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Volume 24 No. 158


The Univ. of Michigan athletic department for FY '18 "projects an operating surplus" of $2M and will get a "huge financial bump from the Big Ten's conference distribution," according to Angelique Chengelis of the DETROIT NEWS. Michigan is expected to receive $51.1M in '18, a "substantial increase" from the $36.3M during FY '17, in "large part because of the Big Ten's new television contract." UM AD Warde Manuel said, "(We have) higher than anticipated conference distribution, higher than anticipated licensing revenue with the addition of Nike and Jordan Brand, who have been great partners of ours." The budget "projects operating revenues" of $182.4M and operating expenses of $180.4M. Total operating expenses are "projected to increase" approximately 5% from FY '17, and included is a $4M transfer to a "deferred maintenance fund used to provide athletic facilities upkeep and rehab." Football spectator admissions will "drop slightly" to $43.1M in '18 from $48.9M last year reflecting Michigan's six-game home football schedule this fall "compared to an eight-game schedule last year" (DETROIT NEWS, 6/16). In Detroit, Snyder & Jesse note the "'other' revenue category is expected to climb" from $7M to $12.8M due to the "payment from the neutral site football game" against Florida on Sept. 2 at AT&T Stadium. Michigan is "scheduled to receive" a $6M payment from that game (DETROIT FREE PRESS, 6/16). In Michigan, Martin Slagter noted licensing royalties "increased" by $2.37M in '17, from $8.4M to $10.8M (, 6/15).

SAFE KEEPING: The DETROIT NEWS' Chengelis reported Michigan alums David and Meredith Kaplan have made a $7.5M gift to "endow the men's basketball head coaching position." Michigan athletics has endowments for the AD, football head coach and football offensive and defensive coordinators. The Kaplans' gift "includes funding for the head coaching position." The Kaplans have "long been major donors to the university" (DETROIT NEWS, 6/16).

The projected budget for Georgia Tech's FY '18 "calls for a break-even year" in which revenues and spending will be $84.3M, according to Ken Suguira of the ATLANTA JOURNAL-CONSTITUTION. The projected spending for the FY '17, which concludes June 30, will be $81.3M. Spending on salaries "will increase" 9% from the original '17 budget, from $26.4M to $28.8M. GT CFO Marvin Lewis said, “Many of our salaries are at the lower tier of the ACC. What we want to do is slowly make strategic increases to get us to the midpoint over time." The budget calls for a 17% "increase in ticket sales" -- $12M to $14.1M. The department is "counting on the football team’s favorable home schedule" and the "optimism in the men’s basketball team to drive sales." The distribution from the ACC is budgeted for $27.8M, which is $2.2M "more than the budgeted allotment" for FY '17. Meanwhile, FY '17 "will end" in the red. Due to some of the "more significant highlights of the year" -- the football trip to Ireland and the team’s overall success, the postseason runs by both basketball teams and the hire of AD Todd Stansbury -- the budget is "projected to finish" with a $2.9M deficit, which is "$500,000 more than the original projection." Extra costs "outpaced unscheduled revenue gains." The department earned $1.3M in "unbudgeted revenue from leasing Bobby Dodd Stadium and McCamish Pavilion" to Atlanta United and the WNBA Dream, respectively. Lewis said that the department has "netted about $200,000 for each game that the expansion MLS team has played" (ATLANTA JOURNAL-CONSTITUTION, 6/16).