Letter from A.D. John Currie - July 5
Meanwhile in the business office, June 30 marked the end of the 2012 fiscal year. You'll recall that three years ago we launched the K-State Pledge for fiscal transparency and unveiled our five core goals to become a Model Intercollegiate Athletics Program. Today, I would like to provide a budget update both on fiscal year 2012 as well as our plans for 2013. I am pleased to report that for the third straight year we will have achieved a balanced budget when we finish closing the books for FY12 later this summer and in fact will be able to report that revenues have exceeded expenses for the third consecutive year. Through your support and participation as ticket holders, another record year for the Ahearn Fund (more on that later), and the excitement generated by the performances of Wildcat student-athletes, we have been able to fulfill the promise of fiscal integrity and transparency that we made three years ago. As I have said many times, the grass-roots support of our fans provides us a unique advantage and nothing reflects that any more than when you make it to Manhattan to be a part of capacity crowds at Bill Snyder Family Stadium, Bramlage Coliseum, Ahearn Field House, Tointon Family Stadium and all of our other venues. In keeping with our pledge for transparency, I am also pleased to share with you our projected revenue and expense budget for FY13 which has been approved by the Board of Directors of K-State Athletics, Inc. (KSA). Thanks to your support we are able to continue to re-invest in the student-athlete experience for all 16 of our teams as well as make steps to achieve our goal of having the best fan experience in the Big 12. KSA's operating budget of $58 million for the 2012-13 fiscal year will be the largest in school history and represent a 12.7 percent increase from FY12. Among other items, the budgeted operational increase for FY13 (approximately $6.58 million) accounts for expenses such as scholarships; compensation increases for coaches; various facility enhancement projects; an increase in our debt service facilitating construction of the West Stadium Center and Basketball Training Facility, as well as additional upgrades to our K-StateHD.TV video production capacity as we continue to explore ways to promote our teams and student-athletes to our world-wide Wildcat family. It is important to note that this operational budget of $58 million does not include our capital fundraising revenue (i.e. gifts specifically for the Basketball Training Facility and West Stadium Center) as well as construction costs paid specifically from those capital funds. Here are some specific examples of your dollars in action in support of our five core goals of our vision of a Model Intercollegiate Athletics Program:
• To progress towards our goals of "A World-Class Student-Athlete Experience" and "Championship-Level Athletic Performances," we have been able to increase our sports operating and recruiting budget by 18% since FY10. The majority of this increase has been to fund salary and compensation increases for our coaching staffs. Travel costs continue to increase as well. For example, this coming football season we will have five round-trip charters for our football team versus 3.5 in 2011
• You will notice that our net game guarantee costs (the money we spend to have non-conference football, basketball, volleyball and baseball games in Manhattan) have increased significantly, roughly doubling vs. last year and increasing by nearly $2 million since FY10. After inheriting schedules with just six home football games in 2009 and 2010, we returned to seven games last year and appear to be in a pattern now where seven games can be the norm, although we will have eight in 2013. Playing contests in Manhattan certainly helps our competitive desires as well as addresses our goal of providing "Value to the University, Community and State."
• Our $5 million facilities maintenance line-item includes a major resurfacing of the East parking lot at Bill Snyder Family Stadium scheduled for spring 2013, helping to achieve "The Best Fan Experience in the Big 12," as well as student-athlete experience upgrades such as a new rowing practice facility which continues our commitment to Title IX and history of expanding opportunities for female student-athletes.
• Direct university support of intercollegiate athletics drops to $750,000, or 1.29% of the budget in FY13, as we continue our phase-out program to enable those dollars to be used for critical academic needs in support of President Schulz's visionary K-State 2025 goal of being a Top-50 public research university.