Washington is expecting a loss of $5.8 million in FY 2023 (July 1, 2022, to June 30, 2023) and projecting a $7.8 million deficit in FY 2024, according to a report from The Seattle Times’ Mike Vorel on Saturday.

Vorel, citing a performance report from UW obtained by The Times, outlined an athletic department that expects to be operating in the red even before the Pac-12’s much-anticipated new media rights deal takes effect. According to Vorel, the fiscal 2023 losses and projected deficit in fiscal 2024 stem from the firing of former coach Jimmy Lake, the raises handed out to football assistants after an 11-2 campaign in 2022, and ticket revenue that didn’t reach expectations.

The performance report listed the Washington athletic department’s credit outlook as “negative due to operating losses, sector uncertainty, and low and declining reserve levels,” according to Vorel. The losses are expected to be covered by the athletic department’s reserves, which will stand around $9.1 million next July — significantly lower than the pre-pandemic level, per Vorel.

From The Times’ report:

Season ticket sales, for starters, have yet to reach pre-pandemic levels. Thursday’s report states that UW “assumed football season ticket sales would stay flat between 2021 and 2022, however actual sales were 10.3% lower than budgeted. As such, [intercollegiate athletics] football gate revenue is $1.0 million less overall than the budget for the 2022 season.”

But, ticket sales aside, the Pac-12’s next multimedia rights deal — or the Big Ten’s, if you’re keen to speculate — loom large over UW’s financial future. Thursday’s report acknowledges that “successful multimedia rights negotiations in FY24 are critical to [intercollegiate athletics’] financial health in FY25 and beyond.”

Vorel’s report also indicated that UW’s athletic department has restructured its payments on the loan that financed Husky Stadium in 2012. The athletic department will make interest-only payments through fiscal 2025, but when principal payments resume in fiscal 2026, Vorel’s report states the payment will jump from $9.8 million a year to $17.7 million a year.

The remaining Pac-12 schools are still waiting to find out what their financial situation will look like after USC and UCLA exit the conference in the summer of 2024. The league is hoping its next media rights deal will be able to come close to or clear the one the Big 12 just signed, which will reportedly pay each school nearly $32 million a year.

If it can’t, the Big 12 hopes to swipe a few schools from the conference. In that scenario, UW and Oregon might be forced to look at the Big Ten — a league both schools reportedly had exploratory talks with last year.

You can read Vorel’s full breakdown of the Huskies’ financial situation here.