Minnesota Athletics: A Leader in Debt
The University of Minnesota has already scaled back its initial plans for new athletic facilities, but many are pushing for construction to begin within the next two months. The (current) initial phase is estimated to cost $150 million.
The U has reported private contributions of approximately $70 million, but much of that amount is only pledged, with agreed-upon cash payments to be made over the next decade.
It appears that the Athletic Department will need to take on more debt in order to move the project forward in the near future. So, what has the U’s debt load looked like as compared to its Big Ten peers in the past and how might things look in the future? Today, we look to answer those questions.
The average debt outstanding on athletic facilities in the Big Ten in 2013 was $121 million. Only two athletic departments – Michigan and Minnesota – owed more than $170 million.
| Athletic Department | Year | Total Debt Outstanding on Athletic Facilities |
| University of Michigan | 2013 | $228,405,000 |
| University of Minnesota-Twin Cities | 2013 | $213,240,000 |
| The Ohio State University | 2013 | $169,342,000 |
| University of Iowa | 2013 | $145,575,000 |
| University of Wisconsin-Madison | 2013 | $124,779,662 |
| Purdue University | 2013 | $124,175,000 |
| University of Illinois at Urbana-Champaign | 2013 | $108,987,901 |
| Michigan State University | 2013 | $82,200,000 |
| Indiana University-Bloomington | 2013 | $52,123,117 |
| Pennsylvania State University | 2013 | $48,383,590 |
| University of Nebraska-Lincoln | 2013 | $28,335,000 |
Data credit: USA Today and the Knight Commission on Intercollegiate Athletics.
The average debt service in 2013 of each school – that is, the payments of principal and interest made by the athletic department – is listed below. The Gophers had the highest debt service burden in the Big Ten.
| Athletic Department | Year | Annual Debt Service on Athletic Facilities |
| University of Minnesota-Twin Cities | 2013 | $16,160,000 |
| The Ohio State University | 2013 | $15,882,000 |
| University of Michigan | 2013 | $15,155,000 |
| University of Wisconsin-Madison | 2013 | $11,734,276 |
| University of Iowa | 2013 | $10,265,171 |
| University of Illinois at Urbana-Champaign | 2013 | $9,681,588 |
| Purdue University | 2013 | $8,977,342 |
| Michigan State University | 2013 | $7,766,847 |
| Indiana University-Bloomington | 2013 | $4,424,805 |
| University of Nebraska-Lincoln | 2013 | $3,364,180 |
| Pennsylvania State University | 2013 | $2,852,984 |
Data credit: USA Today and the Knight Commission on Intercollegiate Athletics.
If additional debt is taken on for purposes of the facilities project, the U figures to retain its hold as a leader in debt.
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