Connect with us

Hi, what are you looking for?

PSU Football

AD Barbour: ‘Penn State Athletics as we know it is at risk’ with $70 million revenue shortfall

Sandy Barbour
Photo by Penn State Athletics: AD Sandy Barbour

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.

Written By

Cory Giger is a 15-year veteran of the Penn State beat and a journalist with 28 years of experience. He has won more than 100 state and national journalism awards during his career, plus he's a voter for the Heisman Trophy in football and Wooden Award in basketball.

Get NSN in your Inbox

Enter your email address to get notifications of new posts by email.

More from Nittany Sports Now

Opinion

1 Nicholas Singleton came to Penn State with a lot of hype. In 2021, he won the Gatorade National Player of the Year, All-American...

PSU Football

0 The new rankings are in, and to little, if any, surprise, Penn State moved up after its convincing 41-12 win over Auburn at...

PSU Football

0 Saturday’s game at Auburn is a big one for Penn State. It will be the first time Penn State or any Big Ten...

College Football

3s Nittany Sports Now will have a Big 10 Power Ranking System throughout the year. These rankings are fluid fight now as we have...

Get Nittany Sports Now in your inbox

Sign-up for email updates and get the whole story first from the Nittany Sports Now team, delivered straight to your inbox.

Thank you for subscribing.

Something went wrong.