A new meaning for passing the buck

The Regents imposed a tax on UCLA for moving to the Big Ten to subsidize Berkeley which ended up moving to the ACC. The ACC imposed a de facto tax on Berkeley for the privilege. So, in effect, the bucks from UCLA pass through Berkeley to the other teams in the ACC.

From the Mercury News:

Cal and Stanford officially join[ed] the ACC [last] Friday, marking a new era with fascinating competitive opportunities and one all-too-familiar problem. A supermassive red hole threatens to swallow each school’s athletic budget. Or as Cal vice chancellor for external communications Dan Mogulof told the Hotline via email: Life in the ACC carries “a revenue challenge.”

Officially, the Bears and Cardinal will be full-share members for 12 years. But according to Cal’s approval letter, which was obtained by the Hotline through a public records request, the Bears must “contribute” money back to the conference for nine years. That contribution is more than a few million dollars here and there; it’s tens of millions, year after year...

Yes, Cal has $10 million coming each of the next three years courtesy of a contribution from UCLA (as directed by the UC regents). But that controversial subsidy, which will be reassessed in 2027-28, doesn’t come close to covering Cal’s revenue deficit during that span. The Bears also are examining “the role philanthropy can and should play” in funding athletics, according to the school...

Full story at https://www.mercurynews.com/2024/08/01/cal-and-stanford-prepare-for-life-in-the-acc-with-a-nine-figure-hole-in-their-budgets-no-firm-plans-to-solve-the-revenue-challenge/.