KU reports record athletic revenue

The Kansas athletic department enjoyed an increase in total operating revenue for the second straight year, bringing in a record $97.7 million during the 2014 fiscal year, which ended June 30, according to financial documents reported to the NCAA.

KU athletics also spent more than ever before, reporting more than $90 million in expenses during 2014, an increase of nearly 13 percent over last year’s reported $79.7 million in expenses.

The operating revenue figure, KU officials say, was slightly inflated by a major capital donation for a new on-campus apartment complex that will house Kansas basketball players. The reported expense figure of $90,056,511 includes $7 million in depreciation, which inflated the year-over-year growth, according to Pat Kaufman, the chief financial officer for KU athletics.

“Four million of it is real growth — inflationary increases, salaries, utilities and travel costs, and so forth.” Kaufman said. “But $7 million of that is depreciation expense.”

Among the major areas of revenue, Kaufman said capital contributions were up in 2014 while annual contributions held steady to yearly trends. KU reported $29.5 million in contributions, otherwise known as gifts and booster donations. The 2014 number was down from the 2013 total of $32.9 million, which Kaufman said was partially inflated after a change in the fundraising calendar caused more than a year’s worth of contributions to be counted in 2013.

In 2014, yearly donations held steady, but overall contributions were boosted by the gift given to KU for the building of McCarthy Hall, the new multimillion-dollar complex that will serve as the new home for Kansas basketball players, beginning in 2015-16.

Kansas also received a record $22.3 million in revenue from the Big 12 and NCAA, according to the documents submitted to the NCAA. That figure was up from $20.7 million in 2013.

Kansas, meanwhile, saw an increase in football revenue despite lackluster results on the field. After bringing in $20.9 million in 2013, the KU football program reported revenues of 23.1 million in 2014. The increase came despite plummeting football ticket revenues. The football program brought in just $5.2 million in football ticket sales, down from $5.5 million in fiscal year 2013 and a record-high $9.5 million in 2009.

The football program will cause more financial pain in the coming years. Former Kansas coach Charlie Weis, who was fired in September after posting a 6-22 record over parts of three seasons, is still owed two years on a five-year, $12.5 million contract. Weis’ contract, which was worth $2.5 million annually, was set to run through the 2016 season. According to the terms of the contract, Kansas must pay the remaining money before the contract expires.

The football program also cost KU athletics $414,975 in severance payments for a “football staff change,” according to associate athletic director Jim Marchiony. KU officials would not disclose the personnel involved, but former KU receivers coach Rob Ianello was the only major staff member to leave the program during that time period. Ianello was re-assigned to an off-field program in early 2014 and later left the program entirely.

Among the other major areas of expense: KU reported an expense of $3.13 million for men’s basketball coach Bill Self’s salary and benefits. KU basketball assistants were paid a total of more than $1.1 million, according to the documents submitted to the NCAA.

This story was originally published February 11, 2015 at 7:55 PM with the headline "KU reports record athletic revenue."