Penn State has started a new fundraising initiative called PSUOneTeam, and you can find details about it below.
Inside those details is this troubling, yet not surprising, financial revelation about a $70 million revenue shortfall:
We all understand that these are very challenging times. Collegiate athletics competitions stopped in dramatic fashion last spring. Our student-athletes, coaches and community have been devastated by this difficult but necessary step to protect our health and safety. In the face of obvious challenges, the support from our Nittany Lion Club members and season ticket holders helped us continue to provide these deserving student-athletes with the resources to continue their Penn State education. These challenges continue even after the planned return of our competitions and we face revenue shortfalls of over $70 Million. Through prudent financial management we have been able to build a reserve of approximately $27 million and we have enacted over $25 million in cost cutting measures to help counteract this deficit. Despite these measures we are still short of the resources needed to adequately support our student-athletes and risk the long-term health and sustainability of our programs.
While all of college athletics has been hit hard, a $70 million shortfall is a massive amount of money that has significant implications.
How big could the implications be to Penn State?
Athletic director Sandy Barbour said, “Penn State Athletics as we know it is at risk.”
Here is a letter from Barbour to Penn State fans:
As we are all well aware, the challenges facing our country have disrupted the lives of many. Here at Penn State, we have been forced to make difficult decisions in order to adapt to these uncertain times. During the past seven months, we have experienced incredible tests to our resolve and resilience with the cancellation of winter championships and spring sports, followed by the postponement of fall sports, and now the return of football competition without the typical revenue streams. It is hard to fathom the impact on our student-athletes as our department strives to operate under these challenging constraints.
The difficult reality is our loss of revenue is forecasted to total as much as $70 million or more. We pride ourselves on being able to realize our mission of helping student-athletes create a lifetime of impact without state funds or significant financial support from the University. Drastic cost-cutting measures including budget reductions, refinancing debt, furloughs and salary reductions have already been taken. However, without the financial support from our community, Penn State Athletics as we know it is at risk.
Check out the information below to see more about the PSUOneTeam initiative and to learn how you can help.
#PSUOneTeam is our Penn State FAMILY.
— Penn State Athletics (@GoPSUsports) October 28, 2020