Florida State athletics is projected to spend over $250 million by the 2027 fiscal year as the operational cost for major collegiate athletics continues to rise for programs seeking to compete among the nation’s best.
The projected $250 million budget for the 2027 fiscal year was revealed in a PowerPoint shared by FSU Athletic Director Michael Alford at the university’s annual Board of Trustees retreat on April 14, and obtained by the Tallahassee Democrat.
The budget will be over $40 million higher than the Seminoles’ spending in the 2025 fiscal year, according to the presentation shared by Alford. According to the program’s 2025 annual revenue and expense report, FSU reported $208,187,039 in operating expenses in the most recent fiscal year, the first time the program has eclipsed the $200 million threshold.
Spending will continue to increase year over year, namely due to universities being allowed, but not required, to share up to $22.5 million in revenue with student athletes, and other operational costs, which are expected to continue to increase.
That $22.5 million revenue-sharing bill is currently footed by auxiliary funding, which will be the case for FSU until 2028 after the Florida Board of Governors approved its use in 2025.
It’s a reprieve, but it currently keeps the Seminoles from making cuts to athletic programs, something that universities, including some Power 4’s across the country, have had to do to finance revenue sharing.
The most recent example of a Power 4 program having to make cuts came from Arkansas, which cut the program’s tennis teams just days before the men’s tennis team earned an NCAA Tournament bid. While the Seminoles haven’t made cuts, any potential axing of programs could save over $4 million, according to projections in the presentation.
ACC revenue gap persists as Seminoles chase Big Ten, SEC programs
The $22.5 million figure and rising budgetary needs represent the cost of chasing success in the modern era of college athletics.
According to Alford’s presentation, FSU’s spending for the 2027 fiscal year will be just behind programs in the Big Ten and the SEC, which are expected to have an average budget over $255 million, the consensus “power” conferences in football that have produced the last seven national championship winners.
While the average estimate is $255 million, Alford’s presentation estimates programs like Ohio State, Tennessee, Michigan, Penn State, and Oklahoma will spend over $300 million, with Texas reaching $458.3 million in the 2027 fiscal year, well beyond the Seminoles’ $250 million.
That spending is aided by program success, particularly on the football field, and is also enabled by media rights revenue distribution.
Alford’s presentation highlighted the projected revenue gap between the Big Ten, SEC, and FSU in the ACC, with $74 million distributed to Big Ten schools for the 2024-25 fiscal year and SEC schools earning $67 million from their conference. FSU and other ACC schools received $44 million.
Those figures will continue to grow, with the two power conferences’ revenue distribution potentially crossing the $132 million mark for the Big Ten and $128 million for the SEC by the fiscal year 2036. The figures compare to $73 million distributed by the ACC in the same year, a number already lower than what the Big Ten is currently distributing to its member schools.
Ticket sales, premium events drive revenue forward
While spending continues to soar and the revenue distribution gap increases, the program has found ways to increase revenue, with $211,950,623 generated in the most recent fiscal year.
Of the reported revenue, 70% of it comes from four areas: contributions, direct institutional support, media rights and ticket sales.
The university reported an increase of over $6.5 million in ticket sales, with $23.6 million in total sales, up from $17.1 million in the fiscal year 2024. FSU ranks 16th nationally in ticket sales over the last three seasons, according to the presentation, and is ranked second in the metric in the ACC, trailing only Clemson, with $84.3 million reported.
The boost in ticket sales coincides with FSU’s overhaul of its ticketing process that took place before the 2024 season. With renovations to Doak, a variety of new seating options, including new loge boxes, chairback seats, and other premium offerings, were available for season ticket holders to purchase at an increased price.
The spike in football ticket sales upped FSU’s overall ticket sales across all sports to $28.5 million. Pair that with a top-15 viewership metric in the last decade, according to the presentation, and the Seminoles generate revenue that was in line with what programs in the Big Ten and SEC generated.
FSU ranks 15th nationally in “self-generated” revenue with $121.6 million, the most in the ACC. In the revenue-driven era of athletics, the university has also turned to external events to help generate cash.
Doak Campbell’s renovation allowed for events like the Savannah Bannanas and Professional Bull-Riding (PBR) to take place inside the stadium, both of which combined to generate over $14 million in revenue – $10 million from the Bananas and over $4 million from PBR, according to the presentation.
Alongside the events at Doak, Alford’s presentation highlighted the need to add more projects that can “ease the financial gap.”
Those projects range from mixed-use real estate and created/owned IPs to enhanced premium experiences, social media monetization, and more. Each project is ranked on a sliding scale graph labeled by “return on investment” and “ease of execution.”
Add in an expected $7 million of revenue from “marquee sponsorships,” and the FSU leadership is attempting to position itself to be competitive in the financial aspect of collegiate athletics.
FSU revenue will grow if football performance improves
While external revenue generation is good, it’s impossible to ignore the financial benefits of success, with an estimated $7 million available to the program thanks to the ACC success initiatives, which came as a result of FSU and Clemson’s settlement with the ACC.
A top-25 football season that ends in a bowl game, paired with an NCAA Tournament appearance from the Seminoles men’s basketball program, would generate a minimum of $6.9 million in the 2027 fiscal year, and grow to $8.7 million by 2030.
Add in any potential College Football Playoff run, and FSU could generate up to an additonal $20 million should it reach the national title game, with $4 million the minimum guarantee for making the playoff.
The revenue opportunities highlight the necessity for quick improvement for the Seminoles football program under head coach Mike Norvell.
However, FSU’s football program has been closer to the bottom of major Division I football than the top in recent seasons, with a combined 7-17 record. Even with that, the athletic department is upping its spending on the program, hoping for a return on investment.
The Seminoles athletic department will spend a projected record $52.9 million on the football team. That money factors in the salary for new staff, including the hiring of new coaching and scouting staff, including new general manager, John Garrett, and Taylor Edwards as Director of Football and Player Acquisition, operating expenses and travel, among other things.
Add in the $10.3 million Norvell is owed in 2026, and the Seminoles’ spending on salaries adds up quickly. While the playoff bonuses are sizeable and would improve FSU’s revenue generation, even a bowl game appearance would net an estimated $3.3 million.
Can Norvell and his Seminoles achieve that? That will only be answered by the program’s performance on the football field in August. Regardless, the cost of doing business in collegiate athletics is high, with millions potentially on the line with every win or loss, highlighting the need for sustained success on the gridiron.
Liam Rooney covers Florida State athletics for the Tallahassee Democrat. Contact him via email at LRooney@gannett.com or on Twitter @__liamrooney.
This article originally appeared on Tallahassee Democrat: FSU athletics spending to surge: Here’s how it will manage increase