Regents Allow UCLA to Leave, but Make Provisions for Cal

Bruins will be leaving for the Big Ten, but the UC Regents require UCLA to subsidize Berkeley athletics annually

The University of California Regents announced at its meeting on Wednesday that it will allow UCLA to leave the Pac-12 for the Big Ten in 2024, but there are a number of things UCLA must do.

One of the requirements directly involves Cal, and reads as follows:

The President will return to the Regents at a future meeting, after Pac-12 media agreements are finalized, with a recommendation for a contribution by UCLA to the Berkeley campus in the range of $2 million to $5 million, to be used to enhance student-athlete support at that campus. Such recommendation will be based on the best available information on projected revenues for both campuses  

The $5 million figure was later amended to $10 million after discussion, according to Jon Wilner of the San Joe Mercury News.

In other words, after the Pac-12 media deal is finalized, UCLA could owe Cal between $2 million and $10 million based on the revenue of both schools after the move.  Not only will UCLA's membership in the Big Ten increase UCLA's revenue, but the departure of USC and UCLA from the Pac-12 will reduce Cal's revenue from the Pac-12 (or Pac-10).  This provision is meant to give Cal, UCLA's Pac-12 sister school in the UC system, some subsidy for lost revenue due to UCLA's departure without taking Cal along with it to the Big Ten.

This provision only allows the "Berekely tax" issue to be revisited when the Pac-12 reaches a media agreement (probably sometime in early 2023).  When the issue is revisited, the decision may be that no subsidy to Cal is required, although that seems unlikely.

And this is not just a one-time paymment.  According to Ben Bolch of the Los Angeles Times, this would be an annual payment:

Have been told that the UCLA subsidy of $2 million to $10 million will be an ANNUAL payment.

— Ben Bolch (@latbbolch) December 15, 2022

"Berkeley really took a hit by UCLA leaving," Regents board chairman Rich Leib told ESPN.com. "They suffered quite a bit. We don't know how much, but we felt it was important ... that we somehow make Berkeley, maybe not whole, but at least help them in that situation."

The Regents reportedly passed the measure by an 11-5 vote, and the entire Regents announcement can be read by clicking here.

Interesting note p[rovided by Billy Witz of the New York Times:

One nugget that I found interesting: the regent who urged the board to boost the upper limit on U.C.L.A.'s payments to Cal from $5m to $10 got his degree from . . . U.C.L.A.https://t.co/ChmzxpSUji

— Billy Witz (@billywitz) December 15, 2022

The Regents had stated several weeks ago that they had the authority to block UCLA's move to the Big Ten, which UCLA and USC had agreed to do in June.  But the Regents opted not to do that, which was the expected decision despite opposition from a number of outside factions.

The Regents did provide two main provisions for UCLA's departure.

First it listed a number of things UCLA must provide, including plans to mitigate the impact of the increased travel, budgeting for academic, nutritional and mental support for athletes and the establishment of a fund of $2.5 million to ensure those provisions are carried out.

The second aspect directly involves Cal and is the 11th and final provision mentioned.  It is meant to provide Cal with some of the money that its fellow UC school will earn by the move to the Big Ten.  Many had critized UCLA for leaving the Pac-12 without brining its UC sister school along.

Wilner projects the conference’s upcoming media rights agreement will range from $30 million to $38 million per school per year, 

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Cover photo of UCLA football by Gary A. Vasquez

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