Michigan Football Weighs Historic Decision, Bucking Decades of School History

Michigan preps for 2025 revenue sharing by considering new revenue sources, including the potential of ads inside Michigan’s iconic Big House.

Oct 5, 2024; Seattle, Washington, USA; Michigan Wolverines quarterback Jack Tuttle (13) waits for a play to come in against the Washington Huskies during the third quarter at Alaska Airlines Field at Husky Stadium. Mandatory Credit: Joe Nicholson-Imagn Images / Joe Nicholson-Imagn Images

Michigan Wolverines athletic director Warde Manuel is already preparing the Wolverines for one of the biggest changes on the horizon: revenue sharing.

Starting in the 2025-26 academic year, Michigan is set to allocate an impressive $22-23 million annually to student-athletes, the maximum allowed under the forthcoming NCAA settlement. While this marks a new chapter in supporting athletes, it also brings financial challenges, pushing the university to balance its tradition of excellence with these new costs.

Michigan Athletics has proudly operated as a self-sufficient entity for years, but this new era requires some creative thinking. Thankfully, the department will get a boost from increased payouts tied to the College Football Playoff and the Big Ten’s massive new TV deal.

"We're going to be paying our student-athletes more money. Our budget is going to grow," Manuel explained to the Detroit Free Press. "It means we're going to have to look at new revenue streams. Also, look at our expenses and make sure we control our expenses. And so it's going to be a combination of both additional revenue that we need to look at — because this is additional payments that we have to make to our student-athletes — as well as reduction of expenses where we can."

To navigate these financial shifts without compromising on excellence, Michigan actively seeks fans' input on possible revenue-generating ideas. One previously untouched option that could be explored is advertising inside The Big House. Michigan Stadium is one of just two Division I stadiums that has remained free of corporate signage. While this tradition is a source of pride, the financial realities might prompt reconsidering.

"There's no commitment to doing it, but one of the things that stands out is in our stadium, in Michigan Stadium. We have prided ourselves on a history of no signage, no advertising," Manuel noted. "The good news is we have a source that is untapped at this point in time. Not that we have plans right now to do that, but that's one of the questions that we want to get our fans to say: How would you like to see us develop revenue streams that would support our student-athletes?"

In addition to potentially adding advertising, Michigan is already testing new fan experiences to boost revenue. This season, they launched the "All-Star Lounge" at Mortenson Plaza, offering a premium pregame and in-game experience, which has been a hit with fans.

Revenue sharing presents new challenges, but Michigan remains focused on maintaining its competitive edge. With the department expected to bring in $255.7 million in revenue for the 2024-25 fiscal year and operating expenses forecasted at $253.6 million, it’s clear that Michigan is gearing up for a new financial reality. Manuel and his team actively seek ways to adapt while upholding the core values that have long defined Michigan Athletics.