Michigan's FY11 Athletic Department Budget
The Athletic Department presented its FY11 budget to the Board of Regents today. Here are the highlights:
- Funds all U-M sports to the full NCAA scholarship limit and provides for continued capital investment.
- Revenues budgeted at $105M.
- Operating expenses budgeted at $100.3M.
- Football revenue attributable solely to the Michigan Stadium expansion projected at $11M.
- This is the first year that revenues are expected to exceed $100M.
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Includes $16.2M in athletic financial aid (tuition, housing and books)
- Covers more than 470 student-athletes who compete in 25 men's and women's varsity sports.
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Transfer $2M to the university's need-based financial aid fund for non-athlete U-M students.
- $0.4M more than in FY10.
- The athletic department projects a $16.1M operating surplus for FY10 and will start FY11 with $35M of unrestricted operating reserves.
- The athletic department continues to be a self-supporting unit that receives no funding from the University's General Fund.
- Michigan's FY11 runs from July 1, 2010 to June 30, 2011.
Dave Brandon: "Our goal is to achieve long-term competitive excellence. 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.
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."
Think rainy day fund. It's basically cash or a near cash equivalent such as government paper.
...is an unrestricted fund balance set aside to stabilize a organization's finances by providing a cushion against future unexpected cash flow shortages, expense or losses. It's likely that the University has established a minimum level of operating reserves that the athletic department must maintain as a hedge against such unexpected circumstances.
So are those funds used for things like fixing up Yost or are the funds really set aside for a "rainy day?"
...part of the budget for capital improvements. This is a true rainy day fund the AD would use to meet its obligations if it experiences unexpectedly high expenses or unexpectedly low revenues (both unlikely).
An example of something that could be covered by the operating reserves is when Yost experienced storm damage. It's possible those repairs were covered by budgeted maintenance funds, but since the damages were unexpected, some of the costs were likely covered by operating reserves.
thanks for the info
...UM's AD doing so well while the rest of Michigan, particular Detroit in the crapper.
welcome to ann arbor
The People's Republic of Ann Arbor; also known as "25 square miles surrounded by reality."
I love Ann Arbor, but as far as the economic situation and employment, it definitely needs to improve in that capacity.
So these were last years most valuable college football teams, according to Forbes:
1. Texas Value: $119 million Profit: $59 million
2. Notre Dame Value: $108 million Profit: $38 million
3. Penn State Value: $99 million Profit: $50 million
4. Nebraska Value: $93 million Profit: $49 million
5. Alabama Value:$92 million Profit: $38 million
so I wonder where that will put us this year? We could possibly end up 3rd if all other numbers stay about the same.
These figures will increase in 2011 from the Big Ten Championship game, and another important distinction for Big-Ten teams is the equity value the conference has in the B-10 Network- which is a a very, very significant number.
This a key point that needs to be hammered home: Our athletic department does not operate in the red, AND it puts money INTO the General Fund (the GF is what the U pretty much runs its academic side on).
When the AD recuits an athlete to the University and offers a scholarship, the tuition $$ isn't just "written off" or forgiven. The Athletic Department essentially writes the University of Michigan a check for that athlete's tuition. And 469 others.
So many people don't get this, and assume that the money flows the other way (their tax dollars/tuition checks help fund the athletic department). Nope.