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The financial situation inside the University of Michigan athletic department is starting to get real serious to the tune of 21 job cuts, a hiring freeze, pay cuts and a revenue loss that could hit $100 million in 2020. The revenue projection from athletic director Warde Manuel was announced Tuesday on the Conqu’ring Heroes podcast where Manuel made it clear the losses would be higher than his $61 million projection back in August.
“The impact is upwards of almost half our budget, about $100 million,” a solemn Manuel said on the podcast, describing it as a “significant loss.”
“We have to take as many significant reductions as we can and cut back as we have already, and as we continue to do our budgets, salary reductions and those kinds of things. We just keep moving through it and try to figure it out.”
Manuel, speaking with Jon Jansen on the podcast, just like companies across the country making tough decisions, Michigan is no different.
“It’s not easy to have to think of all the things we have to give up that we are normally used to having. But that’s where we find ourselves during this time. Difficult choices have to be made in order for the long-term health of the department and the long-term health of the university.”
Michigan expects to have a final 2020 financial loss number at some point this month. It’s still unclear if the Big Ten returning in October would lessen the blow to the athletic department.
Big financial losses aren’t exclusive to Michigan. Iowa’s in the same boat. Ohio State as a university is making $252 million in budget cuts. And Penn State is right there with Michigan at $100 million in losses.