The Wolverine: Covering University of Michigan Football and Sports
Issue link: https://comanpub.uberflip.com/i/1537777
AUGUST 2025 ❱ THE WOLVERINE 9 BY ANTHONY BROOME S weeping changes continue in the college sports landscape about stu- dent-athlete compensation. The House v. NCAA settlement was finalized on June 6, 2025, resolving antitrust suits that paved the way for the revenue- sharing era between athletic depart- ments and athletes. The NCAA, major conferences and their member institutions will pay ap- proximately $2.8 billion in retroactive damages for Division I athletes com- peting between 2016-24, and payouts will be distributed via a court-approved formula that mostly favors football (75 percent) and men's/women's basketball (20 percent), with remaining funds go- ing to other sports. Eligible Division I schools can now share up to $20.5 million per year di- rectly with its student-athletes on top of scholarships and existing benefits with a cap rising around 4 percent annually to around $32.9 million by 2034-35. Michigan is feeling the effects of this, and says it has a plan in place to make up for the lost athletic department revenue. "The prospect of these added costs left U-M athletics facing a projected deficit of nearly $27 million for the 2025-26 academic year ($20.5 million to fully participate in revenue sharing and $6.2 million in new scholarships)," athletics director Warde Manuel said in an email to Michigan supporters. "With only six home football games this fall, our projected year-over-year decline in revenue of roughly $19.1 million steep- ens these costs. "The department has implemented several measures to counteract these new expenses. Through adjustments to university financing, budget cuts, travel policies, not filling select positions when vacated and the utilization of new revenue streams, we have reduced our estimated need from $27 million to $15 million for the coming year." Despite the changes, Manuel and Michigan say they are committing to complying and supporting their stu- dent-athletes to the best of their ability with the $20.5 million revenue share. "That money, combined with the value of tuition, room and board, and the many other benefits already pro- vided, leaves NCAA student-athletes in a position to receive a similar percent- age of revenue shared with professional sports athletes," Manuel said. "We will support our student-athletes with the full amount allowed each year to remain competitive for Big Ten Conference and National championships." Manuel says that athletic department staffing will be slowly reduced over time with budget cuts also coming on that front. "To combat the added cost, the de- partment staff will gradually decline in number through two methods: at- trition, with a long-term goal of a 10 percent reduction in total staff, and through a stricter approval process for new hires," Manuel said. "The depart- ment has committed to more than $10 million in budget cuts for the com- ing fiscal year, and has worked with the main campus to reduce its alloca- tion from TV revenue to the university from $8 million to $2 million. We also revamped our travel policy, which re- sulted in over $900,000 in savings dur- ing 2024-25." Hosting more events, such as the Zach Bryan concert scheduled for Sept. 27 at The Big House, is on the table as the department looks to increase its revenue streams. The implementation of alcohol sales in 2024 also has been a net positive for the department. "Our athletic department is also pro- ducing more revenue from events in our facilities, such as our partnerships with Upper Deck Golf and AEG/Zach Bryan," Manuel said. "Events such as in- ternational soccer matches and the 2014 NHL Winter Classic generated between $750,000 and $3 million each for the de- partment in the past. The 2024 calendar year saw the implementation of alcohol sales at Crisler Center, Yost Ice Arena, and Michigan Stadium, which generated over $2.25 million for the department. "We will continue to evaluate other opportunities to generate additional revenue throughout the department." ❑ ❱ Inside Michigan ATHLETICS Revenue Sharing Comes To College Sports: How It Affects U-M Michigan athletics director Warde Manuel said the department will seek to counteract the new expense of $20.5 million in revenue sharing with its student-athletes by making adjustments to university financing, budget cuts, travel policies, not filling select posi- tions when vacated and the utilization of new revenue streams. PHOTO BY LON HORWEDEL