An independent financial and operational assessment of Arizona Athletics, conducted by a global services firm, was presented to the Arizona Board of Regents (ABOR) on June 20. The report looks back five years and provides a thorough analysis of athletics revenues, expenses, and operations, all benchmarked against peer institutions in the Big 12 Conference. The report also details the uncertainty associated with the national state of intercollegiate athletics as well as financial and operational issues and opportunities for Arizona Athletics. Most importantly, the independent assessment reinforces the importance and value of Arizona Athletics to our university and the greater community. Strengthening our organization has been one of our top priorities since returning to the university in March. To operationalize the report, we created this 5-Point Plan as a framework to guide the process. The plan
ARIZONA ATHLETICS 5-POINT PLAN
1. StreamlinedOrganizational Structure
To ensure agility and efficiency in our operations, we are implementing a new organizational structure. We will refocus on the importance of strategic investments in revenue-producing opportunities, business analytics, and initiatives that position us for success in the evolving landscape of revenue generation. These investments will enable us to capitalize on emerging opportunities and drive sustainable growth for the future.
Ensuring that Arizona Athletics team members are engaged and informed throughout the process is vital for successful implementation. Clear communication channels, regular updates, and opportunities for feedback are key components.
Additionally, we will reduce administrative leadership personnel costs by $500,000.
2. Implementation of New Processes and Culture
We must approach our fiduciary responsibilities with the utmost seriousness and manage department finances as if they were our own. We are committed to instilling a culture of accountability and responsibility, streamlining our processes, and driving operational excellence at every level of our organization.
Establishing and monitoring key performance indicators (KPIs) and metrics to track progress and evaluate effectiveness is essential.
Additional operational savings will be actualized, including travel, as well as a transparent P-Card protocol that will ensue.
3. Priority Budgeting Implemented Fall 2024
The enterprise of intercollegiate athletics will undergo a substantial transformation with the implementation of permissive revenue sharing with student-athletes in 2025 and the ability for schools to increase their scholarship offerings. Our financial resources are precious, and it is essential that they are strategically allocated to have the greatest impact. Through priority budgeting, we will align our investments with our strategic priorities, including preparing to share revenue with our student-athletes in 2025, ensuring every dollar spent advances our mission.
4. Revenue Generation
Philanthropy: Our fundraising and development strategies are undergoing a modernization effort to best align with our long-term objectives. We will cultivate deeper relationships with our donors and partners and embrace innovative approaches, unlocking new avenues for revenue growth and sustainability.
Multimedia and Naming Rights:Recognizing the potential of our multimedia and naming rights assets, and in an effort to streamline and align these efforts, we have established Arizona Sports Enterprises. By consolidating and optimizing these opportunities, we will enhance our brand visibility and drive revenue growth.
Fan Experience, Growing Attendance, and Increasing Ticket Revenue: With the transition into the Big 12, providing fans with an exemplary gameday experience and continuing to aggressively grow and monetize ticket revenue is essential.
5. Adaptation, Preparation, and Continued Learning
Recognizing that intercollegiate athletics is rapidly evolving, it is essential that Arizona Athletics remains agile and adaptable. The potential new ability to share revenue with our student-athletes is an opportunity that the university will take part, and, as such, preparation to do so will be a critical driver of our planning process in the months ahead. Encouraging a culture of continuous learning, intentionality, and innovation will enable Arizona Athletics to stay ahead of the curve and position the university to capitalize on new opportunities.
Arizona Athletics' 5-Point Plan will help us drive operational and athletic success, which the report affirms is a catalyst for increasing university student applications, enrollment, philanthropy, and positive brand awareness. Beyond campus, we will continue to serve as an economic engine for Tucson and the state of Arizona, having an annual economic impact of $265 million from athletic events. As Arizona joins the Big 12 Conference, we are bringing our nationally recognized athletic programs to a national stage. We won a record five Pac-12 team championships and an Alamo Bowl championship last year, and both our football and men's basketball programs are ranked in the top 20 nationally in ESPN's early preseason 2024 rankings. Our student-athletes earned a cumulative GPA of 3.336 in Spring 2024, an all-time high, building on a record of 13 consecutive semesters with at least a 3.0 GPA. Arizona Athletics will continue to prioritize its success as we work to strengthen our organization.
By approaching our financial management and overall enterprise with foresight, intentionality, and discipline we will ensure the long-term success and sustainability of our organization.
Desireé Reed-Francois
Vice President and Director of Athletics
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