The shine has officially worn off the Deion Sanders experiment in Boulder. Colorado finished with a dismal 3-9 record in 2025. Folsom Field saw crowds dwindle to under 40,000 for late-season games. But if the empty seats and losing record weren’t bad enough, the Colorado athletic department just dropped a financial bombshell that makes the on-field struggles look like a minor inconvenience.

The Buffs are projecting a $27 million deficit for the fiscal year ending in June 2026, the largest shortfall in program history.​ When asked about the financial crisis, university officials insisted they won’t take the easy way out by gutting programs or reducing support for athletes. “The school said it will ‘not cut sports nor cut any resources for student-athletes’ but will look to cut expenses,” spokesman Steve Hurlbert told USA TODAY Sports. 

He also stressed that “tuition money and state funds will not be used to address the deficit.” Though he admitted “the mechanics of that are still to be determined” when pressed on who exactly would cover the shortfall if not the university. The athletic department is banking on last-minute revenue boosts from donations, sponsorships, and concerts at Folsom Field to help close the $27 million hole. 

But even internally, there’s skepticism about whether those sources can make a meaningful dent. Former Board of Regents member Jack Kroll was even more blunt. He called the university’s claim that academic funds won’t be impacted “absurd” because money is inherently fungible and the resources provided to athletics are discretionary.​

The financial disaster stems from two massive new expenses that hit Colorado’s books at exactly the wrong time. First, there’s the $20.5 million annual cost of the NCAA House settlement, which requires schools to provide direct payments and benefits to athletes starting this fiscal year. This cap is set to increase by 4% annually for the next two years. 

Every major college program faces this new burden. However, Colorado entered this challenge already stretched thin after nearly doubling Deion Sanders’ salary in March with a five-year extension worth more than $10 million per year. Those two line items alone account for more than the entire projected deficit. And they represent commitments the university made before anyone knew this season would be such a catastrophic failure. 

Making matters worse, the projected revenue for fiscal year 2026 is $136.7 million, compared to $163.7 million in expenses. Football alone accounts for $60.4 million of that spending. That $60.4 million football budget represents a massive investment in a program that just posted three wins and saw attendance crater after the initial Deion Sanders hype wore off. 

Colorado isn’t alone in facing these challenges. At least 33 athletic departments received at least $30 million in university support in fiscal 2024. This includes Colorado ($31.9 million), Houston ($38.4 million), Arizona State ($51.7 million), and South Florida ($63.7 million). But Colorado is uniquely vulnerable because it also just committed to paying Deion Sanders more than any coach in Big 12 history. 

What looked like a masterstroke in 2023 now feels like a gamble that’s backfired spectacularly. Deion has left the Buffaloes with empty stadiums, mounting losses, and a budget crisis that threatens to haunt the program for years.​

Sanders doesn’t sugarcoat transfer portal reality

In the wake of Colorado’s brutal 3-9 season, Deion Sanders didn’t bother with excuses or spin when addressing why players leave programs in the transfer portal era. Sanders was asked about how he will retain star players after a losing season. And responding to this, he delivered the most brutally honest assessment of college football’s modern landscape.

“The thing about these guys, man, you got to understand, when a guy leaves a program that selected him, picked him, or got him at the portal, he leaves for a multitude of reasons. The number one reason people leave is money, it’s not a disdain for staff, a disdain for players, it’s money. Let’s just be honest, man, let’s stop sugarcoating this foolishness.”

It’s a remarkable admission from a coach who built his entire Colorado roster through the transfer portal. Sanders acknowledged he admires players who chase championship opportunities or bigger stages. But he made it clear that those motivations are distant second-place finishers to the almighty dollar.​

The timing of Deion Sanders’ comments is particularly striking given Colorado’s financial crisis. Moreover, four freshmen, Mantrez Walker, Eric Walker Jr., Tyler Johnson, and Cameron Goods, entered the transfer portal within days of the season finale.