Iowa State University has “indefinitely postponed” a $25 million renovation planned for Hilton Coliseum and construction of a $20 million wrestling practice facility because of an athletic department budget shortfall that is one of the “top challenges facing the university.”
Iowa State is placing blame on conference expansion, College Football Playoff revenue sharing and recent NCAA litigation for an expected $147 million “funding gap” through fiscal year 2031.
“In the past two years there have been several transformational changes in college athletics that will result in $30M in recurring annual financial repercussions to the Athletics Department beginning this year,” Iowa State said in a budget report they submitted to the Iowa Board of Regents.
Iowa State expects to fall $24.5 million short of necessary funding in each of the next six years.
How does ISU plan to correct its budget shortfall?
Iowa State noted that it has paused a pair of high-profile athletics projects in response to the budget shortfall.
Iowa State has halted plans for a $20 million wrestling practice facility that were approved by the Iowa Board of Regents in 2023. The Malcolm Performance Center was going to be an expansion of the Lied Recreation Center, which included a 45,000-sqaure-foot renovation and a 16,000-square-foot addition. The facility would have also been used by the Iowa State track and field programs. The project would have included new weight rooms, locker rooms, lounges, sports medicine areas, meeting areas and coaches locker rooms, and a separate entrance for Iowa State-affiliated athletes and coaches.
Iowa State first proposed a $25 Hilton Coliseum renovation in 2019. The project, which has been “indefinitely postponed,” was meant to expand the arena’s concourses, add additional concession areas, replace ageing mechanical systems and improve fan accessibility.
Ticket sales will now include tax, sports asked to save costs
The university said it will also start charging sales tax on all ticket sales (the school had previously absorbed those costs), to help make up ground. They’ll also increase the annual required donation for Cyclone Club members by 20 %, which they believe will generate $3 million per year.
The school is implementing “cost reduction mandates” for all sports to “slow the growth of overall expenses.” Iowa State said they’ve already noticed savings by “reducing travel costs in Olympic sports,” which they includes “location of trips and modes of transportation.”
“ISU is engaging with the Big 12 Conference, ISU Foundation, sponsors, donors and other partners to explore additional opportunities to create growth in revenue sufficient to overcome future anticipated revenue shortfalls and to otherwise support the continued success and viability of the ISU Athletics Program,” Iowa State said in the board documents. “ISU views this effort as one of the top priorities and challenges facing the university.”
What does Iowa State believe is to blame for the budget issues?
Iowa State listed several reasons as to why they believe they’ll face budget issues in the next six years.
Iowa State mentioned the Big 12’s expansion from 10 teams to 16 is a reason for less revenue, but did not elaborate how. The university also said revenue will shrink because of the NCAA’s recent settlement with the House that allows schools to pay its student athletes.
“The decrease in Conference/NCAA revenue is largely the result of the recent settlement of litigation and costs being absorbed by the Big 12 Conference or NCAA, thereby reducing the net revenues available to distribution to member schools,” Iowa State said in its report to the Regents.
Iowa State University also notes that the school anticipates it will receive less money from the College Football Playoff because of an “adjust(ed) distribution model for revenue generated by the (12-team) College Football Playoff, negatively impacting the Big 12 Conference.”
Iowa State continues to move forward with CyTown construction
Iowa State University expects its innovative, $200 million, 94-acre CyTown entertainment district to open in 2027. The project will include a mini football field, birdhouse-themed playground, a patio bar and grill, an outdoor stage and a Marriott hotel.
A portion of the revenue from CyTown is expected to help fund renovations of the buildings within the Iowa State Center, which includes Stephens Auditorium, Hilton and the Scheman Building.
The Iowa Board of Regents will review Iowa State’s athletic budget and the school’s overall budget at its next meeting on Wednesday, July 30.