BleedGopher
Well-known member
- Joined
- Nov 11, 2008
- Messages
- 60,878
- Reaction score
- 16,430
- Points
- 113
per the San Jose Mercury News:
The athletic department lost $21.7 million in the 2016 fiscal year, according to a statement of revenues and expenses submitted to the NCAA.
The deficit matches projections outlined months ago by this newspaper and was covered by central campus, which itself is running a $110 million budget shortfall.
The athletic department’s fiscal woes are rooted in the debt service payment on the Memorial Stadium and Simpson Training Center projects, which cost approximately $460 million (combined).
The Bears generated $86.3 million in revenue from continuing operations against $88.1 million in expenses. But the interest payment on the debt service was $18.5 million. (There were minor additional costs for capital projects.)
That interest payment will remain steady until 2032, when the principal kicks in and annual payments soar — first to $30 million and eventually to almost $40 million.
Cal chancellor Nicholas Dirks has formed a task force to recommend a sustainable athletic model. The group is likely months away from issuing its conclusions, but the elimination of sports teams is a potential, if not likely, outcome.
http://www.mercurynews.com/2017/01/20/its-official-cal-athletics-bleeding-cash-at-astounding-rate/
Go Gophers!!
The athletic department lost $21.7 million in the 2016 fiscal year, according to a statement of revenues and expenses submitted to the NCAA.
The deficit matches projections outlined months ago by this newspaper and was covered by central campus, which itself is running a $110 million budget shortfall.
The athletic department’s fiscal woes are rooted in the debt service payment on the Memorial Stadium and Simpson Training Center projects, which cost approximately $460 million (combined).
The Bears generated $86.3 million in revenue from continuing operations against $88.1 million in expenses. But the interest payment on the debt service was $18.5 million. (There were minor additional costs for capital projects.)
That interest payment will remain steady until 2032, when the principal kicks in and annual payments soar — first to $30 million and eventually to almost $40 million.
Cal chancellor Nicholas Dirks has formed a task force to recommend a sustainable athletic model. The group is likely months away from issuing its conclusions, but the elimination of sports teams is a potential, if not likely, outcome.
http://www.mercurynews.com/2017/01/20/its-official-cal-athletics-bleeding-cash-at-astounding-rate/
Go Gophers!!