INDIANAPOLIS — The Indiana University athletic department is adapting to a newly implemented revenue-sharing model in college sports, which is necessitating cost reductions that include workforce reductions. This development comes amidst significant financial pressures faced by the Hoosiers and many other institutions within the collegiate athletic sphere.
As per a confidential source, Indiana has officially removed 25 positions from its athletic department, although the university has yet to publicly disclose this information. This individual requested anonymity due to the absence of a formal announcement regarding the layoffs.
With the increasing need to compensate athletes fairly according to market standards, Indiana is responding with an effort to streamline operations. This approach is essential as the Hoosiers strive to maintain competitiveness on the field while addressing budget constraints. Last season, the school’s football coach, Curt Cignetti, who earned the title of AP Coach of the Year, received a salary increase following a record-breaking 11-game win season and a historic entry into the College Football Playoff.
Athletic director Scott Dolson is determined to ensure that Indiana’s football program stays relevant nationally, even as financial challenges mount. Changes in the financial landscape have become evident since a recent court ruling that compelled the NCAA to distribute approximately $2.8 billion to former athletes who were previously prohibited from monetizing their name, image, and likeness (NIL). The NCAA will contribute around $1.2 billion of this amount, while universities are tasked with covering the remainder.
Additionally, the revised revenue-sharing model allows universities to pay athletes directly, with Indiana projected to allocate about $22 million for player compensation next season, a shift away from reliance on existing NIL collectives. Other schools, including Purdue, have expressed commitments to meet these payment obligations, with their athletic department promising to adhere to full financial contributions during their coaching search.
In Indiana’s case, cost-cutting will be felt primarily in the compliance and communication sectors, which will see budget reductions of about 10%. The department plans to leave a significant number of positions unfilled, alongside laying off roughly 13 employees, many of whom have longstanding tenure within the athletic department. However, the university has affirmed that no sports teams, coaches, or support staff will be cut, as detailed in a letter reported by The Indianapolis Star.
This article has been updated to clarify that Indiana is eliminating 25 jobs, which includes about a dozen unfilled positions, rather than laying off 25 individuals.
