Auburn athletics operates at first deficit in 7 years, a $9.7 million loss in 2021
AUBURN — For the first time in seven years, Auburn University athletics was in the red for the 2021 fiscal year, operating at a $9.7 million deficit despite a $23 million league-wide supplemental bailout from the SEC.
The athletic department's total revenue was $123,546,999, a $30 million drop from the previous year, according to Auburn's annual fiscal report to the NCAA obtained by the Montgomery Advertiser via public records request.
The deficit comes one year after Auburn operated at a record $17.9 million profit.
Auburn's 2021 fiscal year started Oct. 1, 2020, and ended Sept. 30, 2021. The athletic department's total expenses were $133,289,885, a 1.86% drop from the previous year and the lowest spending since 2016-17.
The $23 million bailout from the SEC accounted for 18.6% of Auburn's total operating revenue. Schools needed the bailout to mitigate financial ramifications of the COVID-19 pandemic.
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Limited capacity affected ticket sales
The overall deficit stemmed largely from the effects of COVID-19 on ticket revenue. Auburn's ticket revenue for the 2020-21 fiscal year was $3.7 million, a colossal drop from $33.8 million the year before.
The university limited attendance at Jordan-Hare Stadium and Auburn Arena to 20% during the 2020 football season and 2020-21 basketball season. In the previous fiscal year with full attendance, football ticket revenue was $31 million; for the 2021 fiscal year, it was $3.2 million. Men's basketball ticket revenue dropped from $2.1 million to $180,757.
Auburn's revenue from contributions also took a hit, likely for similar reasons. Contributions include "amounts paid in excess of (a) ticket's face value to obtain preferential seating or priority," so the limited attendance seemed to be a direct impact: Auburn made $15.96 million (12.9% of total revenue) from contributions, down from $33.3 million the previous year.
Football contributions dropped from $27.6 million to $8.9 million.
Football coaching change fallout
Auburn's severance payments also increased substantially, resulting from contract buyouts paid to former football coach Gus Malzahn and his staff. Malzahn was fired in December 2020 after an eight-year tenue.
Auburn reported $16.66 million in severance spending, including $16.09 million related to the football team. That accounts for 12.5% of the total operating expenses. The previous fiscal year, the athletics department spent just $734,877 in severance payments.
Given that Auburn's overall spending decreased, it would have been a much more substantial drop without the buyouts.
Pandemic causes spending cuts on recruiting
Auburn significantly cut spending on recruiting year over year, decreasing from $1.7 million to $284,012. Those expenses include "transportation, lodging and meals for prospective student-athletes and institutional personnel on official and unofficial visits," according to the report.
The spending drops were standard after the NCAA suspended in-person recruiting, limiting schools' travel.
The football team spent $95,717 (33.7% of total recruiting expenses), a drop from $638,643 the previous year. The men's basketball team spent $46,489 (16.4% of recruiting expenses), down from $265,501. And women's basketball cut to $41,830 from $93,464.
The next-highest spending programs in recruiting were soccer ($23,013) and men's golf ($11,359). The gymnastics team cut its recruiting spending from $59,056 to $3,199.
Track and field programs combined to spend $155,145 on recruiting. That total was down to $18,583 for the 2021 fiscal year.
This article originally appeared on Montgomery Advertiser: Auburn athletics operates at financial loss for first time in 7 years