Thread by @R_H_Ebright

‘Unsustainable’: How Rutgers athletics quietly racked up $265M in debt

This was the year Rutgers University athletics expected to be on firm financial ground. Instead, the move to the Big 10 means anything but that.

northjersey.com/in-depth/news/…

"[T]he athletic division has been losing more money than ever. And almost half of its $265 million in outstanding debt has not gone toward new buildings — it has instead been used to cover the ever-rising operating costs associated with joining the Big Ten Conference."

"The university has stepped in, loaning athletics $84 million over the last six years to cover expenses — violating its own policy,"

"Rutgers has been reporting those loans as revenue — contrary to NCAA guidelines — artificially inflating the athletic department’s earnings and concealing the true budget deficit from the students, their parents and taxpayers who pay the bills"

"But..university loans have not been enough to paper over the athletic department’s spending gaps.
Another $189 million..came from state taxpayers, tuition and student fees through..2019-20 academic year, siphoned through the university since Rutgers began playing in..Big Ten."

"Athletics has also taken $48 million in loans from the Big Ten Conference. Tens of millions more dollars were borrowed to construct two new buildings, including a basketball practice facility, that Rutgers officials said were needed to compete in the Big Ten."

"The state also kicked in $25 million in tax credits for the buildings."

"In all, more than $430 million in loans and other support has been sunk into Rutgers’ athletics — just since it began playing in the Big Ten."

"The university’s annual loans to athletics to cover operating expenses grew to more than $20 million this past academic year, a practice the university president and its chief financial officer said is untenable."

"'It's unsustainable, but I don't have an answer as to what is the sustainable piece going forward,' Rutgers president Jonathan Holloway said."