The University of Hawaii athletic department had a $1.905 million deficit for the last fiscal year, requiring additional borrowing from the Manoa campus, an audit disclosed.
The report by an independent auditor, covering a period ending June 30, was presented to a Board of Regents committee Tuesday.
It was the seventh consecutive year the 21-team department has operated at a deficit and necessitates further borrowing from within the campus to balance its books.
The auditor’s report said, “… the financial condition of the athletic department declined due to a decrease in ticket sales, services and guarantee revenues subsequently offset by a decrease in operating expenses.”
It noted, “Further liquidity continues to be a concern as the athletic dept. requires significant borrowings from the university. During the years ended June 30, 2018 and 2017, borrowings from the university totaled $11 million and $7.4 million respectively.”
Athletic director David Matlin, who was attending meetings on the mainland, declined comment.
NCAA studies have shown the vast minority of major college athletic programs, often fewer than 25 of 130 schools such as UH, pay for themselves. Some regents questioned whether UH could ever be self-sufficient.
In the Big West Conference, where most UH teams compete, studies indicate Hawaii receives the lowest percentage of aid. In the Mountain West Conference where UH competes in football, New Mexico has discussed cutting some sports in the face of a $4.7 million annual deficit.
UH regents have proposed asking the governor and legislature, who provide a $2.7 million annual appropriation, for an additional $1.5 million to help underwrite rising benefit costs.