U-M head coaches Jim Harbaugh, Juwan Howard taking 10% pay cut due to COVID-19 'revenue losses'

Posted at 7:07 AM, Jun 30, 2020
and last updated 2020-06-30 07:07:23-04

The University of Michigan Athletic Department is projecting a budget deficit for the coming fiscal year that begins July 1, due to the ongoing COVID-19 pandemic.

As part of the expense reduction initiatives, Director of Athletcis Warde Manuel, the Donald R. Shepherd, senior-level administrators, and many head coaches, including football coach Jim Harbaugh and men's basketball coach Juwan Howard, 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.

The department expects a budget surplus of $1 million for the current fiscal year.

According to the university, 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.