New Mexico State University Looks to State to help fund Women's Athletics
In a move that could reshape the way public universities fund their athletic programs, New Mexico State University (NMSU) is pursuing a groundbreaking proposal to create a $137 million state-funded endowment for its women’s sports programs. At a time when wealthier athletic departments are increasingly turning to private capital, NMSU—a school with one of the smallest budgets in the Football Bowl Subdivision (FBS)—is looking to the state for financial support. This bold proposal comes as NMSU aims to secure a more sustainable financial future for its athletics department.
The core of NMSU’s proposal is the creation of a $137 million endowment, with the principal remaining with the state. The university would receive between $5 million and $6 million annually from the income generated by the endowment. These funds would be directed primarily toward NMSU’s women’s sports programs, which have faced significant financial challenges in recent years.
Alternatively, if the full endowment is not approved, NMSU is asking for a one-time appropriation of $27.5 million to support its women’s athletics programs for the next five years.
The proposal comes at a crucial moment for NMSU. With rising costs across collegiate athletics and the potential financial impact of the proposed House v. NCAA settlement, NMSU is under pressure to find a solution that addresses its growing expenses. The university’s athletics spending for the 2022-2023 academic year totaled $37.15 million, ranking 92nd among 110 public FBS schools. Despite receiving $6.75 million in state appropriations, the Aggies remain one of the least-resourced programs in the FBS.
NMSU Athletic Director Mario Moccia believes that now is the perfect time to pursue the endowment, thanks to the economic climate in New Mexico. The state has experienced a budget surplus, fueled by record oil and natural gas revenues. In the fiscal year 2023 alone, New Mexico’s energy revenues exceeded $5 billion, a 162% increase from the previous year. Moccia sees this financial windfall as an opportunity to think creatively about how to fund the university’s athletic programs.
“We are sitting on a significant amount of one-time money,” Moccia said. “So this year, seeing as the state had so much funding, we said, ‘Hey, let’s think outside the box.’”
NMSU’s proposal has already gained traction among state legislators and the public. The university is hoping to capitalize on this momentum when the New Mexico legislature convenes for its session in January 2024. The legislative session runs through March, and Moccia is optimistic that the proposal will receive favorable consideration. He has noted that no one has dismissed the idea, and many legislators have already expressed interest in the endowment.
Earlier this year, Moccia led a delegation of female student-athletes to lobby for the proposal, further demonstrating the importance of securing funding for women’s sports at NMSU. Women’s basketball coach Jody Adams praised the initiative, calling it a “brilliant” move by the athletic department to take a proactive approach to its financial challenges.
In addition to the endowment proposal, NMSU is also exploring other avenues for funding, including seeking financial support from individual legislators, who have the power to allocate state funds. Moccia refers to each state representative or senator as a “potential millionaire donor,” emphasizing the university’s efforts to tap into every available resource.
What sets NMSU’s proposal apart is its potential to serve as a model for other public universities that are struggling to keep up with the financial demands of collegiate athletics. For schools without access to the massive private donations and lucrative media deals enjoyed by wealthier programs, state-funded endowments could provide a sustainable solution.
NMSU’s approach could particularly benefit women’s sports programs, which often receive less financial support compared to men’s programs. If the endowment is approved, it would provide long-term stability for NMSU’s women’s sports and could inspire other public universities to explore similar models.
In an era when the financial disparity between large and small athletic programs continues to grow, NMSU’s proposal offers a potential path forward for institutions facing similar challenges. By leveraging a state budget surplus and gaining legislative support, NMSU is attempting to create a more equitable future for its athletics department and, by extension, for the university as a whole.
New Mexico State University’s proposal to establish a $137 million state-funded endowment for its women’s athletics programs is a bold and innovative step. As public universities across the country grapple with the rising costs of collegiate sports, NMSU is demonstrating how thinking outside the box can lead to creative solutions. If successful, this endowment could set a new precedent for how public universities fund their athletic programs and provide a model for other schools facing similar financial pressures.
By taking advantage of the state’s current budgetary windfall, NMSU is positioning itself to secure long-term financial stability for its women’s sports programs. This proactive approach may not only benefit the Aggies but could also inspire other institutions to seek out innovative funding solutions in the ever-evolving world of college athletics.
