Feb. 25, 2009
Stanford Athletics will reduce its workforce by 13 percent, minimizing impact to student-athletes while aiming to cope with an anticipated $5.4 million shortfall in revenue over the next three years.
The budget reductions include the elimination of 21 staff positions out of 163 in administrative and service areas, including facilities and operations, external relations, physical education and recreation. Coaching staff members are not affected by the cuts, nor are employees represented by bargaining units. Most staff reductions will take effect March 2.
"Our student-athletes are the heart of our programs, and we want to minimize any reductions which might have a direct negative effect on our ability to field championship caliber teams," said Bob Bowlsby, The Jaquish & Kenninger Director of Athletics. In order to minimize impact on student-athletes, approximately $1.5 million has already been eliminated from the current fiscal year budget, primarily in administrative areas. Stanford Athletics has identified a total of almost $2.5 million in programmatic budget cuts that include freezing open positions, mandatory use of vacation accruals, reduced facility maintenance, and reduced travel expenses. In addition to reducing costs, Stanford Athletics is examining all potential sources for additional revenue, including ticket sales, multi-media rights and facility use fees.
Stanford Athletics' financial challenges mirror those being faced by the entire university. The campus administration is anticipating declines of 20 to 30 percent in endowment value this year, and has asked all campus units to plan for budget reductions of at least 15 percent over two years. Within Stanford Athletics, the targeted $5.4 million cut represents 9 percent of its operating budget excluding scholarships. The diminished yields in investments and endowment funds are expected to reduce revenue by at least $5 million over the next three fiscal years. In addition to the endowment losses, Stanford Athletics is also affected by reduced and less frequent giving from individuals, foundations and corporations as a result of the economic downturn.
"As there remains great uncertainty as to how deep and how long the economic downturn will be, we believe that the difficult decisions we have made to date will place Stanford Athletics in a prudent position to deal with the present challenges," Bowlsby said. "We are making every effort possible to preserve opportunity for our student-athletes and to protect the quality of our programs. As is the circumstance throughout the Stanford campus, we will continue to assess our budget projections and will make further adjustments as needed which may include programmatic, staff and sports reductions."
About Stanford Athletics
Stanford Athletics is a member of the Pac-10 Conference and the National Collegiate Athletic Association (NCAA). Its administrative and coaching staffs are committed to offering a wide range of high quality programs that will encourage all participants to realize opportunities for championship athletic participation, recreation, physical fitness, health, and well being. Stanford Athletics manages 18 world-class sports facilities and serves more than 800 student-athletes representing 35 intercollegiate sports programs. Stanford has won a total of 109 national championships and 14 consecutive Directors' Cup titles. Stanford teams have captured NCAA championships at an unprecedented rate, including 78 since 1980, 55 since 1990, and 19 since 2000, all national bests. Stanford has won at least one NCAA team championship for 32 consecutive years and has won at least four national titles in a single season nine times, again an NCAA best. Stanford student-athletes have gone on to win Super Bowls, Olympic medals, NBA world championships, World Series championships, Grand Slam golf and tennis championships, World Cup championships, and have also become American and world record holders, Super Bowl MVPs, Cy Young Award winners, and Hall of Fame inductees. With an extensive list of accomplishments, it is no wonder Stanford Athletics is widely known as the "Home of the Champions." For more information, please visit gostanford.com.