The Bay Area’s Cal and Stanford athletic departments have faced significant financial challenges in recent years, with a combined operating shortfall of $37.6 million from 2022 to 2023. This shortfall includes direct university support, which further worsens the situation to a total of $122.7 million over two years. While university subsidies are often considered essential for athletic programs, the combined deficit is significant and could raise concerns among faculty. Despite facing financial challenges, the schools are preparing to join the ACC Conference, resulting in partial revenue shares that are $15 million less than current ACC members. Leadership changes at both universities and external factors, including NCAA lawsuits and ACC turmoil, add further uncertainty to the financial outlook for Cal and Stanford athletics.