The University released its consolidated financial report for the period between June 30, 2024 and the same date this year. It will be the last report to escape the effect of the new 4% endowment tax rate, which goes into effect for the 2026 tax year.
Endowment assets rose from $23 billion to $25.8 billion according to the report. The 12% increase surpasses the 20-year average of 10.2%.
The University remains heavily subsidized by endowment payouts which were $611 million, up from $566 million, representing 33% of the $1.85 billion earned from operating revenues. The 2025 investment return totaled $2.69 billion, of which $37.6 million would be paid in taxes at the old rate, compared to $107 million at the current rate which applies from 2026 onward.
Net revenue from tuition decreased from $375 million to $371 million. The change is driven by a 2.6% increase in tuition fees, which in turn is offset by a 6.6% increase in scholarships and fellowships. These alterations align with the goals set out by University President Fr. Robert Dowd in his inaugural address last year, when he emphasized the need for Notre Dame to be “both accessible and affordable.”
Athletic contract-based revenue increased 25%, from $150 million to $186 million, compared to a 5% change in prior years. The increase stems from the football team’s second-place finish in last year’s College Football Playoff.
The $28 million in excess revenue compared to the previous year’s trend is significantly larger than the salary of head football coach Marcus Freeman, who as of the most recent publicly available tax filing was $7.4 million. Combined with a $20 million playoff payout, the $48 million of additional profit during the 2024-2025 season means the University could pay his salary with just 15% of the total.
Freeman signed a contract extension last December which likely stipulated a salary increase, though public figures on the exact amount are unavailable.
Last June, the executive officers of the University released a statement announcing a 2.5% budget cut and a pause on new construction. Since the financial report ended on June 30, the effects of the decision have no bearing on this year’s report.
New construction had already been halted over the fiscal year, long before the official announcement and the end of the reporting period. After a four-year trend of increases to the total capital committed for current and future construction projects — an increase from $80 million in 2021 to $334 million last year — there was a decrease of 4% this year.
