The WVU Athletic Department faced a record $12.9 million deficit for the past fiscal year, according to a report in the Dominion Post.
The Morgantown newspaper reports the athletic department brought in record revenue of $80,064,869.87. However, expenses totaled $92,968,426.76.
Those numbers are from the fiscal year that runs from July 1, 2011 to June 30, 2012. That loss was connected to a $20-million exit fee the athletic department paid the Big East Conference.
WVU officials anticipate more losses during the next couple years as the Mountaineers fully transition to the Big 12. The athletic department may need to take out loans through the school to cover operating expenses, the Dominion Post reports.
Even with the losses, the athletic department will not stop renovation projects or freeze salaries, according to the Dominion Post.
Short-term losses will eventually be offset by long-term gains, athletic officials told the newspaper. WVU made just 50 percent of the Big 12 revenue sharing program this year, part of the agreement to join the new conference. Next year, WVU will receive 67 percent; the following year WVU will earn 84 percent, before getting a full share in 2015-2016.
The gradual increase in revenue combined with higher travel costs, renovations and upgrades could mean several years before the athletic department is back in the black.
The largest source of revenue for the athletic department has been ticket sales at $21,559,659.33.