The Colorado Buffaloes have been riding a wave of national attention, fueled by bold hires, big-time contracts, and the kind of media buzz most programs dream about. But now, as the fiscal reality sets in, that wave is crashing into a financial wall.
According to projections, Colorado’s athletic department is staring down a $27 million deficit for the fiscal year ending in June 2026. And while that number isn’t final, it’s more than just a rounding error - it’s a red flag that the program has some serious work to do to balance its books.
This isn’t your typical budget shortfall. We’re talking about a program that’s seen record-breaking revenue growth, thanks in large part to the hiring of Deion Sanders and the surge in national spotlight that followed.
But even with that momentum, the math isn’t adding up. After factoring in nearly $14 million from institutional support and student fees, Colorado still needs to find a way to close the gap - and fast.
The usual levers - donations, sponsorships, and events - are all in play. The athletic department is banking on increased contributions to the Buff Club and revenue from events like the Tyler Childers and Jon Batiste concert scheduled at Folsom Field in July. But realistically, those efforts alone won’t be enough to erase a $27 million hole.
So how did Colorado get here? It’s not just one thing - it’s a perfect storm of financial pressure points hitting all at once.
Three major factors are converging - and not in a good way
Let’s start with what’s arguably the smallest of the three: a leadership transition. Athletic director Rick George is stepping down at the end of the fiscal year to move into an advisory role.
While that doesn’t carry a direct financial cost, it adds a layer of complexity. Navigating a major deficit while also searching for a new AD is a tough juggling act for any athletic department.
Then there’s the contract extension for Deion Sanders. Back in March, Colorado doubled down on Coach Prime, signing him to a new five-year deal worth over $10 million annually - nearly double his previous salary.
At the time, it was a move that signaled belief in the long-term vision. But the timing hasn’t aged well.
Colorado just wrapped up a 3-9 season, marked by declining attendance and viewership. That kind of performance doesn’t exactly boost the bottom line, especially when the coach’s salary is now one of the biggest line items in the budget.
But the biggest financial hit isn’t unique to Colorado - it’s coming for every major program in the country. As part of the NCAA-House legal settlement finalized in June 2025, schools are now on the hook to pay student-athletes directly.
For Colorado, that means $20.5 million in new expenses next year, with that number set to rise by 4% annually. It’s a seismic shift in how college athletics operates - and it’s now a central piece of the financial puzzle.
A history of “we’ll figure it out later” is catching up
Colorado’s current situation isn’t just about new costs - it’s also about how the program has handled its finances in recent years. When Sanders was hired in 2022, then-AD Rick George famously said, “We don’t have the money yet, but I know we’ll have it so I’m not worried about that piece.”
That same sentiment - essentially, “we’ll cross that bridge when we come to it” - is still lingering. In September, when asked how Colorado planned to cover the new expenses from the NCAA settlement, the university’s response was a familiar one: “to be determined.”
That kind of approach might have worked when the hype was fresh and the wins were coming. But now, with a losing season in the rearview, a ballooning payroll, and a new era of revenue sharing underway, the margin for error is gone.
What’s next? A lot of questions, not many answers
One thing Colorado has made clear: they’re not cutting sports, and they’re not cutting resources for student-athletes. Tuition money and state funds are also off the table. So the solution has to come from new revenue - not cost-cutting.
Here’s the raw math: projected revenue sits at $136.7 million, while expenses are projected to hit $163.7 million. Football alone accounts for more than $60 million of that budget. And while the school expects to finalize a balanced budget of $141 million for 2025, that still leaves a steep climb ahead.
To be fair, Colorado isn’t alone in this. In 2024, they were one of at least 30 athletic departments that received over $30 million in university support. But with the broader financial landscape tightening, that kind of lifeline may not be available again - or at least not to the same degree.
And then there’s the bigger picture: a program led by a high-profile coach with a massive contract, coming off its worst season in years, facing questions about recruiting, alumni engagement, and internal health. The AD is on the way out, and the future feels murky.
Coach Sanders didn’t do much to ease the uncertainty either. After the final regular-season game, he referred to it as the “last supper” - a cryptic comment that’s only added fuel to the speculation around what’s next for the program.
Bottom line: Colorado can’t afford to keep kicking the can
This isn’t just about one bad season or one expensive contract. It’s about a program that’s been operating on optimism and momentum, now being forced to confront the hard financial truths of the new college sports era. The days of “we’ll figure it out later” are over.
If Colorado wants to stay competitive - both on the field and on the balance sheet - it’s going to take more than concerts and donations. It’s going to take a clear plan, creative thinking, and leadership willing to make tough calls.
Because in today’s college football landscape, hype alone doesn’t pay the bills.