Cal Athletics Faces $68M Loss: Stanford Partnership, Berkeley Tax, & Future Challenges
A report by Jon Wilner highlights Cal Athletics' significant financial challenges with losses amounting to almost $68 million over the past two years, exacerbated by joining the ACC with reduced revenue shares. The athletic department faced shortfalls of $25.4 million in FY2022 and $42.5 million in FY2023, with future ACC membership offering only 30% of the conference's media revenue shares, leaving Cal and Stanford at a notable financial disadvantage.
By the Numbers- Cal's athletic department experienced financial losses of nearly $68 million over the past two years.
- In FY2022, they had a $25.4 million shortfall without support, and $42.5 million in FY2023.
The Berkeley tax from UCLA could potentially alleviate some of Cal's financial burdens, but uncertainties remain regarding its implementation.
State of Play- Cal faces financial challenges heading into ACC membership with reduced revenue shares.
- The combined operating shortfall for Cal and Stanford's athletic departments was $37.6 million for FY2022 and FY2023.
- New chancellor Richard Lyons, with a finance background, will play a crucial role in addressing the financial situation.
Cal's financial woes may worsen with additional financial obligations, including potential direct payment requirements to revenue-generating athletes.
Bottom LineCal Athletics faces a significant financial crisis as they navigate reduced revenue shares in the ACC, requiring strategic financial management under new leadership to secure the department's stability and future.
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