Struggling with sports deficits, UL System takes a fresh look at athletic costs

The University of Louisiana System has hired Deloitte to conduct a $150,000 study of athletic finances across its eight Division I universities, with a mandate to recommend ways to improve long-term fiscal stability, Louisiana Illuminator reports. 

UL System President Rick Gallot says no option is off the table, including retaining the schools’ current NCAA status, moving to a lower Division I subdivision or dropping to Division II or III. 

The review could also recommend other changes, such as capping coaches’ salaries or switching conferences. Moving to lower divisions could reduce travel and scholarship costs but also reduce broadcast revenue. The study comes as UL System schools have struggled financially, at times carrying sports deficits totaling tens of millions of dollars, with Nicholls currently the only state university sports program that breaks even. 

The broader problem is national. A recent U.S. Government Accountability Office report found 94% of the roughly 365 Division I athletic programs spend more than they generate, with students at non-Power Four conference schools contributing an average of $1,700 to $2,700 annually to athletics. That reliance could become more challenging as Louisiana’s declining population and birth rate contribute to an expected 7.5% to 15% decline in college enrollment by 2029. 

The UL System’s review comes alongside a separate state-ordered Board of Regents report on athletic financing due to lawmakers by Feb. 15. LSU, which is part of the separate LSU System, is not included in the Deloitte study despite facing its own recent sports deficit.

Louisiana Illuminator has the full story.