The Gophers athletic department forecasted a budget deficit of nearly $9 million in fiscal year 2026 during its presentation to the university’s Board of Regents on Wednesday.

The largest new line-item expense the Gophers — and the biggest programs across the country — need to include is $20.5 million in direct payments to student-athletes as part of the House vs. NCAA settlement that started in July.

The Gophers’ budgeted revenue is $165.4 million against $174.2 million in expenses (a $8.8 million shortfall). The House settlement makes up 12% of the department’s planned expenses for next year.

Board co-vice chair Penny Wheeler called the complexities of athletics budget “just mind-boggling” and wanted to know how the forecasted 5% percent gap would impact the future.

“We understand there is a different delta this year and we fully expect to work with our campus partners to navigate our way through these changing landscapes,” Athletic Director Mark Coyle told regents. “We feel comfortable that we will be able to navigate.”

In June, the Gophers shared with regents their budget crunch includes $15 million in general cost increases via scholarships, compensations, debt service, expanded travel and other items. But with immediate spending reductions, projected revenue growth and other factors, that deficit is brought down by a similar $15 million amount.

The 2026 deficit was bought down $6 million more with application of “one-time revenue” and delaying a loan repayment. The plan for the rest of the shortfall is be sequestered in an account for athletics to eliminate in the future, the U said in the June docket.

In 2027, the Gophers said they anticipate significant increases in reoccurring revenues from the College Football Playoff and other changes to revenue and expenses to leave a recurring estimated budget shortfall of $5 million.

The Gophers are not planning to cut the number of intercollegiate sports offered by the U, a spokesman confirmed Wednesday. The U currently has 22 teams after axing three teams coming out of the pandemic.

The Gophers are proposing a 5% budget cut to some unspecified departments and have not filled approximately 40 jobs, including one-third of those positions in the last year, said Tim McCleary, the Gophers chief financial officer.

McCleary said U athletics projection is to finish the 2025 fiscal year with a balanced budget. He added the U has balanced the budget every year since Athletics Director Mark Coyle’s joined the U in 2016 — besides the pandemic-impacted years in 2020, ’21.

The U budgeted a nearly $4 million deficit for fiscal year 2025, which included a $3.5 million contingency for Name, Image and Likeness (NIL) payments directly from the athletics department to players. But no changes in state laws or NCAA rules occurred, so the U was able to present another balanced budget on Wednesday.

With the House settlement, Coyle’s presentation to regents shared that revenue sharing will go to football, men’s hockey, volleyball and men’s and women’s basketball. The U will also add 11 scholarships (six of women, five for men).

McCleary said football, men’s basketball and men’s hockey netted approximately $63 million combined the athletic department’s bottom line this year.

“With the investment in institutional NIL (House settlement), it is critical to remain committed to success in these programs in order to support broad-based programming,” McCleary said. “And further grow the impact that athletics generates for the University and the state as a Big Ten program.”

Briefly

The U’s Board of Regents approved Wednesday football coach P.J. Fleck’s one-year contract extension through the 2030 season; it comes with increased annual retention bonuses.

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