Kentucky does not expect to cut sports nor reduce salaries because of COVID pandemic
The coronavirus pandemic led to a cap on attendance at University of Kentucky football and men’s basketball games. After consulting with medical officials and the Southeastern Conference, UK limited attendance to 20 percent of capacity in football and 15 percent in Rupp Arena.
“Devastating to a program,” Director of Athletics Mitch Barnhart told the Board of Trustees’ Athletics Committee on Monday. Revenue from ticket sales has decreased by $12 million, UK said.
But the effects of COVID-19 on the budget were not all bad.
With fewer games requiring a guarantee paid to an opponent, UK saved about $3 million in such costs, said Melissa Gleason, executive associate AD and chief financial officer. And with COVID-19 causing the NCAA to prohibit off-campus recruiting and prospects making official visits, UK saved another $1.5 million.
Barnhart noted additional savings in teams taking buses rather than using air travel to get to road games. For example, the men’s basketball team bused to Atlanta to play Georgia Tech on Dec. 6.
UK expects the coronavirus pandemic to cause a decline of about $35 million in its athletics revenues in 2020-21, Barnhart said Monday.
That decline can be offset by revenue sharing from the Southeastern Conference, an effort to increase philanthropic support, a transfer of surplus funds from previous years and a reduction in expenses, UK said.
In adjusting its athletic budget, UK has not considered layoffs or reductions in salaries, Barnhart told the school’s Athletics Committee. Although he did say staffers took a 5 percent cut in their 403B retirement plan.
“Our goal is to keep our family whole,” Barnhart said. He added that UK Athletics has 250 employees, 500 athletes and 22 sports.
“This not not just about an athletic endeavor,” he said. “It’s about a lot of different things: Providing growth, education. It’s about providing opportunities for families to continue to step forward one day at a time. . . . That will be our enduring principle going forward.”
UK had set a budget of $157 million for the 2020-21 school year. The adjusted budget is set at $148.5 million, Barnhart said.
When asked if permitting alcohol sales at UK games might be a way to offset lost revenue, Barnhart said that was not part of the department’s decisions about handling COVID.
“There’s not a gap (in attendance) because of alcohol sales,” he said. “There’s a gap because of COVID.
Paying buyouts to dismissed football assistant coaches was also “not part of this conversation,” Barnhart said.
A lucrative new television deal with ESPN cannot ride to the rescue, he said. The deal does not become operative until 2024-25. Barnhart described that financial bonanza as “future dollars.”
Barnhart also told the committee that an announcement about a bowl game for UK’s football team will be made Sunday.
He also noted that all of UK’s athletic teams are expected to compete in the 2020-21 school year.
‘Virtual’ seats
UK announced that it is offering fans a chance to buy “virtual” seats for home basketball games this season. The deal includes a chance to win a pair of “real” tickets for a later game. Prices range from $30 to $100.
All proceeds from the season-long virtual sellout campaign will go to support UK athletes and help sustain the athletic department due to budget shortfalls during the COVID-19 pandemic. Revenue will go directly to athletic scholarships, including tuition, room and board, educational support and more, UK said.
A $30 purchase will give the buyer commemorative tickets, plus a chance to win two tickets to a 2020-21 men’s basketball game.
A $50 purchase will give the buyer a chance to win a UK gear pack. A $100 purchase includes 16 “virtual” tickets, a chance to win a UK gear pack, a chance to win a pair of tickets to a 2020-21 men’s basketball game, two tickets to a 2021 non-conference football game (based on availability) and a chance to win a VIP experience at a 2021 football game.
More information is available at ukathletics.com/virtualsellout or by calling 859-257-1818 (option 1).
This story was originally published December 14, 2020 at 5:54 PM.
