Michigan's athletic department eliminates 21 positions in cost-cutting measure
Orion Sang
Detroit Free Press
Michigan's athletic department is feeling the squeeze of no college football.
Athletic director Warde Manuel announced Tuesday afternoon the department is eliminating 21 positions while facing "a potential revenue loss of $100 million."
Manuel's revenue-loss projections came during a podcast released Tuesday. He followed up hours later with a statement publicizing a round of nearly two dozen layoffs.
“The decision to implement staffing reductions was not made lightly and is difficult because of the deep impact on all aspects of our department and especially those who are directly affected,” Manuel said in a statement. “We will continue to identify all necessary strategies to mitigate our circumstances, and we will continue to support our dedicated colleagues who have been so greatly affected.”
The job losses come in addition to a previously announced hiring freeze that Michigan says has led to 15 unfilled positions since early 2020. The athletic department has also implemented "comprehensive salary freezes and salary reductions ranging between 5 and 10 percent for most employees," while lowering operating and team budgets. Season-ticket holders asked in August to make tax-deductible monetary donations as well.
Pay cuts have already been implemented for several high-profile employees, including Manuel, football coach Jim Harbaugh and men's basketball coach Juwan Howard, who each accepted a 10% pay reduction earlier this summer for the 2021 fiscal year.
"The department will also further evaluate temporary furloughs and reductions in hours for staff as additional information about competitions and sports season becomes known," the statement read.
The statement was released hours after Manuel's appearance on the "Conqu'ring Heroes" podcast with Jon Jansen was published. It was then the athletic director revealed the department will take a nearly nine-figure hit after the Big Ten's Aug. 11 decision to postpone all fall sports — including football, U-M athletics' prime bread-winner.
"The impact is upwards of almost half our budget, about $100 million," Manuel said during the podcast. " ... it is just 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.”
During the podcast, Manuel said the department is hoping to have finalized financial models and predictions "at some point in September."
Other Big Ten schools, such as Purdue, have applied similar reductions, while Iowa went so far as to cut four sports: men's gymnastics, men's tennis and men's and women's swimming and diving.
Manuel in August wrote to fans saying as a result of COVID-19, the department budgeted $61 million less in revenues this year, which "could easily double if the decision is made not to play any sports."
"In addition, we are also facing significant costs related to safely returning our student-athletes and staff to campus with COVID-19 protocols in place," he wrote last month.
In June, before the Big Ten 2020 football season was delayed, Manuel presented the annual budget in a Board of Regents meeting, projecting a $26.1 million deficit based on operating revenues and operating expenses.
The budget predicted revenues to decline by close to $65 million due to refunds, fewer admissions to games and fewer ticket packages.
But that projection was released before the Big Ten shut down fall sports — after the conference had previously planned to play a shortened, conference-only schedule in the fall.
Orion Sang
Detroit Free Press
Michigan's athletic department is feeling the squeeze of no college football.
Athletic director Warde Manuel announced Tuesday afternoon the department is eliminating 21 positions while facing "a potential revenue loss of $100 million."
Manuel's revenue-loss projections came during a podcast released Tuesday. He followed up hours later with a statement publicizing a round of nearly two dozen layoffs.
“The decision to implement staffing reductions was not made lightly and is difficult because of the deep impact on all aspects of our department and especially those who are directly affected,” Manuel said in a statement. “We will continue to identify all necessary strategies to mitigate our circumstances, and we will continue to support our dedicated colleagues who have been so greatly affected.”
The job losses come in addition to a previously announced hiring freeze that Michigan says has led to 15 unfilled positions since early 2020. The athletic department has also implemented "comprehensive salary freezes and salary reductions ranging between 5 and 10 percent for most employees," while lowering operating and team budgets. Season-ticket holders asked in August to make tax-deductible monetary donations as well.
Pay cuts have already been implemented for several high-profile employees, including Manuel, football coach Jim Harbaugh and men's basketball coach Juwan Howard, who each accepted a 10% pay reduction earlier this summer for the 2021 fiscal year.
"The department will also further evaluate temporary furloughs and reductions in hours for staff as additional information about competitions and sports season becomes known," the statement read.
The statement was released hours after Manuel's appearance on the "Conqu'ring Heroes" podcast with Jon Jansen was published. It was then the athletic director revealed the department will take a nearly nine-figure hit after the Big Ten's Aug. 11 decision to postpone all fall sports — including football, U-M athletics' prime bread-winner.
"The impact is upwards of almost half our budget, about $100 million," Manuel said during the podcast. " ... it is just 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.”
During the podcast, Manuel said the department is hoping to have finalized financial models and predictions "at some point in September."
Other Big Ten schools, such as Purdue, have applied similar reductions, while Iowa went so far as to cut four sports: men's gymnastics, men's tennis and men's and women's swimming and diving.
Manuel in August wrote to fans saying as a result of COVID-19, the department budgeted $61 million less in revenues this year, which "could easily double if the decision is made not to play any sports."
"In addition, we are also facing significant costs related to safely returning our student-athletes and staff to campus with COVID-19 protocols in place," he wrote last month.
In June, before the Big Ten 2020 football season was delayed, Manuel presented the annual budget in a Board of Regents meeting, projecting a $26.1 million deficit based on operating revenues and operating expenses.
The budget predicted revenues to decline by close to $65 million due to refunds, fewer admissions to games and fewer ticket packages.
But that projection was released before the Big Ten shut down fall sports — after the conference had previously planned to play a shortened, conference-only schedule in the fall.
Michigan's athletic department eliminates 21 positions in cost-cutting measure
The Michigan Wolverines athletic's department is laying off nearly two dozen people.
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