Winning solves everything, right? Well, not everything apparently. Turns out, Ohio State’s got a bit of a cash flow problem. You know how everyone thought Ryan Day was about to get fired after that Michigan loss? Well, his buyout would’ve cost them a cool $37 million. Now, get this: even with retaining Day and a national championship win, they’re sitting on a $38 million deficit. Basically, they’re only a million dollars worse off than they would’ve been if they’d paid the buyout. That’s how tight their finances are. And they’re not the only ones dealing with this kind of headache.
Adam Breneman wasted no time pointing out the real deal with college football finances. “The Big 10 just released its financial data for their athletic departments, and the numbers are shocking. Despite bringing in $2.8 billion in revenue, half the conference department still lost money,” he said. That’s a straight fact. Despite generating $2.84 billion in revenue in 2024, Big Ten athletic departments still had a nearly $3 billion deficit. Half of the schools were in the red, with four losing at least $15 million.
Here’s where the problem starts: despite having the richest TV deal in CFB, the Big Ten is burning cash like never before. Why? Skyrocketing buyouts, a 56% increase in recruiting budgets over two years, and constant facility upgrades have turned spending into a runaway train. Plus, with schools now directly paying players, costs are soaring. This financial crisis is hitting even the biggest brands; for instance, despite Ohio State winning a national title, they faced a $38 million financial loss.
Ohio State is looking at a $38 million deficit, and it’s not exactly a mystery how they got there. First off, they only had six home games last season, which is a huge hit to ticket sales—we’re talking a $14.5 million drop compared to the year before. Then, you’ve got former AD Gene Smith basically admitting he went “berserk” with the budget.
He was throwing money at the football program, snagging Chip Kelly, bumping up coach salaries—all that stuff that helped them win the championship, sure, but it costs a fortune. Plus, they had to shell out over $8 million to get rid of the basketball coach, Chris Holtmann. Basically, they brought in about $255 million but spent almost $293 million. Throw in another $9 million-plus for severance, and you can see how things got tight. They’re covering it with reserves, and with bigger Big Ten payouts coming, and a full eight-game home schedule on the horizon, they’re hoping it’s just a blip. Current AD Ross Bjork’s saying they’ll balance it out in three years. We’ll see.
However, Ohio State is not alone. Other programs are also under pressure, with a trend that extends beyond just one year. UCLA, for instance, continues to struggle with a $51.9 million loss last year and a $200.6 million total over five years. Rutgers is not far behind, with a $41.5 million deficit and $139 million in five-year losses. While Maryland has shown some improvement, it is still down $32.7 million in the last five years and will not receive full Big Ten payouts until 2027.
Even Michigan State’s financial situation is fluctuating, with a $16.35 million surplus in 2022 turning into a $16.7 million loss in 2024, largely due to a 38% increase in admin and support staff salaries. Despite this spending increase, MSU’s staff salary total still ranked seventh in the Big Ten, raising questions about whether this was a market adjustment or poor financial planning. But out of everything, what’s hitting their pockets the most?
Big Ten’s big spending spree: where’s all the money going?
Big Ten schools are rolling in cash, right? But a bunch of them are still drowning in debt. We’re talking serious money. Places like Ohio State and Nebraska, went all-in on fancy facilities, and now they’re stuck with massive annual debt payments—$33.7 million and $30.5 million, respectively. Then you’ve got Maryland and UCLA, who kept their construction projects chill, so they’re barely paying anything, like under $700K. But get this: twelve schools are sitting on debt over $90 million, and six of them are past the $225 million mark, with Illinois and Ohio State leading the pack.
Now, here’s where it gets interesting. Some schools are playing the ‘daddy’s paying’ game. UCLA and Maryland, for example, their universities are footing the bill. UCLA got a cool $30 million from the university, while Maryland pulled in $18 million from student fees and direct support. Rutgers, with a crazy $51.4 million in athletic debt, needed $21 million just to stay afloat. But then you’ve got the ‘independent ballers’ like Michigan, Ohio State, Penn State, Nebraska, and Purdue, who run their athletic programs without any university handouts.
Even that sweet Big Ten TV deal ain’t enough to cover the losses for some. Indiana had to grab a $26 million loan to fire Tom Allen, and Illinois, Minnesota, MSU, and Washington got anywhere from $4 million to $11 million from their universities. Despite all that TV money, they’re still spending more than they’re making, and the debt’s piling up. So, with these massive debts, and even the biggest programs struggling, the Big Ten’s situation isn’t just a conference problem—it’s a flashing red light for the entire landscape of college football. If the richest conference in the game is feeling the pinch, what does that mean for everyone else?
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