Twin Cities Athletics Finances Finance March 17, 2016

University of Minnesota Athletics Transforming Gopher Athletics by impacting the lives of our student-athletes, enhancing the reputation of the U, and bringing pride to all Minnesotans. Invest-Lead-Win Gopher Athletics Budget $107.3 Million University Budget $ 3.7 Billion 2.9% of the total University budget In most industries, a unit making up 2.5% of the total would have minimal impact and draw minimal attention. We are highly visible, big impact, and highly scrutinized, both officially (auditors, NCAA, Big Ten) and un-officially (media, fans, general public) This level of visibility and scrutiny means there is no room for shortcuts – and we are governed by volumes of policies and procedures, both internal to the U and external (NCAA). Further context – we sponsor 25 sports and are at the 50th% in Big Ten Budget just below the 75th% of the Big Ten with OSU at $118M and NW at $50M PAC 10 – at the 75th % for teams and well above the 75th% for budget BIG 12 – above the 75th% for teams and at the 75th % for budget 2

Gopher Athletics Key Facts 25 programs More than 725 student-athletes Department budget FY16 of $107.3M Context within the B1G: 4th highest number of sports programs (25) 4th most student-athletes (725) 5th place in Final 2014-15 Learfield Directors Cup within the conference (2nd after Fall 2015) 6th highest budgeted revenue 3

Big Ten Budgets and Teams FY2016 $s in millions

FY2016 Budget / $107.3M Major Expenses Major Revenues Compensation – $33.4M Grant in Aid – $11.3M (324 full scholarships) Sport Operations – $15.9M Support Unit Operations – $9.0M Facility Operation – $8.3M Debt Service – $7.6M Major Revenues Ticket Sales – $23M ($22M from football, men’s basketball and hockey) Television – $22.2M NCAA and Conference Distributions – $11.4M Development (realized) – $17M Media/Sponsorships – $9.8M 5

University of Minnesota Twin Cities Athletics FY2016 Revenues / $107 University of Minnesota Twin Cities Athletics FY2016 Revenues / $107.3M 6

University of Minnesota Twin Cities Athletics FY2016 Expenses / $107 University of Minnesota Twin Cities Athletics FY2016 Expenses / $107.2M 7

Financial Priorities Providing resources for our broad-based program with 25 competitive teams Athletes Village Capital Campaign Construction of Track Stadium Facilities – Ongoing and deferred maintenance Building a financial reserve Major cost drivers: Teams – Travel and Salaries / 32% of total budget is salary and fringe Scholarships – tuition and fees Facilities – Utilities and Maintenance (inherited a backlog) Administrative and Departmental costs – academic investment, insurance, post season travel, transition costs for MBKB and FB Budget Model change – beginning in FY07 10

Twin Cities Athletics Finances Finance March 17, 2016 11