The Michigan athletic department has projected a balanced budget at $266.3 million for the fiscal year 2025-26, but only after largely unprecedented assistance from the university.
A budget presented at the Board of Regents meeting in Ann Arbor on Thursday, June 12, disclosed that the athletic department will receive $15 million in support in order to deal with increased expenses from the recent House settlement.
The approved budget also indicates the department will transfer $6.1 million less to the university than its projection for the 2025 fiscal year.
Dating back to the fiscal year of 2005, there is no assistance of this magnitude on record from the university. Not adjusting for inflation, the direct institutional support total never has been above $60,000 and indirect institutional support never has exceeded $270,000, according to data gathered by USA TODAY in conjunction with its partnership with the Knight-Newhouse College Athletics Database at Syracuse University.
The only comparison would be the 2021 fiscal year when the department had an operating deficit of $47.6 million in the first athletic seasons following the onset of the coronavirus pandemic.
The new revenue-sharing agreement in the House settlement creates a host of issues for athletic departments, led by an additional $20.5 million that is now allowed to be paid directly from the university to the student athletes.
In addition to the funds set aside for student-athletes, the revenue-sharing agreement that will take effect on July 1 also removed scholarship limits on all teams — beyond roster sizes dictated by the NCAA — which means another $6.2 million in expenses, according to a letter to fans penned by athletic director Warde Manuel this week.
The department is also expecting a major decrease in funds from ticket sales — Michigan football hosted eight home games last season but is set to have just six in the 2025 season — accounting for an estimated $19.1 million in revenue.
Manuel, in his letter, mapped out the plan for the department to stay above water through a series of moves, including changes to the travel plan and the expectation of not filling vacant jobs in the near future, which is expected to result in $10 million in budget cuts year over year.
The Wolverines’ share from Big Ten funds is expected to jump more than $5 million, to $82.6 million annually. The university also has a few new revenue streams, such as in-game alcohol sales (which began last year and generated $2.25 million) and an upcoming Zach Bryan concert scheduled for Michigan Stadium on Sept. 27, which is projected to net $1.7 million,.
USA TODAY Sports reporter Steve Berkowitz contributed to this report.
Tony Garcia is the Michigan Wolverines beat writer for the Detroit Free Press. Email him at apgarcia@freepress.com and follow him on X at @RealTonyGarcia.
This article originally appeared on Detroit Free Press: Michigan athletics projects balanced budget in 2025-26, thanks to $15M assist from school
Reporting by Tony Garcia, Detroit Free Press / Detroit Free Press
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