MU Athletics posts $9.1M deficit despite revenue growth
COLUMBIA, Mo. (KMIZ)
Despite an 8% increase in revenue last school year, MU Athletics still required more than $25 million in university funding to operate.
The athletics department finished the 2024–25 fiscal year with a $9.1 million budget deficit after expenses rose 4%. The shortfall marked a significant improvement from the $18 million deficit recorded in the 2022–23 fiscal year.
Following a Cotton Bowl victory over Ohio State to close the 2023 season, football ticket revenue increased by $2.1 million. The Tigers generated $15.9 million in ticket sales during their 10-win 2024 season. However, football postseason revenue fell by $1.9 million after the team moved from a New Year’s Six bowl game to the Holiday Bowl.
Revenue increased to $181 million, while expenses totaled $191 million. This comes after MU reported bringing in $168 million in 2023-24 and spending $183 million. But, for the second year in a row the athletic department received $25.7 million in direct support from the university. In 2024, that total marked the eighth-highest amount of institutional support in the country.
MU Athletic Director Laird Veatch believes the investment into the athletic department is worth it for the University.
“I think the evidence of that is that you can see that our Board of Curators, the leadership of our institution, have really analyzed that," Veatch told ABC 17 News. "So, if you think back when I first got hired, there was a lot of talk about this athletics committee that was formed on the board; and a lot of that was for them to be able to do a real deep dive into the financial impacts of college athletics, and particularly at Mizzou, and recognize that those ripple effects are real."
During a Thursday faculty council meeting, University of Missouri System President Mun Choi called the figure a “friendly loan” that is expected to be paid back over time. However, given the uncertain landscape of college athletics, paying that back could be easier said than done.
“We're in a pretty dramatic environment right now with NIL [name, image and likeness] support and what is required for us to be successful, competitively. So our focus really right now is sort of stabilizing some of that and increasing our revenues, decreasing other operating expenses and getting us back to more of a stable position,” Veatch said. “In the near term, it's hard to see a time frame when that's not going to be necessary for us to be successful at this level. But over the long term, that's one of our goals, is how do we start to identify and work towards a more sustainable path.”
Veatch said he was proud the athletics department generated record revenue while working to reduce spending in areas unrelated to student-athlete compensation. The athletic department was able to shrink its negative operating balance by nearly $6 million.
Thursday’s meeting, Choi said university presidents nationwide have discussed the possibility of using private equity to help offset the cost of athletics. He emphasized, however, that the University of Missouri is not at that point, noting such a move would require giving up control.
Records obtained by ABC 17 News show the football team once again led the way in ticket sales for the school. Of the $23.3 million worth of tickets sold, the football team accounted for $15.9 million, a steady increase from the $13 million sold in 2023-24.
Veatch said the renovation to the football stadium could help generate revenue in the long term, but it will take some time before the athletic department begins to reap the benefits of the project.
The stadium still needs to be paid off. The university set a goal of $125 million in philanthropic support to fund the project. According to Veatch, it has surpassed $100 million in donations, but “still need to close the gap on that last piece.”
“If we're able to continue to sell at the rate we are, and it's going really well. We surpassed, I think, the 70% mark of inventory that's sold over there in that north end. So all that's projecting really well, but it takes a while for that to get to a positive cash balance, right? I mean, it's going to take some years of paying back some of the expenses to build it,” Veatch said. “But long term, it definitely raises our ceiling in terms of what we can generate from our football stadium, the football program, which is a big, big step for us over the long term.”
The men’s basketball team’s NCAA tournament appearance also helped boost ticket revenue, which rose from $4.7 million to $5.8 million.
Softball led all women’s sports in ticket sales at $236,399, up from $139,390 during the 2023–24 season, which included a postseason regional tournament. Women’s basketball ranked second among women’s sports, generating $178,379 in ticket sales.
Coaching salaries and benefits continue to rise, making up one of the largest expenses for the athletic department. After spending $30.7 million the previous year, the athletic department spent $32.9 million in 2024-25 and an additional $31.9 million on staff salaries.
Veatch said one of his biggest challenges is remaining competitive in the SEC, which requires spending to recruit top talent while maintaining fiscal responsibility. As the landscape of college athletics has evolved, so has his role as athletic director.
“It seems like every year the bar continues to rise in terms of what it takes to be successful. Fortunately, we're at a place and an institution that has had some resources, has passionate fans that care, and we're in a position to do that and be competitive. But it's changing dramatically. My role has changed,” Veatch said. “We continue to see record viewership, record attendance, the impact of being successful within the SEC, and our sports as a ripple effect that's pretty dramatic with our economy and enrollment, and other things. So it's important that we keep investing.”
In addition to ticket sales, the athletics department reported increases in contributions, media rights and game-day revenue from concessions, merchandise, and parking. Contributions rose by $9.1 million, a figure that includes name, image, and likeness support.
Media rights revenue increased by $6.1 million, driven by the first year of a new ESPN media rights agreement and the expanded College Football Playoff format in 2024–25. Higher ticket sales also contributed to a $1.1 million increase in game-day revenue.
