The University of Arizona is facing a financial crisis that could lead to sports programs being eliminated at the school.
School president Robert Robbins disclosed the news of potential layoffs and other cost-cutting measures amid a $240 million financial shortage at a monthly faculty senate meeting Monday, according to a report from Tucson.com.
Athletics has been highlighted as a financial drain on the university and a contributor to the university-wide shortfall. Faculty members in attendance Monday raised the issue of a $55 million loan made by the university to the athletic department during the height of the COVID-19 pandemic. Robbins noted that the loan “has not been paid back fast enough.”
The athletic department budget is approximately $100 million. Out of the $100 million, $40 million comes from the Pac-12 and $30 million comes from ticket sales. Football and basketball, like most schools across Division I athletics, are the primary revenue drivers for ticket sales. The final $30 million comes from philanthropy and contracts, according to Robbins.
Arizona currently boasts 23 varsity teams. The university is set to join the Big 12 Conference next year, and the schools in that league have an average of 17 varsity teams. With all that in mind, cutting some of the sports teams in the athletic department is a strong possibility.
“Everything is on the table in terms of dealing with athletics,” Robbins said, per Tucson.com. “This is an issue that is going to require a lot of tough decisions”
Arizona athletic director Dave Heeke was not present at Monday’s meeting, but faculty members requested that he attend a future meeting to further discuss options for the sports teams at the university.
Johann Rafelski, a physics professor at the school, urged Robbins to consider selling the athletics department to an outside vendor, which Robbins noted that he has considered in the past. Doing so, Rafelski added, could help the athletic department turn a profit.
“People who are qualified to run an athletics department may turn it into a profit,” Rafelski said. “We could perhaps get a good sales price.”
Although Robbins said selling the athletic department to an outside vendor is an option on the table, he also noted that the university could lease some of the school’s land to bring in income.
More meetings for the faculty are expected, but the university aims to release an official plan on how it will deal with the financial crisis facing the school by Dec. 15.
