It was announced on Monday night that Michigan Wolverines football coach Jim Harbaugh and basketball coach Juwan Howard — along with Athletic Director Warde Manuel, senior-level administrators and several other head coaches — will take 10 percent salary reductions beginning Aug. 1 and running through the end of the fiscal year.
The school's athletic department also revealed tonight that it expects a budget surplus of $1 million for the current fiscal year, while also projecting a budget deficit for the impending fiscal year that will kick off July 1.
U-M expects an operating surplus of $1 million based on operating revenues of $187.4 million, and operating expenses of $186.4 million during the fiscal year 2020 operating budget.
The department also foreshadows a deficit for the fiscal year 2021, however, basing their projection on operating revenues of $135.8 million and anticipated expenses of $161.9 million.
In addition to Harbaugh, Howard and the other aforementioned people taking pay cuts, "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."
According to USA Today, the $7.5 million that Harbaugh had been making was third nationally among FBS coaches, behind only Clemson's Dabo Swinney ($9,255,000) and Alabama's Nick Saban ($8,707,000).
The pay reduction is expected to cost Harbaugh roughly $700,000.
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