The Texas A&M athletics department had its highest operating revenue and surplus totals on record for the 2023 fiscal year, according to a financial report GigEm247 recently received through an open records request.
The Texas A&M athletics department hadits highestoperating revenue and surplus totals on record for the 2023 fiscal year, according to a financial report GigEm247 recently received through an open records request.
Those documents, which were sent to the NCAA earlier this month, show that A&M reported an operating revenue of $279,188,334 for the 2023 fiscal year. Their reported operating expenses were $194,692,848, meaning they netted a surplus of $84,495,486.
Since the NCAA started its current financial reporting system in 2005, A&M has never tallied higher operating revenue and surplus numbers than its 2023 fiscal year total. According to USA Today, A&M surpassed $200 million in operating revenue only three other times during that span: 2017, 2018 and 2019.
Compared to what A&M totaled in the 2023 fiscal year, no athletic department in the country reported a higher operating revenue or surplus in the 2022 fiscal year. Ohio State reported the highest operating revenue, coming in at approximately $251.62 million.
In the 2022 fiscal year, A&M reported operating revenues and expenses of approximately $193.14 million and $177.67 million, respectively. Those figures meant A&M reported an operating surplus of approximately $15.47 million.
Explaining the jump in operating revenue, surplus
Some of the numbers that the A&M athletics department reported for its 2023 fiscal year could be considered an anomaly.
Largely because of its ambitious centennial campaign, A&M saw a major spike in contributions. After reporting approximately $54.16 million in contributions for its 2022 fiscal year, A&M reached almost $115.4 million in this year’s filing.
USA Today first reported that A&M spent approximately $53.2 million of that $115.4 million on various facility projects. Under the current format of these NCAA financial reports, athletic departments file capital expenditures separately. So that $53.2 million did not count toward what A&M compiled in operating expensesin the 2023 fiscal year.
A&M also reported $12 million in direct institutional support – which is part of operating revenue – in the 2023 fiscal year. According to USA Today, A&M has not reported anything in direct institutional support since the 2014 fiscal year.
Jeff Toole, the A&M senior associate athletics director/chief financial officer, told GigEm247 how that $12 million will be used. That loan came from non-taxpayer funds and will be paid back to the university. It will support some track and field facility projects, including an outdoor throws area.
A&M football continues to reign supreme
As usual, A&M made a lot more in football compared to its other sports in the 2023 fiscal year. A&M reported about $88.26 million and $53.99 million in football operating revenue and expenses, respectively. Those figures meant A&M reported an operating surplus of approximately $34.27 million.
How much A&M reported in football recruiting expenses for the 2023 fiscal year – a staggering $4,008,459 – might be the most interesting tidbit. According to USA Today, A&M ($2.98 million) trailed only Georgia ($4.5 million) in football recruiting expenses for the 2022 fiscal year.
A&M also saw a sizable jump in football ticket sales. In the 2023 fiscal year, A&M reported $48,801,301 in that area ($54,529,762 overall). A&M had $44,527,694 in football ticket sales ($50,624,287 overall) in its 2022 fiscal year report.
Other notable increases, decreases
Compared to its 2022 fiscal year report, A&M saw plenty of notable increases and decreases in various areas in 2023.
Beyond contributions, direct institutional support and ticket sales, A&M reported sizable increases in royalties, licensing, advertisem*nt and sponsorship ($21,692,857 to $26,937,928); and other operating revenue ($3,031,992 to $6,246,785).
In addition to recruiting, the spikes in operating expenses included coaching salaries, benefits and bonuses paid by the university and related entities ($35,964,762 to $38,604,709); support staff/administrative compensation, benefits and bonuses paid by the university and related entities ($28,231,074 to $30,474,416); severance payments ($300,000 to $1,343,756); team travel ($11,858,231 to $14,729,975); sports camp expenses ($2,488,448 to $4,109,153); athletics facilities debt service, leases and rental fee ($21,260,637 to $22,621,140); and other operating expenses ($22,670,209 to $25,238,054).
Guarantees ($1,218,927 to $16,500) in operating revenues and game expenses ($6,549,204 to $5,835,058) were among the biggest decreases.
