Michigan Athletics expects higher revenue from alcohol sales and Big Ten expansion

With eight games on the football schedule in 2024, approved alcohol sales at football, basketball and hockey games, and the addition of four universities (UCLA, USC, Oregon, Washington) to the Big Ten, Michigan expects to have a surplus for the fiscal year. Michigan football will play big games this season against programs like Texas, USC, Oregon and Michigan State.

According to a press release from Michigan, the athletic department has taken a closer look at its submitted 2025 budget, including expenses and expected sources of revenue.

Read part of the statement below. Click here to view the full press release.

For the current fiscal year, the Athletic Department projects a slight operating surplus of $0.2 million based on operating revenues of $230.6 million and operating expenses of $230.4 million.

Looking ahead to the 2024-25 operating budget, the Athletic Department projects an increase in total operating revenue to $255.7 million and an increase in total operating expenses to $253.6 million due to a variety of factors.

The budget includes the following elements:

• Spectator ticket revenue will fluctuate over the next few fiscal years due to an unbalanced conference football schedule. Spectator ticket revenue is expected to increase by $14.8 million in fiscal year 2025 as the number of home games increases from a seven-game schedule in 2023 to an eight-game home schedule in 2024, coupled with a slight increase in ticket prices.

• Due to the impact of the new conference television agreement, conference distributions are expected to increase by $12.9 million in fiscal year 2025.

• The Athletic Department continues to look for ways to maximize revenue. The fiscal year 2025 budget calls for net revenue of $2.6 million from alcohol sales and $1.0 million from alcohol sponsorships.

• Operating expenses include a transfer of $10.0 million to a deferred maintenance fund and a transfer of $7.8 million to the University. The deferred maintenance fund will be used for major athletic facility repair and rehabilitation projects. The Athletic Department expects to continue to allocate additional funds for this purpose in future years.