University of Michigan Athletic Director David Brandon predicts $5.8 million budget surplus in 2013

Brandon presented a $130.3 million athletics revenue projection to the Board of Regents Thursday.

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.