Michigan's $30M Fine Projection Is 11% of School's Sports Budget

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2 days ago

The NCAA's Committee on Infractions ruled Friday that Michigan can play in the college football postseason, it just can't get paid for it over the next two years. The total expected financial loss is expected to surpass $30 million. That would represent less than 15% of Michigan athletics' likely 2024-25 spending figures.
As a result of the penalties—imposed because of a sign-stealing scandal uncovered during the Wolverines' 2023 national championship run—Michigan is officially losing a fine equivalent to two years of postseason football revenue (2025 and 2026), 10% of the scholarships the program will dole out this year, and 10% of the football program's budget, all in addition to a $50,000 charge, the infractions committee decided. The final tally is dependent on Michigan and the Big Ten's performance over the next two seasons.
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Head coach Sherrone Moore will be suspended for a total of three games—two this year as part of a self-imposed punishment, plus one in 2026. Former coach Jim Harbaugh, now leading the NFL's Los Angeles Chargers, received a 10-year show-cause penalty that would make a return to college football difficult, while Connor Stalions, the man who emerged at the center of the sign-stealing investigation, received an eight-year show-cause penalty. The school's punishment also includes four years of probation and limitations on recruiting over that period.
Stalions was accused of collecting video footage of opposing teams' signals, including recruiting others to do so, from 2021 through 2023, even though in-person scouting of future opponents is banned by the NCAA. The decision Friday cited 56 instances of off-campus, in-person scouting across 13 upcoming regular-season opponents.
'The network of individuals engaging in what Stalions described as 'counterintelligence' was referred to as the 'KGB,'' according to the 74-page decision, written by the NCAA committee on infractions panel.
The allegations emerged in October 2023, as the Wolverines were on their way to a national title under Harbaugh. The NCAA found that Harbaugh 'violated the principles of head coach responsibility' by failing to enforce a culture of compliance and by contributing to a contentious relationship with compliance officers.
'The true scope and scale of the scheme—including the competitive advantage it conferred—will never be known due to individuals' intentional destruction and withholding of materials and information,' the NCAA wrote in its decision.
Michigan won't have to vacate wins or its '23 trophy. In recent years, the NCAA has moved away from postseason bans, which are seen to harm players who might not have been involved with any wrongdoing.
In this case, the panel 'converted the required postseason ban and scholarship reductions (under NCAA bylaws) to equivalent financial penalties.' In particular, the panel shied away from limiting roster spots following the shift away from scholarship limits imposed by the recent House v. NCAA settlement, or what the panel referred to as 'the new world of college athletics.'
According to documents obtained by Sportico, the expected financial penalty comes out to roughly 12% of Michigan's 2023-24 athletics budget of $240.8 million. The football program accounted for $74.9 million of that. Football coaching salaries, including bonuses, accounted for $20.4 million.
During the 2023-24 championship run, the Wolverines sold more than $50 million in football tickets.
In June, Michigan shared a projected budget of $266.3 million for the 2025-26 fiscal year, including receiving $15 million from the university to support increased expenses tied to the House settlement that will see universities share athletic revenues with players for the first time. The department said those new expenses will total $26.7 million, including additional scholarships.
Based on those 2025-26 numbers, the projected penalties constitute roughly 11% of Michigan's planned athletics budget.
The Wolverines were also planning to transfer $6.1 million less to the school overall this year, while initiating a series of budget cuts that could save $10 million year-over-year, according to the Detroit Free Press.
The University of Michigan's $19.2 billion endowment ranks third among public schools and ninth overall. Amid college sports' growing arms race, Michigan has tapped several big-name backers in recent years. Oracle co-founder Larry Ellison reportedly played a significant role in the recruitment of quarterback Bryce Underwood, along with Tom Brady and Barstool Sports founder Dave Portnoy.
'Like we give a f*** about 20 million at Michigan,' Portnoy posted on X Friday. 'That's ashtray money bro'.
With assistance from Eben Novy-Williams.
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