Athletic Director Dave Brandon presented the budget for fiscal year 2013 to the Board of Regents on June 21. The athletic department projects an operating surplus of $5.8 million for FY 2013 based on total operating revenue of 130.3 million and operating expenses of $124.5 million.

“We plan to use our operating surpluses to help keep our debt levels manageable as we continue the fundraising efforts that will enable us to fund our ongoing capital and facility renewal projects,” Brandon said. “Our goal is to create ‘leaders and best’ practice and competition facilities which will provide our student-athletes, coaches and fans who attend our athletic events the best possible experience.”

Following are highlights of the FY 2013 budget:

• The budget reflects a six-game home schedule for football, the neutral-site affair with Alabama at the Cowboys Classic, and a slight increase in football ticket prices.

• Budgeted preferred-seating donations and other expendable gifts increased to $27.4 million from $26.2 in FY 2012. Premium seating areas in Crisler Center are being added for FY 2013 and essentially are sold out.

• Salaries and wages, financial aid, and team and game expenses all reflect the addition of men’s and women’s lacrosse as varsity sports. The department supports more than 850 student-athletes and 300 employees.

• Big Ten Conference distributions consisting of television revenue, post-season participation in football bowl games and basketball tournaments is expected to exceed $25 million prior to the department’s contribution to the university’s general fund.

• Debt service has increased $1.5 million to a total of $14.7 million due to additional debt for the Crisler Center renovation project.

In addition, the athletic department reported that preliminary results project an operating surplus of $15.3 million for FY 2012. This is $3.9 million more than budgeted and primarily is due to higher-than-budgeted spectator admissions in football and men’s basketball, and larger licensing royalties. The operating surplus is being used to assist with the renovation projects at Yost Ice Arena and Crisler Center.

“The Under the Lights game against Notre Dame, our football team’s participation in the BCS Sugar Bowl and robust ticket sales during our men’s basketball season helped us achieve higher-than-budgeted revenue,” Brandon added. “We have received strong support from our donors and fans, allowing our department to make sizable investment in certain facilities projects that will positively impact a significant number of our student-athletes and programs.”

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