University of Iowa ‘very interested’ in athletics paying back $50M loan ‘as quickly as possible’
Pandemic loan must be repaid in 15 years to main campus
Vanessa Miller
Dec. 1, 2024 5:30 am
IOWA CITY — Hawkeye Athletics hasn’t made much of a dent in paying back the $50 million it borrowed from the main University of Iowa campus during the height of the pandemic, leaving $47.6 million outstanding on the 2021 loan — even as contributions from the Big Ten Athletics Conference to its budget continue to climb.
Although UI Athletics paid $3 million back to the main campus in 2022, $1.5 million in 2023 and $1.5 million this year, the loan’s 2.5 percent interest rate has swallowed up most of those payments — shaving just $2.3 million off the principal to date ...
When the main campus agreed to loan UI Athletics $50 million from its cash reserves in early 2021, the department was projecting a $75 million deficit for the budget year from expected pandemic-related losses — which also caused it to cut three men’s sports: tennis, gymnastics, and swimming and diving.
Later that summer, UI Athletics — which calls itself a “self-sustaining auxiliary enterprise” that “receives no general university support” — ended the budget year with a less-severe deficit of $45 million. And the following year in fiscal 2022, the department topped its projected revenue rebound by nearly $10 million — setting a new income record of $126.8 million.
The department has set revenue records every year since thanks, in part, to higher football, wrestling and women’s basketball ticket sales and boosts in conference support — although some of the income increases have been due to “reserve fund transfers” to pay court settlements, legal fees and “staff transition costs.”
UI Athletics’ current fiscal 2025 budget projects another revenue record, reaching $150.5 million thanks to conference contributions topping $75.2 million — a 22 percent increase over last year; 37 percent increase over 2019; and 140 percent increase over the $31.3 million it got from the Big Ten a decade ago in 2015. ...
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