The Wolverine: Covering University of Michigan Football and Sports
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SEPTEMBER 2019 THE WOLVERINE 19 lion came in under the $2.5 million initially projected for a surplus. That's due to a higher-than-expected transfer of money to its deferred maintenance fund to take care of facilities. USA Today put Michigan's revenues at No. 4 in the nation last year, one spot behind Ohio State at the top of the Big Ten. The publication listed Texas as the nation's top school for athletic depart- ment revenue, at $214.8 million. Manuel noted he's satisfied with where Michigan stands financially headed toward the 2020 fiscal year. "Normally we have a projected sur- plus that we will put into our reserve accounts, for future capital projects or needs," he said. "Some of that changed because of what happened financially. "But, for the most part, I feel very comfortable. We will not have a deficit unless something drastic happens with one of our facilities. I feel very comfort- able that we will definitely come in on budget this year." AN EYE ON THE WALLET Here are some of the factors affecting the 2020 budget, highlighted by Michi- gan's athletic department: • A $3.1-million rise in anticipated spectator admissions, due to an in- crease in the price of non-student foot- ball tickets. • An increase of $2.8 million on con- ference distributions due to television revenues. Big Ten payouts to confer- ence schools are approaching $60 mil- lion, a huge jump from the $36.3 mil- lion the league paid out in 2017. • On the other side of the ledger, sal- aries, wages and benefits are expected to gobble up $2.9 million more than in 2019, with team and game expenses up $2.2 million due to the cancellation of a football game with Arkansas. • The athletic department antici- pates a $4 million transfer to its de- ferred maintenance fund, used for significant repairs and renovation of existing facilities. Manuel explained that Michigan ex- ecuted the Arkansas cancellation in football to make way for this year's matchup against Notre Dame. "Whenever you have a cancellation of a game, any game, especially in football or basketball, and sometimes hockey, sometimes other sports, there's a contractual agreement that's set, based on the game," Manuel noted. Michigan football remains the goose that laid the department's golden egg. It supplies not only a huge chunk of revenue in ticket sales, preferred- seating licenses, suite provisions, etc., but also drives the television revenue through the conference distribution. Following a rough patch of some declining revenues — before Jim Har- baugh's arrival as head coach — U-M is back on solid ground, both on the field and in the budget, Manuel said. "I feel great about our fans and our donors, and their commitment to come to football games at Michigan Stadium and to support this team," he assured. "All the revenue that's derived from football helps to drive the success of not only football, but all other aspects of our athletic program. "I just feel a tremendous amount of happiness that our fans continue to support football at a high level, so we can do all that we do." While U-M football has yet to break through for a Big Ten championship or playoff appearance under Harbaugh, Manuel indicated football's improve- ment has been palpable. "Oh, absolutely," he said. "There is no doubt about the success that we've had, that Jim has had, over the past four years — three 10-3 seasons, one 8-5. The team certainly wants to win every game, but it's great results on the field of play." Manuel meets Michigan fans all over the United States and beyond. If he has a concern about their response to Har- baugh's program and the other sports U-M supports, it's that they continue to turn out for games, as opposed to just popping on the television. "We know we have a lot of fans, but we prefer them to not just watch us on TV," noted Manuel. "We prefer them to come to the stadium, to the arenas and the fields, and watch our student- athletes participate in the competitions and cheer the team on to success. "We always are driven around that, with how it helps us to drive success financially and elevate the things that we can do for our student-athletes." Meanwhile, he offers a sense of understanding when it comes to the pricing of football tickets. Michigan's lowest single-game, non-student ticket price this year, for a loaded home schedule featuring Notre Dame, Mich- igan State and Ohio State — $145. U-M made some single-game tickets avail- able in 2018 for $105. "We've tried to raise them as needed, not to try to maximize every dime we could get out of it," Manuel said. "Since I've come here, we've only in- creased ticket prices every other year. I want to say it's been somewhere around five percent. Over a course of a couple of years, about 2.5 percent. "This year, we didn't raise our seat contribution. We only increased the ticket prices. "We are well aware of the burden. In the Big Ten, I think we are third in average ticket price. It's not something where we're trying to compete to be first. Given the growth of tuition and the costs that continue to grow in the department in many different ways, we want to make sure that we are able to bring in the money that's needed to balance the budget." Obviously, television plays a role in the success of the athletic department budget as well. Manuel hailed outgo- ing Big Ten commissioner Jim Delany for his efforts and those of his staff in making that happen. "We have a great television contract and arrangement to showcase our teams," Manuel said. "The Big Ten distribution provides us with about a quarter of our budget. It's very signifi- cant, in terms of what it brings to us, our student-athletes, our staff and our program. "That is a key to our success finan- cially." FACILITIES WORK CONTINUES Michigan's new football perfor- mance center is essentially complete, Manuel noted. It's the latest in several Warde Manuel pointed to Jim Harbaugh's 38-14 record at U-M as "great results on the field of play." PHOTO BY PER KJELDSEN