Cal, UCLA athletic departments run deficits
Cal and UCLA, the intercollegiate athletic crown jewels of the University of California system and owners of a combined 156 NCAA team championships, are having trouble with their books.
Their athletic departments reported shortfalls for the 2019 fiscal year that combined to total $42.9 million.
That figure is based on the Bruins’ deficit of $18.9 million, as reported by the Hotline, and Cal’s $24 million deficit that was reported by USA Today on Wednesday.
The Bruins, as we also reported, are staring at more of the same in the current fiscal year, with Hotline projections showing a $17 million shortfall.
USA Today did not cite projections for the Bears for FY20. But if past is precedent, they’re destined for another year in the red. According to the report, Cal athletics has run shortfalls totaling $89 million over the past five years.
All of it has been covered by central campus.
Meanwhile, UCLA’S deficit in FY19 marked the first time the Bruins have been in the red since 2004.
And in contrast to the no-charge relief operation ongoing in Berkeley, the Bruins must pay for their assistance – in the form of an interest-bearing loan from campus.
The terms of the loan were not available.
Neither school has given any indication that it would eliminate sports programs to bring expenses in line with revenues.
“We have been actively working with campus to find long-term solutions,” athletic director Dan Guerrero told the Hotline, “and to address the financial challenges impacting college athletic programs across the country.”