The University of Hawai'i Board of Regents realizes the economic difficulties facing the UH athletic department and yesterday did not set a deadline for bringing the department out of red ink.

Despite a $300,000 surplus for the fiscal year ending June 30, 2008 thanks to UH's Sugar Bowl appearance, an auditor's report showed an accumulated net deficit of $5.4 million compiled over a five-year period. UH athletic director Jim Donovan has said the current fiscal year, ending June 30, may run a deficit of an additional $3 million.

Board chairman Al Landon said, "in the current (economic) environment we simply acknowledge that the challenges that our university and other universities face with athletics. There was a comment from the auditors that we need to be mindful and, absolutely, Jim is on it. There are lots of levers to pull here on how to focus on the financial aspect."

Landon added, "we recognize that the financial aspects of this are pretty important and we're pleased that Jim and the entire staff are focused on making the athletic department as efficient as they can."

Donovan said, "I did not give a timeline (for a balanced budget) because so much of it is dependent upon the economy. If the economy settles down this year, even a little bit, that will help us start to make a comeback.

"The first goal is to get back to a balanced budget and our second goal is to retire the accumulated deficit."

Manoa chancellor Virginia Hinshaw said, "I have a lot of confidence in Jim (Donovan's) ability to lead."

Donovan said he believes UH fans will respond to value as the economy improves.

He said attendance for UH men's basketball has dropped 33 percent since 2005 but "only a half percent this year" and credited lower pricing for some seat locations and an across-the-board lowering of concession prices for helping slow the drop.

Thursday, Donovan, who told a regents' committee the department's fiscal condition was "precarious," said, "right now the plan is to try to get to break even and I don't know (when it will happen). I know it is not possible this year. I don't know if it is possible next year. Hopefully the year following that."

Donovan said, "I do not want to cut a sport. Depending on how the economy continues, that could be put on the table but that is not my intent. That (cutting a sport) would be an absolutely last resort."

In recent discussion of UH's financial plight, Donovan said, "people ask, 'How can I help?' I tell them it is as simple as buying a ticket."

UH IN BLACK IN 2007-08

Thanks to its historic trip to the Sugar Bowl, the football produced more than half of the income for the UH athletic department in the 2007-'08 fiscal year, the most prosperous finish in seven years, school figures show.

The Warriors' 11-1 season produced $12,205,142 in what the school termed "direct" revenues for an operating budget of $30 million. Expenses were $9,509,676 for the fiscal year closing June 30, 2008.

Donovan said an additional $3 million to $5 million through television, radio, sponsorships and merchandise, can be credited to football.

Thanks to the growing crowds in the run-up to the Sugar Bowl and the $4,385,555 check from the game itself, UH had a $300,000 surplus.

It was only the second time in seven years the athletic department did not run at a deficit and was the biggest surplus since 2000-'01 when athletics turned a $911,000 surplus.

On the flip side, women's basketball spent $816,362 more than it brought in for the same year. Women's basketball has never come close to breaking even at the school, but that was the biggest gap in the school's history for the sport.

UH officials say the gap could potentially reach $1 million in the current fiscal year that concludes June 30.

Baseball was the biggest financial drain of the seven men's teams, spending $659,899 more than it took in, but that was still better than some previous years.

Men's basketball, for the second consecutive year, spent more than it took in with a $453,488 net shortfall.