The University of Michigan athletic department is projecting a budget deficit of $26.1 million for the 2021 fiscal year because of the coronavirus pandemic, and as part of expense-reducing initiatives, athletic director Warde Manuel, football coach Jim Harbaugh and men's basketball coach Juwan Howard will each accept a 10% salary reduction from Aug. 1, 2020, through the end of the fiscal year.
Manuel spoke to the Michigan Board of Regents on June 25, and despite projections showing a surplus of $1 million for the current fiscal year, operating revenues are expected to be $135.8 million, with expenses totaling $161.9 million. Within those projections, Michigan is expecting to see a 50% decrease in spectator admissions revenue.
Michigan pointed out that although there are expense reductions throughout the athletics department, student-athlete financial aid will not be impacted. There will actually be an increase of $0.8 million due to the ruling by the NCAA Division I Council granting an extra year of eligibility to student-athletes in spring sports whose seasons were canceled because of the pandemic.
Some of the other cost-cutting measures being put in place include 5% salary reductions for full-time staff members earning between $50,000 and $100,000 and 7.5% reductions for staff earning $100,001 to $150,000. In total, Michigan is looking at a projected decrease of $6 million from the various expense reductions.