Georgia's budget is in good shape

ATHENS --- Larger salaries for the basketball coaches. Two new engines for the airplane. A $2 million contribution to the university. Those are among the things the University of Georgia Athletic Association plans to do with the additional money that will pour into the department in the 2009-10 school year from lucrative new media and marketing deals. Georgia expects an increase of about $8.5 million in athletics revenue, almost $7 million of it from the SEC's new TV deal and UGA's new marketing and multimedia deal. Such windfalls --- combined, athletics director Damon Evans says, with "good fiscal management over a number of years" --- have allowed Bulldogs Inc. to avoid the cutbacks commonly seen recently in the business, education and sports worlds. After reviewing the athletics department's finances at a recent board meeting, UGA senior vice president for finance and administration Tim Burgess said: "If only the university was in this good a shape, we'd be fine." The athletic association --- a separate fiscal entity from the rest of the university --- has budgeted total 2009-10 revenue of $84.8 million, up 11 percent from $76.3 million in 2008-09. Boosting the budget are the two new mega-deals that defy the recession: the SEC's 15-year, $3 billion television deal with CBS and ESPN that will bring Georgia about $10.7 million in the first year, up from $5.4 million this past year, and UGA's eight-year, $92.8 million marketing/multimedia deal with ISP Sports that will bring in at least $9.5 million in Year 1, up from $8.2 million this past year. The SEC's television deal is the largest by any collegiate conference, with the revenue shared equally among the 12 member schools. Also, UGA's marketing/media deal, which includes the radio rights to football and men's basketball games, is the largest on an average annual basis by any college athletics program. "While those deals are a plus for us, generating a significant amount of revenue, and say a lot about our brand, I feel like our athletic association was on sound financial footing even before this money was coming in," Evans said. "Because we had prepared ourselves and built up reserves [of about $40 million]." Nice timing Still, in the coming year, the revenue increases from the SEC and ISP deals will come in handy. They will offset a decline of almost $3 million in contributions by Georgia fans for the right to buy football season tickets --- a decline that UGA President Michael Adams warily called "a sign to me of what's going on out there in the world." And the deals will fuel some new spending at a time when many college athletics programs are cutting budgets. A review of Georgia's 2009-10 budget, obtained under the state's Open Records Act, shows several notable areas where the bulk of the new dollars will go: On its struggling men's basketball program, Georgia will spend about $800,000 more than last year, primarily for higher coaches' salaries. New coach Mark Fox will be paid $1.3 million, $540,000 more than former coach Dennis Felton. The association's airplane, used primarily by coaches in recruiting athletes, will have both engines replaced at a cost of $1.2 million. The expenditure is being budgeted in a single year, rather than amortized over several years, which would be customary. With the university facing reduced state funding, the athletic association will contribute $2 million each of the next three years to support academic programs. "Being on good financial footing and being able to strike deals such as the ISP and SEC deals allow us to do things such as donate back to the university," Evans said. "When we are having success in the athletic association, I think it is important to make those contributions." Other budgeted increases include, among myriad items, an additional $511,000 toward athletes' scholarships (for a total of $7.65 million), an additional $200,000 for medical fees and supplies (for a total of $900,000) and $300,000 for new bulkheads --- pool dividers --- for the swimming facility. The athletic association --- a separate fiscal entity from the rest of the university --- has budgeted total 2009-10 revenue of $84.8 million, up 11 percent from $76.3 million in 2008-09. Dogs' dollars Tracking the growth of University of Georgia Athletic Association revenue: School year revenue 2009-10 $84.8 million* 2008-09 $76.3 million 2007-08 $70 million 2006-07 $63.4 million 2005-06 $61.7 million * projected in UGA athletics budget * Georgia fans will benefit from new marketing and multimedia deal. C8