It’s Time For Cal and Stanford to Come Home
On Saturday, an email to members of the Cal Berkeley athletic department revealed that up to 25 employees could be laid off as part of a “complete redefinition of how we operate. ” While new positions will be posted, it is widely expected they will come with lower salaries. As reported by Jeff Faraudo, Cal Athletics revenue has increased, thanks in part to record fundraising, but so have expenses, particularly for team travel and coaching salaries.
The result: a staggering $24. 3 million athletic deficit last year. At the same time, Cal is receiving only a partial share, roughly $9–10 million, of its Atlantic Coast Conference media rights distribution.
The school will not receive 70% of a full share until year eight, and will not reach full payout until 2034. Simply put, Cal and Stanford are in trouble. Both programs reacted to the collapse of the Pac-12 Conference with a panic move made in the absence of better immediate options, jumping to the ACC in a moment of chaos.
Now, they are paying the price. While their media revenue may not differ dramatically from what rebuilt Pac-12 schools are earning, their expenses, especially cross-country travel, are significantly higher. Cal’s athletic finances show a growing reliance on outside support rather than sustainable revenue.
Front Office Sports estimates the program spends nearly $20 million annually on travel and game-related costs alone. Meanwhile, according to the San Francisco Chronicle , operating expenses have surged to more than $165 million in 2024–25, up from $127 million just two years earlier, an increase of over 30%. While revenues have also risen to about $153 million, that growth is misleading.
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