A surplus of $5.8 million is projected for FY 2013, after allowing for $4.5 million for deferred maintenance. Revenue growth is positive, budgeted for an increase to $130.32 million in FY 2013, he said, compared to anticipated revenues of $128.69 million in the current fiscal year. The largest individual line item comes from ticket sales, which are budgeted at $44.05 million, down from a projected $48.988 million in FY 2012. Brandon noted that the lower ticket sales reflect fewer football games this coming season – six, compared to eight games last season.

Other revenue sources for FY 2013 include conference distributions ($23.28 million), preferred seating and gifts ($27.42 million), corporate sponsorships ($15.05 million), facility revenues ($6.85 million) and licensing royalties ($8.02 million).

The $124.5 million in expenses for FY 2013 includes $44.2 million in compensation, $18.35 million in student financial aid, $19.05 million in team and game expenses, $10.62 million in facilities expenses, and $14.69 million in debt service. Debt service payments will increase by $1.468 million, related to Crisler Center renovations. Brandon also noted that the athletic department is taking on responsibility for UM’s Radrick Farms Golf Course, which will add to both revenues and expenses.

Regarding the balance sheet, Brandon noted that the department is a $130 million business that generates about a $6 million surplus – but it carries an estimated $318 million in liabilities, including $240 million in long-term debt. Managing that debt will be key.

Brandon also pointed out that operating revenues in the budget do not reflect endowment gifts, saying “thank God we have generous donors” who are appreciate and are passionate about the university.

Brandon ended his presentation by highlighting a long-term list of upcoming capital projects and estimated expenses, through fiscal 2017. Projects include Schembechler Hall renovation ($9 million); field hockey renovation ($9.5 million); Michigan Stadium painting ($6 million); softball facility addition ($3 million); scoreboards at various venues ($4 million); lacrosse office and locker room facility ($12 million); strength & conditioning/rowing/soccer facility ($25 million); indoor/outdoor track competition facility ($90 million); Yost Arena ice plant replacement ($3.2 million); Canham Natatorium expansion ($20 million); and a multi-purpose competition arena ($30 million). [.pdf of full athletic department budget presentation]

In a separate action, regents approved appointments to UM’s Advisory Board on Intercollegiate Athletics. Appointed members to three-year terms through June 30, 2015 are: Bruce A. Courtade (alumni representative, reappointment); Jessica L. Hanes (faculty representative, replacing Phillip E. Savage); and Michael J. lmperiale (faculty representative replacing David S. Potter). Brandon T. Zeerip (student representative) was appointed to a two-year term from July 1,2012 through June 30, 2014.

This brief was filed soon after adjournment from the June 21 meeting, which was held at the Michigan Union Ballroom on the Ann Arbor campus.