Thursday, June 27, 1996

President: UH Athletics Faces Crucial Four Years

By CHIP BROWN
Associated Press

AUSTIN - If the University of Houston doesn't turn around a $5 million athletic department deficit in four years, the school will consider dropping athletics, UH President Glenn Goerke said Wednesday.

"If despite our best efforts, the deficits continue annually at an unacceptable level, if faculty and students are not coming to the games and the tough sports dollar - even with the Oilers gone - isn't coming to UH, athletics will be scaled back or eliminated, depending on the severity of the situation," Goerke said.

Goerke testified before a subcommittee of the House Higher Education Committee.

Rep. Steve Ogden, R-Bryan, vice-chairman of the subcommittee, pointed to declining enrollment at the school over the past five years and said he didn't know if the school had four years to wait before taking drastic action.

"This is by far the largest deficit of any college in the state," Ogden said. "The trends are disastrous and if it doesn't turn around quickly, the University of Houston can find itself in grave financial peril. I think four years may be too long to take drastic action."

Goerke said the school is taking steps to boost revenue, including the hiring of a vice president to increase enrollment and stepped up marketing efforts in athletics.

"We have got to get people in the seats and get revenue up or we are not going to make it," Goerke said.

Several obstacles clutter Houston's road to solvency.

Goerke said the breakup of the Southwest Conference will cost Houston more than $1 million in fiscal year 1997. He said revenues generated from Houston's new league - Conference USA - are "still unknown."

Houston also is required by equal opportunity laws to add two more women's sports in the next four years, which Goerke said will "cost over $500,000 per year with little income returned."
Goerke said the projected athletics deficit for fiscal year 1996, which ends Aug. 31, would be $4.4 million.

Subcommittee members asked why it's taken the school so long to articulate a recovery plan when the deficit has been growing over the past five years.

Beth Morian, chairwoman of the University of Houston System Regents, said it wasn't until Goerke became president last year that the board and school started working well together.

"In the past, there were some board members who were more interested in the athletics issue than others," Ms. Morian said. "Now, the entire board is working together on this."

Student body president John Moore said students are attempting to help.

"We do not want to see our athletic program leave UH," Moore said. "We want to see it operate in the black. Students are involved in raising outside sources of funding for athletics and generating interest and promoting the university."

A large chunk of student fees, including revenues from campus concerts and candy machines, are going to help contain the athletics deficit. Lawmakers told Goerke to make sure students know how much of their money is going toward the shortfall.

"I believe in full disclosure," Goerke replied.