UH athletics projecting $1 million revenue shortfall
By Ferd Lewis
Advertiser Staff Writer
As the University of Hawai'i prepares for a return to negotiations with football coach June Jones over a new contract, the athletic department is projecting a deficit of nearly $1 million for the current fiscal year because of the effects from the Sept. 11 terrorist attacks.
Athletic department officials disclosed the forecast during an athletic advisory board meeting Tuesday night and in meetings with coaches.
The projection is based upon revenue received through Jan. 31, officials said. The current fiscal years ends June 30.
"The aftershocks of Sept. 11 had a huge impact on us despite the success of our teams," said UH athletic director Hugh Yoshida, who added that no cutbacks are currently planned.
Associate athletic director Jim Donovan said the ripple effects from Sept. 11 were felt in scheduling complications, travel costs, declining ticket sales and other areas. "It was reflected immediately after the 911 tragedies," Donovan said.
Paul Costello, UH vice president for external affairs, said President Evan Dobelle was made aware of the deficit and will approve a withdrawal from the legislatively mandated athletic reserve account to make up the shortfall. "They (athletics) will end up balanced," Costello said.
The so-called "rainy day" reserve fund stands at approximately $1.5 million, including $300,000 from the previous year's surplus that Dobelle had indicated he would appropriate but didn't.
The biggest revenue hit came from the plummeting value of dividends from the Honolulu Stadium Endowment Fund, which dropped because of stock market conditions. In good years, the endowment, which was started after the sale of Honolulu Stadium property in 1975, has been responsible for as much as 6 percent of the revenue used to operate the 19-sport athletic department and its nearly $16 million budget.
Last year UH said it received a record $925,000 from the endowment and initially expected to receive $750,000 this year when projections were drawn up in June. But in the wake of Sept. 11, it received only $310,000, according to Donovan.
Wahine volleyball, which has been among UH's most successful programs both on the court and at the bank, was among the hardest hit, coming in nearly $150,000 short of projections despite reaching the NCAA's Sweet 16.
The Wahine were forced to cancel matches scheduled for Sept. 14 and 15 against nationally-ranked Loyola Marymount and Brigham Young because of concerns over travel. The matches were not rescheduled.
In addition, an another opponent (Hawai'i Pacific University) needed to be scheduled for an Oct. 30 match when Nittaidai of Japan decided not to travel.
Men's volleyball is also running below projections, UH officials said.
Men's basketball, which is 21-4 and expects its first sellout of the season tonight, could meet its projection of $1.275 million, Donovan said.
Despite a 9-3 season, the football team came in only about $26,000 above projections, UH officials said. Football was projected to produce $4.2 million in revenue and came in slightly higher with the aid of an unbudgeted $75,000 payment from ESPN as part of an agreement to move the date of the UH-Brigham Young football game to Dec. 8.
