After seeing a series of bullet-point slides and hearing a slew of buzzwords about UCLA’s athletic department finances, Bob Myers put the crisis facing his alma mater in much simpler terms.
“It’s like water’s coming in the boat and you’re trying to get it out, but how does this thing not sink?” asked Myers, who sandwiched a hugely successful run as the Golden State Warriors’ general manager between his time as a reserve forward on the Bruins’ 1995 national championship basketball team and his appointment as the newest member of the UC board of regents, Tuesday afternoon at the UC regents meeting. “Or how can we help, I suppose?”
Myers was inquiring about an athletic department deficit that has ballooned to $219.5 million after running in the red for six consecutive fiscal years, including a $51.8-million shortfall in the 2024 fiscal year.
To address the increasingly complex issue, new UCLA chancellor Julio Frenk and athletic director Martin Jarmond brought Stephen Agostini, who recently started his second year as the school’s vice chancellor and chief financial officer, to speak to the regents’ special committee on athletics at the University of California, San Francisco.
Agostini outlined many of the UCLA athletic department’s financial challenges, including an anticipated House settlement with the NCAA that will prompt UCLA to make an annual payout of roughly $22 million to its athletes, Olympic sports running about $34 million in the red during the most recent fiscal year, the lack of suite and premium-seat revenue at the Rose Bowl as part of UCLA’s lease agreement with the stadium, and licensing and sponsorship agreements with Associated Students UCLA that provides the lion’s share of revenue to the student organization.
“As many of you know, we have a fairly substantial financial challenge ahead of us,” Agostini said. “We are folding in the athletics deficits within that and will endeavor to address that. We are looking at other revenue streams … but it won’t be easy and given the volatility of the space, we’re hoping to stay abreast in an environment that changes almost monthly.”
In addressing Myers’ question, Agostini said the football and men’s basketball teams — with the women’s basketball team likely following suit — were moving toward a professional sports model in which media revenue is shared equally within conferences. USA Today recently estimated that every Big Ten Conference school besides Oregon and Washington, which agreed to take reduced shares for seven years, would receive a $75-million distribution from the conference for the 2025 fiscal year.
Since that figure is the same for almost every Big Ten school, additional income streams are essential.
“That means that what you generate out of your facilities and your other revenue opportunities becomes really critical to your bottom line,” Agostini said. “And as Martin [Jarmond] just mentioned, if we can’t generate additional revenue from tickets or premium seating or the arrangement we have with ASUCLA, it really makes that challenging for us.”
Myers then asked about tangible ways in which the athletic department could mitigate those issues.
Jarmond said the Rose Bowl had agreed to construct a premium seating section in the south end zone that could generate revenue for the school after the 2026 season. The lack of suite or club-level revenue as part of UCLA’s lease agreement with the Rose Bowl because it doesn’t own the stadium is depriving the school of roughly $15 million to $25 million a year, according to Jarmond. UCLA is also examining the possibility of Pauley Pavilion renovations that could include premium seating, Jarmond said.
Earlier, Jarmond had discussed ways that his department was doing its best to cut costs. He noted that UCLA was in the bottom quartile of coaching salaries after all nine head coaching hires he had made in his nearly five years on the job were from candidates who were assistant coaches.
“That’s been a strategy that I’ve utilized,” Jarmond said, “to give opportunities to assistant coaches but also to help us competitively with personnel and cost containment.”
The school has also regionalized nonconference schedules as much as possible, with the men’s basketball team pulling out of the CBS Sports Classic to reduce travel and increase scheduling flexibility. Jarmond said UCLA was on track to come in below the $5-million increase it had budgeted for travel expenses during its first year in the Big Ten.
“We’re working our way up toward building more revenue and being able to compete in the Big Ten [and] we’ve got to do more, I will tell you that,” Jarmond said. “We can’t do it on a shoestring budget and be competitive and win at the level that we have won and want to win. It’s something that we’ve been ramping up.”
There was no mention of UCLA’s $30 million in direct campus support to the athletic department during the most recent fiscal year, an unprecedented move to help offset the massive deficit. But in his first public comments about UCLA’s athletic department, Frenk both recognized the school’s rich athletic history and acknowledged the many challenges facing a university that will host the athlete village for the 2028 Olympics.
“There continues to be a lot of uncertainty, the landscape continues to shift, the outcome of recent litigations, which have been adverse to universities, the NIL changes, new models of athlete compensation — all have huge financial implications for us,” Frenk said. “But by joining the Big Ten, we have put UCLA in the strongest possible position to navigate the current volatility and to continue supporting our students in every dimension of their lives.
“So this is a key moment in the history of intercollegiate athletics; I think it’s going to continue to be transformed rapidly in the years to come and we are trying to face this with a strategic vision, a commitment to the fact that these are students first and foremost — our commitment to their education, a commitment to competition with integrity, fair competition and those values will continue to be upheld during this time of transition.”
After UCLA’s nearly hourlong session was finished, officials from UC Santa Cruz offered a presentation on their athletic department, an NCAA Division III outfit with a tiny budget but also a corresponding $2.2-million deficit for the most recent fiscal year that might more closely align with the ideals of college athletics.
“It will be interesting, I think,” UC Santa Cruz chancellor Cynthia Larive said, “for you to see the juxtaposition of UCLA and UC Santa Cruz.”