Penn State athletics making salary reductions
Penn State is cutting salaries in its athletic department due to the effects of the coronavirus.
The Centre Daily Times reported Monday night that cuts will operate on a sliding scale from 5% at the lower end up to 10% for some of the highest earning members of the department.
The lowest-paid employees will not be cut, the paper reported.
In a statement provided to the CDT on Monday night and other media outlets Tuesday, the athletic department confirmed the pay cuts but declined to provide specific details.
“Penn State Intercollegiate Athletics has analyzed its budget and revenue shortfalls for the 2020-21 academic year due to the COVID-19 pandemic,” the statement read. “As a result of our analysis and based on our current financial circumstances, we made the difficult decision to make reductions in salaries across the department for this fiscal year. The savings generated by these reductions, as well as decreases in our operation budgets, will assist in minimizing our currently anticipated revenue shortfall for this year.”
Penn State President Eric Barron suggested voluntary cuts in April, and he took a 10 percent cut, and Athletic Director Sandy Barbour also planned to trim her salary. Both make $1.2 million annually.
Penn State’s highest-paid employee is football coach James Franklin, who is set to earn $5.4 million this year and approximately $36 million over the length of his contract, which runs through 2025.
The CDT, per sources, reported that any reduction in Franklin’s contract would have to be voluntary, according to his contract. To this point, there’s been no word on whether he’s taken a cut.
“I’ve had conversations with our head coaches and management team about the possibility of pay reductions,” Barbour said earlier this month. “Our financial challenge will be of the magnitude that we’ll need to do something around pay, and to a man and woman, they’re prepared to step up.”