Facing a for the current fiscal year, the University of Colorado athletics department is pushing to bring in more revenue.
CU’s budget includes a projection of $136.7 million in revenue for the fiscal year, which ends on June 30, 2026, but also $163.7 million in expenses.
While the numbers are not final, the expenses would be a record high – by more than $20 million – for CU, with two main contributing factors:
• In March, CU gave head football coach Deion Sanders a , increasing his salary from $5.7 million in 2024 to $10 million this year.
• CU – like many of its peers – is providing $20.5 million in revenue sharing payments to student-athletes after the NCAA v. House settlement earlier this year. This is the first year of the revenue sharing payments. That revenue sharing cap will increase by 4% next year.
Up to this point, the largest deficit ever for CU athletics was $18 million in fiscal year 2021, which was due to the impact of the COVID-19 pandemic. While this year’s deficit is projected to be higher, CU is hoping to generate more revenue over the next several months to reduce that number.
“The added expense created by revenue sharing has definitely posed a significant challenge for CU athletics but itap one we’ve been preparing for,” athletic director Rick George said in a statement provided to BuffZone. “And I feel confident that by executing our plan of aggressively pursuing additional revenue streams, combined with the support of Buff Nation, we’ll be able to meet these new challenges and continue providing our student-athletes a world-class experience while competing at the highest level.”
CU spokesperson Steve Hurlbert said the department is not cutting staff or reducing salaries, and that student-athlete resources will not be cut.
Final numbers could reduce some of the expenses by the end of the fiscal year, but fundraising will be a part of the effort to close the gap and reduce the deficit, as will sponsorships.
In August, CU announced a seven-year for the indoor practice facility. Itap a deal that could bring CU up to $5.095 million during the next seven years.
CU is hoping for more naming rights deals, exploring opportunities for other facilities, including Folsom Field and the CU Events Center.
Kristin Masker, the chief financial officer for CU athletics, said that while naming rights efforts were done solely within athletics in the past, the CU foundation and campus are joining in those efforts, which could open the door to more opportunities.
“We’ve kind of changed our approach, and I think having the backing of campus and the foundation will help us open more doors, because itap not just us in athletics knocking on people’s doors; itap the entire University of Colorado,” she said.
CU could have opportunities to sell sponsored jersey patches, as well. In October, the NCAA’s Division I Administrative Committee proposed a change that would allow for commercial patches on jerseys. The proposal, which is expected to pass, is up for a vote in January and could go into effect Aug. 1.
Last week, UNLV became the for jersey patches, a five-year, $11 million deal with Acesso Biologics. UNLV signed the deal in anticipation of the vote passing in January.
If CU were to line up sponsors for jersey patches, some of that revenue could come in during this fiscal year.
“We’re just trying to get our ducks in a row for when that is expected,” Hurlbert said. “There will be jersey patches, field logos, that kind of thing. That’ll give us a lot more latitude to do some of those sponsorship opportunities, which can be huge for us.”
Outside events, such as concerts, are typically big revenue generators for CU, as well. The department is actively seeking to add more events, specifically at Folsom Field, for the spring and summer.
Private equity deals are also possible, and CU has explored that option, but Masker and Hurlbert said any such deal for CU would have to make sense for the entire university, not just athletics. Last week, the University of Utah became the first school to announce a private equity partnership. There are , however.
Even with efforts to find more revenue, CU could depend on campus to provide financial support to cover some of its deficit. Many schools are in the same situation. USA Today reported that in fiscal year 2024, there were at least 33 athletic departments that were provided at least $30 million in institutional support.
CU’s campus leadership has shown more alignment with athletics in recent years, however.
“(Campus) really see us as a marketing arm of the university,” Masker said. “They see the benefit that we’ve brought to the campus through enrollment, and then to the greater Boulder community with eyeballs on us, and we bring a lot of people and money into the area.”
