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The Honolulu Advertiser
Posted on: Wednesday, December 31, 2008

UH seeks ways to ride out economic slump

By Ferd Lewis
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Jim Donovan

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With declining fan numbers at its events, the University of Hawai'i athletic department is increasingly feeling the economic bite and is looking for ways to cut expenses, possibly including future layoffs, officials confirmed yesterday.

Athletic director Jim Donovan, who late yesterday sent out an in-house e-mail about "belt tightening" to staff and coaches, said, "Our (income) numbers have softened up from about Nov. 1st on and we're looking at ways we can achieve some savings."

Donovan stressed he is not considering cutting any of the 19 sports UH operates, aid to athletes or coaches' positions. "When it comes down to it, we're here for the student-athlete," Donovan said. "Making cuts in those areas can have a detrimental impact for years to come."

But, in the current economic climate, Donovan said, "we will be looking at a number of areas and we could possibly look at staff, but it is way to early to talk about that. We wouldn't make that kind of a determination until mid-to-late spring."

UH's $29.5 million budget is being affected by what is expected to be, when final returns are in, a 15-percent drop in football attendance and an 8-percent slide in women's volleyball crowds.

Men's basketball, which had its poorest ticket revenue in more than five years last season, and women's basketball, which may be headed to its worst figures since moving to the Stan Sheriff Center in 1994, are also trending downward, officials acknowledged.

"I can't believe it will be too long before the (budget) cuts start coming," said a coach who asked to remain anonymous because he was not authorized to speak for the department.

Donovan inherited an accumulated deficit of more than $4.4 million upon replacing Herman Frazier in March. Donovan said the administration is allowing athletics to run a $1.8 million deficit in the current fiscal year, which means it must still generate approximately $27.7 million through ticket sales and other income.

Right now, Donovan estimated, UH is projecting to come in at "$26.5 million to $27 million" in revenue.

Much of the slide in ticket sales came "in the second half of the (football and women's volleyball seasons)," Donovan said. "The two rainy football games really hit us hard. I knew the economy was impacting us when we were playing the 13th-ranked team in the country (Cincinnati) on a sunny day, had just clinched a bowl berth and only (35,309) showed up."

In addition, stock-based endowments have taken "major hits" and contributions have slowed, Donovan said.

"This has nothing to do with our workers," Donovan said. "I couldn't be happier with the effort our staff has been making or with the coaches and student-athletes."

The athletic department has had a hiring freeze for about a month, Donovan said. UH athletics has approximately 100 full-time employees and about 200 part-time employees, including students.

Reach Ferd Lewis at flewis@honoluluadvertiser.com.