The Wolverine: Covering University of Michigan Football and Sports
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THE BUSINESS OF MICHIGAN ATHLETICS those personnel-change costs in the future. He's trying to eliminate big buy- outs at Michigan and encouraging others in the college sports world to do the same. "In the case of our football coach, all he has to do is give me notice," Hackett said. "It's really hard if some- body is going to take your great foot- ball coach, or great basketball coach, and three days later you're caught. "In those new agreements, they just have to give us notice that they want to leave, and we'll let them go. But in that time, we can find a re- placement. It reduces the cost of the whole system." Of course, Hackett hopes there are no changes in the football and bas- ketball offices in the near future. Michigan projected in June a ba- sically break-even budget for the coming year, with $153.6 million anticipated for both revenues and expenses. It remains to be seen if the football fix pushes Michigan farther into the black, but Hackett under- scored the importance of the steps taken. "There's incremental cost," Hack- ett said. "We know the coach before was making $3.5 million. So for an additional $1.5 million — you say, what's that incremental cost worth? "It's an enormous benefit for a little cost. We had undistributed tickets north of 15,000 to 20,000 per game in some of the games last year. We had the suites. You get the payback of that $1.5 million in three weeks. "It's just a phenomenal lever, if it works. The president and I are really happy in that way." Of course, football has to win for those vastly improved numbers to remain in place, Hackett acknowl- edged. He admitted the overall as- sessment of the moves made is best done over time, although they made an immediate impact. "Financially, that single transaction solidified the University's athletic program yet again," he said. "There are other things threatening it, but it's not the football health." Football and men's basketball are certainly major drivers for the Big Ten financially, and that continues to be reflected in the funds it distributes to member schools. Michigan is pro- jecting $34.7 million in revenue from the conference, up from $32 million budgeted in fiscal year 2015. The College Football Playoff boosted revenues across the board, and locally, the Big Ten Network con- tinues to be a success on the bottom line, Hackett indicated. "With television, we really had an Interim Director of Athletics Jim Hackett "Financially, that single transaction [hiring Jim Harbaugh] solidified the University's athletic program yet again. There are other things threatening it, but it's not the football health."