The continued COVID-19 pandemic has brought on faculty athletic departments to take a microscope to their funds, and a number of other high-profile applications have minimize salaries, imposed furloughs or each. Michigan is the newest program to make monetary changes based mostly on a deficit projection.
The Wolverines introduced Monday that soccer coach Jim Harbaugh and basketball coach Juwan Howard — amongst different head coaches employed by the athletic program — will every take 10% pay cuts from August 1 via the tip of the fiscal yr. Consequently, Harbaugh — at the moment the third-highest paid coach within the nation ($7.5 million) — will make $6.75 million, whereas Howard’s wage will likely be lowered from $2 million to $1.eight million.
Michigan anticipates a shortfall of $26.1 million throughout fiscal yr 2021. The coronavirus pandemic is anticipated to chop income from $187.four million to $135.eight million, which is the genesis for cost-cutting measures which are anticipated to scale back payroll by $6 million. Crew/recreation bills are anticipated to be lowered by $6.5 million.
Athletic director Warde Manuel and different senior-level directors will even see their salaries minimize by 10%. Workers who earn between $50,000-$100,000 will take pay cuts of 5%, and staff incomes between $100,001-$150,000 will take 7.5% wage reductions. There was no particular point out of potential wage reductions for highly-paid assistant coaches.
Michigan is the newest faculty to regulate income projections and institute cost-cutting measures based mostly on the COVID-19 pandemic. Wisconsin coach Paul Chryst has taken a 15% pay minimize for six months, Minnesota coach P.J. Fleck noticed his wage lowered by 10%, and Boise State’s whole workers was furloughed for 7-10 days.