No institution, program, school or team has been spared from the financial ramifications of COVID-19, the global pandemic continuing to spread throughout the United States that is reshaping a number of industries, including collegiate athletics.
On Thursday afternoon, Virginia Tech became the latest Power-5 athletics department to reveal plans for sweeping pay-cuts throughout the Hokies' staff.
While Virginia Tech leaders, in a release, touted the move as a cost-cutting measure designed to save $15 million by June 30, it was indicated to FootballScoop that the department-wide pay-cuts – on a sliding scale based on earnings – were scheduled to run the duration of the 2021 calendar year; they have been scheduled to start in January and run through December.
In a release, Hokies athletics director Whit Babcock addressed the financial restrictions.
“No collegiate athletics department has been spared from the harsh financial reality of revenue shortfalls directly attributable to COVID-19,” said Babock in the announcement. “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.”
All employees who make at least $40,000 have been targeted by the cuts; those who annually earn $115,000 or more have been designated to lose at least 10% of their salaries.
Multiple Power-5 athletics program, including but not limited to Clemson, Iowa and Stanford, already have announced the dissolution of a variety of varsity sports.
Severely limited on capacity throughout this season on the football inside Lane Stadium, the Hokies host Clemson Saturday in their penultimate home game of the truncated 2020 season. Limited to approximately 1,000 spectators throughout most of the season, that number has been more than halved by Virginia Gov. Ralph Northam for the final two games due to the ongoing coronavirus problems. Clemson, on the other hand, has allowed approximately 19,000 fans per game this season.
Tech is scheduled to complete its 11-game season Dec. 12 when it welcomes rival Virginia in the 'Commonwealth Cup' showdown. The Hokies have lost four of their last five games, including three in a row, in a skid once again raising questions about the future of fifth-year head coach Justin Fuente in Blacksburg.