Report: UC Regents Meet Regarding Cal's Move to ACC

A committee will be formed to determine the impact of Cal's move and perhaps consider how much UCLA will subsidize Cal

Cal is still hoping to get a subsidy payment from UCLA as part of the UC Regents' directive of several months ago, but Jon Wilner of the San Jose Mercury News reported on Friday that the Regents' meeting on Thursday did not address that issue specifically.

In a closed meeting described as “UC Berkeley Atlantic Coast Conference Membership,” the regents formed a committee to look into the impact of Cal's 2024 move to the ACC.

Last December, the regents declared that UCLA might pay Cal anywhere from $2 million to $10 million based on the schools' media-rights financial agreements starting in 2024. UCLA will join the Big Ten, and Cal will be a member of the ACC.

Wilner's report began with this excerpt:

The University of California regents did not finalize the so-called Berkeley tax when they gathered Thursday at UCLA, but they agreed to wade deeper into the world of college sports.

Much, much deeper.

The regents formalized a special committee designed to “assist the Board in fulfilling its responsibilities for oversight of intercollegiate athletics programs,” according to the regents’ website.

Just what the Bruins and Bears need: More bureaucracy!

As the schools prepare to enter new conferences next season, their governing board is expected to require UCLA to provide Cal with financial support. The amount has not been determined. Nor have the regents offered a clear timeline for resolution to the controversial issue, which amounts to an unprecedented subsidy between UC athletic departments.

The crux of the report revolved around what the special committee is assigned to do:

The committee has four areas of focus, according to the charter:

— Athlete welfare (travel, academic support, mental health).

— Oversight of governance and internal controls, including compliance and audit activities

— Strategic direction of athletics, which includes “recommendations to the Board when appropriate, on matters that impact student-athletes and athletic programs.”

— Review of system-wide policies.

There is nothing in the charter about the so-called Berkeley tax, by which UCLA would funnel millions of dollars in Big Ten revenue to the Bears as a “contribution” to their athletic department. And the University of California’s office for strategic communications did not respond to a request for comment on the special committee’s role in crafting the subsidy.

But sources expect the committee to delve into the issue — after all, the financial component is connected to all four areas of focus.

This anticipated income from UCLA may be the reason Cal was willing to accept such a reduced percentage of the ACC's media-rights payment to join the ACC.

According to reports, Cal will receive only about a 30% share of what full ACC members receive in media-right compensation for the first several years of the Golden Bears' membership in its new conference.

News: UC regents wade deeper into Cal, UCLA subsidy situation, create special committee on athletic oversight.https://t.co/S78h3IHMWR

— Jon Wilner (@wilnerhotline) September 22, 2023

Cover photo by Rich Barnes, USA TODAY Sports

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