I found this in the March 25th ANN ARBOR NEWS.  I think I set it
aside to post it later, then never got around to it.  Oh well,
better late than never.
 
U-M HOCKEY MOVES TOWARD PROFIT
But when it comes to making money, the program still lags behind
college hockey powerhouses Minnesota and Wisconsin.
 
by Doug Hill (News Special Writer)
 
  The Michigan hockey program's success on the ice is pushing the
team toward increasing financial success as well.
  The program is gradually reducing its deficit and improving its
standing nationally as a money-maker, despite the high expenses of
running the team.
  The team increased its revenues 150 percent from 1987-88 to 1991-
92, while expenses rose at a rate of 73.5 percent.  Last season's
deficit was $176,000, down 21.1 percent from $223,000 in 1987-88.
Figures for this season are not available.
  Michigan earns more than most college hockey programs nationwide.
Bowling Green, a fellow member of the Central Collegiate Hockey
Association, ran a deficit of $280,000 in 1991-92.  Even Michigan
State, where Munn Arena has been sold out for 133 straight regular-
season games, doesn't generate a profit.
  Hockey is among the most expensive programs to run on a per
player basis, especially at U-M where a grant-in-aid for an out of
state athlete (which most hockey players are) can run as high as
$20,000.
  Nationally, only the Minnesota and Wisconsin programs turn
substantial profits.  The Golden Gophers generate more than
$750,000, and the the Badgers approach the $1 million mark.  Each
brings in additional revenues from television contracts.
  Both institutions have larger arenas than the Wolverines, both
are always sold out and both charge more for tickets.
  The Wolverines charge $5 for general admission and $8 for
reserved seats.  Minnesota charges $10 and $12, and the Badgers
charge $10 for all seats.
  "Making a profit would be great," Michigan associate athletic
director Bob DeCarolis said.  "But I don't think that's our overall
goal.  Our No. 1 goal is to provide a quality program.  I think
(Coach Red Berenson) has done that."
  Berenson said reducing the deficit was one of his objectives when
he took over the program in 1984.
  "That was one of my goals, to make hockey a revenue producing
sport," he said.  "It's become an expensive sport, but we've come
a long way.  I think we can do even better."
  He is a look at where U-M has made significant gains and where it
has faltered in trying to become self-sufficient in hockey:
 
REVENUES
  U-M's largest increase came in admissions.  Average attendance
rose from 3,300 in 1987-88 to 5,800 last season.  Those numbers,
along with two increases in ticket prices over that time, made for
a 150 percent increase in income ($160,000 to $400,000).  In 1987-
88, U-M charged $3-5 for tickets.
  The Wolverines also had significant increases in income form
parking (300 percent), concessions (172), post-season revenues
(145) and guarantees (176).
  The team's success has driven those increases.
  In 1987-88, the Wolverines went 22-19 and finished fifth in the
CCHA.  Last season, U-M went 32-9-3 and won the CCHA regular-season
championship.
  Post-season revenues are up because prior to 1991, Michigan had
not participated in the post-season since 1976-77.  Last season,
the Wolverines advanced to the CCHA tournament final and NC$$
semifinals.
  Michigan also gained by agreeing to move one home game with
Michigan State off campus and play it at Joe Louis Arena in Detroit
last season.  Guarantees rose from $34,000 in 1987-88 to $94,000 in
'91-92.
  "All those events have contributed," Berenson said.  "Any way we
can generate funds and save money.  It's like a business."
 
EXPENSES
  But Michigan is finding out success can have a high price.  Team
expenses nearly doubled during the four-year period, from $490,000
to $850,000.
  Three areas made significant jumps:
 
  GRANT-IN-AID:
  Scholarships rose 75 percent from $214,000 to $375,000.  U-M
business manager Jim Balgooyen said there are several reasons: an
annual 10-percent increase in tuition, more players enrolled in
summer school during 1991-92 than 1987-88, and variance in the
number of out-of-state students.
  PAYROLL:
  Salary and benefit expenses rose by nearly 63 percent, from
$140,000 to $228,000.  Balgooyen said the addition of full-time
equipment manager Ian Hume and another assistant coach, as well as
annual raises for those already on staff, helped push this figure
higher.
  GAME EXPENSES:
  This number, which takes into account all persons working games
at Yost Ice Arena (including ushers, security, statisticians, etc.)
rose 137 percent from $16,000 to $38,000.  Balgooyen noted that
prior to 1990-91, U-M did not have an ambulance at Yost.  And
Michigan had to provide more security and police for traffic
control.
 
BOTTOM LINE
  Will the hockey team ever make money?
  Berenson thinks it can, DeCarolis sees potential and, after
crunching some numbers, Balgooyen says it is possible -- without
raising ticket prices, which makes Berenson and DeCarolis happy.
  For U-M to break even, Balgooyen estimated the Wolverines would
have to sell out all of their home games at current prices.  Or, he
said, raise ticket prices by 40 percent (from $8 reserved to $12,
from $5 general admission to $7).
  "In the nine years since I've been here, hockey has been the
biggest bargain in town," Berenson said.  "We have raised our
prices in the past, but this is still been a good deal compared to
what other schools are charging."
  DeCarolis agreed.
  "It's a good value, especially on the season-ticket plan, which
comes out to about $5 a game," he said.  "That would be our
preference, to sell out at our current prices."
  "Hockey will never be the type of sport like football and
basketball that pay for other sports.  I think we'd be better off
keeping our prices reasonable and creating an exciting environment
to watch the game."
 
 --end quoted material--
 
Some comments:
  1. I doubt that equipment man Ian Hume generates a sizeable
     increase in expenses.  Obviously they have to at least pay for
     a part-time person, and Ian also handles baseball (and maybe
     other deficit sports?), so I doubt that the hockey team
     absorbs his full salary.
  2. So much for selling out at "current" prices.  Endzone tickets
     have been increased to $6 (still $8 for sideline).  Season
     tickets run $122 for 14 games plus the CCHA first round.  That
     comes to $7.63 a seat, assuming we get home ice.  Some
     discount, eh!  While I'm on the topic...
  3. Season ticket holders can get tickets to the six Detroit area
     games (CCHA/WCHA Challenge(2), Great Lakes Invitational(2),
     Notre Dame at the Palace and Michigan State at Joe Louis
     Arena) for $88 a person.  (We're up to $210).
  4. Attend the CCHA finals and NC$$ Western Regionals and you're
     approaching $300 just for entry to the games.  Add parking,
     gas, ticket service charges and minimal food and souvenir
     money and you're well over $400 a person without travelling
     much over an hour from Ann Arbor.  Argh!
  5. Of course, there's always the opportunity to go completely
     insane and blow $925 attending two games at UAF.  :-)
 
 
  John H
  U Mich
  Hi Mom, SEND MONEY!