Already under pressure for years, school budgets are expected to take another huge hit due to the economic downturn. At some schools, athletic spending has already been frozen for the remainder of the year, but with many budgets already set for the current year, the bigger concern appears to be the shape of 2009/2010 budgets as funds from federal, state, and local governing bodies dries up.
Sports Executive Weekly's sister publication, Sporting Goods Dealers TEAM Business, recently polled several athletic directors and team dealers across the country to explore how the economic climate is impacting school athletic budgets.
The poll finds that some states are not being impacted by the recession as much as others. Also, some athletic programs in certain states are already widely being supported by booster clubs and parents. But most athletic directors are hunkering down for some sizable cuts in their 09/10 budgets. One A.D. saw his budget cut less than 5% while another saw a 20% reduction. All seemed to be preparing for the worst.
Many are planning on delaying uniform and equipment purchases and finding other ways to achieve cost savings. With some costs largely fixed (transportation, security, and referees at games), the budget cuts are expected to come in athletic travel, meals, overnight lodging, the size of coaching staffs, as well as uniforms and equipment.
“Equipment 'wants' will be eliminated entirely and the 'needs' will be evaluated before each purchase is made,” said Brian Stacy, Clovis Municipal Schools, Clovis, NM.
Most expected to keep existing equipment and uniforms around one more season rather than making new purchases or even reconditioning equipment.
“I may even have to cut back on the number of balls purchased for each sport,” said Kelly Lewis, Independence High School, Charlotte, NC. “Coaches will have to find a way to make them last longer, and look for the balls that leave the playing field.”
In some cases, athletic directors will be pressured to “make-do” with existing safety equipment such as football helmets and wrestling headgear for one more year even if may not be safe, said Stacy. He noted that safety equipment tends be more expensive than other team items.
Pat Montalbano, Hammond Clark High School, Whiting IN, noted that game attendance is down at most events and fundraisers have shown a decrease in profits, with the economy being a big factor.
“Our athletic department has focused on the short term immediate needs of our sports program; only items that are essential for the safe operation of each particular sport will be budgeted,” said Montalbano. “Big ticket items must be put on hold until the light at the end of the tunnel can be seen.”
Some schools are looking to save money in transportation by putting multiple teams on the same trip and having parents take their kids to certain venues. Also being explored is cutting back on the number of games, eliminating the lower teams in programs (C teams), and combining teams in the lower grades. At the extreme, eliminating specific sports teams will be explored, ADs admit.
“We are hopeful to save all of the programs, however, nothing escapes the discussion at this point,” said Tony Hemmelgarn, Turpin High School, Cincinnati OH.
Team dealers agreed that many schools are in a wait-and-see mode and that's somewhat impacting sales for the current year. Even those that have some money in their budget are holding onto it in case they need those funds to support any 09/10 budget shortfall.
“I think some ordering that we would be getting in February or March were not going to be getting until May or June, until people really have a firm grasp of whats going on for the fall 09 season,” said Dave Kruse, Haydens Athletic, Montgomery, IL. “People are cautious.”
Said Jeff Billings, Billings Sports, Meridan, CT, “Everyones just scared to be spending money.”
Some are counting on parents and booster club money to make up for any 09/10 shortfall, especially in regions where such fund-raising efforts are already highly-organized due to past budget cuts. In some cases, booster clubs are even funding travel and referee budgets.
“Its killing them,” said Mike Bruno, Grogan-Marciano Sporting Goods, Mansfield, MA. “School budgets are taking tremendous hits so much so that anything were writing for orders for next fall is primarily coming from parents or booster club money. And theyre basically just buying the bare essentials to get by some of them not even that.”
Jim Brumfield, Glenns Sporting Goods, Huntington, WV, is hoping for continued strong support in his region from public fundraising.
“Theyre smaller communities and people come to watch the football games, so that is a tremendous revenue booster,” said Brumfield. “Were finding the parents are becoming much more creative and making donations.”
“Nowadays, if you're a coach, the fundraising goes with the territory,” concurred Todd Dunaway, Sport & Cycle, Fortuna, CA. “Jerseys only last so long, so there always seems to be some parent that's got money or a booster club that's active that gets the uniforms that are needed. We're certainly not immune to the recession. Our retail side is getting hurt a little bit. People aren't coming in to buy the $100 shoes anymore, but sports aren't going to go away. But our team sales seem to be holding their own.”
