The Virginia Tech Board of Visitors approved a $10 million expense for an ACC Network Studio during a meeting on Monday according to Virginia Tech Sports War. That’s almost double what the athletic department expected it to cost.
Hokies athletic director Whit Babcock told Andy Bitter of The Roanoke Times last year that the studio would cost about $5-7 million. But the studio is required to launch the ACC Network, so the Hokies athletic department had little choice but to pay the higher sum.
Because of this underestimation, the Virginia Tech athletic department is running the risk of losing money for the third straight year, and they ran further in the red in 2017 than 2016. For the Fiscal Year 2017 (2016-17 athletic year), Virginia Tech lost $3.3 million.
As of Monday, it’s unclear how the Hokies athletic department will account for the higher then expected cost of the studio. Virginia Tech Sports War speculated that the Hokies athletic department could take out a loan or could make a lump sum payment.
The website reports that the Hokies made at least $2.5 million in its athletic department from 2013-15.