fenway, this is a very interesting topic, made more so by the recent challenges within the athletic department of UC Berkeley. Thank you for starting it.
My understanding is Cal reinstated baseball(and some other sports which had been cut) on the condition they be fully self-funded. They receive little to nothing from the athletic department budget.
While that appears to have saved baseball, underneath everything is a looming crisis created by an Administration trying to chase the Saturday millionaire model.
Recently Cal remodeled the football stadium, added state of the art athletic training facility(mostly for football) and floated the financing through a bond for the estimated amount approaching $350,000,000. It was to be repaid using the professional model of PSL'.s
Unfortunately, the program went from very successful to unsuccessful in the last years under Coach Tedford. So, they removed him with a cost estimated to be about $6M to buy out the remainder of that contract. They hired a new coach for 5 years with the contract total of $9.2M..just for the head coach, and right now they might be in the bottom 10 of FBS teams.
But bigger numbers are the PSL issue because they are just not selling and the transparency from the AD has been less than thrilling in some ways.
At this point, the bond is an interest only payment and the PSL's don't seem to even fund that. Looking out 20 or so years, the principal increases the annual cost to as high as $37M which can end up being paid by the taxpayers if not by the department of athletics.
Here is the link to a recent article which seems to suggest that for all the millionaires, some trying to play in that elite group are doing so by creating massive financial risk:
http://www.kqed.org/news/story...tadium_funding_model