The recent spate of athletic conference decisions to postpone fall sports means substantial revenue shocks for college athletic departments, and cutting expenses will not always be enough to absorb the blow, according to a new report from Moody’s Investors Service.
Because sports are strategically important for universities, Moody’s expects universities to provide “extraordinary support” like internal loans in order to stay current on debt payments for athletic facilities. Colleges and universities may tap their financial reserves to close budget gaps tied to the pandemic, the ratings agency said in a report released Thursday morning.
