Athletic Department Balances Budget for Fourth Consecutive Year
6/21/1999 8:00:00 AM | Terrapin Athletics
July 22, 1998
Athletic director Deborah A. Yow today announced that the University of Maryland's Department of Intercollegiate Athletics balanced its budget for the fiscal year ending June 30 and that the $6.8 million operating debt inherited in August 1994 has been eradicated four years ahead of schedule.
Today's announcement marks the fourth time in as many years that the athletic department has balanced its budget under Yow, who took over as athletic director in the fall of 1994. Prior to the 1994-95 year, the department had not balanced its budget in the previous 10 years, resulting in an accumulated $6.8 million operating deficit.
The operating debt, which was on schedule to be eliminated in 2002, was retired ahead of schedule with a portion of the athletic department's share of a multi-million contract the university recently signed with Pepsico for exclusive vending rights for soft drinks and snack foods. The athletic department received $4 million of the $8 million contract, and used $2.4 million to pay off its share of the remaining debt.
"Our long, hard pull to erase the operating debt is officially over," said Yow. "This has truly been a team effort -- staff, coaches, the university, and our loyal supporters. Eliminating this financial albatross four years earlier than anticipated is a sign of what we can achieve by sticking to our plan and working together. Our only limitations are those we place upon ourselves."
Including the $4 million received from the Pepsi contract, the athletic department posted revenues of $27,983,520 in fiscal year '98. Expenses were $25,590,194.
