Budgetary miscalculations and long-overdue Stadium repairs sent the Athletic Department deep into the red, Edward R. Reynolds '15, administrative vice-president, said yesterday.
A $466,352 deficit, $150,000 more than ever before, was absorbed last year by the Faculty of Arts and Sciences and by endowment fund principle.
The faculty paid $318,917.74 while $147,434.52 was withdrawn from capital accumulated from football receipts during the years 1926 through 1935, when the College was fielding top teams. During those years, when there were frequently capacity crowds at the games, the Athletic Department amassed over $408,000, which was to be used to lower admission prices.
When football began to lose money in 1936, the capital was placed aside for emergency use by the Athletic Department.
According to Reynolds, the athletic department had not been putting up enough money for maintenance of its buildings during the past few years. Reynolds explained that every department in the University must include funds for maintenance in its budget. "The H.A.A.'s budget has been inadequate," he said.
Because of this, stated Reynolds, the Athletic Department accumulated a debt to the University, which is being paid in one lump sum out of its endowment capital.
Reynolds added that the athletic department would not make the mistake of under-estimating its maintenance costs in the future. He does not expect the department to draw again from capital this year.
Another reason for the increased deficit, said Reynolds, were improvements made on the Stadium. The Stadium, which was the first ferro-concrete structure in this country, has long been in need of repair and its steel frame has needed reinforcing.
Faculty Absorbs $318,000
Reynolds said the department lost a comparatively small amount on guarantees to visiting teams.
Of the complete athletic deficit, the $318,000 absorbed by the Faculty of Arts and Sciences is considered a normal operational cost, Reynolds said. The money goes to finance intercollegiate and intramural sports and also to pay for the large freshman physical training program. The money withdrawn from endowment capital pays for what the College considers abnormal expenses.