By Aaron Mackey
Arizona Daily Wildcat
Monday February 3, 2003
Intercollegiate Athletics (ICA) might soon be financially self-sufficient, under a proposal laid out by UA President Pete Likins and Provost George Davis in a financial planning bulletin released Thursday.
The proposal would allow for the athletics department to gain its financial independence by the fiscal year 2004-2005, but Athletics Director Jim Livengood believes the transition can be accomplished much sooner.
Livengood said he hopes the ICA will be self-sufficient by the end of this financial year.
"I think it's a very prudent and very smart idea. I think it's the right thing to do and the right time to do it," Livengood said.
The quicker it happens, the more the ICA can help the UA, he added.
"I think it's important in these economic times that athletics stand on its own two feet," Livengood said.
As it stands now, ICA receives approximately $1 million from the state in allocations. But it also then pays an administrative service charge to the university that, according to the financial planning bulletin, "effectively" cancels out the amount it receives from the state.
The administrative service charge consists of a 5 percent tax that UA administration imposes on revenue from ticket sales and merchandise. The amount paid varies yearly, depending on how much money the ICA takes in.
The proposal states that the amount of money the state has given to the ICA for tuition and general fund revenues dropped over the past few years, while the ICA has worked to increase its financial self-reliance.
Financial growth is an integral part to the success of UA athletics. All profit money will be put back into ICA to cover unforeseen expenses such as the rising cost of air travel.
A $32 - $33 million operating budget is granted to ICA yearly, and now, it must be monitored more closely so it is not exceeded, Livengood said. ICA is now responsible to become active and creative in fundraising, including a more rigorous pursuit of corporate sponsorship.
All scholarships and tuition money would be funded entirely by outside sources.
The call by UA to make ICA its own financial entity is unusual in college sports, as athletic funding differs from state to state, though Livengood has confidence that the program will succeed.
"Not a lot of athletic departments are self-sufficient, but in light of our financial situation I think it's the right thing to do," Livengood added.
Livengood also thinks that the department will capably handle the switch.
"This proposal is feasible," said Livengood, who has extensive experience in raising funds for ICA. Fundraising has been very important in the past few years for the athletics department, as it receives no money from the state for building any new structures.
