U-M Athletics Projects Second Straight Budget Surplus
7/18/2002 12:00:00 AM | General
ANN ARBOR, Mich. -- The University of Michigan Athletic Department presented to the U-M Board of Regents earlier today (Thursday, July 18) a proposed budget that projects an operating surplus of $1.8 million for the year ending June 30, 2003. The athletic department also announced a projected surplus of $5.5 million for the 2001-02 fiscal year, approximately a $4.4 million improvement over the budgeted surplus of $1.1 million.
"We are pleased to once again project an operating surplus in 2003," Athletics Director Bill Martin said. "It is a continuous struggle to balance our revenue streams. The athletic department funds all of our sports to the full NCAA scholarship limit, and our mission of competitive excellence in all 25 sports comes at a significant financial commitment."
The favorable results for Fiscal Year 2002 resulted from greater than expected licensing revenues, annual donations and football admission revenues, said Jason Winters, Chief Financial Officer of the athletic department. Winters also noted that expenditures are expected to be consistent with budgeted levels for the year ended June 30, 2002, because of continued cost controls.
Winters cautioned that while the athletic department projects an operating surplus for Fiscal Year 2003, "it is primarily a result of a seventh home football game and that long-term financial stability has yet to be achieved. Going forward, fundraising will become even more important to our ongoing financial health," Winters said.
The department has budgeted for approximately $3.6 million in capital expenditures for Fiscal Year 2003 -- an increase of $1.2 million from last year -- that will be partially funded by cash reserves. "While we are happy to have stabilized our operating cash flow, there are several long-term facility renewal and renovation projects that we need to address going forward," Winters said.
However, Martin also warned that the department still faces many financial challenges. "We must make a significant investment in our aging physical plant -- renovation and replacement decisions will be driven by our fundraising efforts," Martin said.
Contact: Bruce Madej, David Ablauf (734) 763-4423
