Amid its own budget woes, the University of Iowa’s main campus will give $50 million to its athletics department via an internal loan, The Gazette reported.
The loan will help compensate for some of the athletic department’s mounting COVID-19-related losses, which are expected to climb to at least $74 million. The department will repay the loan over the next 10 to 15 years. Outgoing university president Bruce Harreld also agreed to end an earlier deal that requires the athletics department to give the main campus $2 million each year.
Before the pandemic, the University of Iowa’s athletics department was self-sustaining and had plenty of cash. It earned $122.4 million in the 2019 budget year. That total includes $54.9 million from the Big Ten or NCAA, $7.8 million from a multimedia contract and $23.6 million in philanthropy or foundation-generated income, according to The Gazette.
By comparison, the athletic department’s fiscal 2021 budget projected only $23 million in total income, including $10 million from the Big Ten or NCAA, $7.5 million in foundation support and $1.5 million from a multimedia contract.