University of Colorado administrators made a significant payment error involving head coach Deion Sanders after misinterpreting postseason compensation guidelines.
A June 4, 2026, audit shows Colorado overpaid Sanders by $50,000 after the 2024 season because officials misclassified the Alamo Bowl as a “New Year’s Six” game.
Sanders was contractually entitled to $150,000 for a regular bowl and $200,000 for a New Year’s Six appearance. Colorado paid the higher bonus, although the Alamo Bowl does not qualify as a “New Year’s Six” game.
This overpayment reflects broader fiscal mismanagement within the Buffaloes’ athletic department. According to an audit obtained by USA TODAY Sports, Colorado lost $1.23 million on the 2024 Alamo Bowl mainly because the department lacked an event budget to manage spending.
According to a report by the Colorado Office of the State Auditor, the audit recommends that the University of Colorado establish clear approval processes for postseason compensation, require that budgets be prepared in advance of major events, and implement real-time expense tracking for these activities. The report also advises regular financial oversight and the use of automated payment controls to ensure contract compliance and prevent future administrative errors.
A report from the Colorado General Assembly found that total revenue from the game and related events amounted to $2.97 million, while expenses totaled $4.21 million, and the transportation of 210 band and spirit members cost $945,053. According to the most recent NCAA Agreed-Upon Procedures report for the University of Colorado–Boulder, no specific details are provided regarding travel expenses or unauthorized discretionary adjustments involving assistant coaches and support staff.
The report did not identify intentional misconduct but emphasized the need to standardize postseason compensation policies and strengthen oversight. The audit warns that, without corrective action, payment errors and deficits will likely continue.
This pattern of excess compensation continues. For the second consecutive year, Colorado paid Sanders beyond his contractual requirements. After his 2023 debut season, the university awarded Sanders a discretionary $250,000 bonus, citing the significant national media attention and marketing value generated by his “Coach Prime” persona.
This fiscal oversight comes at a critical time for the university’s operations. Colorado’s athletic department faces a projected $27 million deficit for the fiscal year ending June 30, 2026.
These budget challenges reflect broader trends in major college athletics. Like many programs, Colorado faces financial pressures from rising executive and coach salaries and a new industry-wide requirement to pay $20.5 million annually to student-athletes under revenue-sharing models. Peer institutions such as Arizona State and UCLA have also reported multimillion-dollar athletic deficits and similar difficulties controlling spending, showing that Colorado’s situation is part of a larger issue across college athletics.
Despite these financial challenges, Sanders signed a contract extension after the 2024 season that nearly doubled his compensation to over $10 million annually. However, the team’s on-field results have been mixed. The Buffaloes finished 9-4 in 2024 but dropped to a 3-9 record in 2025 after the departures of quarterback Shedeur Sanders and Heisman Trophy winner Travis Hunter.
In response, Colorado’s athletic management committed to removing ambiguous language from future postseason contracts and routing all event budgets through the CU Boulder Business, Finance, and Infrastructure Office for oversight, as recommended by the audit. The university stated that this office will conduct quarterly reviews of all postseason budgets and compensation agreements, with compliance officers responsible for monitoring adherence to contract protocols.
According to the University of Colorado Boulder Office of Internal Audit Management Report, the audit findings will be shared with senior athletics administration to promote sustained corrective actions and accountability.
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