Falloff contributes to projected deficit

By Ferd Lewis and Stephen Tsai
Advertiser Staff Writers

Gate receipts in the so-called four "revenue sports" at the University of Hawai'i-Manoa are down by $500,000 this fiscal year, contributing to projections of a third consecutive year of a budget deficit, athletic department officials said yesterday.

UH said it defines "revenue sports" as football, men's basketball, men's volleyball and women's volleyball. Of UH's 19 sports, those are the four programs that are profitable.

The drop in revenue comes despite increases in premium-seating prices, the fee above the face value of a ticket in a prime location. In some sections at Aloha Stadium last year, the premium fee was $100 for a season ticket for football.

UH-Manoa chancellor Peter Englert said Tuesday, "I think we're looking at a deficit for the athletics department at this point in time."

In an e-mail to The Advertiser yesterday, athletic department officials projected expenditures to reach "$18 million plus" for the fiscal year that ends June 30. UH spokeswoman Lois Manin sent the e-mail on behalf of athletic director Herman Frazier. The e-mail was in response to a query from The Advertiser.

As for the amount of the deficit, UH officials said in the e-mail, "it is too early to report on specific numbers. Furthermore, it has not been determined how much revenue will be coming in from 'Ahahui Koa Anuenue and (the) UH Foundation."

'Ahahui Koa Anuenue is UH's official fund-raising organization, controlling a large share of the tickets for the school's sporting events on campus and at Aloha Stadium .

For the 2002-'03 academic year, Frazier's first as UH athletic director, the athletic department incurred a $1.4 million deficit. The department secured a $1 million "loan" from the chancellor's office to cover part of that deficit.

Athletic officials said the loan is scheduled to be repaid over a three-year period, beginning with an initial payment of $200,000 and followed by payments of $400,000 in each of the succeeding years. They did not say if any payments have been made this year.

The decline in gate receipts wasn't the only budget problem, UH officials said.

"In addition, in order to reach compliance with Title IX issues, the women's track and field team continues to grow in numbers," they said. "Consequently, travel cost, etc., are going to increase. Lastly, travel costs have increased across the board, but it is too early to give a specific number or percentage."

The athletic department is charged with being largely self-sufficient. Apart from self-generated revenue through ticket sales, sponsorships, radio and television rights, etc., it receives approximately $1.4 million in state money, $480,000 of which is used to maintain the lower campus, where athletic facilities are.

The athletic department is increasing the premium fees for this coming football season. For the best locations, the fee increased by $25, to $125. Last year, the Board of Regents gave the athletic department the authority to boost premium fees by $100. Frazier opted for a smaller increase because UH is playing one more home football game this season, which will bring in additional revenue.

Reach Stephen Tsai at stsai@honoluluadvertiser.com or 525-8051. Reach Ferd Lewis at flewis@honoluluadvertiser.com or 525-8044.