Arizona faces $177 million deficit with multiple layoffs reportedly in line ahead of 2024 season: Reports

The University of Arizona is going through big financial troubles that will have a long-lasting impact on its athletic division. As per the reports released by interim Chief Financial Officer John Arnold, 61 of the 81 units in the university overspent during the 2024 fiscal year.

The university had a starting balance of around $845 million for the fiscal year 2023. According to Arnold, $61 million was overspent last year on colleges and divisions and $32 million on athletics apart from the flurry of other costs incurred.

Thus, by the end of the year, it spent around $140 million of the starting balance. As per the projections for the fiscal year 2024, it will spend another $195 million, which means the reserves will simmer down to $510 million.

Thus, the University of Arizona is operating on a $177 million deficit. This means there are chances of mass layoffs and 5 to 15 percent across-the-board budget cuts in the coming days.

While speaking with the Arizona Daily Star, John Arnold stated that the problem was caught at the right time, and there is still a chance to fix the university's financial situation. He clarified that while the university is not in any financial danger yet, the spending trajectory is indeed taking a dangerous turn.

"It's fixable and we've caught it in time to give us time to fix it," Arnold said. "The university is not currently in financial danger, but as I said the other day, the cost trajectory is dangerous."

---

How does this affect the Arizona Wildcats football team?

A sequence of events took place for the Wildcats after the end of the 2023 season. Recently, AD Dave Heeke was fired for mismanagement of funds as they prepare to transition into the Big 12 conference.

This mismanagement of funds may be why the Wildcats could not offer a new extension to former head coach Jedd Fisch. This resulted in Fisch leaving for Washington and the Wildcats bringing in Brent Brennan on a five-year contract estimated to be worth around $17.5 million.