Amid revenue shortfalls, Virginia Tech athletics announced Thursday that it will be cutting the salaries of many of its employees.
“No collegiate athletics department has been spared from the harsh financial reality of revenue shortfalls directly attributable to COVID-19,” said Athletic Director Whit Babcock in a news release. “At Virginia Tech, home football and basketball games, especially, are significant sources of revenue and support all of our varsity sports programs. Although we’ve had to make some very difficult decisions, we are more fortunate than others in being able to keep our commitment to all varsity athletics programs and our student-athletes.”
Starting in January, and lasting all year, individuals making $115,000 or more will see a 10% salary reduction, while a sliding percentage scale will be adopted for those making more than $40,000.
No one making $40,000 or less will have his or her salary affected.
Prior to Thursday’s announcement, the athletics department had already taken different steps to cut costs:
- Making operational cuts and reductions in overtime,
- Keeping select position vacancies open
- Many employees voluntarily returned or forgone benefits, such as car stipends and performance bonuses.
Through salary reductions, financial contributions, and efficiencies, Virginia Tech Athletics expects to return nearly $15 million into its budget to manage through the challenges of the coming 2021 fiscal year and beyond.
Source: WSLS News 10