NCAA FB

Penn State revenue decline traced to renewal fees

Share This Story

   
 

STATE COLLEGE, Pa. (AP)

About 90 percent of the $7.8 million decline in revenue for Penn State's athletic department was due to a loss of one-time fees related to football club seat and suite renewals that were not budgeted for in 2012.

The department Thursday released a statement offering explanations on the financial report released earlier this week. The report showed athletics revenue at nearly $108.3 million for the fiscal year that ended in June 2012, down almost 7 percent or $7.8 million, from the $116.1 million in revenues the previous year.

Penn State in 2010-11 rolled out new season-ticket pricing guidelines that in large part tied giving levels to seat renewals.

The updated figures are part of a filing required by the U.S. Department of Education of athletic departments. As is typical for Penn State, the athletic department reported no revenues from tuition, student fees or state appropriations.

It was the first such filing by Penn State following the child sex abuse scandal involving former assistant coach Jerry Sandusky, who was arrested in November 2011. The filing had been delayed because the school brought in a third-party auditor to also review the report, a university spokeswoman said earlier this week.

The athletic department noted Thursday that a decrease in reserve funds was primarily due to charitable donations in support of child sex abuse education and prevention, as well severance agreements for the previous football staff.

Bill O'Brien took over as coach in January 2012, two months after predecessor Joe Paterno was fired days following Sandusky's arrest. The latest report showed about $956,000 in severance payments in 2012 for football.

Athletic department officials have said it was unclear how much - if any - impact the scandal may have had on attendance. But the ''Seat Transfer and Equity Plan'' that brought about season-ticket changes several years ago did leave some fans unhappy.

The roughly 60 luxury box suites at the stadium did sell out last year, as did the 21,000-seat student section. Still, Penn State, with an average attendance of about 96,700, was at about 91-percent capacity in 2012, down from the usual 97-98 percent.

Last year's average would be a welcome and robust figure for most other schools. But those nearly 10,000 empty seats leave noticeable gaps in massive Beaver Stadium, which has a capacity of 106,572. It's second only to the 109,901 capacity of Michigan Stadium.

''Approximately 90 percent of the documented overall revenue decrease of $7.8 million is attributable to club seat and suite renewal revenue collected in the 2010-11 fiscal year,'' the athletic department said in its statement. ''As one-time, upfront payments associated with those renewals in 2010-11, that revenue was not realized - or budgeted - for 2011-12.''

Contributions were down to athletics overall from $34.2 million to $25.5 million, the report showed, though football-related contributions grew nearly five-fold during to nearly $9.7 million in 2012.

According to the school, that was due to a reallocation of how suite and club seat revenues were categorized and recorded, so that it was more accurately reflected as football donation revenue.

The athletic department is self-supporting, and football revenue primarily helps pay for the school's 31 varsity teams.

---

Follow Genaro Armas at http://twitter.com/GArmasAP

Tagged: Penn State

Related Stories

Member Comments

Please note by clicking on "Post comment" you acknowledge that you have read the Terms of Use and the comment you are posting is in compliance with such terms. Be Polite. Inappropriate posts may be removed by the moderator.

powered by

College Football Pick'em on FOX


NCAA FB Videos

Sumlin annoyed by media's Manziel questions Posted: Jul 16, 2014
Kevin Sumlin responds to questions about life after Johnny Football by toying wi...

AJ Pasquale's journey back to UCLA Posted: Jun 17, 2014
UCLA football ops intern AJ Pasquale describes his own personal journey after th...

Winston issued adult civil citation Posted: Apr 30, 2014
Get the latest news surrounding Jameis Winston's recent shoplifting fiasco.

Get Inside the Locker Room with Scout.com

Fox Sports Store

    itemName itemURL imageSrc price itemDescription
    Nike Florida Gators Gridiron 2012 Team Issue T-Shirt - Royal Blue http://shop.foxsports.com/FOX_Florida_Gators/browse/featuredproduct/759777/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_759000/ff_759777_xl.jpg&w=100 24.95 Nike Florida Gators Gridiron 2012 Team Issue T-Shirt - Royal Blue
    Nike Michigan State Spartans Football 2012 Team Issue T-Shirt - White http://shop.foxsports.com/FOX_Michigan_State_Spartans/browse/featuredproduct/760171/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_760000/ff_760171_xl.jpg&w=100 24.95 Nike Michigan State Spartans Football 2012 Team Issue T-Shirt - White
    Nike USC Trojans Fight On My School T-Shirt - Cardinal http://shop.foxsports.com/FOX_USC_Trojans/browse/featuredproduct/761373/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_761000/ff_761373_xl.jpg&w=100 24.95 Nike USC Trojans Fight On My School T-Shirt - Cardinal
    Nike Alabama Crimson Tide Elite Force Coaches Sideline Performance Polo - Crimson http://shop.foxsports.com/FOX_Alabama_Crimson_Tide/browse/featuredproduct/829709/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_829000/ff_829709_xl.jpg&w=100 64.95 Nike Alabama Crimson Tide Elite Force Coaches Sideline Performance Polo - Crimso..
    Nike LSU Tigers Elite Force Coaches Sideline Performance Polo - Purple http://shop.foxsports.com/FOX_LSU_Tigers/browse/featuredproduct/829740/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_829000/ff_829740_xl.jpg&w=100 49.99 Nike LSU Tigers Elite Force Coaches Sideline Performance Polo - Purple
    Nike Oklahoma Sooners Legacy 91 Dri-FIT Adjustable Coaches Cap - Crimson http://shop.foxsports.com/FOX_Oklahoma_Sooners/browse/featuredproduct/830935/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_830000/ff_830935_xl.jpg&w=100 21.95 Nike Oklahoma Sooners Legacy 91 Dri-FIT Adjustable Coaches Cap - Crimson
    adidas Notre Dame Fighting Irish Hot Sideline Jacket - Navy Blue http://shop.foxsports.com/FOX_Notre_Dame_Fighting_Irish/browse/featuredproduct/861243/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_861000/ff_861243_xl.jpg&w=100 69.95 adidas Notre Dame Fighting Irish Hot Sideline Jacket - Navy Blue
    adidas Nebraska Cornhuskers Sideline Hot Quarter Zip Jacket - Scarlet http://shop.foxsports.com/FOX_Nebraska_Cornhuskers/browse/featuredproduct/861247/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_861000/ff_861247_xl.jpg&w=100 69.95 adidas Nebraska Cornhuskers Sideline Hot Quarter Zip Jacket - Scarlet
    Nike Alabama Crimson Tide 2012 BCS National Champions Players Locker Room Snapback Hat - Charcoal/Black http://shop.foxsports.com/FOX_Alabama_Crimson_Tide/browse/featuredproduct/1087345/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_1087000/ff_1087345_xl.jpg&w=100 29.95 Nike Alabama Crimson Tide 2012 BCS National Champions Players Locker Room Snapba..
    Nike Alabama Crimson Tide 2012 BCS National Champions Locker Room T-Shirt - Ash http://shop.foxsports.com/FOX_Alabama_Crimson_Tide/browse/featuredproduct/1093431/source/foxsports_prsp_ca http://images.footballfanatics.com/FFImage/thumb.aspx?i=/productImages/_1093000/ff_1093431_xl.jpg&w=100 24.95 Nike Alabama Crimson Tide 2012 BCS National Champions Locker Room T-Shirt - Ash