The Colorado Buffaloes are learning the hard way that when it rains it sometimes pours. According to USA Today, the University of Colorado’s athletic department is predicting a $27 million deficit for the fiscal year that ends in June of 2026.
For a program that has enjoyed unprecedented hype and boasted huge increases in revenue, it's about to have a money problem. That number is not final, but the program must find ways to counter that deficit by adding, not subtracting.
After almost $14 million coming from institutional support and student fees, Colorado will need to find revenue somewhere to make up the difference. However, the usual suspects for increasing revenue might not be the answer.
The athletic department is hoping for additional revenue from donations, business sponsorship, as well as concerts held at Folsom Field. Contributions to the 'buff club' and a Tyler Childers featuring Jon Batiste concert in July might not be enough to close the gap. While this is a significant deficit to overcome, there are reasons that explain the financial predicament.
Three factors are converging at once
Each of these factors have varying degrees of financial impact. Starting small and working up to significant. The first domino to fall was the announcement that athletic director Rick George is stepping down as athletic director to take an advisory role. While that move won’t complete until the end of the fiscal year, it could create a logistical issue trying to address the financial deficit while searching for George’s replacement.
In a move that was celebrated by fans back in March of this year, Colorado signed head coach Deion Sanders to a new five-year contract that will pay him in excess of $10 million per season. That figure almost doubled his previous salary with the program. The concern with Sanders’ new figure is that it comes after a 3-9 season that saw significant drops in attendance and viewership.
The third aspect is not specific to Colorado but presents the largest chunk of the deficit pie. Colorado like every other major college program is committed to providing players with the $20.5 million under the terms of the NCAA-House legal settlement reached in June of 2025. That represents a new cost in the financial equation for 2026. That number will also go up 4% each of the next two years.
The George aspect is relatively small and should only make the logistics of increasing revenue more difficult. The largest monetary concerns come from Sanders’ contract and the revenue share that will be new this year. The truly concerning aspect of this situation is the 'kick the can down the road' aspect Colorado had leading up to this.
Colorado told USA Today per a report in September, regarding how they will come up with the money to pay for that increase in cost was “to be determined”. If that sounds familiar, it should. In 2022 when Sanders was introduced as the new head coach of the Colorado Buffaloes, there was a concern behind his then five-year, $29.5 million contract. According to Sports Illustrated in 2022, George said, “we don’t have the money yet, but I know we’ll have it so I’m not worried about that piece.”
Plenty of questions while there are few answers, for now
The University has no plans to cut sports and instead has a consistent approach of ‘we’ll cross the bridge when we come to it’. The university claims it will “not cut sports nor cut any resources for student-athletes.” University spokesman Steve Hulbert also confirmed tuition money and state funds will not be utilized to address the deficit.
This is a simple revenue vs expenses issue. The projected revenue is $136.7 million, while the expenses are $163.7 million. Of those projections, the football program represents over $60 million of that total. According to USA Today, the program is still finalizing its numbers from 2025 and expects a $141 million balanced budget.
To be fair to Colorado, they are not the only program facing financial challenges stemming from the NCAA-House settlement. In 2024, Colorado was one of at least 30 programs that received over $30 million from ‘university support’. While university support is not off the table, it seems highly unlikely given the current landscape. A “lame-duck” athletic director, a highly paid head coach, coming off a tenure worst 3-9 season, with significant health concerns, very little movement in recruiting and a growing divide between program and alumni all suggest this problem will not have an easy answer.
Colorado’s football season has concluded as they were eliminated from post season play weeks ago. It has not been a good season for Sanders and the program. At the conclusion of Sanders’ final regular season press conference, he claimed this was the “last supper”. Leading to speculation and concern over the programs’ immediate future.
This problem for Colorado could require an outside the box solution. One thing is certain in the ever-changing landscape of college football. Kicking the can down the road or crossing that bridge when we come to it, are not the best avenues to take.
More college football news:
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- Virginia Tech reportedly funding roster near top of ACC for James Franklin
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- Texas state trooper reportedly relieved of duties after player exchange at Texas A&M