A few factors leading to Michigan’s proposed budget total.
With eight games on the football schedule in 2024, approved alcohol sales at football, basketball, and hockey games and the Big Ten adding four universities (UCLA, USC, Oregon, Washington), Michigan expects to have a surplus of funds for the fiscal year. Michigan football will host big matchups against programs like Texas, USC, Oregon, and Michigan State this season.
Per a release from Michigan, the athletics department dove into their submitted 2025 budget along with expenditures and sources of expected profit.
Read part of the statement below. Click Here for the entire release.
For the current fiscal year, the athletic department projects a slight operating surplus of $0.2 million based on operating revenues of $230.6 million and operating expenses of $230.4 million.
Looking ahead to the 2024-25 operating budget, the athletic department projects an increase in total operating revenues to $255.7 million and an increase in total operating expenses to $253.6 million due to various factors.
Elements of the budget are as follows:
• Spectator admissions revenues will fluctuate over the next several fiscal years due to an imbalanced conference football schedule. Spectator admissions revenues are projected to increase by $14.8 million in FY25 due to an increase in home football games, from a seven-game schedule in 2023 to an eight-game home schedule in 2024, combined with a slight increase in ticket pricing.
• Conference distributions are projected to increase by $12.9 million in FY25 due to the impact of the new conference television agreement.
• The Athletic Department continues to explore ways to maximize revenues. The FY25 budget includes $2.6 million in projected net revenues from alcohol sales and $1.0 million in revenues from alcohol sponsorships.
• Operating expenses include a $10.0 million transfer to a deferred maintenance fund and a $7.8 million transfer to the University. The deferred maintenance fund is used to provide for significant repair and rehabilitation projects for athletic facilities. The Athletic Department expects to continue setting aside additional funds for this purpose in future years.