Iowa State is the first FBS athletic department to address the financial impact of the coronavirus pandemic. They certainly, though, won’t be the last.
Because of the crisis, there are growing fears that the 2020 college football season could be canceled. While all options are being considered, a complete cancellation of the season would have a steep impact on the financial bottom line of most FBS schools, especially those in the Group of Five.
Because of previous revenue streams in the tens of millions, a Power Five program would be better equipped to handle such a development. One Power Five school, though, is getting ahead of the cash-cow spigot that is college football potentially being shut off. In a letter posted Wednesday night, Iowa State athletic director Scott Pollard unveiled “several initiatives that we are implementing in the athletics department to best prepare for, both the known and the unknown, financial challenges that we will be facing soon.”
For our audience, the most noteworthy initiative involves coaches’ pay. That one-year reduction will save the athletic department — Pollard made sure to note the department “is funded almost entirely by external sources” — in excess of $3 million. Additionally, bonuses for coaches have been suspended. That move will save in the neighborhood of $1 million
From the release:
- A one-year, temporary pay reduction for athletics department coaches and certain staff. This comprehensive plan will reduce total payroll by more than $3M.
- A one-year, temporary suspension of all bonuses/incentives for all coaches. This decision will save the department $1M.
- Delaying (from January 2021 to January 2022) a previously announced increase in Cyclone Club annual giving levels. The delay will save donors approximately $2.5M for required seating donations.
- A freeze on season / individual game ticket prices for all sports.
- An extension to the deadline for this year’s Cyclone Club donations and football season ticket renewals to May 29, 2020.
- Providing multiple payment options for season tickets and donations. Those required payments can be made monthly, quarterly or semi-annually.
In December of last year, and amidst rumors of other job opportunities, Iowa State announced a contract extension for head football coach Matt Campbell. His $3.6 million in salary was sixth among Big 12 head coaches in 2019.
At this point, it’s unclear how much Campbell’s pay will be reduced.