Office of the Vice President for Global Communications

Friday, June 18, 2010

Athletics budget includes aid for student-athletes, continued capital investment

The Athletic Department presented to the Board of Regents on Thursday a proposed fiscal year 2011 budget that will fund all U-M sports to the full NCAA scholarship limit and provide for continued capital investment.

Total revenues for FY 2011 are budgeted to be $105 million and total operating expenses are budgeted at $100.3 million. The Athletic Department is a self-supporting unit that does not receive financial support from the university’s General Fund.

With the revenues derived from the Michigan Stadium expansion, the Athletic Department will realize an additional $11 million, taking revenues over the $100 million mark for the first time.

“Our goal is to achieve long-term competitive excellence,” Athletic Director Dave Brandon said. “A critical requirement is to sustain an outstanding, well-rounded athletic program, build and renovate world-class facilities, and fund all of our sports to the full NCAA scholarship limit.”

The FY 2011 budget includes $16.2 million in athletic financial aid that covers tuition, housing and books in support of more than 470 student-athletes who compete in 25 men’s and women’s varsity sports. In addition, the Athletic Department will transfer $2 million to the university’s need-based financial aid fund for non-athlete U-M students. This figure represents an increase from the $1.6 million transferred this year.

“The Athletic Department projects a $16.1 million operating surplus for the fiscal year ending June 30, 2010, and will start fiscal year 2011 with $35 million of unrestricted operating reserves,” said Athletic Department Chief Financial Officer Jason Winters.

Brandon also updated the regents on several Athletic Department facility upgrade initiatives. “We are well-positioned to continue the remarkable progress we’ve made in facility improvements. Crisler Arena is clearly our top priority and we have additional projects to fund in the near future, including Yost Ice Arena and our indoor track and field facility.”