The Univ. of Michigan athletic department reported a $4M "operating surplus" for FY2022-23, according to Tony Garcia of the DETROIT FREE PRESS. The department created $229,561,279 in operating revenues compared to $225,548,280 in expenses, the “most in a single year.” It is the “second time U-M has exceed” $200M in annual operating revenue in one year -- the "only other occasion was last year.” UM’s total revenue increased by $18.9M year-over-year and "more than half of that increase came from an increase ticket sales.” The reason UM “didn't see a larger surplus after generating its most revenue of all time,” is expenses “also went up" by $32M year-over-year. while there was "no one major culprit, there were a number of significant expenses that went up in nearly every category" (DETROIT FREE PRESS, 1/30). UM's CFP National Championship win this season will be reflected in next year's numbers.
FOR A THIRD TIME: In Detroit, Chris Solari noted Michigan State’s athletic department “operated at a financial loss for the third time in four years.” MSU’s budget deficit for FY2022-23 “totaled nearly” $11.2M, which came after the athletic department operated with a $16.35M "surplus in the previous fiscal year." MSU’s deficit was $17.8M in 2019-20 and $15.4M in 2020-21, the two fiscal years "covering the worst of the coronavirus pandemic." Part of MSU’s budgetary downturn came from a "decline in operating revenue that exceeded” $2.15M, with athletics bringing in $170.65M. Operating expenses “continue to rise,” with athletics spending $181.85M, a “significant jump” from AD Alan Haller’s first year in the position, when MSU spent about $156.5M. MSU's biggest revenue generator "remains their football program,” which provided a $36.5M surplus over its $53.5M in expenses during its 2022 season. However, that “excess revenue was down from” the $45.2M generated during the team's 11-2 season in 2021 (DETROIT FREE PRESS, 1/30).
