University of Michigan Athletic Director David Brandon predicts $5.8 million budget surplus in 2013
The University of Michigan Athletic Department plans to end next year with a $5.8 million surplus, Athletic Director David Brandon said Thursday.
David Brandon speaks to the Board of Regents in this AnnArbor.com file photo.
Melanie Maxwell | AnnArbor.com
With $124.5 million in operating expenses, athletics will experience $5.8 million surplus.
The Board of Regents unanimously approved the fiscal 2012-13 budget, which becomes effective July 1.
Brandon said revenues this year were higher than anticipated due to a $7.5 million gift toward the William Davidson Player Development Center. The gift brought fiscal year-end revenues from $121.2 million to $128.7 million.
Athletic department ticket sales, not including preferred seating, also exceeded projections, reaching nearly $48 million.
Next year, ticket sales are expected decrease roughly $4 million due to two fewer home football games. Concession sales are also expected to decrease $700,000.
Additionally, Brandon said the 2013 Winter Classic is expected to cost the university $600,000 to facilitate. The National Hockey League is paying U-M $3 million for use of the Big House for the match, which will take place January 1, 2013.
Athletic department salaries are projected at $40.3 million during fiscal 2012-13, which begins July 1.
Kellie Woodhouse covers higher education for AnnArbor.com. Reach her at kelliewoodhouse@annarbor.com or 734-623-4602 and follow her on twitter.
Comments
snapshot
Sun, Jun 24, 2012 : 9:01 a.m.
What's math and science have in their budget? And who pays for the medical costs associated with all those great "hits"? Taxpayers?
DAN
Fri, Jun 22, 2012 : 6:25 p.m.
How about putting in a fund to reduce fees for ALL students!
YpsiVeteran
Fri, Jun 22, 2012 : 2:09 a.m.
Wow. Only a 5.8 mil surplus...I can see why he was so hesitant to let the band go to Texas this fall. It's obvious the cost would have bankrupted the program. Another disaster averted.
Sparty
Fri, Jun 22, 2012 : 12:43 p.m.
Do you compare the Marching Band that supports the Athletic Department to the Mens a Capella Group? I'm sure they will be interested to see that comparison. Start the conversation :)
ThoseWhoStayUofM
Fri, Jun 22, 2012 : 5:38 a.m.
The Marching Band is not a member of the athletic department. Do you want Dave Brandon to set aside money in the budget for the men's a cappella group as well? By the way, the Marching Band was able to raise the funding for their trip themselves, as they always have in the past. The news articles functioned as a PR stunt to increase donations.
Sparty
Fri, Jun 22, 2012 : 5:32 a.m.
LoL. Amen! And the need to raise ticket prices is ridiculous in this economy. At a minimum, UM retirees and students should be given preferential pricing.
Engineer
Fri, Jun 22, 2012 : 1:08 a.m.
Why the need to raise ticket prices when you have a surplus? Seems to be greed to me. Love the blue but seriously thinking of giving up my season tickets. Already sell half or more cause can not afford entire season. When started getting tickets a season pair ran a buck fifty. Last year just a tic shy of a grand. Nice I guess for Brandons CEO buddies. Lots of availible seats. In the past never were offred extra season tickets. We are now.
Scott
Fri, Jun 22, 2012 : 2:18 p.m.
Welcome to the new world order. It's all about money.
ThoseWhoStayUofM
Fri, Jun 22, 2012 : 5:32 a.m.
Your profit is an indicator of how well you are doing. Asking, "Why raise the ticket prices when you have a surplus?" is equivalent to asking, "Why study for the exam when you can fail it and still get a C?". Having surpluses is the athletic director's job, and Dave Brandon is doing a **** good job at it.
Billy Bob Schwartz
Fri, Jun 22, 2012 : 12:52 a.m.
This is the exact man you want to run a huge athletic department. I remember a fella named Don Canham who came along some years ago and took a, well, sorta rustic program, and made it into a money maker so that facilities could be built and money was available for all sports programs. Dave Brandon is of the same ilk. He is making many changes in the department, and many of those are improvements. try getting that done by a lesser man. You might end up with the worst football seasons ever.
Ralph
Fri, Jun 22, 2012 : 12:41 a.m.
Would you buy a used car from this man?
Tom Todd
Fri, Jun 22, 2012 : 9:01 p.m.
H*** No