Georgia Tech athletics to post $2.1M surplus, but '19 may lag

A year after posting a $2.9 million defificit, the Georgia Tech Athletic Association will come out $2.1 million ahead in its annual budget for the

fiscal year that ends June 30. However, associate athletic director Marvin Lewis, speaking at a GTAA board meeting last week, also offered a worst-case scenario of a $2.8 million defificit for fiscal year 2019 as revenues are expected to fall by about 5 percent comparedwith the 2018 budget.

For fiscal year 2018, Tech is to finish with $88.3million in revenues, almost $4 million over the budget. The

department earned $15 million in ticket sales—$843,000

above the budgeted total — as better-than-expected premium-ticket sales and a successful strategy in the secondary market helped beat projections.

Tech also ha dun budgeted revenue from the Dream, Atlanta United, Hawks and the NCAA. The Dream and Hawks used McCamish Pavil

ion as Philips Arena was renovated, the United rented Bobby D odd Stadium as Mercedes- Benz Stadium was completed and the NCAA gave Tech an honorarium for hosting the NCAA basketball regional at Philips.

The surplus will return the department’s fund balance to $5.7 million, above the goal amount of $5 million.

For the coming year, not having Georgia on the foot- ball home schedule, playing only six home games and following a 5-6 season have lowered projections for ticket sales and TECH Fund revenues. Lewis said that not having Georgia on the home schedule can mean between $1 million and $1.5 million.

Ticket sales and TECH Fund revenues are projected to be $17.4 million, where it is expected to finish at $20.3

million for fiscal year 2018. Tech will also take a finan- -cial hit in moving from Russell Athletic to Adidas as its apparel provider, as the

department will receive $200,000 annually from Adidas compared with $950,000 from Russell.

There are also additional expenses for infrastructure and personnel with the planned August 2019 launch of the ACC Network.

The expected revenues for 2019 are $80.3 million, while expenses are $83.1million, which actually is $3.1

million under the expected fifinal expenses for fiscal year 2018. As has become customary, teams and departments have been put through a zero-based budgeting process to analyze each expense. Lewis said that he has challenged coaches and staffs “to be more efficient without

impacting the student-ath-lete experience.”

There is an anticipation of budget surpluses beginning in fiscal year 2020 and beyond, in part because of the expected distributions from the ACC after the launch of the ACC Network.

CURTIS COMPTON / CCOMPTON@AJC.COM AtlantaUnited fans fifill a sold out Bobby Dodd Stadium for United’s gameagainst the Chicago Fire onMarch 18, 2017, in Atlanta.