Virginia Tech's Board of Visitors (BOV) met Tuesday and voted to increase the university’s athletic budget by $229 million over the next four years.
In August, athletic director Whit Babcock told the BOV if they didn’t invest more, Virginia Tech wouldn’t be able to compete at the same level as top teams in the Atlantic Coast Conference.
He explained that recent legal settlements are shifting how universities earn money through television viewership of games and how they can pay student athletes.
“It’s a new kind of arms race,” Babcock told the BOV. “It’s not a facilities arms race, but a budget and resources arms race.”
Several board members began working with Virginia Tech staff on a financial plan to fund the increases Babcock asked for. In a little over a month, they drafted up a plan.
Simon Allen, Virginia Tech’s Vice President for Finance and Chief Financial Officer, said the university's plan is to increase investment incrementally, bringing the university’s yearly athletics budget to just over 200 million by fiscal year 2029.
“Athletics contributes to the success of the university,” Allen said at the Sept. 30 BOV meeting. “It serves as a key part of the Hokie experience for many students and employees, attracts over half a million visitors to the university and to the local region and economy annually. It also generates brand awareness and provides national recognition.”
According to a statement, Virginia Tech is planning to use part of the funding to attract and retain coaches. Last month, head football coach Brent Pry was fired after a 0-3 start to the season.
At least one board member voted against the new funding plan. Nancy Dye cited increases to student fees as one reason she opposed the additional investment.
“In recent weeks, I’ve heard from too many families who have struggled and sacrificed to send their children to Virginia Tech,” Dye said. “While I realize that the student fees are exempt for our graduate students and those in Virginia Tech advantage, my concern is that it shifts these costs to these very families.”
Virginia Tech estimates that after the fee increases, the university "would continue to be among the lowest in athletics fees in the Commonwealth." Graduate students, lower-income Virginia students, and those eligible for Virginia Tech Advantage are protected against the increases to student fees.
Faculty and graduate student representatives also voiced concerns about the increase in athletics funding.
“For years when the faculty have raised issues about salaries for faculty, we’ve often been told there was no money. The university’s hands were tied,” said Justin Lemkul, Faculty Representative on the BOV. “We still sit in the middle of our academic peers.”
The vote was held in a virtual meeting without the opportunity for public comment.
The largest portion of the increase to athletics, $120 million, will come from private donations.
“It has never been clearer that the future of Hokie Athletics will depend on the institutional commitment to compete, in partnership with our alumni and supporters,” said Virginia Tech President Tim Sands in a statement. “Today, we are stepping up to compete, and we ask our loyal fans and generous donors to step forward with us.”
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
