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Ohio State University is one of the premier athletic programs in the country, known for its powerhouse football team, competitive basketball programs, and an array of other sports that consistently perform at a high level. However, despite the success on the field and court, the university’s athletic department is facing a significant financial challenge. In the 2024 fiscal year, Ohio State’s athletic department spent over $38 million more than it earned. This troubling financial imbalance begs the question: How does a university with such a prominent athletic program end up in the red? And what does this mean for the future of college athletics, particularly for institutions that rely heavily on their athletic programs to fund other university initiatives?

In this blog post, we’ll break down Ohio State’s financial situation, explore why its athletic department is running such a large deficit, and examine the broader implications of these financial struggles for college sports.

### The Financial Numbers: A Closer Look

Ohio State’s athletic department’s total revenue for the 2024 fiscal year was reported at $230.1 million. That might sound like an astronomical amount, and it is, but when compared to the department’s expenditures, the gap becomes clear. The department spent a total of $268.2 million, which resulted in a deficit of $38.1 million.

This deficit is significant because Ohio State is one of the wealthiest athletic departments in the country. The university is in the upper echelon of college sports revenue generators, particularly due to the prominence of its football program. Yet, the $38 million shortfall reveals a growing financial pressure within the athletic department, and it highlights the unsustainable nature of some of the financial structures that currently govern college sports.

To put the situation into perspective, Ohio State’s football program alone generates hundreds of millions of dollars in revenue. This includes revenue from ticket sales, merchandise, broadcasting rights, sponsorships, and post-season play, with football being the primary driver of the department’s overall income. Yet, despite this revenue-generating power, the athletic department is still facing a financial gap that cannot be covered by football alone.

### Why the Deficit?

So, what caused Ohio State’s athletic department to run such a large deficit? There are several factors at play, each contributing in different ways.

#### 1. **Increased Operational Costs**

One of the primary reasons for the financial deficit is the significant increase in operational costs, which many athletic departments across the country are facing. For Ohio State, expenses have continued to rise, particularly in areas such as coaching salaries, scholarships, facility maintenance, and travel expenses.

Coaching salaries for high-profile sports like football and basketball have soared in recent years. For example, Ohio State’s football coach Ryan Day has a salary that exceeds $10 million annually, placing him among the highest-paid coaches in the nation. This is not unique to Ohio State — as competition for top-tier coaches increases, so too does the amount of money required to retain or hire the best talent. When you add in the salaries of assistant coaches and support staff, these costs add up quickly.

Additionally, with the arms race in college athletics — a relentless pursuit to build state-of-the-art facilities and improve athletic programs — Ohio State has made significant investments in infrastructure. While these investments may enhance the overall quality of the athletic experience, they also come with a hefty price tag. For example, the university recently undertook renovations and upgrades to its football facilities, adding millions of dollars to the department’s budget.

#### 2. **Pandemic Aftermath**

While many sectors of the economy have recovered from the financial blow of the COVID-19 pandemic, the aftermath is still being felt in the world of college athletics. Ohio State, like other schools, saw its revenue streams significantly reduced during the height of the pandemic due to empty stadiums, canceled games, and the suspension of spring sports. Even though college football and basketball resumed relatively quickly, the financial impact of those lost seasons has had a lingering effect.

For Ohio State, the impact of lost revenue during the pandemic years may not have been fully addressed until the 2024 fiscal year. Despite the return of fans to stadiums and the resumption of full athletic operations, the department has had to play catch-up, trying to recover financially from the lost opportunities during those years. The fact that Ohio State’s athletic department has yet to fully close the gap from the pandemic’s effect is a stark reminder of how fragile the financial model of college athletics can be, even for powerhouse programs.

#### 3. **Increased Competition and NIL Payments**

The landscape of college athletics has shifted dramatically in recent years with the introduction of Name, Image, and Likeness (NIL) rights, which allows college athletes to receive compensation for their personal brand. While NIL deals have created new opportunities for athletes, they have also placed additional financial pressure on schools to support these arrangements.

Athletic departments are now faced with the challenge of helping athletes manage their NIL opportunities, which includes navigating new legal and compliance hurdles and ensuring that athletes are receiving appropriate support. For high-profile programs like Ohio State, NIL could represent a substantial expense as they work to retain their star players and compete with other schools offering lucrative NIL deals.

Additionally, as the arms race for talent continues, some schools are turning to NIL-driven initiatives to enhance their recruiting efforts. For Ohio State, which is constantly in competition with other top-tier programs in the Big Ten and nationally, this new frontier in recruiting has added an additional layer of financial complexity.

### What Does This Mean for Ohio State?

Ohio State’s $38 million deficit is concerning, but it is not an isolated case. Many schools across the country are facing similar financial pressures as they navigate the costs associated with modern college athletics. However, for Ohio State, this deficit raises several important questions about the sustainability of the current financial model in college sports.

#### 1. **Balancing Athletics and Academics**

Ohio State is part of the Big Ten Conference, which is known for its large athletic budgets and competitive sports programs. But as athletic spending continues to rise, questions about the balance between athletics and academics are becoming more pressing. Will universities be able to continue funding both their athletic programs and their academic missions without sacrificing one for the other?

If Ohio State’s athletic department continues to experience financial deficits, the university may be forced to make tough decisions about where to allocate resources. This could involve scaling back on certain athletic programs, reducing the scope of facility projects, or reevaluating scholarship offerings. These decisions could have a significant impact on the broader student body, as resources are stretched thinner across departments.

#### 2. **Impact on Student-Athletes**

While financial strains can affect a university’s bottom line, they also have the potential to impact the experience of student-athletes. Increased financial pressure may lead to cuts in the number of athletic scholarships offered, or reductions in the level of support provided to athletes in terms of training, medical care, and academic assistance.

Additionally, schools may increasingly look to other ways of generating revenue, such as charging athletes for their NIL management services or seeking greater commercial partnerships. These pressures could alter the landscape of college sports, and student-athletes may find themselves navigating a more financially strained environment.

### The Bigger Picture: The Future of College Athletics

Ohio State’s $38 million deficit offers a window into the broader challenges facing college athletics. As college sports become more commercialized, the financial demands on athletic departments are increasing, and schools are feeling the pressure. The current financial model, which relies heavily on revenue from football and basketball, may no longer be sustainable for many schools, even those with the most successful programs.

While Ohio State’s athletic department is one of the wealthiest in the country, the financial strain felt by the university is a reminder that no school is immune to the growing costs of modern athletics. As college sports evolve, it’s clear that changes will need to be made in how these programs are funded and managed in order to ensure their long-term sustainability. For Ohio State and many others, navigating these challenges will require innovation, financial discipline, and a long-term strategy that balances the growing demands of athletics with the need to maintain the integrity of the academic mission.