Cal Athletics Loses $21.7M In FY '16, Causing Concern For Department's Future Model

Cal's athletic department lost $21.7M in FY '16, confirming a "massive budget deficit and dire outlook" for the school's 30-sport athletic model, according to Jon Wilner of the SAN JOSE MERCURY NEWS. The athletic department's deficit was covered by the university, which "itself is running" a $110M 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 $460M combined. Cal generated $86.3M in revenue from continuing operations against $88.1M in expenses, but the interest payment on the debt service was $18.5M. That interest payment "will remain steady" until '32, when the principal "kicks in and annual payments soar" -- first to $30M and eventually to almost $40M (MERCURYNEWS.com, 1/21).