Michigan’s athletic department is projecting a $26.1 million deficit for the upcoming fiscal year.
The school says in a news release it expects athletic department revenues to drop by more than $50 million for the fiscal year that starts July 1 because of the COVID-19 pandemic.
For the current fiscal year, Michigan says it expects athletics to bring in $187.4 million, with expenses of $186.4 million. For the upcoming year, it’s projecting revenue of $135.8 million and expenses of $161.9 million.
Expenses are expected to drop in part because many coaches and other senior staff are taking 10% pay cuts, including football coach Jim Harbaugh and men’s basketball coach Juwan Howard. Staffers with salaries between $100,000 and $150,000 are having their pay slashed by 7.5% and those who make between $50,000 and $100,000 will get a 5% cut.
The athletic department says it expects to see a 50% drop in revenues from ticket sales. But it cautions that’s just a projection and could change.