The UT Athletic Dept. released financial statements today that revealed a nearly $4 million loss on revenues of $106,485,376. To cover the loss, UT dipped into reserve funds, which have only $2 million remaining.
The "financial model currently in place for athletics is not sustainable long-term," according to a statement released by UT.
Officials also said that "the athletics department has experienced a significant expense related to payments to former coaches in the sports of football, baseball and men's basketball as well as former directors of athletics."
Chancellor Jimmy Cheek and Athletic Director David Hart also cited "historical commitments" that include approx. $6 million in scholarships and millions more for other commitments such as facilities usage fees and licensing revenues. According to the statement, these "historical commitments were entered into in good faith by both the athletics department and University leadership but are currently being evaluated by the Chancellor and Athletics Director in order to determine if adjustments are necessary."
Other factors mentioned include $200 million in debt related to "construction of and improvements to multiple athletics facilities," and ticket taxes, which are presumably collected from buyers and passed on to state and local government.
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