Hawkeyes, Cyclones expect revenue to be most lucrative ever

Fiscal 2023 budget documents the Board of Regents will discuss Wednesday show UI Athletics expects to generate nearly $129 million in revenue – up nearly $12 million, or 10%, over the budget year that just ended in June. That’s also more than double the $60.7 million in revenue generated in fiscal 2021 – when the program saw no football, basketball, wrestling or volleyball ticket revenue due to pandemic restrictions.

ISU expects to see $106.2 million in revenue in the fiscal year that began July 1, marking the athletic program’s first time topping $100 million in revenue.

The University of Northern Iowa Athletics is looking at a modest year-over-year increase of $179,565 to $14.7 million – although that’s not a record, as the Panthers reported $15.6 million in revenue in the 2021 budget year.

Because UNI Athletics is not financially independent like at the UI and ISU, the university that year contributed nearly $8 million to its athletics operation plus another $1.3 million in athletic scholarship support. This year, UNI is expected to contribute $4.6 million to its athletics operations and scholarships.

Direct sports revenues at the university are expected to decline $39,123 to $2.2 million, with only men’s sports other than football and basketball bringing in more. Among other income, budgeted alumni/foundation support is anticipated to be $519,000 lower at $1.7 million.

Offsetting that, though, are new suite offerings in the UNI-Dome and anticipated new sponsorship categories. Those are expected to increase athletic marketing revenues $670,500 to $2.1 million. Additional revenue from an anticipated partnership related to athletic training will result in a budget increase of more than $200,000 in general revenues, as well.

Team and administrative operating budgets were held flat, although salary increases were given consistent with other non-faculty positions across campus. The Athletic Department reported that it did expect to $4.74 million this year for UNI services like tuition and room/board from scholarship payments, business services, public safety, marketing and utilities.

The athletics budgets at UI and ISU – along with the campus’ housing and dining operations – are separate from their general education budgets, which are primarily supported by tuition and state appropriations.

After state lawmakers in the 2021 budget year cut regent appropriations by $7 million and offered no funding increase in the budget year that just ended, lawmakers approved a $5.5 million general education funding increase for fiscal 2023 – far short of the regents’ requested $15 million bump.

Thus, regents on Wednesday will consider approving a 4.25% tuition increase for all resident and non-resident undergraduate and graduate students at ISU and the University of Northern Iowa. The UI will impose the 4.25% hike for all resident students, but keep increases for nonresidents to 1.2% at the undergraduate level and 1.5% at the graduate level.

The relationship between those two main funding sources has created a seesaw effect. State appropriations accounted for 76% of the regents’ university general education funding in 1981, when tuition revenue accounted for about 21% of the total. Today, the opposite is true, with tuition accounting for 64% of general education funds and appropriations accounting for 31%.

The total budget for the regent enterprise this year – including general education dollars, UI Health Care operations and restricted budgets belonging to entities like athletics and housing – is expected to top $6.9 billion. That’s up from $6.4 billion last year and $6.3 billion in the 2021 budget year.

The UI’s 2023 general fund operating budget – including its health care operation and special purpose units, like the State Hygienic Lab, is nearly $3 billion. ISU’s is $748 million and UNI’s is $177.1 million.

ISU Athletics, like the UI, is expecting stronger revenue than ever before – although the UI is eyeing an increase in football revenue due to an advantageous home schedule, while ISU is predicting a slight drop in football income because its home schedule doesn’t include in-state opponents at Jack Trice Stadium.

Both campuses expect stronger philanthropic support this year – with ISU’s foundation contributions climbing from $22.8 to $30.1 million and UI’s swelling from $12 to $16.7 million.

UI and ISU Athletics expect to end fiscal 2023 with balanced budgets – meaning they plan to spend more this year, too.

The UI notes increases tied to salary bumps, additional travel, student-athlete mental health services and the development of a new women’s wrestling team, which cost $762,000, according to regent documents.

ISU is eyeing expense increases for sports nutrition, building renovations and salaries and benefits.

Courier Local Editor Andrew Wind contributed to this story.