FY2017 (i.e., 1 July 2016 - 30 June 2017) Athletics Department Revenue:

1. Alabama: $174,305,613
2. Georgia: $157,852,479
3. Auburn: $147,413,201
4. Louisiana State: $146,934,487
5. Florida: $142,545,938
6. Tennessee: $139,659,550
7. South Carolina: $136,032,845
8. Arkansas: $132,172,997
9. Texas A&M: $130,442,544
10. Kentucky: $122,307,014
11. Ole Miss: $101,857,663
12. Missouri: $90,034,258
13. Mississippi State: $89,696,829
14. Vanderbilt: $80,335,651

FY2017 (i.e., 1 July 2016 - 30 June 2017) Athletics Department Expenses:

1. Alabama: $143,634,940
2. Florida: $137,818,468
3. South Carolina: $135,499,095
4. Louisiana State: $131,722,243
5. Tennessee: $128,944,788
6. Auburn: $125,832,608
7. Texas A&M: $122,615,852
8. Kentucky: $121,688,546
9. Arkansas: $116,112,803
10. Georgia: $110,084,458
11. Ole Miss: $92,908,665
12. Missouri: $90,034,258
13. Mississippi State: $77,773,532
13. Vanderbilt: $69,803,910

FY2017 (i.e., 1 July 2016 - 30 June 2017) Athletics Department Profit:

1. Georgia: $47,768,021
2. Alabama: $30,670,673
3. Auburn: $21,580,593
4. Arkansas: $16,060,194
5. Louisiana State: $15,212,244
6. Mississippi State: $11,923,297
7. Vanderbilt: $10,531,741
8. Tennessee: $10,714,762
9. Ole Miss: $8,948,998
10. Texas A&M: $7,826,692
11. Florida: $4,727,470
12. South Carolina: $533,750
13. Kentucky: $618,468
14. Missouri: $0

Note: UGA Athletics Association is a 501-c-3 non-profit organization.

Despite the athletics department turning a $47,768,021 profit last fiscal year and having $81.7M in reserve funds, the UGA Athletics Association Board of Directors voted on 26 January 2018 raise single game football ticket prices ($50 --> $55 vs. non-Power 5 opponents; $50 --> $75 vs. Power 5 opponents) and season football ticket prices (from $300 --> $465). Increased revenue from ticket sales is projected to net UGA Athletics Association another $6.6M/year.

University of Georgia Athletics Association Annual Financial Report for Fiscal Year 2017 (1 July 2016 - June 30, 2017)

Submitted by Ryan A. Nesbit, Vice President for Finance and Administration; Holley W. Schramski, Associate Vice President for University Business and Accounting Services; Chad Cleveland, Controller

Independently audited by Greg. S. Griffin, State Auditor, on December 14, 2017

The University of Georgia Athletics Association, Inc. (the Athletics Association) is a legally separate, tax-exempt component unit of the University of Georgia (the "Institution"). The Athletics Association was organized in 1928 as a not-for-profit corporation to promote intercollegiate athletic sports representing the Institution. Although the Institution is not fiscally accountable for the Athletic Association, the nature and significance of the relationship between the Institution and the Athletic Association is such that exclusion from these departmental financial statements would render them misleading. The Athletic Association reports under GASB Standards.

During the year ended June 30, 2017, the Athletic Association made payments to the Institution for services such as food, parking, health, tuition, gas, electricity, security, and golf course maintenance. These payments totaled $50.1 million.

UGA Athletic Association, Inc. Combining Statement of Net Position

ASSETS
Current Assets
Cash and Cash Equivalents: $45,805,638
Accounts Receivable, net Component Unit: $27,878
Other: $2,457,680
Prepaid Items: $742,999
Total Current Assets: $49,034,195
Non-Current Assets
Investments: $50,910,910
Other Assets: $496,506
Capital Assets, net: $274,453,063
Total Non-Current Assets: $325,860,479
TOTAL ASSETS: $374,894,674

DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Debt Refunding: $11,559,556
Accumulated Decrease in Fair Value of Hedging Instruments: $3,961,146

TOTAL DEFERRED OUTFLOWS OF RESOURCES: $15,520,702

LIABILITIES
Current Liabilities
Accounts Payable: $6,578,218
Salaries Payable: $5,769,216
Due to Primary Government: $5,599,476
Advances (including tuition and fees): $25,740,505
Revenue Bonds & Notes Payable: $2,865,000
Total Current Liabilities: $46,552,415
Non-Current Liabilities
Other Liabilities: $494,297
Revenue Bonds & Notes Payable: $101,403,529
Interest Rate Swap: $3,961,146
Total Non-Current Liabilities: $105,858,972
TOTAL LIABILITIES: $152,411,387

NET POSITION
- Net Investment in Capital Assets: $181,744,090
- Unrestricted: $56,259,899

TOTAL NET POSITION: $238,003,989

OPERATING REVENUES
- Auxiliary Enterprises Intercollegiate Athletics: $130,318,885

Total Operating Revenues: $130,318,885

OPERATING EXPENSES
- Staff Salaries: $11,911,586
- Employee Benefits: $360,884
- Travel: $10,608,328
- Supplies and Other Services: $91,703,657
- Depreciation: $8,991,206

Total Operating Expenses: $123,575,661

Operating Income: $6,743,224

NON-OPERATING REVENUES (EXPENSES)
- Gifts: $22,000,000
- Investment Income: $3,844,105
- Interest Expense: ($2,396,646)
- Other Non-operating Revenues (Expenses): ($58,320)

Net Non-operating Revenues: $23,389,139

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses: $30,132,363

Change in Net Position: $30,132,363

Net Position, Beginning of Year: $207,871,626

Net Position, End of Year: $238,003,989

- Alabama spent $25,864,414 more on its football program than UGA did in Fiscal Year 2017
-- Result: SEC Champions played in the College Football Playoff National Championship Game and finished the season 14-1

- Kentucky spent $12,942,567 more on its men's basketball program than UGA did in Fiscal Year 2017
-- Result: SEC Champions played in the NCAA Tournament (Elite 8 finalist) and finished the season 32-6

Bottomline: UGA Athletics Association leveraged its two revenue-generating sports (i.e., football and men's basketball) to net the SEC's biggest profit (i.e., $47,768,021) last fiscal year. Meanwhile, UGA's Football program went 8-5 while the Men's Basketball program went 19-15 on the season.

On a positive note, there are a few signs of late that the UGA Athletics Association Board of Directors and Athletics Director Greg McGarity are loosening up the belt strings a bit (noting that the investments in football compared to Alabama and investments in men's basketball compared to Kentucky are still poor):

UGA Football Expenses:

1 July 2017 - 30 June 2018: TBD
1 July 2016 - 30 June 2017: $36,387,975 (Smart)
1 July 2015 - 30 June 2016: $38,884,925 (Richt/Smart) - note: most likely includes $6.2M in buyouts owed to Richt & 6 of his assistant coaches
1 July 2014 - 30 June 2015: $26,154,335 (Richt)

- UGA opened its $30.2M Indoor Practice Facility (IPF) on 14 February 2017. Note that this project was completely funded by UGA donors (i.e., the UGA Athletics Association did not have to dip into its $81.7M reserves to pay for it). Note that in a 1998-'99 Letter to Donors, UGA promised to build a $12M IPF soon. Since that never happened, former UGA Head Football Coach Mark Richt stated in September 2004 that and IPF was his #1 priority. Unfortunately for Coach Richt, he never got it (btw, UGA was the last SEC program to build a full-sized IPF).

- UGA Athletics Association approved a $63M West End Zone project that is expected to be completed prior to the 2018 season. Note that donors are expected to pay $53M while UGA Athletics Association will pay $10M.

- UGA new Men's Basketball Coach Tom Crean signed a 5-year, $16M contract. Since that averages out to $3.2M per year, that is $1.2M per year more than his predecessor, Coach Mark Fox, who earned the second least amount of any SEC coach (only Ole Miss paid their coach less).

Thus, hopefully the days are behind us where UGA reneges on traditional bowl bonuses to its coaches and staffers (as it did in 2009 despite the UGA Athletics Association donating $5M to the school to support academics and services). Once it was discovered that Coach Richt made up for this shortfall out of his own pocket, on 20 December 2011 AD Greg McGarity provided Coach Richt, his football assistants, & several staffers a Letter of Admonition.