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Michigan athletic director Warde Manuel takes 5-percent pay cut as pandemic persists

Manuel was reported to be making $990,000 this year.

NCAA FOOTBALL: OCT 29 Michigan at Michigan State Photo by Adam Ruff/Icon Sportswire via Getty Images

The ongoing coronavirus pandemic is putting a massive dent into the world’s economy right now and just about every business imaginable is bracing for hard times. That includes the University of Michigan, as president Mark Schlissel announced on Monday in a letter some of the initiatives his school was taking to reduce expenses.

Schlissel himself is taking a voluntary pay cut of 10 percent, as are the chancellors of the Dearborn and Flint campuses through the new year. Athletic director Warde Manuel has agreed to take a five percent pay cut through the end of the fiscal calendar.

Schlissel said in his letter that U-M is projecting to lose anywhere from $400 million to $1 billion as the outbreak continues across the world. U-M is freezing hires for nearly every department for the rest of the 2020-21 fiscal year, as well.

A public documents check from MLive shows that Manuel was set to earn $990,000 this fiscal year. If the cut lasts through the end of 2020, that would cost him a touch under $29,000 and nearly $50,000 over the course of the year.

To put this into perspective, a quick crunch of the numbers shows that a five-percent pay cut for somebody who makes $60,000 per year would cost them $1,750 in salary over seven months and $3,000 over 12 months. That works out to be about $250 per month less in terms of the sacrifice being made.

It remains unclear if any coaches are being asked to take pay reductions at this time. With so much in the air in terms of the immediate future of college sports, this will be something worth keeping an eye on in the coming months. Especially nationally with schools with athletic department budgets that are boosted by donors with ties to the oil industry.