Ohio State University is a juggernaut in the world of college athletics. Its football team is one of the most successful and storied programs in NCAA history, and its basketball, volleyball, and other sports teams consistently contend for national championships. However, despite this high-profile success, recent financial reports have painted a troubling picture for the university’s athletic department. In its 2024/2025 fiscal year, Ohio State athletics reported a total operating expense of $292.3 million, accompanied by a significant deficit of $37.7 million. These figures have raised serious questions about the sustainability of college sports programs, particularly in a climate where revenue generation is increasingly difficult to balance with escalating operational costs.
The report has reverberated throughout the sports and business communities, especially given the immense resources and institutional prestige of Ohio State’s athletics. The financial health of such a prominent program is being questioned, and the implications for the broader landscape of college athletics could be significant. So, what exactly led to this deficit, what does it mean for Ohio State’s athletic future, and how does it fit into the evolving financial structure of college sports?
The State of Ohio State Athletics: An Overview
Ohio State is home to one of the nation’s most recognizable athletic departments, serving as a central hub for elite-level competition. The university fields 36 varsity teams across a variety of sports, including football, basketball, and wrestling, as well as several Olympic sports. Ohio State’s football program alone generates hundreds of millions of dollars each year, with its home games regularly filling Ohio Stadium, one of the largest stadiums in the country. These sports powerhouses are not only significant on the field but also serve as key drivers for the local economy, creating jobs and generating revenue from ticket sales, merchandise, sponsorships, and media rights deals.
However, while Ohio State’s revenue-generating abilities are impressive, maintaining a high-caliber athletic department comes at an immense cost. The university’s operating expenses for the 2024/2025 year reached $292.3 million. This amount includes everything from coach salaries to travel expenses, facilities maintenance, scholarships, and administrative overhead. Among the most significant expenses for the athletic department are salaries for coaches and staff, with Ohio State’s football coach Ryan Day earning one of the highest salaries in the nation. The university also invests heavily in its infrastructure, including state-of-the-art training facilities and stadium upgrades.
Despite the overwhelming revenue generated by football and basketball, Ohio State’s athletic department has faced a growing gap between revenue and expenses. In the 2024/2025 year, the department reported a deficit of $37.7 million. This deficit highlights a broader issue that many athletic programs across the country are grappling with: rising costs, particularly related to facilities and player compensation, outpacing revenue growth.
Factors Behind the Deficit: Rising Costs and Declining Revenue Streams
To understand the size of Ohio State’s deficit, it’s essential to examine the factors that have contributed to its current financial state. Some of the key drivers of the deficit include increased costs related to player compensation, competition for top-tier coaching talent, facility upgrades, and the changing landscape of media rights deals.
1. Player Compensation and NIL
One of the biggest shifts in college athletics over the past few years has been the introduction of Name, Image, and Likeness (NIL) rights. The NCAA’s decision to allow college athletes to profit from their personal brand has transformed the financial landscape of college sports, particularly for high-profile athletes in football and basketball. At Ohio State, players like quarterback C.J. Stroud and wide receiver Marvin Harrison Jr. have seen significant NIL deals that supplement their athletic scholarships.
While NIL deals are beneficial to athletes, they also add to the financial strain on athletic programs. Schools must now invest resources to ensure that their athletes are competing at the highest level, which includes navigating the complexities of NIL deals, offering the right resources to help athletes capitalize on their brand, and, in some cases, providing incentives to recruit top-tier talent. Ohio State has made significant strides in supporting NIL opportunities for its athletes, but this comes at a cost. The financial infrastructure required to compete in the modern NIL landscape is both expansive and expensive, and it’s only expected to grow.
2. Expensive Coaching Contracts
Another significant financial burden for Ohio State athletics is the increasing cost of top-tier coaching talent. Ryan Day, head coach of Ohio State football, is one of the highest-paid coaches in the country, earning a salary that has consistently surpassed $7 million annually. Similar high salaries for head coaches in other sports, as well as assistant coaches, staff, and support personnel, drive up the operational costs of the athletic department.
Coaching salaries have reached astronomical levels in recent years, particularly in revenue-generating sports like football and basketball. The intense competition for coaches with proven track records or the potential to develop championship-caliber teams has created an inflationary spiral. For a program like Ohio State’s, which consistently competes for Big Ten and national championships, keeping top coaches is critical. However, these high salaries contribute to the overall financial burden.
3. Facility Upgrades and Maintenance
The modern era of college sports places significant pressure on athletic programs to provide state-of-the-art facilities for their athletes and coaches. Ohio State is no exception. The university has invested heavily in upgrading its football and basketball facilities, including improvements to the Woody Hayes Athletic Center, the Ohio Stadium (the “Horseshoe”), and the Schottenstein Center. These investments are necessary for recruiting and retaining top talent, but they come with significant operating costs.
Athletic departments are also responsible for maintaining and operating these facilities, which includes costs for staff, utilities, maintenance, and security. The continual demand for new, better, and more innovative facilities in the competitive world of college sports is a key factor in the rising operational expenses across the industry.
4. The Impact of COVID-19 and Declining Revenues
While Ohio State’s finances were already strained before the COVID-19 pandemic, the global health crisis exacerbated the issue. The 2020 season, in particular, was a financial disaster for many athletic departments across the country, as limited attendance at games and canceled seasons led to revenue declines. Ohio State was no exception, and while it has rebounded in terms of revenue generation, the lingering effects of the pandemic continue to affect athletic budgets.
TV rights deals, once a steady stream of revenue, have been subject to disruption. The NCAA’s transition to a new TV contract structure, coupled with the increasing number of games on streaming platforms, has led to uncertainty regarding future revenue from broadcasting rights. The Big Ten’s upcoming media rights deal, which is expected to be the largest in college sports history, could help alleviate some of these concerns for Ohio State, but the timeline for those benefits to be fully realized is unclear.
5. The Changing College Sports Landscape
The broader changes in college athletics—especially the increasing number of schools shifting conferences—have created further financial uncertainty. Ohio State’s move to the Big Ten, along with the recent expansion of the College Football Playoff and shifting dynamics in NCAA governance, means the athletic department must remain adaptable to maintain its financial strength. As schools jockey for positions in lucrative conferences and media deals, Ohio State must continue to invest in all aspects of its athletic program to remain competitive.
The Future of Ohio State Athletics: Can the Deficit Be Addressed?
While a $37.7 million deficit is a serious issue for Ohio State’s athletic department, it is far from insurmountable. The university has multiple avenues available to address its financial shortfall, including leveraging its massive fan base, increasing revenue from streaming deals, and further investing in NIL.
1. Increased Revenue from TV Rights Deals
The Big Ten’s new media rights agreement, set to take effect soon, is expected to bring in significant revenue for all member schools, including Ohio State. With the massive popularity of Big Ten football, this deal is expected to provide millions in additional revenue, which could help mitigate future deficits. Additionally, streaming platforms like Amazon Prime, Apple TV, and others are offering college football and basketball opportunities that could further increase Ohio State’s revenue streams.
2. Enhanced NIL Revenue and Corporate Sponsorships
Ohio State’s commitment to NIL has already paid off, with athletes securing lucrative endorsement deals. Moving forward, the athletic department could further capitalize on NIL’s growth by forming more strategic partnerships with brands and enhancing its own NIL infrastructure. Corporate sponsorships, merchandise sales, and alumni donations can also help boost revenue, alleviating some of the pressure caused by increased expenses.
3. Streamlining Operational Costs
Ohio State could also take steps to streamline some of its operational costs. While cutting back on coaching salaries or facility upgrades would be unlikely due to the competitive nature of college athletics, the athletic department could look into other cost-saving measures, such as optimizing travel schedules, reducing administrative overhead, or restructuring certain program expenses.
Conclusion: A Financial Balancing Act
The report detailing Ohio State’s 2024/2025 operating expenses and a $37.7 million deficit highlights the growing financial challenges that college athletics programs face. Despite the university’s remarkable success and high revenue potential, costs are escalating at a rapid pace. Ohio State, like many other athletic programs, will need to balance its desire to remain competitive with its ability to sustain a financially viable model for the future.
In the years to come, the athletic department will need to carefully navigate these financial challenges, leaning on new revenue sources, strategic spending, and continued investment in its athletes and infrastructure. With the right steps, Ohio State can emerge from this financial hurdle and continue to compete at the highest levels of college sports. However, the deficit is a cautionary tale for other programs, especially as
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