Athletic department severance payments since 2006 Mike Bohn: $918,000 Jon Embree: $1.63 million Eric Bieniemy: $781,251 Total for Embree, Bieniemy and staff: $2.94 million Gary Barnett: $3 million Total for Barnett and staff: $3.06 million Dan Hawkins: $2.14 million Total for Hawkins and staff: $2.21 million Kathy McConnell-Miller: $371,281 Total for McConnell-Miller and staff: $422,935 Bill Hempen: $30,354 Ricardo Patton: $177,119 Total for Patton and staff: $193,343 Overall total: $9.8 million in payouts* *CU received a $500,000 payment from Jeff Bzdelik, who ended his contract early and took a coaching job at Wake Forest University in 2010. Including that, the university calculates its total payouts as $9.3 million instead of $9.8 million.

The University of Colorado athletic department is facing a $7.5 million budget shortfall as it searches for a new director to replace Mike Bohn, who was forced to resign last month.

Responding to a request for athletic department budget records following Bohn’s ouster, finance officials told the Camera they’re projecting a $7.5 million shortfall. CU’s fiscal year closes June 30.

Since 2006, the department has made roughly $9.8 million in severance payments or agreements with former employees.

All of the buyouts for fired coaches and their staff members — a sum of $8.88 million — have been paid, CU officials said. The university is buying out Bohn’s contract for $918,000 in three installments between July 1 and Jan. 1, 2015.

CU totals its severance expenses as being $9.3 million, though, because former head basketball coach Jeff Bzdelik paid back $500,000 after he broke his contract to take a job in 2010 at Wake Forest University.

Kelly Fox, chief financial officer for the Boulder campus, said the athletic department will not take out a new loan from the campus to cover Bohn’s severance.

“We are not creating a new loan for (athletics),” said Fox, who added that she believes the budget shortfall is a short-term problem.

Even though CU officials have been clear that tuition revenue doesn’t pay for buyouts, the amount of money distributed for athletic severance pay is concerning to Jerry Peterson, a physics professor and chairman of the Boulder Faculty Assembly.

“We all recognize that the Boulder campus is facing tight financial times, and that (nearly) $10 million — even if it’s over several years — is a loss to academics,” Peterson said.

Budget shortfall

Bohn indicated in a news conference following his ouster that he had three major athletic donations in the pipeline, and, because of donor confidentiality rules, it’s uncertain if any of those gifts have been pulled and whether that could be contributing to athletics landing in the red.

Bohn, who declined to comment for this story, has said he balanced the budget every year except this year.

As the university approaches the end of its fiscal year, Fox said she’s projecting the athletic department to have a shortfall partly because of the nearly $2.94 million in severance payments made following the firing of former head football coach Jon Embree and his staff.

Embree was paid $1.63 million, offensive coordinator Eric Bieniemy was paid $781,251 and several other coaches who were at-will employees received payments for up to three months when they left amid the coaching turnover.

CU spokesman Bronson Hilliard said other reasons the athletic department missed its budget mark include a $3.3 million drop in ticket sales, mostly in football. Hilliard said there was also a $1.3 million overrun in “miscellaneous expenses.”

As part of the contract with incoming head football coach Mike MacIntyre, the university agreed to spend $1 million on a renovation for the football coaching offices. The CU president’s office is giving $1 million to the athletic department for those renovations as well as $1.9 million over the course of four years to help compensate for the buyout of Embree and his staff.

Interim Athletic Director Ceal Barry — who began the job June 3 — said she will work to balance the budget going forward, but she had few details to offer, saying a plan is still in its early stages.

“We need to look at efficiencies,” Barry said.

2012 athletics loan could be renegotiated

The athletic department is paying back two major loans to the campus.

Campus officials loaned $8 million in 2006 after Gary Barnett’s $3.06 million buyout and a drop in ticket sales and, in 2012, the campus gave a $10 million bridge loan to help CU transition into the Pac-12.

Fox said the school may consider renegotiating the terms of the 2012 bridge loan to help athletics balance its budget. Whether that would be extending the six-year loan or changing the 2 percent interest rate is uncertain. Hilliard said the university will not consider forgiving any portion of the loan as the school renegotiates the terms.

Fox said the loans are made from emergency reserves, and the value of those sources is not lost because the loans are paid back with interest.

Asked whether the buyouts are placing a financial burden on the campus, Fox said they are “made for strategic reasons that benefit the university.”

State law limits each university to six multi-year contracts at one time, and all of those jobs are now designated to CU’s athletic department. They are: MacIntyre, head football coach; Kent Baer, football defensive coordinator; Tad Boyle, men’s basketball coach; Linda Lappe, women’s basketball coach; Liz Kritza, women’s volleyball coach; and the vacant athletic director position.

In recent years, other CU athletics severance payments to coaches have included $2.14 million to former head football coach Dan Hawkins, $371,281 to former women’s basketball coach Kathy McConnell-Miller and $30,354 to former soccer coach Bill Hempen.

Payments were also made to coaching staff members who, under Colorado law, are at-will employees eligible for up to three months of severance payments.

Contact Camera Staff Writer Brittany Anas at 303-473-1132 or anasb@dailycamera.com.