How will UNLV tackle nearly $21M athletic budget deficit?

UNLV’s athletic department is facing a nearly $21 million budget deficit as the university struck a deal to stay put in the Mountain West Conference, while being pursued by the reforming Pac-12.

The large budget deficit was attributed to a variance between budgeted revenues and actual revenues from fiscal year 2023, according to UNLV.

Last week, UNLV announced it would stay with the Mountain West, signing a memorandum of understanding that would see a lump sum between $10 million and $14 million paid to the school in 2025 and between $1.5 million to $1.8 million payments per year, for six years, beginning in 2026. That represents between $19 million and $24.8 million earmarked for the school with the guaranteed money from the Mountain West.

“With this support we will be in a better position to address operational debt and navigate the evolving landscape, influenced by team performance, conference realignment, fundraising and NIL developments,” UNLV President Keith Whitfield said during Tuesday’s meeting of the Nevada Board of Regents.

The deal with the Mountain West also would allow for UNLV to pursue joining a Power Four conference, should the opportunity present itself in the future, with no exit fee charged to the school. To leave the Mountain West for the Pac-12, UNLV would’ve been on the hook for an $18 million to $20 million buyout fee.

Over the past few weeks San Diego State, Utah State, Fresno State, Boise State and Colorado State all announced plans to leave the Mountain West for the Pac-12.

MWC payment breakdown

UNLV athletic director Erick Harper said Tuesday that the lump sum payment of up to $14 million will come from money tied to buyout fees the five departing schools will pay to the Mountain West for heading to the Pac-12 in 2026.

The planned annual payments of up to $1.8 million for six years are expected to come from poaching fees the Pac-12 could have to pay the Mountain West for luring the five schools to the conference, but those fees could be challenged in court, Harper said.

The Mountain West and Pac-12 entered into a scheduling agreement last year, when the Pac-12 was reduced to just two schools after a mass exodus of teams. In that agreement, it was noted that if the Pac-12 pursued any Mountain West university for membership, that a poaching fee would be charged for any institution accepting membership.

Looking to reduce the school’s athletic department debt, Whitfield said UNLV would focus on enhancing relationships with donors to cover operational costs.

“Including nutrition, pre- and postgame meals and other expenses,” Whitfield said.

UNLV courting athletic donations

Last year, UNLV launched a campaign looking to raise $150 million in capital, to which $11.8 million was raised in fiscal year 2024. The target is to raise $15 million annually, which UNLV for fiscal year 2025 has received $3 million in cash and $12 million in pledges, Whitfield said.

“The campaign fund will be supported by an endowment fund, new revenue streams and a scholarship endowment fund, to increase flexibility,” Whitfield said.

In fact, over this past weekend UNLV leadership met with an unnamed donor who has already given a seven-figure donation regarding a potential new seven-to-eight-figure gift to the school, Harper revealed.

Other revenue generators

UNLV also anticipates a $2.4 million waterfall payment from the Las Vegas Stadium Authority to make up any lost revenue tied to using Allegiant Stadium and no longer being able to utilize Sam Boyd Stadium.

Future planned football away games against USC (2025) and Washington (2028) are also expected to generate significant revenue, as UNLV gets paid to play those games. In 2023, Michigan paid UNLV $1.5 million to play the Wolverines at Michigan Stadium.

UNLV football’s recent success on the field, leading to the team’s first-ever top 25 ranking, has also translated to increased revenue.

“Our football season tickets have already surpassed 110 percent of the budgeted amount, making it an over 90 percent increase over last year,” Whitfield said.

The school also plans to reduce expenses by up to 10 percent and to fill only essential open positions within the athletic department. Those cuts will be solely focused on administration and not relating to spending going toward student-athletes, with the department looking to cut administration-related travel expenses.

‘Get Healthy’ plan

UNLV is implementing a “Get Healthy” plan to strengthen financial management and align expenses with revenue targets, Whitfield said.

The first phase of that plan includes enhancing fiscal management to improve financial controls, increased audits and an updated budgeting process, to increase transparency and accountability, Whitfield said.

In all, Harper said he is hopeful the measures being put into place will eventually allow UNLV to build up a surplus each year to chip away at the large deficit.

“As we continue to move forward we will be holding expenses down, maximizing revenues, as we have with football tickets this year, with four home games remaining, of three, very interesting and exciting opponents to build more revenues,” Harper said. “Then we will start to build in a hopeful surplus each year, to help dig into some of these deficits moving forward.”

Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on X.