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Desireé Reed-Francois’ one-year anniversary as Arizona’s athletic director was March 3. Year Two is underway. Similar to Year One, it will be filled with significant, difficult decisions.

The contracts of multiple coaches across the department will be up this year or next. Revenue-sharing, via the House vs. NCAA settlement, is expected to begin this fall. The process of balancing the athletic department’s budget is ongoing.

In a phone interview from the Big 12 Tournament in Kansas City, Missouri, Reed-Francois said various initiatives have reduced the department’s deficit from $34 million to $20 million. That number is expected to be $5 million by the end of fiscal year 2025 (June 30). She said the budget should be balanced one year later.

Pressed for details, Reed-Francois cited reduced expenses, restructured debt, new sources of revenue and a bigger contract with Nike as ways she and her staff have been able to achieve one of the mandates given to her by former UA president Robert C. Robbins. Those gains haven’t come without pain, including a price increase for game tickets that the department has termed a “competitive fee.” That money will go toward revenue-sharing, Reed-Francois said, and the fees won’t be limited to season tickets.

“I hate imposing this fee,” she said. “But it was just one way for us to be able to be competitive in this new era.”

Reed-Francois addressed multiple topics in the conversation with the Star, including a look back at her first year, some of the biggest changes she’s initiated and what changes are still to come. What follows is the first half of that interview. The second will be published in the coming days. Both have been lightly edited.

It feels like the last year has just flown by. Did it feel that way for you?

A: “Yes and no. It's been one of the most transformative periods in college sports history. We have had national changes as we prepare for the House settlement. We've had more localized changes here at the University of Arizona. We've had change in leadership at the president level, the athletic director level. We've changed conferences. So we have had to really adapt quickly while laying the foundation for long-term success. So that's why I say both. Yes, it has gone by quickly. But also it's been a really methodical process.”

As you mentioned, you took over in the midst of this period of seismic change in the college athletic landscape. How has that shaped your decision-making and agenda?

A: “When we stepped into this role, it was clear that Arizona Athletics needed to modernize financially, operationally and culturally to meet the demands of this new era. That process has been both challenging and necessary, and it's required difficult decisions. It's required discipline and a strong focus on communication and accountability. At times, the work has been exhausting and emotionally demanding. But it's also been energizing and helpful.

“Change is not easy. But the entire country is going through this change, and it's essential. Throughout this transformation, we've remained focused on our North Star, which is supporting our student-athletes in their academic pursuits and their drive for excellence in competition. We're making meaningful progress and positioning Arizona Athletics for the future. ... We're going to emerge stronger, we're going to be more competitive and we're going to be ready to thrive.”

What were your biggest goals for Year One, and to what extent do you feel like you accomplished them?

A: “People, culture and preparation for the largest transformation in college sports history. We had to stabilize the athletic department. Everybody saw the finances, and we also had the benefit of, when we came in, EY (Ernst and Young) was in the middle of their assessment (an audit of the department’s finances). So I was able to review what they put together, and it provided a bit of a road map.

“This is a people business, and the people drive the culture. ... We talk about ‘high, low, high.’ We have people that are high character. Character for us is defined as selfless, smart, hardworking. Low ego. High outcome and energy.

“It's a work in progress, but we can't have the success that we all expect if we don't have a strong culture. We're not all the way there, and we're never going to be all the way there. But we're taking great strides.

“And then preparing for this House settlement. It's a big lift. It's a big shift. And it's critical for our future success. So we had to make that a high-priority strategy.

Can you share what your revenue-share percentages are going to be by sport?

A: “What I will tell you is that we are all-in. We are competitive, we are fair and we are good stewards of our resources. But in terms of percentages, etc., I'm not going to give away our trade secrets.”

If there's one change that you've made so far that you feel could have the most lasting impact, what do you think that might be?

A: “The Nike contract was important for us. It was a priority. We started the negotiation process right when I got here in March at the Final Four in Phoenix. We worked collaboratively with Nike, and we're really appreciative and proud of the outcome. That will save us about $2.5 million per year.

“Additionally, launching Arizona Sports Enterprises (replacing Learfield IMG College for multimedia rights aside from national TV contracts) was a big initiative for us over the summer, getting that up and running by July 1. We're really proud of the fact that they have met 98% of their revenue goal. And there's an additional 16% that are in the contract-negotiation phase. That has been a strong initiative that is strengthening our financial sustainability and also giving us great flexibility.”

You have reshaped your senior staff. A lot of the titles (Senior Associate Athletic Director, Revenue Generation & Engagement; Associate Athletic Director, Contracts; Director of Corporate Sponsorship) look like something you might see at a corporation — not what we’ve come to expect from an athletic department. What are you trying to achieve with these new roles?

A: “This is a new era in college sports. In order for us to provide the championship experience for our student-athletes — and the resources and the tools for our coaches to achieve the championship expectations we have for them — we have to have a strong organizational structure. We're running an approximately $150 million business — an enterprise, if you will — with the purpose of graduating our leaders, winning championships and galvanizing the community.

“Whenever you change leadership, invariably you're going to change personnel. For us to thrive in this modern model and build that values-based, high-performing team, we added some key components. We've promoted from within. And we're still coming together as a team. But I'm really optimistic for the trajectory of our department.”

You recently announced a “competitive fee” for season-ticket holders. Why was that necessary?

A: “It was one of about five different ways that we're going to fund House. Football and men's basketball had the $50 competitive fee; softball, baseball and women's basketball had a $25 competitive fee. All of that goes into that respective sport’s revenue-share budget. It is just one tool of many.

“We've cut expenses. We have renegotiated contracts. We have restructured debt. We have raised more revenue. We have additional conference revenue. We are looking at naming rights. We are looking at premium spaces. There is nothing off the table. We have to look at things in a different way because of this rapid change.”