Winning a national championship should mean everything is smooth sailing, right? Wrong. Ohio State, despite sitting atop the college football world, is staring down a staggering $38 million financial shortfall—a deficit so large that, ironically, it’s almost the same amount the school would have paid to fire Ryan Day after losing to Michigan. In other words, whether they had moved on from Day or stuck with him and won it all, they’d still be in the same deep financial hole.
And here’s the kicker: Ohio State isn’t alone in this financial mess. The entire Big Ten, despite boasting the richest TV deal in college football history, is drowning in expenses, with many programs burning through cash at an alarming rate.
The Big Ten’s Billion-Dollar Illusion
At first glance, $2.84 billion in conference-wide revenue sounds like a dream. But peel back the curtain, and reality hits like a blitzing linebacker—Big Ten schools are spending faster than they’re earning. In 2024 alone, nearly half the conference operated at a loss, with at least four programs posting deficits of $15 million or more.
Sports analyst Adam Breneman didn’t sugarcoat it:
“The Big Ten just released its financial data for their athletic departments, and the numbers are shocking. Despite bringing in $2.8 billion in revenue, half the conference departments still lost money.”
It’s not just mismanagement—it’s a financial arms race on steroids. Buyouts are skyrocketing, recruiting budgets have jumped 56% in just two years, and constant facility upgrades have turned spending into a runaway train. And now, with direct payments to players looming, costs are only going up.
Ohio State’s $38M Hole: A Perfect Storm of Spending
So, how did Ohio State go from celebrating a national championship to a massive deficit? A few key reasons:
- A Home Game Shortfall – With only six home games instead of the usual seven or eight, the Buckeyes suffered a $14.5 million hit in ticket revenue.
- Big Moves, Big Costs – Former athletic director Gene Smith went on a spending spree, handing out major salary bumps, bringing in Chip Kelly as offensive coordinator, and investing heavily in the football program.
- Basketball Buyout Blues – The school had to shell out over $8 million to part ways with former basketball coach Chris Holtmann.
- Severance Surprises – An additional $9 million+ in severance payouts further drained the budget.
When all was said and done, Ohio State raked in $255 million in revenue—a jaw-dropping number—but they spent nearly $293 million. New athletic director Ross Bjork insists the program will balance its books in three years, aided by bigger TV payouts and a return to an eight-game home schedule. But with the way spending is spiraling, that’s a big if.
The Big Ten’s Financial Crisis: Who’s Struggling the Most?
While Ohio State’s financial headache is bad, it pales in comparison to some of its conference rivals.
- UCLA: $51.9 million loss last year, and a mind-blowing $200.6 million deficit over five years.
- Rutgers: $41.5 million in the red last year, and $139 million in five-year losses.
- Maryland: Still digging out of a $32.7 million hole, with full Big Ten payouts not arriving until 2027.
- Michigan State: Went from a $16.35 million surplus in 2022 to a $16.7 million loss in 2024, largely due to a 38% spike in administrative salaries.
Even so, Michigan State still ranks just seventh in the Big Ten for staff salaries, raising the question: Are they playing catch-up, or just throwing money around recklessly?
Where Is All the Money Going?
The real question is, if Big Ten schools are raking in record revenue, why are so many in financial distress? The answer lies in reckless spending, eye-popping debt, and the never-ending race to build bigger and better facilities.
Take Ohio State and Nebraska, for example. Both poured money into new athletic facilities, and now they’re paying the price—literally. Ohio State has to cough up $33.7 million annually in debt payments, while Nebraska is on the hook for $30.5 million. Compare that to UCLA and Maryland, who played it safe and kept construction costs low, and their debt payments are under $700K a year.
But some schools are getting outside help. UCLA received $30 million in financial support from its university, while Maryland collected $18 million from student fees and direct school funding. Rutgers? They needed a $21 million university bailout just to stay afloat.
Then, there’s the self-sufficient elite—programs like Michigan, Ohio State, Penn State, Nebraska, and Purdue, which run their athletic departments without any university handouts.
Yet, even with record-breaking TV deals, some schools still need emergency funding just to operate. Indiana borrowed $26 million to fire Tom Allen, while Illinois, Minnesota, Michigan State, and Washington had to pull millions from their universities to cover expenses.
The Harsh Reality: College Football’s Financial Model is Crumbling
This isn’t just a Big Ten problem—it’s a red flag for the entire sport. If the richest conference in college football is struggling to stay in the black, what does that mean for everyone else?
At some point, the spending spree has to stop. With NIL and direct athlete compensation adding another layer of costs, and universities already bailing out athletic programs, the college football financial bubble might be on the verge of bursting.
For now, schools like Ohio State, Michigan, and Penn State can weather the storm thanks to brand power and alumni support. But if the Big Ten, with all its financial muscle, is struggling to balance the books, the future of college football as we know it may be heading toward an economic reckoning.
