NCAA settlement presents challenges for Gophers athletic department

New solutions will be needed to balance the budget following the 2024-25 school year.

Gophers athletic director Mark Coyle. /

A $2.8 billion settlement between leaders of the NCAA and Power Five conferences to pay current and former student-athletes is going to place significant strain on the Gophers athletic department’s budget and presents some uncertainty for the future of U athletics. 

Gophers athletic director Mark Coyle gave his annual presentation on the state of Gophers athletics to the University of Minnesota's Board of Regents on Wednesday, and much of the discussion was about how the department plans to handle the rapidly developing changes in college athletics.

Coyle previously told the Star Tribune the expectation is it will cost $21 million per year to pay student-athletes — a result of the NCAA settlement — beginning in the 2025-25 school year. That's a hefty price tag for an athletic department budget size that currently ranks 10th of the 14 Big Ten schools and is expected to rank 14th of 18 following conference expansion.

The athletic department is anticipating a balanced budget for the year 2024, but during the Board of Regents presentation, Coyle said new solutions will be required to balance the budget moving forward. Some ideas he proposed included creating more regional nonconference schedules to reduce travel costs and a slowdown in the building of facilities for Olympic sports.

"Things like that will help save money and help offset some of those costs as we move forward," Coyle said.

Additionally, Coyle cited a new Big Ten TV contract — a 7-year, $7 billion agreement with multiple networks — as something that would help offset some of the anticipated budget shortfalls.

But Regent Mary Turner asked Coyle during the meeting whether more drastic measures, such as cutting more sports, could be on the horizon; the U eliminated its men's indoor track and field, men's gymnastics and men's tennis programs as a result of financial fallout amid the COVID-19 pandemic and for Title IX compliance. More cuts in the future were not ruled out.

“As we face these new challenges, ideally, when you look at our 22 sports programs, I think we need to focus on what we provide our student-athletes. I think it’s going to look different,” Coyle said.

Briefly 

• The Board of Regents unanimously approved expanded alcohol sales that will bring canned cocktails to Gophers stadiums this fall, full-service bars in 2025-26 and direct sales in the seating bowls in 2026-27. 
• The Gophers' 3.44 grade-point average in 2023-24 was a department record and the athletics programs have a 95% graduation rate.