Our budget philosophy is in support of the University Athletic Association (UAA) Strategic Purpose: Provide a championship experience with integrity on and off the field for studentathletes and the Gator Nation. As we strive to balance this budget, we focus primarily on the needs of the student-athletes in their academic endeavors, the needs of the coaches in their pursuit of athletic excellence, and the needs of the Gator Nation in their fan experience. In the 2017-2018 Operating Budget, we have committed to spending over $14 million to fund student-athlete scholarships and almost $15 million in support services for the student-athletes, as shown in the Student-Athlete Experience graph on page 2. The UAA is committed to both our current and future success. We are currently in the process of designing over $100 million of capital projects (which will be funded from private contributions and a new bond issue), including the construction of the Football Operations Building, expansion and renovation of the Alfred A. McKethan Baseball Complex, and the expansion and renovation of the Katie Seashole Pressly Softball Complex. These projects will provide better facilities and experiences for our student-athletes and the Gator Nation. We recognize our responsibility to run our operations efficiently, using sound business practices and an ethical decision making process. The UAA budget process is committed to only budgeting expenses that can be covered by revenues and contributions, as seen in the Budgeted Revenues and Expenses graph on page 3. The financial support provided by our committed fan base, the SEC, and our loyal boosters allows us to continue to provide our student-athletes and coaches the funding needed to compete on and off the field. 1
The following graph shows a breakdown of the average annual cost ($62,797) of the UF experience per scholarship Student-Athlete: Academic Support 8% (5,162) Travel 30% (18,743) Sports Medicine & Health 11% (6,966) Equipment 3% (2,076) Other services provided to student-athletes, but not included in the graph include: Consultations with Scholarships 48% (29,850) nutritionists Consultations and services from mental health professionals Consultations and services from strength & conditioning staff Gear and equipment provided by the UAA s equipment partners *Scholarship and support services numbers are calculated based on 470 scholarship student-athletes. Support services are exclusive of salaries. 2
The following graph compares budgeted revenues and expenses over the past 10 years: 130,000,000 120,000,000 110,000,000 100,000,000 90,000,000 80,000,000 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Revenue Expense 3
In April, the business office provides budget spreadsheets to all sport and department heads. The sport and department heads review and submit all budget account information and line items they are responsible for. Any increase to budget expense accounts must have formal justification to support the requests. The sport and department heads send the completed budget sheets with all supporting documentation back to the business office by the end of April. As shown in the Net Operating Revenues graph on page 5, the net operating revenues from football and men s basketball provide significant assistance in support of all other sports. The business office compiles the information and creates a draft budget. The draft is submitted for review to the sport or department supervising Associate Athletic Director. After this process, the Director of Athletics and the Associate Athletic Directors meet to prioritize all requests, make cuts, and balance the budget. Once the budget is balanced, the Budget Sub-Committee reviews the budget. At the completion of this process, the Budget Sub-Committee recommends the balanced budget to the Finance Committee. The Finance Committee reviews and ratifies the budget and then sends it to the UAA Board for final approval. 4
The following graph compares net operating revenues by sport: 65,000,000 60,000,000 55,000,000 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0-5,000,000-10,000,000-15,000,000-20,000,000 Football Men's Basketball Other Sports 5
Keys to the future financial stability for the UAA are as follows and noted in the Sources of Revenue graph on page 7: The financial commitment that our fans have made to our Football and Men s Basketball programs continue to generate significant revenue for our organization. Success in these sports place our program in the elite ranks of college athletics. We need to continue to capitalize on this success. The University of Florida s membership in the Southeastern Conference (SEC) is important to our financial stability. The bowl agreements the league has entered into under the College Football Playoff format has added significantly to our Conference bowl payout. The launch and success of the SEC Network has not only increased our revenue, but it has also increased the visibility of our league. The NCAA s culture is evolving to allow institutions to provide more assistance to student-athletes and their safety. This trend has increased our budget and has provided us the opportunity to further support our Strategic Purpose. The UAA must continue to seek donors for major gifts and endowments. The major gifts allow us to have some of the best facilities in the country and the scholarship endowment (currently at $53 million) protects the future of our student-athletes and athletic programs. The UAA and Gator Boosters are currently focusing on the Game Changer Initiative to fund our championship experience for the student-athletes and fans. The initiative offers multiple options for donors to participate, with gifts of any size. The achievements of the UAA can be attributed to many factors, but financial stability and growth is key to the continued success of our academic and athletic programs. Our accomplishments wouldn t be possible without our fan base, the Gator Booster organization, and the SEC. History has proven the UAA s ability to consistently grow and shows that It s Great to be a Florida Gator! 6
$40,000,000 The following chart shows the major sources of the components that make up the UAA s budgeted revenue: $36,760,268 $35,000,000 $33,150,000 $30,000,000 $25,000,000 $25,598,594 $20,000,000 $15,000,000 $16,290,686 $15,775,439 $10,000,000 $5,000,000 $2,584,000 $- Football Tickets SEC Revenue (Including SEC Network) Booster Contributions Royalties & Sponsorships Student Fees Other Revenue 7
The next few pages give an overview of our 2017-2018 budget and major changes to the budget. Department 2016-2017 Original Budget 2017-2018 Budget Request Variance Operating Revenue Sports 96,266,619 99,231,184 2,964,565 Concessions 1,323,800 1,645,850 322,050 Auxiliaries 1,425,000 1,435,000 10,000 Royalties & Sponsorships 17,671,475 19,291,476 1,620,001 Student Fees 2,409,000 2,584,000 175,000 Other Revenue 3,539,964 4,041,477 501,513 Operating Revenues Subtotal 122,635,858 128,228,987 5,593,129 Operating Expenses Sports 23,193,202 25,053,153 1,859,951 Scholarships 14,005,204 14,029,629 24,425 Support Services 6,483,801 7,472,450 988,649 Administrative Services 16,647,340 17,830,888 1,183,548 Auxiliaries 811,777 868,750 56,973 Capital Projects 3,000,000 750,000 (2,250,000) Salaries & Fringe Benefits 45,155,566 48,003,976 2,848,410 OPS & Temporary Personnel 2,023,950 2,347,279 323,329 University of Florida Support 832,847 716,347 (116,500) Operating Expenses Subtotal 112,153,687 117,072,472 4,918,785 Nonoperating Revenue Investment Income 502,500 530,000 27,500 Capital Contributions 0 1,400,000 1,400,000 Nonoperating Revenue Subtotal 502,500 1,930,000 1,427,500 Nonoperating Expenses Debt Service 10,513,000 9,465,800 (1,047,200) Contributions to University of Florida1 0 3,400,000 3,400,000 Nonoperating Expenses Subtotal 10,513,000 12,865,800 2,352,800 Excess of Revenues Over Expenditures 471,671 220,715 (250,956) 1 Projected actual for contribution to UF is for Exachtech Arena 8
The following chart shows the major components that make up the UAA s budgeted revenue: 9
Revenue is budgeted to increase by around $7 million over the previous year's budget. Below are a few of the main causes of the budgeted revenue increases. Sports Revenue $ 2,964,565 Increase in ticket prices for the 2017-2018 football season, 8 additional men s basketball home games compared to 2016-2017, and contractual SEC television increases Concessions Revenue $ 322,050 Additional basketball games in 2017-2018 and a stronger home football schedule Auxiliaries $ 10,000 Increased outside event rentals of our facilities Royalties & Sponsorships $ 1,620,001 Increase in revenue share with IMG and additional licensing agreements Student Fees $ 175,000 Increase in the amount of student credit hours Other Revenue $ 501,513 Ticketmaster fee increases, sales tax retained increases, and GB salary reimbursement increases Investment Income $ 27,500 Conservative estimate of market conditions Capital Contributions $ 1,400,000 Budget to transfer capital contributions for Exactech Arena to the University *LSU game revenue is not included in the 17-18 budget. Since the game was moved to an away game in 16-17, it will be used to offset the 16-17 budget. 10
The following chart shows the major components that make up the UAA s budgeted expenses: *Numbers are inclusive of salaries. 11
Expenses are budgeted to increase by around $7 million over the previous year's budget. Below are a few of the main causes of the budgeted expense increases: Sports $ 1,859,951 Increases in the cost of hotels, meals, recruiting software, additional coaching and support staffs, operation cost of additional basketball games, and increased amount of charter flights Scholarships $ 24,425 Slight increase for additional summer school classes Support Services $ 988,649 Increased student-athlete medical expenses to more accurately reflect actual costs, consolidation of student-athlete mental health expenses, additional video software and hardware, and CRM software Administrative Services $ 1,183,548 Increased maintenance costs for Hawkins Center, O Dome, and fields, more budgeted flight hours for UAA aircrafts, utility price increases, and increases in property liability and workers comp insurances Auxiliaries $ 56,973 New maintenance equipment for golf course up-keep Capital Projects $ ($2,250,000) Placeholder for the O Connell Center Project in 2016-2017 budget 12
Salaries & Fringe Benefits $ 2,848,410 Salary increases include a pool for contractual commitments for coaching salary increases and employee raises, and a raise in the pension contribution limit OPS & Temporary Personnel $ 323,329 Additional staff to support MFB recruiting, MBB head coach, and SEC TV productions University of Florida Support $ ($116,500) Ownership transfer of AIM program from UF to the UAA Debt Service $ ($1,047,200) Correcting debt service to reflect an amount closer to actual amount while continuing to budget for increased debt payments in 2018-2019 Contributions to University of Florida $ 3,400,000 Projected actual for contribution to UF for Exactech Arena 13