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After enjoying a surplus in 2022, FSU athletics operates at slight deficit in 2023
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- After enjoying a surplus in 2022, FSU athletics operates at slight deficit in 2023
The cost of winning increased at Florida State in 2023.
After enjoying a $10.3 million surplus in 2022, the Seminoles' athletics department operated at a $2.57 million deficit in 2023, according to reports obtained by USA TODAY Sports in partnership with the Knight-Newhouse Data project at Syracuse University.
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The university's fiscal year runs from July 1, 2022 to June 30, 2023.
FSU Vice President Athletics Director Michael Alford told the Tallahassee Democrat Wednesday that FSU athletics is "financially stable and healthy. While the report represents a 365-day timeframe, it provides only a limited snapshot of revenues and expenses over that period.
"As we know, our collections of revenue and our expenditures on projects transcend that timeframe. Any analysis of this information should consider those limitations and understand that it is unable to fully depict our Athletic Department's fiscal reality.
"Funds used to cover the increase in expenditures for that timeframe were not only from revenues cited in the report, but also from funds raised in past years."
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FSU operating expenses in 2023 for 20 sports (nine men, 11 women) were around $172.1 million ($172,130,700) compared to total operating revenues just under $170 million ($169,558,790).
Spending increased by $21.5 million over 2022, with the highest jump in what the NCAA's reporting document calls "other operating expenses" – without further explanation and spending that does not fall into one of 22 other defined categories.
Alford told the Democrat that some of those expenses were related to construction and renovation projects.
In that category, for example, football's expenses ballooned from $16.7 million in 2022 to $32.1 million in 2023.
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In men's basketball, other operating expenses increased from $1.4 million in 2022 to $3.8 million in 2023. As comparison, women's basketball decreased by $31,696 in that category.
In other expenses, coaches' salaries in 2023 totaled $24.4 million while recruiting increased from $1.6 million in 2022 to $2.55 million in 2023.
In revenues, FSU saw a surge in tickets sales, increasing from $18.8 million in 2022 to $24.7 million in 2023.
FSU also earned $32.2 million in the general category of media rights compared to $30.4 million in 2022.
FSU's future in the ACC uncertain moving forward
The Seminoles' finances – and future – is tied to the ACC's grant of rights.
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Last month, the university's board of trustees voted unanimously to sue the ACC to challenge the legality of the league's grant of rights and its $130 million withdrawal fee. The league in turned sued FSU.
No school has ever challenged a grant of rights in court.
FSU football's exclusion from last season's College Football Playoff also further increased conversations among school officials about how to change or improve their conference situation.
Despite last year's slight financial deficit, FSU's entire on-field coaching staff has received raises and contract extensions following the Seminoles' 13-1 season in 2023.
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Last Friday, coach Mike Norvell announced he was staying at FSU after being mentioned as a candidate to replace retiring Nick Saban at Alabama.
Norvell also agreed to a new eight-year contract that will pay him $10 million annually.
FSU's peers in the SEC in the Big 10 operate financially at a significantly higher level than the Seminoles.
LSU's total operating revenues in the SEC, for example, were $200,476,979 for fiscal 2023 compared to operating expenses of $199,110,998.
Penn State's numbers in the Big 10 were $202,200,023 operating revenue; $202,073,671 operating expenses.
Neither school reports revenue from student fees or institutional support.
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FSU reports receiving $8,550,394 in student fee money 2023, plus $179,451 in direct institutional support.
This article originally appeared on Tallahassee Democrat: FSU athletics program operates at a $2.57 million deficit in 2023
