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Uo Budget Analysis

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In recent years, the University of Oregon Athletic Department has experienced significant changes. It has undergone 5 different athletic directors over a span of 7 years suggesting possible administrative personnel complications within the department. However, with prominent coaching/administration staffs, state-of-the-art facilities, and media ascendency, the UOAD established a prestigious national brand and is now one of the premier programs in intercollegiate athletics. The UO Athletic department’s budget rapidly grew and doubled in a short time frame of only 6 years. More importantly, it contains only 4 primary sources of annual income including football, gifts & contributions, PAC 12 & NCAA, and broadcast, sponsorships, and royalties. Football is the only UO varsity sport that generates profits, averaging $1.6M annually from 2008-2012. It also produces a steady revenue stream of $3.2M per home game. Contrarily, as the football program continues to excel each year, there is limited growth due to having a $93M budget with an undersized 55K seat football stadium. In addition, increasing revenues for football are equally matched by expenses (6.9 million revenue compared to 7.1 million expenses). This is largely due to the fact that every time the UOAD receives revenue it somehow creates a new expense. Yet, Oregon is finding other ways to generate revenue through MKA events or even parking, but they aren’t substantial to the underlying problems facing Oregon. Through IMG and the new PAC 12 media right deal it has become clear that technology and accessibility to sporting events has created more “real estate” to exploit the Oregon brand, and as a result generate more money. The PAC 12 national deal doubled profits and can potentially create even more additional revenues for Oregon and other PAC 12 schools. IMG has found new ways to sponsor Oregon in order

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