Athletics department's budget woes have long history

A new athletics department plan seeks to end an eight-year streak of red ink.\nThe department has recorded yearly deficits since 1998, according to the reports of former IU Athletics Director Michael McNeely and three independent accountants' reports conducted by advisory firm BKD, LLP, obtained by the Indiana Daily Student. \nAthletics Department Chief Financial Officer Kevin Clark said the current debt totals around $6 million and has accumulated over five years.\nRick Greenspan inherited the current debt and the task of eliminating it upon becoming IU's athletics director in September 2004. His arrival followed a series of personnel changes that included McNeely's resignation in 2002.\nThe athletics department recorded a $2.7 million deficit in the year prior to Greenspan's arrival, according to a BKD report filed Sept. 30, 2004.\nOn Friday, the athletics department reported a $1.8 million deficit -- an indication of progress -- for the most recent fiscal year and presented a proposal that aims to balance the budget by 2007.\n"I would say that I applaud (Greenspan)," trustee Sue Talbot said. "What they brought to us is exactly what we asked for."\nOne provision of the proposal is the elimination of the often-controversial $30 athletics fee that was implemented in fall 2004. Terry Clapacs, then-interim athletics director and current vice president and chief administrative officer, introduced the fee to help combat rising athletics costs. It was approved in a 7-1 vote by the trustees.\nIU President Adam Herbert and Greenspan have acknowledged that the athletics department owes the University an unspecified amount as a result of its continued deficit. Both said they have no timetable for repaying the debt to the University.\nHerbert and Greenspan said they have not analyzed financial problems of the athletics department that occurred before they came to IU.