Pay Cuts For Jim Harbaugh, Juwan Howard and Warde Manuel Among Financial Adjustments at Michigan
The University of Michigan has announced budget statistics from both 2020 and 2021, which will result in pay cuts for employees throughout the university, which includes athletic director Warde Manuel, as well as Jim Harbaugh and Juwan Howard.
The entire release is below:
The University of Michigan Athletic Department expects a budget surplus of $1 million for the current fiscal year and, due to the ongoing COVID-19 pandemic, projects a budget deficit for the coming fiscal year that begins July 1.
Warde Manuel, the Donald R. Shepherd Director of Athletics, presented the year-end financial projections and the budget for the coming year Thursday (June 25) to the U-M Board of Regents, and the Board approved the University's budget during a special meeting Monday night (June 29).
For the fiscal year 2020 operating budget, the Athletic Department projects an operating surplus of $1 million based on operating revenues of $187.4 million and operating expenses of $186.4 million. The operating surplus is a result of reduced operations and team activities. Looking ahead to fiscal year 2021, the department projects a deficit, based on operating revenues of $135.8 million and projected expenses of $161.9 million.
Elements of the FY2021 operating budget are as follows:
• Spectator admissions revenues are projected to decrease 50 percent between FY2020 and FY2021. It is important to underscore that this is a projection, with no final decision by the time of the June budget deadline.
• In responding to the pandemic, expenses have been reduced in all areas except for an increase to student-athlete financial aid. That category will see an increase of $0.8 million primarily due an increase in the number of student-athletes remaining on scholarship following the cancellation of the 2020 spring athletic season and anticipated increases in tuition.
• Team and game expenses are projected to decrease $6.5 million between FY2020 and FY2021 as a result of various expense reduction initiatives.
• Salaries, wages and benefits are projected to decrease $6.0 million between FY2020 and FY2021 due to various expense reduction initiatives.
As part of the expense reduction initiatives, Manuel, senior-level administrators, and many head coaches, including football coach and men's basketball coach , will accept 10 percent salary reductions from Aug. 1, 2020, through the end of the fiscal year. Full-time staff members earning between $50,000-$100,000 will have salaries reduced by five percent, and employees earning between $100,001-$150,000 will have wages reduced by 7.5 percent during the same period. Staff earning less than $50,000 will not see any reduction in pay.