it went 13-18 than the COVID-19 vaccination requirement, which had minimal impact on the team's season-ticket base (it lost 295 season-ticket holders over the policy).

From fiscal year 2017-20, Wolf Pack athletics received an average of $3,148,432 in direct institutional support. In the last two years, those totals have been $14,343,053 in fiscal year 2021 and $13,078,562 in fiscal year in 2022. Both increases have come out of the COVID-19 relief funds, including the federal government's Higher Education Emergency Relief Fund (HEERF) through the CARES Act as well as the Nevada System of Higher Education's special COVID-19-related distribution.

In fiscal year 2021, UNR funneled $10 million from the NSHE fund and $199,921 from the HEERF fund to athletics to cover its COVID-19-related deficit. In fiscal year 2022, UNR funneled $2,014,055 from the NSHE fund and $7,904,444.33 from the HEERF fund to athletics. With that almost $10 million bump from the university this year, Nevada listed a profit of $2.718 million in FY22 that covered historic debt from the FY20. The Wolf Pack still owes the university $5.9 million in accrued debt even after the president's office took over $8.25 million of historic debt/deferral in fiscal year 2019. That $5.9 million in accrued debt is expected to be covered by future sales of property owned by UNR, which would clear the books for Wolf Pack athletics.

Nevada athletics has generally struggled to break even financially, doing so only four times in the last 13 fiscal years (2012, 2015, 2016, 2019). Wolf Pack athletics receives far less funds than its Mountain West counterparts in public money, which includes state distribution, university distribution and student fees. Nevada athletics gets roughly $6 million-$8 million less via those revenue streams than its MW competition. In a typical year, the Wolf Pack gets about $11 million in state, university and student money. The $10 million additional budget allocations from the university the last two fiscal year are expected to be one-time situations related to the pandemic and not something that will continue into the future.

In its 2022 NCAA financial report, Nevada reported $7.325 million in ticket sales with other major revenue streams being direct institutional support ($13.078 million after the $9.918 million additional budget allocation), direct state support ($4.820 million), donations ($3.666 million), the MW media rights deal ($3.161 million), student fees ($2.704 million), royalties/licensing ($2.411 million), conference distribution ($1.609 million), NCAA distribution ($1.349 million) and game guarantees ($1.644 million).

The Wolf Pack's top expenses included athletic scholarship aid ($8.868 million), coaching salaries ($8.215 million), administration/support staff salaries ($8.216 million), team travel ($4.474 million), administrative expenses ($4.020 million), equipment and uniforms ($2.127 million), debt services ($1.390 million), game expenses ($1.299 million) and meals ($1.080 million).

The 2022 fiscal year ran from July 1, 2021-June 30, 2022, meaning it covered the 2021 football season, the last under coach Jay Norvell, as well as the 2021-22 men's basketball season. Despite Nevada football seeing a spike in attendance and men's basketball's attendance decrease, Wolf Pack men's hoops still generated far more money in tickets sales ($3.991 million) than football ($2.952 million). The rest of the Wolf Pack sports sold $116,436 in tickets. Total ticket sales were down from fiscal year 2020, the last year prior to COVID, when Nevada sold $9.147 million in tickets compared to fiscal year 2022's $7.326 million in ticket sales.

Despite having a poor season, Nevada men's basketball turned a profit of $1.506 million in fiscal year 2022. Football lost $3.087 million despite going 8-5 in Norvell's final season. Women's basketball, which had its second 20-win season and playing in the WBI, lost $1.783 million. The rest of Nevada's programs lost a combined $8.301 million (those teams were not separated out by sport). The Wolf Pack made $73,997 in profit from playing in the Quick Lane Bowl.

Schools are required to file fiscal year reports to the NCAA on an annual basis, which is how NSN received the Wolf Pack's 2022 fiscal year filing.

Wolf Pack's fiscal year outcomes

Here is a look at Nevada’s profit/deficit in each of the last 13 fiscal years.

2010: -$750,000

2011: -$450,000

2012: +$50,000

2013: -$500,000

2014: -$39,450

2015: +$115,000

2016: +$135,000

2017: -$2,000,000

2018: -$900,000

2019: +$216,678

2020: -$2,000,000

2021: $0 (after a $10,199,921 "budget allocation" from the university)

2022: +$2,717,930 (after a $9,918,499.33 "budget allocation" from the university)

Source: Wolf Pack athletics/NCAA financial reports