University of Minnesota Athletics
An Open Letter to the University of Minnesota Athletics Community
9/10/2020 2:43:00 PM | Athletics
Update: Following its September discussion of the proposed discontinuation of four Gopher Athletics programs, on Friday, Oct. 9, the University of Minnesota Board of Regents voted in favor of a revised proposal from the athletics department — one that will discontinue the Gopher men's gymnastics, men's tennis, and men's indoor track & field programs following the 2020-21 seasons. Gopher men's outdoor track & field, which was proposed for discontinuation in earlier discussions, was not included in this revised plan. It will be re-evaluated in a department-wide update expected to come before the Board next spring.
Read more: University of Minnesota Board of Regents approves discontinuation of Gopher Men's Gymnastics, Tennis, and Indoor Track & Field programs
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We are writing to you today with difficult news.
For years, Gopher Athletics has operated like most Minnesotans – by humbly doing more with less. Minnesota has diligently sponsored 25 varsity sports, which is the fourth-most in the Big Ten Conference, on a budget that is only the eighth largest. Despite this imbalance, we have taken great pride in offering and excelling in a broad-based athletic department, one that has claimed 76 regular-season conference titles in 20 different sports since 2000.
For the past few years, we had forecasted future sustainability issues, both financial and Title IX related, and although we have directed our efforts to address these challenges while maintaining our current sport offerings, we knew we would be faced with a difficult sports sponsorship decision at some point.
The COVID-19 pandemic and the Big Ten's decision to postpone fall 2020-21 sports has greatly increased the financial concerns. Our athletic department is now facing a projected loss of revenue of approximately $75 million just this fiscal year. This is a significant deficit and one that will have an impact for years to come. At the same time, we remain steadfast in our commitment to provide Title IX gender-equitable participation opportunities that are closely aligned with our male and female undergraduate enrollment percentages. We are mindful that our sport programs have worked to adjust their participation opportunities to keep pace with our growing female undergraduate population percentages.
As a result, we have determined that Athletics is no longer able to financially or equitably sustain 25 varsity programs, and pending approval of the Board of Regents, we will discontinue men's indoor track and field, men's outdoor track and field, men's gymnastics and men's tennis at the completion of their 2020-21 competition season. Should health and safety precautions allow, these teams will have the opportunity to compete during the 2020-21 season.
Our goal for the last few years was to create a nimble athletic department, one that was self-sufficient, competed at the highest level and provided a first-class experience for our student-athletes. We experienced record-level fundraising during the last several years and reduced our operating budgets during both FY19 and FY20. When COVID-19 struck, we adjusted and members of our executive team and several head coaches volunteered for two separate pay reductions. We previously reduced $5 million from our FY21 budget and implemented hiring and spending freezes. Despite these financial efforts, we can still no longer sustain 25 programs.
In addition to the financial challenges and gender-equity commitments, we also considered community impact, local and national interest, competitiveness, and sport sponsorship at the Big Ten and NCAA Division I level when making this decision.
We understand that this is devastating news for impacted student-athletes, coaches and staff. We also recognize the ripple effect this decision will have on all of our student-athletes and on former letterwinners, alumni, donors, family, friends and fans who have participated on and cheered for these four programs over the years. We did not make this decision lightly.
Members of the impacted teams will continue to have access to athletic, academic and mental health support throughout their 2020-21 competition season. We will also continue to honor all existing scholarships for individuals who choose to complete their undergraduate degree at Minnesota, while still offering them access to academic advising, sports psychology and necessary access to athletic medicine. We will also assist any student-athlete who decides to transfer and will support them through the transition process.
We have been honest with our student-athletes, staff and campus leadership about the severe financial ramifications our department is facing. We are also aware that this decision directly impacts lives and the livelihoods of many, while forever changing the landscape of Gopher Athletics.
Personnel Cost-Reduction Plan
In addition to adjusting our sport offerings, we are also announcing a personnel cost-reduction plan for Athletics. This is in addition to the University's previously implemented furlough and pay-reduction plan, which members of the athletic department already participated in. Most academic professional and administrative employees will be subject to a 10 percent reduction in appointment, while civil service and labor represented employees will be furloughed for 17 days. These impacts will continue for the remainder of the fiscal year. Employees who make $40,000 or less will not be impacted.
The athletic department is also eliminating eight positions in addition to those that will be eliminated because of program discontinuation. The department anticipates a savings of $1.3 million this fiscal year related to its personnel cost-reduction plan.
It was previously announced that Director of Athletics Mark Coyle and head coaches P.J. Fleck, Hugh McCutcheon, Bob Motzko, Richard Pitino and Lindsay Whalen volunteered for a 10 percent salary reduction. That reduction will now be extended through the entire fiscal year and will result in a savings of an additional $1.2 million.
In short, we have tried to find a way to avoid these difficult decisions. Unfortunately, we could not overcome the challenges presented by these unprecedented times.
We fully understand that these decisions will have a significant impact on our student-athletes and employees, especially those who are directly affected. We will continue to explore ways to mitigate our deficit and will continue to support our remaining student-athletes and staff.
Sincerely,
Joan T.A. Gabel, President
Mark Coyle, Director of Athletics
Minnesota Athletics Program Discontinuation Frequently Asked Questions
What decisions were announced today?
Today, we announced the difficult decision to discontinue our men's indoor track and field, men's outdoor track and field, men's gymnastics and men's tennis programs at the conclusion of their 2020-21 competition season. The four impacted teams will have the opportunity to compete during their 2020-21 competition season provided health and safety circumstances allow. We also announced a personnel cost-reduction plan that starts in October and continues through the fiscal year. These actions are pending Board of Regents approval.
What was the process that led to the decision to discontinue these programs?
We continuously review our program from a financial standpoint as well as a gender-equity standpoint. Our ongoing fiscal challenges have been magnified by the COVID-19 pandemic and the Big Ten's decision to postpone the fall 2020-21 season. Our athletic department is now facing a projected loss of revenue of approximately $75 million just this fiscal year. This is a significant loss and one that will impact our athletic department for years.
In order to address the initial financial impact of the pandemic, Athletic Director Mark Coyle and the department's five-highest earning coaches volunteered to take two sets of pay reductions. In addition, other head coaches and senior administration members have taken pay reductions as well. Athletics also implemented a hiring and spending freeze and eligible staff members participated in the University's furlough and pay-reduction plan. Athletics is projected to save an additional $1.3 million through its proposed personnel cost-reduction plan. These cost-containment measures are in addition to Athletics-implemented budget reductions implemented since FY19, with approximately $5 million dollars of cost saving adjustments in FY21 alone.
Why were these four sports chosen for discontinuation?
Once we determined that we simply are no longer able to sustain 25 sports financially, we reviewed our overall sport offering with an eye toward a sports sponsorship model that would provide sustainable, competitive and equitable participation opportunities for our remaining programs. Due to recent shifts in our female and male undergraduate demographics, we also needed to take steps to ensure compliance with our commitment to provide gender-equitable participation opportunities for our students consistent with federal law requirements. We also considered community impact, local and national interest, competitiveness, and sport sponsorship at the Big Ten and NCAA Division I level.
Why is this being announced now?
We are announcing now due to the impact of COVID 19. While there is never a good time to announce sport eliminations, we wanted to announce the decision as soon as it was made and with time to allow our student-athletes to fully explore their academic and athletic options.
Is there any sort of fundraising effort to save these sports?
We have tremendous donors who are extremely generous and, as a department, we have experienced record-level fundraising during the past several years. However, as this decision is a combination of financial sustainability and Title IX commitment, we do not believe there is a realistic fundraising goal we could set that would address all the challenges that led to this decision.
What does this decision say about the stability of Minnesota athletics?
For years, Minnesota has been one of the most resourceful athletic departments in the country. Twenty different Gopher teams have won a combined 76 conference titles since 2000. We are also continually ranked as one of the highest academically achieving public schools in the nation with regard to Academic Progress Report (APR) and Graduation Success Rate (GSR) and have led the Big Ten for the last five years in the number of Academic All-Americans. We do things the right way and are making decisions that we believe are necessary for our department as we move forward.
Will you honor existing athletics scholarships for those student-athletes affected?
Yes, we will honor all existing scholarships for individuals who choose to complete their undergraduate degree at Minnesota.
What is the impact of these changes on gender equity and Title IX?
The decision to eliminate four men's sports, combined with roster adjustments in women's programs, will result in female and male participation numbers that closely align with our undergraduate campus enrollment percentages, which is approximately 54% female and 46% male. By having our program offerings mirror our changing student population, the University will be ensuring that we are providing full, effective, and equitable participation opportunities for our female and male student-athletes.
How many student-athletes are affected by the decision to discontinue four programs?
This decision impacts 58 student-athletes.
How does the discontinuation of four sports impact diversity within the athletic department?
Our University and athletic department are committed to diversity, equity and inclusion. The elimination of these four programs does not change that commitment. The athletic department's goal of diversity and inclusion is to foster an environment in which all members of the Athletics community are treated equitably, contribute fully to the athletic departments mission, and embrace and model the department's values.
How will the affected student-athletes be supported?
We will continue to provide the student-athletes of these four programs with athletic, academic and mental health support throughout their 2020-21 competition season. We will also honor all existing athletics scholarships for those affected student-athletes who choose to complete their undergraduate degree at Minnesota, while still providing them with access to academic advising, sports psychology and athletics-related sports medicine services. Should a student-athlete decide to transfer, we will support them through the transition process and will grant them their full release from the University.
What will happen if competition resumes (with appropriate health and safety conditions) and if one of the teams is unable to field a roster for the upcoming season as a result of today's decision?
The 2020-21 competition season will be the final opportunity for these four programs to compete at the varsity level. We will continue to honor student-athlete scholarships and will work with coaches if a program is unable to compete during 2020-21.
How much money will be saved as a result of the program discontinuation?
We anticipate a savings of $2 million in FY22 and an annual savings of $2.7 million once all student-athletes currently on athletics-based aid have graduated.
How would potential savings be used in the future?
Financial savings will help the department balance its budget.
How much money will be saved in FY21 as a result of the personnel cost-reduction plan?
We anticipate a savings of $1.3 million this fiscal year.
Additional Frequently Asked Questions Regarding Athletics Program Reductions Plan (posted on Oct. 2, 2020)
Athletics has prepared the following responses to questions it has received regarding the proposed plan to eliminate men's indoor track, men's outdoor track, men's gymnastics, and men's tennis.
Is Athletics discontinuing programs because of Title IX?
To be clear, the impetus for sport reductions has arisen at this time due to the financial pressures facing the Athletics Department. As part of its plan, Athletics must take into account its commitment and ongoing challenges to provide Title IX gender-equitable participation opportunities for its male and female students. We support Title IX and have worked diligently to ensure our compliance with the law. We are cognizant that Title IX does not require these discontinuations. The law allows schools to meet their ongoing participation equity obligations by expanding participation opportunities for those students who are underrepresented by gender and/or by reducing opportunities for those students who are overrepresented. Because the percentage of female participation opportunities in our athletics program is currently less than the percentage of females in our full-time undergraduate population, our female student-athletes are the underrepresented gender for purposes of Title IX compliance.
Title IX provides schools with three separate and independent avenues to demonstrate participation equity. Two of the tests would require expansion of opportunities for women. The remaining test, often referred to as the Prong 1 test, requires schools to provide participation opportunities for its male and female students in percentages that are substantially proportionate to its male and female full time undergraduate population. Minnesota's current program does not meet this test even though our women's roster sizes are consistent with and in some cases have grown to sizes that exceed the NCAA Division I averages for their sports. This is due in large part to the increasing percentage of females in our undergraduate population which in turn forms the baseline for compliance with the Prong 1 test. In order to reach substantial proportionality and provide our male and female student-athletes with equitable participation opportunities, Athletics either would have to add women's sports, discontinue men's sports, or undertake some combination of the two. Unfortunately, Athletics is not in a financial position at this time to add any teams.
What is the downside/risk/penalty for not correcting an imbalance in participation numbers?
The University is committed to treating its male and female students equitably and complying with federal law. If it fails to do so, the ultimate administrative penalty for non-compliance with Title IX is the withdrawal of all federal funds received by the institution, including money earmarked for student loans. This would occur if OCR found a violation, the school refused to resolve the matter voluntarily, e.g., through the plan that Athletics has proposed, and the matter was referred to the U.S. Justice Department for enforcement. Needless to say, this would have a devastating impact on a school. Additionally, University students may file a Title IX complaint in court. If actionable noncompliance is found, damages may include monetary damages, injunctive relief (which can carry a monetary cost, e.g., if the Court orders the school to add new sports, build new facilities, etc.), and attorney's fees.
How many student-athletes are impacted by the proposed team discontinuations? How will the discontinuations impact Gopher Athletics' participation numbers?
For the 2019-2020 season, the last season with complete data, a total of 58 student-athletes competed on the men's indoor and/or men's outdoor track and field teams, 10 student-athletes competed on the men's tennis team, and 19 student-athletes competed on the men's gymnastics team. Title IX guidance directs schools to count male and female participation opportunities according to sport even where more than one opportunity may be held by the same student-athlete, i.e., a single student-athlete gets counted separately for competing on the indoor and outdoor track teams when evaluating participation opportunities. In this way the four men's sports accounted for 87 student-athletes and 144 participation opportunities as of the end of the 2019-2020 season.
18 of the student-athletes on the four men's teams completed their eligibility and graduated at the end of the 2019-2020 academic year. 18 of the student-athletes are seniors this year. They will have the opportunity to complete their eligibility and graduate at the end of the year as scheduled. 17 student-athletes on the men's track and field teams are distance runners who are also members of the men's cross country team. The cross country team will continue, and those student-athletes may continue to participate on that team. 10 new student-athletes joined the four teams this year. 4 student-athletes have left the teams for reasons unrelated to the team eliminations. That leaves 40 student-athletes who are impacted by the proposed eliminations, i.e., who would have been able to continue to participate on the teams after the current season, but will not be able to do so because of the eliminations.
Why not add a women's sport to bring the numbers in balance?
Athletics is recommending the discontinuation of sports because it does not have the money to support its current program or to add additional sport teams. Even before COVID, Athletics had already identified and communicated concerns regarding its fiscal year 2021 budget. Athletics had received notice that the anticipated Big Ten Conference revenue distribution would be approximately $2.3 million less than the previous fiscal year. Scholarship costs, on the other hand, were expected to increase by approximately $1M. Athletics planned to address these financial concerns through operating expense reductions of about $4 million. These reductions would have been in addition to cost cutting measures that had already been implemented to balance the 2019-2020 fiscal year budget.
The COVID pandemic has made the financial situation significantly worse. Athletics estimates that, due to COVID, it could face losses in fiscal year 2020-2021 of between $45 and $65 million. Athletics will be required to take a "loan" from the University to cover that loss. Athletics will be required to repay that loan, with interest. The repayment amount will represent a significant new, annually recurring cost item in the Athletics budget. Reducing the four men's sport programs will free up money that Athletics will put towards the repayment of that loan.
Athletics notes that it would most likely need to add at least two new women's teams in order to achieve the number of new participation opportunities needed to ensure ongoing compliance. Athletics estimates that the total annual cost for the two teams would be approximately $3.5M to $4M. This would include the additional support staff that would be required to support the new student-athletes (e.g., Athletic Trainers, Academic Coordinators, etc.). In addition to these annual recurring costs, Athletics would also need to fund one-time startup costs (e.g., locker rooms, practice & competition facilities, equipment, apparel, etc.). Athletics simply does not have the money to cover these costs.
Rather than discontinuing 4 sports, did Athletics consider reducing the size of men's teams, even if it means going below the national averages, or adding members to existing women's teams?
Yes, Athletics considered this option, which is generally referred to as "roster management." This is the strategy Athletics has used to address the recent increases in the number of female students as a percentage of the undergraduate population. Even before that, it was the strategy Athletics regularly relied upon to address annual fluctuations in the participation numbers and ensure ongoing compliance.
As an initial matter, Athletics notes that this approach would not allow it to achieve the financial relief it needs. Beyond these financial concerns, and the need to promptly implement cost saving measures, Athletics no longer views roster management as a viable option for at least three reasons. First, Athletics has already limited men's team roster sizes and, while not required to do so, coaches of some women's teams have increased their roster sizes to numbers that significantly exceed the national squad size averages for their sports. Athletics does not view these numbers as sustainable. In order for participation opportunities to count under Title IX, they must be meaningful opportunities. Athletics has concerns that additional roster management could impact meaningful participation.
Second, the number of female participation opportunities required to satisfy Title IX's substantial participation test can no longer be accommodated through roster management. Athletics believes that it has reached a point where in order to ensure ongoing Title IX compliance, it must add sports for women or decrease participation opportunities for male student-athletes who are currently the overrepresented gender for purposes of Title IX compliance.
Finally, Title IX does not allow schools to set participation minimums for teams of the underrepresented sex, nor would Athletics want to do so. With the understanding that some of the current women's roster sizes should be reduced, the only way to achieve Title IX compliance with the current sport teams would require Athletics to cap athletics opportunities on existing men's programs at numbers significantly below national averages for their sports. Such limitations would impact the ability of these teams to compete and would take away the ability to address even small future fluctuations in the undergraduate population or athletics participation rates. The plan set forth by Athletics would allow the institution to meet its ongoing compliance obligations and provide sustainable, equitable, meaningful, and competitive participation opportunities for all of its male and female student-athletes.
How has the COVID pandemic impacted this decision?
As is the case for many college and university athletics programs around the country, COVID has had a significant financial impact on Gopher Athletics. The Big Ten's decision to postpone competitive seasons has resulted in lost television revenue, as well as lost ticket sales, sponsorship funds, concessions sales and other revenue. In addition, Athletics has incurred significant new, unplanned expenses related to the COVID pandemic, including costs related to COVID testing, the implementation of public health and safety measures, personal protective equipment, additional travel related costs, return-to-campus costs, etc. It is not yet possible to calculate the full extent of COVID's financial impact. However, Athletics currently estimates that these losses could be $45 to $65 million for the 2020-2021 fiscal year alone.
It is important to note that COVID did not cause the underrepresentation in the Title IX participation numbers. That is primarily the product of the demographic changes in the undergraduate student population over a short period of time. Athletics would have had to take steps to address the underrepresentation whether COVID had happened or not. It is also important to note that the Athletics department had already communicated concerns regarding its finances prior to COVID. The COVID crisis has certainly deepened those concerns, but it did not create them. Because Athletics feels it can no longer address underrepresentation in women's participation opportunities through roster management of its existing teams, it would have to create new participation opportunities by adding new teams or reduce opportunities currently provided to the overrepresented sex. Athletics does not have the money to fund new teams. Unfortunately, that leaves sport reductions as the only viable option given the financial landscape.
How does the Big Ten's decision to resume football impact the decision?
Athletics expects that the Big Ten's decision to resume football will restore some of the revenue that would have otherwise been lost due to COVID, particularly some of the television revenue. However, it will not undo the financial damage arising from the COVID pandemic. It estimates that, even taking restored revenue into account, its losses for fiscal year 2020-2021 could be $45 to $65 million. Athletics will be required to take a "loan" from the University to cover these losses. It will be expected to pay that loan back, with interest. The funding that was previously used to sponsor the four men's sport programs impacted would be used to help fund these payments for many years to come.
Can the team discontinuations be avoided through a fundraising campaign?
Gopher Athletics has amazing fans and boosters. However, Athletics does not believe it is reasonable or viable to look to them to solve the current financial problems. The estimated savings from the reduction of the four men's teams total approximately $2.7 million. That is a recurring annual savings. In addition, in order to address the current underrepresentation in the participation numbers, Athletics believes it would need to add at least two new women's teams. Athletics estimates the total annual operating costs for two teams would be between $3.5 and $4 million. This would be in addition to one-time startup costs (e.g., for facilities, equipment, etc.). So, Athletics would need at least $6.2 to $6.7 million annually to support the four men's teams and the two women's teams. This would be in addition to the funds needed to repay the loan from the University to resolve the budget deficit expected in this fiscal year and other needs that are routinely addressed through fundraising.
Athletics estimates that endowing the four men's sport programs would require an endowment of $60 million. It estimates that endowing two new women's sports teams would require an additional $89M endowment.
Past experience shows that fundraising campaigns can be uncertain, i.e., even when undertaken, goals cannot always be met. Also, there are already at least two significant fundraising campaigns currently underway to pay for major capital improvements. Athletics simply does not believe there is sufficient fundraising capacity to address this situation, especially given the fact that this would be a recurring, annual need.
Read more: University of Minnesota Board of Regents approves discontinuation of Gopher Men's Gymnastics, Tennis, and Indoor Track & Field programs
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We are writing to you today with difficult news.
For years, Gopher Athletics has operated like most Minnesotans – by humbly doing more with less. Minnesota has diligently sponsored 25 varsity sports, which is the fourth-most in the Big Ten Conference, on a budget that is only the eighth largest. Despite this imbalance, we have taken great pride in offering and excelling in a broad-based athletic department, one that has claimed 76 regular-season conference titles in 20 different sports since 2000.
For the past few years, we had forecasted future sustainability issues, both financial and Title IX related, and although we have directed our efforts to address these challenges while maintaining our current sport offerings, we knew we would be faced with a difficult sports sponsorship decision at some point.
The COVID-19 pandemic and the Big Ten's decision to postpone fall 2020-21 sports has greatly increased the financial concerns. Our athletic department is now facing a projected loss of revenue of approximately $75 million just this fiscal year. This is a significant deficit and one that will have an impact for years to come. At the same time, we remain steadfast in our commitment to provide Title IX gender-equitable participation opportunities that are closely aligned with our male and female undergraduate enrollment percentages. We are mindful that our sport programs have worked to adjust their participation opportunities to keep pace with our growing female undergraduate population percentages.
As a result, we have determined that Athletics is no longer able to financially or equitably sustain 25 varsity programs, and pending approval of the Board of Regents, we will discontinue men's indoor track and field, men's outdoor track and field, men's gymnastics and men's tennis at the completion of their 2020-21 competition season. Should health and safety precautions allow, these teams will have the opportunity to compete during the 2020-21 season.
Our goal for the last few years was to create a nimble athletic department, one that was self-sufficient, competed at the highest level and provided a first-class experience for our student-athletes. We experienced record-level fundraising during the last several years and reduced our operating budgets during both FY19 and FY20. When COVID-19 struck, we adjusted and members of our executive team and several head coaches volunteered for two separate pay reductions. We previously reduced $5 million from our FY21 budget and implemented hiring and spending freezes. Despite these financial efforts, we can still no longer sustain 25 programs.
In addition to the financial challenges and gender-equity commitments, we also considered community impact, local and national interest, competitiveness, and sport sponsorship at the Big Ten and NCAA Division I level when making this decision.
We understand that this is devastating news for impacted student-athletes, coaches and staff. We also recognize the ripple effect this decision will have on all of our student-athletes and on former letterwinners, alumni, donors, family, friends and fans who have participated on and cheered for these four programs over the years. We did not make this decision lightly.
Members of the impacted teams will continue to have access to athletic, academic and mental health support throughout their 2020-21 competition season. We will also continue to honor all existing scholarships for individuals who choose to complete their undergraduate degree at Minnesota, while still offering them access to academic advising, sports psychology and necessary access to athletic medicine. We will also assist any student-athlete who decides to transfer and will support them through the transition process.
We have been honest with our student-athletes, staff and campus leadership about the severe financial ramifications our department is facing. We are also aware that this decision directly impacts lives and the livelihoods of many, while forever changing the landscape of Gopher Athletics.
Personnel Cost-Reduction Plan
In addition to adjusting our sport offerings, we are also announcing a personnel cost-reduction plan for Athletics. This is in addition to the University's previously implemented furlough and pay-reduction plan, which members of the athletic department already participated in. Most academic professional and administrative employees will be subject to a 10 percent reduction in appointment, while civil service and labor represented employees will be furloughed for 17 days. These impacts will continue for the remainder of the fiscal year. Employees who make $40,000 or less will not be impacted.
The athletic department is also eliminating eight positions in addition to those that will be eliminated because of program discontinuation. The department anticipates a savings of $1.3 million this fiscal year related to its personnel cost-reduction plan.
It was previously announced that Director of Athletics Mark Coyle and head coaches P.J. Fleck, Hugh McCutcheon, Bob Motzko, Richard Pitino and Lindsay Whalen volunteered for a 10 percent salary reduction. That reduction will now be extended through the entire fiscal year and will result in a savings of an additional $1.2 million.
In short, we have tried to find a way to avoid these difficult decisions. Unfortunately, we could not overcome the challenges presented by these unprecedented times.
We fully understand that these decisions will have a significant impact on our student-athletes and employees, especially those who are directly affected. We will continue to explore ways to mitigate our deficit and will continue to support our remaining student-athletes and staff.
Sincerely,
Joan T.A. Gabel, President
Mark Coyle, Director of Athletics
Minnesota Athletics Program Discontinuation Frequently Asked Questions
What decisions were announced today?
Today, we announced the difficult decision to discontinue our men's indoor track and field, men's outdoor track and field, men's gymnastics and men's tennis programs at the conclusion of their 2020-21 competition season. The four impacted teams will have the opportunity to compete during their 2020-21 competition season provided health and safety circumstances allow. We also announced a personnel cost-reduction plan that starts in October and continues through the fiscal year. These actions are pending Board of Regents approval.
What was the process that led to the decision to discontinue these programs?
We continuously review our program from a financial standpoint as well as a gender-equity standpoint. Our ongoing fiscal challenges have been magnified by the COVID-19 pandemic and the Big Ten's decision to postpone the fall 2020-21 season. Our athletic department is now facing a projected loss of revenue of approximately $75 million just this fiscal year. This is a significant loss and one that will impact our athletic department for years.
In order to address the initial financial impact of the pandemic, Athletic Director Mark Coyle and the department's five-highest earning coaches volunteered to take two sets of pay reductions. In addition, other head coaches and senior administration members have taken pay reductions as well. Athletics also implemented a hiring and spending freeze and eligible staff members participated in the University's furlough and pay-reduction plan. Athletics is projected to save an additional $1.3 million through its proposed personnel cost-reduction plan. These cost-containment measures are in addition to Athletics-implemented budget reductions implemented since FY19, with approximately $5 million dollars of cost saving adjustments in FY21 alone.
Why were these four sports chosen for discontinuation?
Once we determined that we simply are no longer able to sustain 25 sports financially, we reviewed our overall sport offering with an eye toward a sports sponsorship model that would provide sustainable, competitive and equitable participation opportunities for our remaining programs. Due to recent shifts in our female and male undergraduate demographics, we also needed to take steps to ensure compliance with our commitment to provide gender-equitable participation opportunities for our students consistent with federal law requirements. We also considered community impact, local and national interest, competitiveness, and sport sponsorship at the Big Ten and NCAA Division I level.
Why is this being announced now?
We are announcing now due to the impact of COVID 19. While there is never a good time to announce sport eliminations, we wanted to announce the decision as soon as it was made and with time to allow our student-athletes to fully explore their academic and athletic options.
Is there any sort of fundraising effort to save these sports?
We have tremendous donors who are extremely generous and, as a department, we have experienced record-level fundraising during the past several years. However, as this decision is a combination of financial sustainability and Title IX commitment, we do not believe there is a realistic fundraising goal we could set that would address all the challenges that led to this decision.
What does this decision say about the stability of Minnesota athletics?
For years, Minnesota has been one of the most resourceful athletic departments in the country. Twenty different Gopher teams have won a combined 76 conference titles since 2000. We are also continually ranked as one of the highest academically achieving public schools in the nation with regard to Academic Progress Report (APR) and Graduation Success Rate (GSR) and have led the Big Ten for the last five years in the number of Academic All-Americans. We do things the right way and are making decisions that we believe are necessary for our department as we move forward.
Will you honor existing athletics scholarships for those student-athletes affected?
Yes, we will honor all existing scholarships for individuals who choose to complete their undergraduate degree at Minnesota.
What is the impact of these changes on gender equity and Title IX?
The decision to eliminate four men's sports, combined with roster adjustments in women's programs, will result in female and male participation numbers that closely align with our undergraduate campus enrollment percentages, which is approximately 54% female and 46% male. By having our program offerings mirror our changing student population, the University will be ensuring that we are providing full, effective, and equitable participation opportunities for our female and male student-athletes.
How many student-athletes are affected by the decision to discontinue four programs?
This decision impacts 58 student-athletes.
How does the discontinuation of four sports impact diversity within the athletic department?
Our University and athletic department are committed to diversity, equity and inclusion. The elimination of these four programs does not change that commitment. The athletic department's goal of diversity and inclusion is to foster an environment in which all members of the Athletics community are treated equitably, contribute fully to the athletic departments mission, and embrace and model the department's values.
How will the affected student-athletes be supported?
We will continue to provide the student-athletes of these four programs with athletic, academic and mental health support throughout their 2020-21 competition season. We will also honor all existing athletics scholarships for those affected student-athletes who choose to complete their undergraduate degree at Minnesota, while still providing them with access to academic advising, sports psychology and athletics-related sports medicine services. Should a student-athlete decide to transfer, we will support them through the transition process and will grant them their full release from the University.
What will happen if competition resumes (with appropriate health and safety conditions) and if one of the teams is unable to field a roster for the upcoming season as a result of today's decision?
The 2020-21 competition season will be the final opportunity for these four programs to compete at the varsity level. We will continue to honor student-athlete scholarships and will work with coaches if a program is unable to compete during 2020-21.
How much money will be saved as a result of the program discontinuation?
We anticipate a savings of $2 million in FY22 and an annual savings of $2.7 million once all student-athletes currently on athletics-based aid have graduated.
How would potential savings be used in the future?
Financial savings will help the department balance its budget.
How much money will be saved in FY21 as a result of the personnel cost-reduction plan?
We anticipate a savings of $1.3 million this fiscal year.
Additional Frequently Asked Questions Regarding Athletics Program Reductions Plan (posted on Oct. 2, 2020)
Athletics has prepared the following responses to questions it has received regarding the proposed plan to eliminate men's indoor track, men's outdoor track, men's gymnastics, and men's tennis.
Is Athletics discontinuing programs because of Title IX?
To be clear, the impetus for sport reductions has arisen at this time due to the financial pressures facing the Athletics Department. As part of its plan, Athletics must take into account its commitment and ongoing challenges to provide Title IX gender-equitable participation opportunities for its male and female students. We support Title IX and have worked diligently to ensure our compliance with the law. We are cognizant that Title IX does not require these discontinuations. The law allows schools to meet their ongoing participation equity obligations by expanding participation opportunities for those students who are underrepresented by gender and/or by reducing opportunities for those students who are overrepresented. Because the percentage of female participation opportunities in our athletics program is currently less than the percentage of females in our full-time undergraduate population, our female student-athletes are the underrepresented gender for purposes of Title IX compliance.
Title IX provides schools with three separate and independent avenues to demonstrate participation equity. Two of the tests would require expansion of opportunities for women. The remaining test, often referred to as the Prong 1 test, requires schools to provide participation opportunities for its male and female students in percentages that are substantially proportionate to its male and female full time undergraduate population. Minnesota's current program does not meet this test even though our women's roster sizes are consistent with and in some cases have grown to sizes that exceed the NCAA Division I averages for their sports. This is due in large part to the increasing percentage of females in our undergraduate population which in turn forms the baseline for compliance with the Prong 1 test. In order to reach substantial proportionality and provide our male and female student-athletes with equitable participation opportunities, Athletics either would have to add women's sports, discontinue men's sports, or undertake some combination of the two. Unfortunately, Athletics is not in a financial position at this time to add any teams.
What is the downside/risk/penalty for not correcting an imbalance in participation numbers?
The University is committed to treating its male and female students equitably and complying with federal law. If it fails to do so, the ultimate administrative penalty for non-compliance with Title IX is the withdrawal of all federal funds received by the institution, including money earmarked for student loans. This would occur if OCR found a violation, the school refused to resolve the matter voluntarily, e.g., through the plan that Athletics has proposed, and the matter was referred to the U.S. Justice Department for enforcement. Needless to say, this would have a devastating impact on a school. Additionally, University students may file a Title IX complaint in court. If actionable noncompliance is found, damages may include monetary damages, injunctive relief (which can carry a monetary cost, e.g., if the Court orders the school to add new sports, build new facilities, etc.), and attorney's fees.
How many student-athletes are impacted by the proposed team discontinuations? How will the discontinuations impact Gopher Athletics' participation numbers?
For the 2019-2020 season, the last season with complete data, a total of 58 student-athletes competed on the men's indoor and/or men's outdoor track and field teams, 10 student-athletes competed on the men's tennis team, and 19 student-athletes competed on the men's gymnastics team. Title IX guidance directs schools to count male and female participation opportunities according to sport even where more than one opportunity may be held by the same student-athlete, i.e., a single student-athlete gets counted separately for competing on the indoor and outdoor track teams when evaluating participation opportunities. In this way the four men's sports accounted for 87 student-athletes and 144 participation opportunities as of the end of the 2019-2020 season.
18 of the student-athletes on the four men's teams completed their eligibility and graduated at the end of the 2019-2020 academic year. 18 of the student-athletes are seniors this year. They will have the opportunity to complete their eligibility and graduate at the end of the year as scheduled. 17 student-athletes on the men's track and field teams are distance runners who are also members of the men's cross country team. The cross country team will continue, and those student-athletes may continue to participate on that team. 10 new student-athletes joined the four teams this year. 4 student-athletes have left the teams for reasons unrelated to the team eliminations. That leaves 40 student-athletes who are impacted by the proposed eliminations, i.e., who would have been able to continue to participate on the teams after the current season, but will not be able to do so because of the eliminations.
Why not add a women's sport to bring the numbers in balance?
Athletics is recommending the discontinuation of sports because it does not have the money to support its current program or to add additional sport teams. Even before COVID, Athletics had already identified and communicated concerns regarding its fiscal year 2021 budget. Athletics had received notice that the anticipated Big Ten Conference revenue distribution would be approximately $2.3 million less than the previous fiscal year. Scholarship costs, on the other hand, were expected to increase by approximately $1M. Athletics planned to address these financial concerns through operating expense reductions of about $4 million. These reductions would have been in addition to cost cutting measures that had already been implemented to balance the 2019-2020 fiscal year budget.
The COVID pandemic has made the financial situation significantly worse. Athletics estimates that, due to COVID, it could face losses in fiscal year 2020-2021 of between $45 and $65 million. Athletics will be required to take a "loan" from the University to cover that loss. Athletics will be required to repay that loan, with interest. The repayment amount will represent a significant new, annually recurring cost item in the Athletics budget. Reducing the four men's sport programs will free up money that Athletics will put towards the repayment of that loan.
Athletics notes that it would most likely need to add at least two new women's teams in order to achieve the number of new participation opportunities needed to ensure ongoing compliance. Athletics estimates that the total annual cost for the two teams would be approximately $3.5M to $4M. This would include the additional support staff that would be required to support the new student-athletes (e.g., Athletic Trainers, Academic Coordinators, etc.). In addition to these annual recurring costs, Athletics would also need to fund one-time startup costs (e.g., locker rooms, practice & competition facilities, equipment, apparel, etc.). Athletics simply does not have the money to cover these costs.
Rather than discontinuing 4 sports, did Athletics consider reducing the size of men's teams, even if it means going below the national averages, or adding members to existing women's teams?
Yes, Athletics considered this option, which is generally referred to as "roster management." This is the strategy Athletics has used to address the recent increases in the number of female students as a percentage of the undergraduate population. Even before that, it was the strategy Athletics regularly relied upon to address annual fluctuations in the participation numbers and ensure ongoing compliance.
As an initial matter, Athletics notes that this approach would not allow it to achieve the financial relief it needs. Beyond these financial concerns, and the need to promptly implement cost saving measures, Athletics no longer views roster management as a viable option for at least three reasons. First, Athletics has already limited men's team roster sizes and, while not required to do so, coaches of some women's teams have increased their roster sizes to numbers that significantly exceed the national squad size averages for their sports. Athletics does not view these numbers as sustainable. In order for participation opportunities to count under Title IX, they must be meaningful opportunities. Athletics has concerns that additional roster management could impact meaningful participation.
Second, the number of female participation opportunities required to satisfy Title IX's substantial participation test can no longer be accommodated through roster management. Athletics believes that it has reached a point where in order to ensure ongoing Title IX compliance, it must add sports for women or decrease participation opportunities for male student-athletes who are currently the overrepresented gender for purposes of Title IX compliance.
Finally, Title IX does not allow schools to set participation minimums for teams of the underrepresented sex, nor would Athletics want to do so. With the understanding that some of the current women's roster sizes should be reduced, the only way to achieve Title IX compliance with the current sport teams would require Athletics to cap athletics opportunities on existing men's programs at numbers significantly below national averages for their sports. Such limitations would impact the ability of these teams to compete and would take away the ability to address even small future fluctuations in the undergraduate population or athletics participation rates. The plan set forth by Athletics would allow the institution to meet its ongoing compliance obligations and provide sustainable, equitable, meaningful, and competitive participation opportunities for all of its male and female student-athletes.
How has the COVID pandemic impacted this decision?
As is the case for many college and university athletics programs around the country, COVID has had a significant financial impact on Gopher Athletics. The Big Ten's decision to postpone competitive seasons has resulted in lost television revenue, as well as lost ticket sales, sponsorship funds, concessions sales and other revenue. In addition, Athletics has incurred significant new, unplanned expenses related to the COVID pandemic, including costs related to COVID testing, the implementation of public health and safety measures, personal protective equipment, additional travel related costs, return-to-campus costs, etc. It is not yet possible to calculate the full extent of COVID's financial impact. However, Athletics currently estimates that these losses could be $45 to $65 million for the 2020-2021 fiscal year alone.
It is important to note that COVID did not cause the underrepresentation in the Title IX participation numbers. That is primarily the product of the demographic changes in the undergraduate student population over a short period of time. Athletics would have had to take steps to address the underrepresentation whether COVID had happened or not. It is also important to note that the Athletics department had already communicated concerns regarding its finances prior to COVID. The COVID crisis has certainly deepened those concerns, but it did not create them. Because Athletics feels it can no longer address underrepresentation in women's participation opportunities through roster management of its existing teams, it would have to create new participation opportunities by adding new teams or reduce opportunities currently provided to the overrepresented sex. Athletics does not have the money to fund new teams. Unfortunately, that leaves sport reductions as the only viable option given the financial landscape.
How does the Big Ten's decision to resume football impact the decision?
Athletics expects that the Big Ten's decision to resume football will restore some of the revenue that would have otherwise been lost due to COVID, particularly some of the television revenue. However, it will not undo the financial damage arising from the COVID pandemic. It estimates that, even taking restored revenue into account, its losses for fiscal year 2020-2021 could be $45 to $65 million. Athletics will be required to take a "loan" from the University to cover these losses. It will be expected to pay that loan back, with interest. The funding that was previously used to sponsor the four men's sport programs impacted would be used to help fund these payments for many years to come.
Can the team discontinuations be avoided through a fundraising campaign?
Gopher Athletics has amazing fans and boosters. However, Athletics does not believe it is reasonable or viable to look to them to solve the current financial problems. The estimated savings from the reduction of the four men's teams total approximately $2.7 million. That is a recurring annual savings. In addition, in order to address the current underrepresentation in the participation numbers, Athletics believes it would need to add at least two new women's teams. Athletics estimates the total annual operating costs for two teams would be between $3.5 and $4 million. This would be in addition to one-time startup costs (e.g., for facilities, equipment, etc.). So, Athletics would need at least $6.2 to $6.7 million annually to support the four men's teams and the two women's teams. This would be in addition to the funds needed to repay the loan from the University to resolve the budget deficit expected in this fiscal year and other needs that are routinely addressed through fundraising.
Athletics estimates that endowing the four men's sport programs would require an endowment of $60 million. It estimates that endowing two new women's sports teams would require an additional $89M endowment.
Past experience shows that fundraising campaigns can be uncertain, i.e., even when undertaken, goals cannot always be met. Also, there are already at least two significant fundraising campaigns currently underway to pay for major capital improvements. Athletics simply does not believe there is sufficient fundraising capacity to address this situation, especially given the fact that this would be a recurring, annual need.
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