Wait, didn't Ohio State just win a national title? You'd think the bank account would be overflowing.
Well, it’s complicated. If you've been keeping an eye on the Buckeyes lately, you probably saw the headlines about the Ohio State athletics deficit. We are talking about a nearly $38 million gap between what the department brought in and what they spent. Specifically, for the 2024 fiscal year (which wrapped up June 30, 2024), the department reported $254.9 million in revenue but a staggering $292.7 million in expenses.
It sounds like a disaster. Honestly, for most schools, a $37.7 million hole would mean cutting sports or firing half the staff. But at Ohio State, things work a little differently.
The drop in revenue wasn't some mystery. It mostly came down to a weird quirk in the football schedule. In 2022, the Buckeyes had eight home games, including a huge night against Notre Dame. In 2023? Only six games at the Shoe. That’s two fewer Saturdays of 100,000 people buying tickets, hot dogs, and overpriced parking. That alone caused ticket revenue to plummet from $73.3 million down to $58.8 million.
When you're running a $300 million business, losing two days of peak sales is gonna hurt.
Breaking Down the Ohio State Athletics Deficit: Where Did the Cash Go?
So, revenue was down, but the spending didn't stop. It actually went up. Total operating expenses jumped from about $274 million the previous year to that record-breaking $292.7 million.
You might be wondering: how do you spend more while making less?
A big chunk of that was "the cost of doing business" in the modern era of the Big Ten. Coaching salaries and benefits hit $54.3 million. That’s a nearly $10 million increase in just a year. Then you have the severance payments. This is where it gets a bit painful for the budget. Ohio State had to fork over $9.2 million in severance, largely thanks to the firing of men’s basketball coach Chris Holtmann in February 2024.
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Basically, the school paid a massive premium to not have someone coach.
The Hidden Impact of Financial Aid and "Circle of Care"
It’s not just the big names taking home the checks, though. Ohio State is one of the few schools that still funds 36 varsity sports. Ross Bjork, the new Athletic Director who took over for Gene Smith, has been very vocal about keeping all of them. But that commitment is expensive.
- Student Aid: The department spent over $26 million on athletic student aid in FY24.
- Operating Costs: Travel, equipment, and recruiting for 1,000+ athletes across 36 sports isn't cheap.
- Self-Sufficiency: Remember, this department gets zero tax dollars. No tuition money. It’s a private business living inside a public university.
Bjork hasn't seemed too panicked, though. He’s pointed out that the 2025 fiscal year looks way better because the 2024 football season featured eight home games and a deep College Football Playoff run. Winning that 9th national title against Notre Dame (34-23) isn't just a trophy for the shelf; it's a massive infusion of cash from the CFP and Big Ten payouts.
Why This Shortfall Is a Sign of Things to Come
The Ohio State athletics deficit is a bit of a "canary in the coal mine" for college sports. The old model—where football pays for everything and you hope for the best—is dying. We are entering the era of the House v. NCAA settlement.
Starting in the 2025-26 academic year, schools like Ohio State are going to start sharing revenue directly with athletes. We’re talking about a projected $20.5 million annual cap for direct payments.
How do you pay players $20 million when you just lost $38 million?
Bjork’s plan involves a $300 million budget for the upcoming year. He basically has to find new ways to make money, and fast. You’ve probably noticed more "creative" revenue streams lately. They had 11,000 people pay to play nine holes of golf inside Ohio Stadium. They are looking at more concerts, more stadium events, and probably more aggressive corporate sponsorships.
The 2025 Outlook: Is the Deficit Already Gone?
If you're a Buckeye fan worried about the program going broke, take a breath.
The school used its reserve funds and past earnings to cover the $37.7 million gap. It’s essentially a "rainy day fund" for exactly this scenario. Plus, the new Big Ten media rights deal is now in full swing, which should see TV revenue jump significantly.
But the margin for error is getting thinner. In the past, Ohio State could afford a "down" year financially. Now, with the $20 million revenue-sharing bill coming due and NIL collectives still needing millions for roster building, the department has to operate like a lean, mean pro sports franchise.
Actionable Steps for the "New Era" of Buckeyes Finance
If you’re following this closely, here’s what to look for next to see if the department is actually getting back on track:
- Watch the Home Schedule: The number of home games is now the single biggest variable in the budget. More games mean more "clean" profit.
- Monitor the Roster Caps: Under the new settlement, roster sizes are changing. Watch if Ohio State reduces "walk-on" spots to save on gear and travel costs.
- Check for New "In-Stadium" Experiences: Expect more attempts to monetize the stadium on non-game days. If they announce a massive concert or another weird event, it’s a direct response to the budget pressure.
- Follow the NIL Transition: Keep an eye on how the "The Foundation" collective interacts with the school's direct payments. If the school starts paying $18-20 million directly, does the collective spending go down, or does the "arms race" just get more expensive?
The Ohio State athletics deficit wasn't a sign of a failing program, but it was a reality check. Even the biggest giants in the room can't just coast on their reputation anymore. They have to balance the books while the rules of the game are being rewritten in real-time.