UConn AD: School to invest $18M a year in athletes, fundraise to reach $20.5M

HBJ PHOTO | STEVE LASCHEVER UConn Athletics Director David Benedict.

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In the wake of a federal judge approving a settlement with the NCAA, the University of Connecticut intends to share at least $18 million in revenue annually with its student-athletes, a school official said Monday.

In a letter posted on UConnHuskies.com and addressed to “UConn Nation,” Director of Athletics David Benedict states that the settlement agreement approved in the House vs. NCAA lawsuit “will reshape college athletics through the introduction of revenue sharing with student-athletes starting on July 1.”

The approved settlement, he said, “permits athletic departments to share up to $20.5 million annually with their student-athletes.”

He continued, “This year, we intend to share $18 million, with the near-term goal of being fully funded.” He added that fully funding the allowed $20.5 million limit will happen “only with the support of our loyal fans.”

That will require raising money to cover the additional $2.5 million that will enable UConn “to thrive in this evolving landscape, as success in revenue sharing directly translates to success on the fields of competition.”

Benedict added that UConn needs “to double our overall donor participation in terms of Husky Athletic Fund members and contributions, in order to continue competing at the highest level.”

In a letter posted on the website in April, Benedict said that over the past three years, “the average number of Husky Athletic Fund members has been 7,328 and annual giving has averaged approximately $10.2 million.”

During that same time period, the school’s total corporate sponsorships grew to 107, and the aggregate number of Name, Image and Likeness (NIL) deals with its student-athletes reached 2,400, he said.

In the April letter, Benedict noted that the $20.5 million per school approved in the settlement “represents new, additional resources we must identify, beyond what we currently do, to fuel the day-to-day operation of the department and support our nearly 580 student-athletes.”

“Simply put,” he added, “we must maximize current funding sources and identify new revenue streams if we want to remain competitive in the current environment.”

In its annual financial report to the NCAA filed in January for the 2023-24 fiscal year, the UConn Division of Athletics said it required $31.7 million in institutional support, down nearly 32% from fiscal year 2022. The school cited decreases in personnel costs, as well as substantial increases in overall ticket sales and fundraising revenue.

Another reason for the reduced institutional support from fiscal 2022 is that UConn paid former men’s basketball coach Kevin Ollie $13.4 million it owed to him during that fiscal year.

The report also said that UConn had increased its self-generated revenue in fiscal 2024 by $7.6 million. In fact, for the second-consecutive year, the athletic department self-generated nearly 60% of its revenues, up from 44% in Fiscal 2022.

Fiscal year 2024 also saw 8,696 people donate to athletics, a 20% increase from fiscal 2023, while total financial commitments totaled $26 million, the report states.

UConn Athletics has raised $98.3 million in gifts over the last four fiscal years (fiscal 2021-2024). It also generated $16.1 million in ticket sales in fiscal 2024, up from $12.9 million in fiscal 2023.

The overall subsidy, with student fees taken into account, was $53 million in 2022; it fell to $35.8 million in 2023.

In February, state lawmakers passed House Bill 7066, which allows student athletes to receive NIL compensation once they have agreed to attend a school and participate in sports, instead of only once they are enrolled and participating. The bill, which Gov. Lamont signed into law, also authorizes schools to compensate a student athlete through an endorsement contract or a revenue-sharing agreement under a policy adopted by the institution.

Lawmakers also offered some assistance for UConn’s fundraising efforts. The recently approved $55.8 billion, two-year budget includes a new tax credit incentive for individuals and businesses to make “payments” to UConn.

The UConn Tax Credit Incentive Program allows taxpayers to apply a credit against their personal income tax and specific taxes paid by businesses, such as corporation business, insurance premium, pass-through entity, air carrier, railroad company, cable and satellite TV company, and utility company taxes.