Penn State spends (and makes) more than ever on sports: Where did increases come from?
Penn State has rapidly increased athletic spending since AD Pat Kraft took over 18 months ago.
Kraft promised to elevate Penn State football — and the university's entire athletic image — by providing the resources deemed necessary to compete at national title-winning levels.
Certainly enough, the university's 2023 financial filing, released this month, shows that investment.
Penn State athletics spent a record $202 million during the 2022-23 fiscal year, which should ensure its place among national leaders. Only two universities, Ohio State and Texas, spent that much during the previous fiscal calendar, according to USA Today's 2023 data base in partnership with the Knight-Newhouse Data project at Syracuse University.
Ohio State blew past PSU in spending and revenue generating for this most recent period, as well. The Buckeyes reported revenue of just over $279.5 million with expenses of more than $274.9 million — edging out Texas A&M for the most nationally, so far, as fiscal reports continue to be released.
Penn State's most recent financial report covers July 2022 to June 2023, which includes another wrestling national title, the football team's 11-2 Rose Bowl season and Kraft's hiring. He officially took over on July 1, 2022.
The dramatic spending increase ($31.5 million over the previous fiscal year) nearly washed away the university's record-setting athletic revenue — just over $202 million. That means Penn State reported a surplus of just $126,352, a cliff-drop from the $10.7 million surplus the year before.
This spending increase was created across the board, ranging from salaries to recruiting to support staff and the overall budgets for the Nittany Lions' 31 varsity sports.
How Penn State football carries financial load
Of course, much of the focus is on football — by far the largest spender and revenue generator. James Franklin's program worked with its largest budget yet at $62 million, an increase from the previous record $57.6 million.
Coaching salaries played a big part in the overall spending hike, increasing to $38.6 million overall. While football coaching salaries increased by $2.2 million, men's basketball salaries more than tripled to $6.1 million, highlighted by the hiring of former coach Micah Shrewsbury and staff.
Penn State also spent significantly more on support staff and "administrative compensation, benefits and bonuses" — $8.42 million more — over the previous fiscal year. Football accounted for nearly $800,000 of that jump. Most of the increase is categorized as "non-program specific."
Recruiting played a part in the spending rise, too. The athletic department's overall recruiting budget increased 51 percent to nearly $4.8 million (football recruiting expenses nearly doubled to $2.8 million).
Meanwhile, Penn State football's impressive recruiting consistency continued but did not elevate in the past two cycles, at least according to national industry rankings. Penn State's 2023 class, completed last February, ranked 14th nationally, according to 247Sports.
It's current class, which will be wrapped up in a couple of weeks, also holds a No. 14 ranking.
Frank Bodani covers Penn State football for the York Daily Record and USA Today Network. Contact him at fbodani@ydr.com and follow him on X, formerly known as Twitter, @YDRPennState.
This article originally appeared on York Daily Record: Penn State football hits spending, earning record under James Franklin
