Cal and UCLA face an uphill battle in their effort to make their athletic departments profitable again, according to new documents obtained by the Bay Area News Group’s Jon Wilner.
Without campus support factored into their revenue, Cal and UCLA combined for more than $80 million of deficits in the 2023 fiscal year.
The Bruins ran a deficit of $36.6 million for the fiscal year ending June 30, 2023 — $105.4 million in revenues and $142 million in expenses — with only $2 million in campus support from student fees. The Bears, on the other hand, ran an $8.8 million deficit with a staggering $36.7 million in campus support — nearly one-third of their total revenue.
There is optimism in regards to UCLA’s financial situation since the school’s move from the Pac-12 to the Big Ten this summer is expected to bring a huge boost in media rights revenue, even as expenses will likely increase by around $10 million.
However, Cal’s outlook is less hopeful: The Bears will enter the ACC this summer receiving 30% shares of the conference’s main media rights revenue (about $7.5 million in Tier 1 revenue) for the first seven years of their 12-year deal. Meanwhile, expenses should increase by at least $10 million due to increased travel from coast to coast.
In December of 2022, the University of California Board of Regents agreed that the Bruins should subsidize Cal for exiting the Pac-12 along with USC because their departure tanked the value of the Pac-12’s television contract, which never came to fruition due to the collapse of the conference. The regents discussed an amount between $2-10 million annually for UCLA’s “Calimony,” but the exact figure still has not been revealed.
“Since the announcement of the ACC agreement, we have been transparent about the financial challenges we’re facing,” Cal assistant vice chancellor for executive communications Dan Mogulof told Wilner. “At the same time, we have been clear in our commitment to sustain a broad-based athletic program. The challenge before us is how to protect and defend all that we have in the context of the budget realities we face. We don’t have a completed, specific budget plan yet, but we’re making good progress with evaluating and deciding about options that will allow us to control expenses and increase revenue, including philanthropy and stadium usage.”
There are still countless unknowns, including the outcome of the House v. NCAA case featuring former Arizona State swimmer Grant House as the lead plaintiff. Up to 10 percent of a conference’s media rights revenue could be reserved for football and basketball players if the NCAA is dealt another loss in Northern California court.
Change is on the horizon, and both Cal and UCLA are slated to pick new leaders later this year to guide them into the uncertain future of college sports. Current Cal chancellor Carol Christ has vowed never to cut sports during her tenure, but she is expected to step down in May.
LOL classic California. It seems like the schools are just as bad at managing their finances as the governor.
Grant House – ungrateful piece of sheeet
Old new. Biggest news that’s hidden at the end of the article is the House case that will sink or lead to swim and dive programs being possibly cut.
Also let’s talk about the money being paid to Cal by UCLA every year to keep Cal afloat.
Cal swimming going under would be wild
If anything they’ll go under for not following NCAA compliance regulations rather than a budget deficit. The rich alumni will ensure the swim program doesn’t get cut
Cal swimming will likely thrive in the next 2-3 years, but a day of reckoning is on the horizon because of conference realignment.
Cal and Stanford better get used to not winning conference champs. Lol.
Cal’s aquatics endowment is stable and will make sure no changes affect them. Wish UCLA could say the same.
Boy that move to destroy the PAC-12 looks brilliant!