photo by: Mike Gunnoe/Special to the Journal-World

Kansas senior Laith Marjan kicks a 47-yard field goal against Fresno State at David Booth Kansas Memorial Stadium Saturday, Aug. 23, 2025 in Lawrence.

The Kansas Athletics board of directors on Thursday evening approved a resolution to replace its current $35 million line of credit with a new $50 million line.

The refinancing was authorized through a special digital meeting of the board that was conducted via email between Monday and Thursday. Athletic director Travis Goff presented the motion for the new credit line, which was seconded by KU Chief Financial Officer Jeff DeWitt, and then eight board members voted in support of the resolution while one did not vote.

Goff said in a statement that the implementation of the new credit line “will serve as a low-risk component of our budget strategy and alleviates financial strain on the University.”

“Along with our ongoing work in expense management and revenue growth, this is a responsible and prudent solution that will allow us to manage the challenges and embrace the opportunities that lie ahead,” Goff added.

The previous line of credit was through U.S. Bank and would have wrapped up in 2030. The new line is with FNBO for a five-year term, so has a maturity date in 2031. The interest rate varies based on a 30-day Secured Overnight Financing Rate — a standard rate reflecting the cost of borrowing money overnight — “which is currently around 3.66%, plus a 1% margin,” according to the resolution. KU Athletics CFO Pat Kaufman said this line of credit, like the one it supersedes, is secured by a guarantee from the university.

The KU athletic department has been subject to some financial strains, internal and external, in recent years. KU is raising funds for the Gateway project, which has a final price tag expected to exceed $800 million when all is said and done. Also, the recent advent of direct revenue sharing with athletes required KU Athletics to essentially summon an additional $20 million for immediate use in the fiscal year 2026 — and similar amounts in the years that follow. (Hence the extensive attempts to reduce expenses within the athletic department, on which the Journal-World has reported.)

Indeed, as was projected at a board meeting in October, the department expects to spend $18.9 million on revenue sharing and Alston awards during the fiscal year 2026 (which concludes on June 30), compared to zero the previous year; that is one significant reason for KU Athletics’ projected yearly shortfall of $14.9 million, which it was planning to cover using its line of credit.

As DeWitt and Kaufman explained at the meeting in October, KU has long anticipated deficits in the fiscal years 2026 and 2027 before its revenue generation kicks into gear with a fully completed Gateway project (including the remainder of David Booth Kansas Memorial Stadium, a hotel, apartment complex, entertainment plaza and so on) in 2028. The initial email calling for the special board meeting from Megan Walawender, the deputy AD who serves as assistant secretary to the board, made reference to “these next few years of projected deficits” with regard to the implementation of the new credit line.

Goff wrote that the larger credit line will add “greater flexibility in managing the next few years.” Asked if KU Athletics is still targeting 2028 for when it expects to begin garnering surpluses, Goff wrote, “As we project to a fully open Booth, while continuing to focus on expense management and new revenues, our pro forma” — that is, a financial statement — “demonstrates surpluses that pay off the line of credit.”

As mentioned, the new line of credit matures in 2031. That is also approximately when KU Athletics will receive another financial boost. As Goff previously explained, David Booth’s eight-figure annual distributions to KU from his total donation of $300 million have to go toward the Gateway project for six or seven years. Then they become unrestricted for the athletic department’s use.