Calimony mailbag! Answering questions from Cal fans and UCLA counterparts
Many college football fans had some inquiries about why UCLA is paying millions of dollars to Cal.
Happy Memorial Day Cal fans! In honor of the day off, I’ll answer some inquiries we got via Twitter regarding Calimony, the settlement regarding UCLA paying Cal $10 million a year through 2027 for fixing up damages.
Cal hurt itself
There is not one Cal person aside from my buddy Jamaal who has said anything remotely close to, “You know what? Cal put themselves in this position by making bad financial decisions and hiring subpar coaches. This is all on Cal.” Jamaal is smart.
All true statements. Yet all the same things could be said about UCLA! But they are USC's rival and in the biggest college football market, so they got the Big Ten invite first. Hopefully UCLA and Cal can work together to make their rivalry renew in the B1G in a few years!
Why did Cal not move to the Big Sky to help out UC Davis to do the right thing?
Cal could have gone to, and raised the profile of, the Big Sky conference, but instead it let UC Davis out to dry. Instead it ran to the ACC. Could have done the right thing for UCs as a whole, but didn’t. Cowards.
It’s as if someone won the lottery (UCLA) and a family member (Cal) comes out of the woodwork to ask for a handout after a lifetime of making bad financial decisions. I don’t see Davis, Irvine, or Santa Cruz asking for help.
The distinction here is that Cal and UCLA were both part of the Pac-12, so likely to get the same TV deal, and had financial projections in place to ensure maximum health for both UCs. UCLA leaving for the Big Ten unilaterally threw that into chaos. Hence Calimony.
Cal and UCLA were partners in the Pac-12. UCLA leaving did damage because it set off a chain reaction that killed Cal's own media deal and sent them racing for refuge. Calimony offsets that damage. Kudos to UCLA!
Cal leaving the Pac-12 did no damage to UC Davis, UC Irvine, or UC Santa Cruz. They were not expecting a TV deal and Cal joining them would not have significantly moved the needle.
UCLA is a more valuable brand than Cal
A competent commissioner could’ve gotten UCLA to stay in the PAC 12 with an appropriate/equitable share that would give UClA 55 or 60M and then to Cal or Wazzu’s share of $40M. UCLA & Cal may be “partners” but weren’t equal. UCLA’s value is 75/100M vs Cal is sub 20M in ACC
UCLA was brought in as a condition of USC's move. The majority of the UCLA value is tied into the USC rivalry. The revenue difference in media rights between Cal and UCLA are mainly due to USC.
While it is true UCLA has better branding and better market appeal, particularly basketball, in football the deltas are much smaller, and football is the money maker. So the difference isn’t that significant between the two and can be made up with even a small period of sustained success.
There was no other way for Cal to make money besides Calimony
Translation: “There is no way Cal was going to make any money without leeching off UCLA. When UCLA left, Cal realized they were worthless and begged for some of UCLA’s money. Cal is one of the worst athletic departments in the country, and can’t survive on their own”
Calimony did help give Cal an option to join the ACC at a reduced number. Accepting a bad deal without Calimony would have been nearly unfeasible and led to some very difficult discussions. However, the Calimony talks began before the Pac-12 broke up and were independent of any of the eleventh hour conference realignment discussion that eventually occurred.
UCLA breached the public trust by deciding to take a B1G offer unilaterally and damaged the UC system’s financial balances. Given $10 million a year to Cal isn't that much for UCLA and helps rebalance the books. In the end, everyone benefits and UCLA is to be commended!
What incentive is there for Cal to be added to the Big Ten?
Laughable. There’s absolutely NO incentive to push for Cal added to the B1G. Why would any program want to lose some of their own per year media revenue? Unless you believe in socialism.
It was a strategic error in that UCLA is now paying Calimony. If Cal was included in the Big Ten deal. they would not be paying Calimony and have $10 million per year more per year. $10 million feels like a nice enough incentive.
Additionally, new conference members like Oregon and Washington will also probably want to rekindle partnerships with a Pac-12 program they remember like Cal. USC, less trustworthy!
But I expect the Bruins to push hard now for Cal in the B1G as they realize the importance of UC solidarity.
Why UCLA and Cal are both benefitting from Calimony
I'm fine with the temporary Calimony payments. The response from some Cal fans is not surprising. In the big picture, this is hardly a blip in the financial picture. In the long term, UCLA will be part of haves, and Cal will remain part of the have nots.
Agreed! UCLA wins. They are making more money in the Big Ten. Cal achieves a temporary win in ensuring they will have enough revenue to avoid several overhaul to their AD. UCLA and Cal can both win more with a Cal Big Ten invite. Calimony ends, Cal gets more revenue!
It’s all about aligning incentives.
Why no Ivy?
Cal should just join the Ivy League
Given the initial assessment of $10 million in Calimony was based on differences in media rights deals, I do not think this is what UCLA wants. It's in UCLA's best interest to push for a Cal Big Ten invite to end these payments. The Ivy League would certainly increase potential payments.
Why not be like Stanford?
Stanford isnt asking for $. Cal needs to be more like Stanford
Stanford is a private school, they ask for $ when they wake up and until they go to bed. But point taken, Cal should probably do that too, it’ll be better for them in the long run!
Thanks to all for the inquiries! If you have any other questions about Calimony or other topics, leave them in the comments and we can help answer.
Why are people so angry about money that is not coming out of their own pockets?
I'm sure a post is forthcoming, but a Cal-UCLA post seems like the proper place to acknowledge the passing of Bill Walton. Even though he was a UCLA alum, he deeply loved Berkeley. Truly an original.