Athletic Department at UH Predicted to Have $3.3 Million Annual Deficit

Over the last 12 years, the University of Hawaii Athletic Department has finished in the red ten times.  This current fiscal year is predicted to be the worst one yet, with an estimated $3.3 million annual deficit.  Lower than expected ticket sales for all sports, especially football and woman's volleyball, accounted for $1.28 million below projected amounts.  The Hawaii Tourism Authority decided not to provide the athletic department with an anticipated $575,000 sponsorship.  The University was also scammed $200,000 for a fake Stevie Wonder concert, which was supposed to benefit the athletics program.  Stevie Wonder, nor his real agency, knew anything about the concert and the university has already spent $105,000 in legal fees trying to reclaim their money from the fake agents.

Ben Jay, the new athletic director, took over the program five months ago.  Jay stated, "I think the football record (3-9) had an impact and certainly pushed our losses to be bigger than what we had anticipated, but there were several other things that also happened.  And we were over budget in some areas of necessary expenses. Add all that up and we have a deficit to end this year that is much more than we would have liked.  We're trying to make it up and trying to find new revenues, but the loss of some of our sponsorship revenue due in part to what happened here has been unfortunate."

Jay stated that his goal is to get to break-even in 2014.

Source: Honolulu Star Advertiser, 6-22-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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