After Ohio State national championship win, the athletic department financials revealed a surprising deficit despite the success of its football team. The Buckeyes, led by head coach Ryan Day, reportedly spent $20 million in NIL funds to build their championship-winning roster, which contributed to a 14-2 season and the program ninth national title. However, according to a report by Joey Kaufman of The Columbus Dispatch, the department experienced a significant financial downturn during the 2023-2024 fiscal year.
Financial Deficit and Spending
Ohio State athletic department submitted an annual financial statement to the NCAA showing that the total operating revenue dropped to $254.9 million, a decline of $24.6 million from the previous year. The total spending for the department reached a record $292.7 million from July 1, 2023, to June 30, 2024, resulting in a $37.7 million deficit. This deficit is expected to be covered by reserve funds and earnings from previous and future years.
Ticket Sales and Revenue Declines
One of the primary factors contributing to the financial loss was a decline in ticket sales. Ohio State played only six home games in the 2023 season, the fewest since 2004. This lower number of home games resulted in a significant revenue loss, bringing in $16.5 million less than the previous year when the team played eight home games. Additionally, royalties, licensing, and sponsorship revenue were down by $8.7 million, and contributions, including donations made to purchase tickets, fell by $5.3 million.
Increased Spending and Severance Payments
The increased spending by Ohio State included severance payments totaling more than $9 million, which covered the buyout of former men basketball coach Chris Holtmann. The university also spent nearly $7 million more on salaries and bonuses for Day and his 10 primary assistant coaches compared to the previous year.
Record Spending in Division I Athletics
According to USA TODAY Sports, Ohio State $292.7 million in spending is the highest of any Division I athletic department, with further increases expected in the future. This is due, in part, to upcoming NCAA settlements that will allow for revenue sharing with athletes, expected to amount to approximately $20 million beginning next fall.
Despite the financial challenges, Ohio State athletics program continues to thrive, with the Buckeyes achieving both athletic and financial milestones. However, it clear that the rising costs of competing at the highest level of college sports will continue to shape the department future financial strategies.
