UConn’s Re-Entry into the Big East Puts the University at a Financial Crossroads
“What we’re finding is that the Power Five conferences are looking for schools like UConn to fill up their schedules, and they’re willing to pay a lot of money. We’re going to go from a football school that had no rivalries in the AAC to a program that will actually bring in some revenue through some of the big schools that we’re playing.” - Tom Ritter, Member, UConn Board of Trustees
UConn announced earlier this year that the Huskies will move back to the Big East, a conference that includes higher-profile basketball schools that are geographically closer to Connecticut and are more natural rivals. The move, which will cost the school $17 Million in AAC exit fees, does not include football, which will become an independent program for the foreseeable future.
UConn’s re-entry into the Big East puts the state’s highest-profile sports franchise at a financial crossroads. Despite numerous national championships in men’s and women’s basketball over the years, UConn’s athletics department ran a nearly $41 Million deficit in 2018 alone. Rejoining the Big East conference aims to sure up the athletic department’s finances, but don’t look for UConn sports to break even anytime soon, according to UConn Athletic Director David Benedict.
According to the Hartford Business Journal, the move brings UConn men’s and women’s basketball teams into a conference populated by historic rivals that should garner more fan interest. Those teams are also closer to home, which will cut down travel time and costs.
However, the UConn football team will now have to schedule all of its own games, and it’s unclear whether UConn’s successful basketball teams can step up as bigger revenue-generators to prop up the football program. Last year, UConn’s men’s basketball team brought in about $8.5 Million in revenue, while the football team earned $19 Million, according to the athletic department’s annual financial filings.
The football program will also have to focus on booking games with other independent teams, like Army, as well as nearby schools with large fan bases like Boston College and UMass, according to Tom Ritter.
Meantime, when it comes to the athletic department ever breaking even, Ritter and Benedict agree that while it’s something to aim for, it’s not realistic. According to a financial filing with the NCAA last year, UConn ran a $40.6 Million deficit. That number is calculated by comparing the amount spent ($81 Million) with revenues ($40.4 Million), not including money provided through institutional support ($30 Million) and student fees ($8.5 Million).
Beginning July 1, when UConn officially joins the Big East, the basketball program will begin receiving payments from a 12-year, $500 Million TV deal the conference signed in 2013 with Fox Sports, a Big East spokeswoman confirmed. UConn won’t receive any retroactive money but will get payments equal to all other conference teams moving forward. The Big East would not disclose the amount of the per-school payout.
UConn also recently signed a 15-year media deal with Learfield IMG College, which guarantees the university at least $93 Million over the course of the contract, and 100 percent of the profits in the first three years.
Benedict said complete financial self-sufficiency is exceedingly rare for college athletic programs, most of which are dependent on institutional contributions and student fees. The main goal is to narrow the deficit as much as possible, he told the Hartford Business Journal.