finances

SAN JUAN, Puerto Rico — The Trump administration has dismissed five out of seven members on Puerto Rico’s federal control board that oversees the U.S. territory’s finances, sparking concern about the future of the island’s fragile economy. The five fired are all Democrats.

A White House official told the Associated Press on Tuesday that the board “has been run inefficiently and ineffectively by its governing members for far too long and it’s time to restore common sense leadership.”

Those fired are board Chair Arthur Gonzalez, along with Cameron McKenzie, Betty Rosa, Juan Sabater and Luis Ubiñas. The board’s two remaining members — Andrew G. Biggs and John E. Nixon — are Republicans.

Sylvette Santiago, a spokesperson for the board, said they are in touch with the White House.

The board was created in 2016 under the Obama administration, a year after Puerto Rico’s government declared it was unable to pay its more than $70-billion public debt load and later filed for the biggest municipal bankruptcy in U.S. history.

In remarks to the AP, the White House official claimed the board had operated ineffectively and in secret and said it “shelled out huge sums to law, consulting and lobbying firms.” The official, who spoke on condition of anonymity to discuss the subject, also accused the board’s staff of receiving “exorbitant salaries.”

Puerto Rico is struggling to restructure more than $9 billion in debt held by the state’s Electric Power Authority, with officials holding bitter mediations with creditors demanding full payment.

It’s the only Puerto Rico government debt pending a restructuring, with the White House official accusing the board of preferring to “extend the bankruptcy.”

In February, the board’s executive director, Robert Mujica Jr., said it was “impossible” for Puerto Rico to pay the $8.5 billion that bondholders are demanding. He instead unveiled a new fiscal plan that proposed a $2.6-billion payment for creditors. The plan does not call for any rate increases for an island that has one of the highest power bills in any U.S. jurisdiction as chronic power outages persist, given the grid’s weak infrastructure.

Alvin Velázquez, a bankruptcy law professor at Indiana University, said he worries the dismissal of the board members could spark another crisis in Puerto Rico.

“This is really about getting a deal out of [the power company] that is not sustainable for the rate payers of Puerto Rico,” he said.

Velázquez, who was chair of the unsecured creditors committee during the bankruptcy proceedings, also questioned whether the dismissals are legal, since board members can only be removed for just cause.

“What’s the cause?” he said. “What you’re going to see is another instance in which the Trump administration is taking on and testing the courts.”

The dismissals were first reported by the Breitbart News Network, a conservative news site.

Coto writes for the Associated Press.

French club Lyon have been demoted to Ligue 2 because of the poor state of their finances.

The club were provisionally demoted by the DNGC, the body which oversees the accounts of French professional football clubs, in November.

Lyon officials including owner John Textor, met with the DNGC on Tuesday but failed to convince the body that the club had sufficiently improved their financial situation to lift the punishment.

Last October, his Eagle Football Group announced debts of £422m.

Seven-time French champions Lyon raised around £45m with the sales of Maxence Caqueret to Como in January and Rayan Cherki to Manchester City in June in an attempt to improve their finances.

High earners such as Alexandre Lacazette and Anthony Lopes have also been released.

Lyon have the right to appeal against the decision. Should it stand, Lyon will be replaced in the top flight by Reims, who were beaten in the relegation play-off by Metz.

Textor is also the largest shareholder of Brazilian club Botafogo and co-owner of Premier League club Crystal Palace, though he agreed a deal to sell his 46% stake in the Eagles on Monday.

Palace qualified for the Europa League by winning the FA Cup but their place is in doubt because Lyon also qualified by finishing sixth in Ligue 1.

Textor’s perceived involvement with both clubs could be in breach Uefa rules, which prevent multiple teams under one multi-club ownership structure competing in the same European competition.

The Eagles hope Textor’s decision to sell his stake to New York Jets owner Woody Johnson will avoid that scenario.

You might consider yourself a seasoned traveller, somebody who obsessively plans holidays down to fanatically pinned maps and destination-appropriate music playlists. But even the most globetrotting gadabout can fall prey to poor money management.

Simple mistakes such as failing to gen up on exchange rates or pressing the wrong currency button on a foreign ATM can result in you leaking cash that could be spent splurging on a ritzier hotel room or trading in a beer for a jazzed-up martini.

From using the best bank card to maximising reward benefits, here’s how having a savvy approach to your money while overseas is the secret to stress-free travel.

1 Pack the right plastic

It’s all too easy when sitting on the beach, piña colada in hand, to forget that every time you tap your debit card on that contactless terminal, you could be charged between 2.75% and 2.99% of the transaction value of whatever you’re buying, depending on the card provider. Every coffee, every snack, every bus trip you pay for, it’ll all mount up until you’re left with a monster bill by the end of the holiday.

The best option? Switching to a fee-free credit card such as the Barclaycard Rewards card*, which is 100% fee-free for purchases and ATM withdrawals.

*Representative example. 28.9% APR representative (variable); purchase rate 28.9% p.a. (variable); based on a £1,200 credit limit. The approval of your application depends on financial circumstances and borrowing history, so do the terms you may be offered. The interest rates may differ from those shown. T&Cs apply.

2 Protect yourself against fraud

Holidays relax people. That’s their USP. They offer a guard-lowering calm, making us brave enough to Macarena away until the small hours – but this also means we may share bank details over unsecured networks in hotel lobbies, or fail to notice somebody hovering over our shoulder, quietly taking down our card details.

For your peace of mind, Barclays has fraud protection systems that are in place 24/7 to protect your account. If they spot something suspicious, you’ll be alerted straight away.

And if you misplace your card, you can freeze it in the app so that nobody can use it until you find it. Even better, if you report your card lost or stolen while you’re abroad, Barclays will arrange for emergency cash to reach you within three days. They’ll also send a replacement card to your home address.

3 Set a daily budget

Ah, the wretched B-word. But allocating yourself a predetermined allowance each day will leave you with more money as your trip reaches its denouement, ensuring you end your vacay on a high note. A rough yardstick is to estimate how much you’ll be spending on costs such as food, accommodation, transport and activities, and adding an extra 30% on for extras/emergencies. Then divide it by the number of travel days to arrive at a daily limit.

Other belt-tightening measures include skipping lunch by filling your boots with the hotel breakfast buffet, seeking out street food, or scouring the reviews/social media to find a restaurant on the backstreets away from the tourist zones, which could slash your bill and deliver a much more authentic experience.

To help you budget like a pro, set up a savings goal¹ in the Barclays app¹, or turn on the spending alert so you can stay on top of your balance at all times.

4 Avoid pesky foreign transaction fees

Foreign holidays are rarely ever cashless experiences: having some local coins and notes is essential. However, charges at international ATMs can be eye-wateringly expensive: as high as £14.95 when taking out £250 on your credit card, according to a comparison site (tip: always select “without conversion”).

Sidestep that with a fee-free card such as the Barclaycard Rewards credit card*, where ATM withdrawals can be made without any extra fees.

Also, never leave it until the last minute to get foreign currency from an airport bureau de change. The “walk up” exchange rates at these desks tend to err on the pricey side: ordering the money you need online through your bank before travelling will be at much more wallet-friendly rates. Plus – if they’re like Barclays – the cash could be delivered to your home free of charge² too.

_*Representative example: 28.9% APR representative (variable); purchase rate 28.9% p.a. (variable); based on a £1,200 credit limit. The approval of your application depends on your financial circumstances and borrowing history, so do the terms you may be offered. The interest rates may differ from those shown. T&Cs apply.

5 Make clever currency choices

It’s a dilemma we’ve all faced on holiday. After finishing dinner, the waiter brandishes a card reader, asking: “Do you want to pay in local currency or pounds sterling?”

Generally, the best advice is to pay or withdraw in the local currency, as it’ll mean your UK bank will calculate the conversion rate. Opt to pay in pounds and the local bank will do the conversion – usually at less favourable rates.

6 Invest in travel insurance

The safety net of travel insurance might make common sense (we’ve all read horror stories about British holidaymakers who failed to get it, then forked out thousands of pounds for a medically-assisted flight home, right?), but ploughing through endless comparison sites to find the right quote isn’t fun.

In many cases, it’s best to take heed from experts. The Barclays Travel Plus Pack³ (£22.50 a month) was named a Which? Best Buy travel insurance in June 2024. The policy was lauded for its £10,000 missed departure cover and being one of the few policies to cover pandemics.

As with all travel insurance, always check the details. Some policies may not include children or pre-existing medical conditions; others won’t include extreme sports such as bungee jumping, parkour or tightrope-walking.

7 Use the tech at your disposal

Travelling to the EU or US this summer? Then consider Barclays travel wallet⁴ (available via the Barclays app⁵), which enables you to buy Euros and US dollars before travelling – which you can then spend with your regular debit card while away. Because you’ve purchased the currencies already, you’ll enjoy fee-free transactions during your trip too⁶.

Then, once you’ve arrived back home, you won’t be saddled with lots of coins destined to end up in a drawer, because Barclays will buy back any foreign currency left over at 0% commission.

To find out more about keeping on top of your travel finances with Barclays, visit barclays.co.uk/travel/

_{1 You must have a Barclays or Barclaycard account, have a mobile number and be aged 16 or over to use the Barclays app. Terms and conditions apply.}

_{2 £2,500 is the maximum amount that can be ordered and delivered to an individual residential address in a 90-day period. Please note, you cannot exceed £5,000 per person within a 90-day period.}

_{3 Terms, conditions, exclusions and eligibility criteria apply. You must have a Barclays current account, be 18 or over and hold this product for at least six months from the date of purchase – then you can cancel at any time.}

_{4 T&Cs apply. You need to be 16 years or over to access this product or service using the app.}

_{5 You must be 11 or over to use the app. T&Cs apply.}

_{6 No transaction fees apply when paying with Euros and US dollars from your travel wallet. There is a 2.75% margin applied when purchasing your currency. If you pay in British pounds on your debit card while abroad, a transaction fee will still apply.}

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Financial markets are volatile with consumer confidence at its lowest level in five years – as economists point to a higher risk of recession.

It all adds up to financial uncertainty for a lot of people. Roughly half of US adults say that President Trump’s trade policies will increase prices “a lot,” according to a recent poll by The Associated Press-NORC Center for Public Affairs Research.

About half of Americans are “extremely” or “very” concerned about the possibility of the US economy going into a recession in the next few months.

Matt Watson, CEO of Origin, a financial planning app, says it’s a period of uncertainty for everyone, including experts.

“No one has a crystal ball. No one, even the people that do this professionally and have done it very successfully for many years, know what’s going to happen,” he said.

If you’re worried about how economic uncertainty might affect you, here are some expert recommendations:

Take stock of your finances

The first step to preparing for uncertain financial times is knowing your starting point, Watson said. Look at your budget or your debit card expenses so you can understand how much you spend every month.

“Take stock of where you are across a number of different categories,” Watson said.

Looking at the state of your savings and investments can also provide you with an idea of your overall financial health.

Find where you can cut back

The more nonessential expenses you can pause, the more you can save for an emergency.

“Your choice is really to cut now or cut later, so it’s easier to cut now and have a cushion,” Watson said.

If you’re having difficulty finding where to cut back, Jim Weil, managing partner at Private Vista, a financial planning firm, recommends that you divide your expenses into three buckets: needs, wants and wishes. Wishes are larger expenses that can be postponed, such as a big vacation.

For the time being, cut back expenses from the wishes section until you feel like your finances are in a good place.

Take care of your mental health

Between news about tariffs and job losses, you might feel your anxiety rising. So, it’s important that you protect your mental health while also caring about your finances said Courtney Alev, consumer advocate at Credit Karma. Sometimes, reading too much news that can affect your finances can become overbearing and create more stress than you need.

“It’s good practice to stay informed but you don’t want to let the news cycle consume you,” Alev said.

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If you find yourself feeling high levels of stress or anxiety when it comes to your finances, it’s best to contact a professional who can assist you, such as a financial therapist.

If looking for regular mental health services, most health insurance covers some type of mental health assistance. If you don’t have health insurance, you can look for sliding-scale therapists around the country.

Focus on what you can control

Rather than worrying too much about the economics of the entire country, Alev recommends that you focus on the aspects of your personal life that you can control in order to feel more confident in case there is a recession.

“Identify any changes that you might need to make to have more of a safety net in place that could give you confidence,” Alev said.

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Things you can control include budgeting, creating an emergency fund and cutting unnecessary expenses.

Create an emergency fund

Whether you are worried about your job security or the high prices of goods, it’s best that you sit down and reassess your budget to create an emergency fund. An emergency fund can feel unattainable if finances are already difficult, but having even a small amount of cash saved can make the difference, Alev said.

Ideally, your emergency fund should amount to three to six months of expenses.

Weil recommends you start thinking about any special commitments that you might have in the next year or two, such as college tuition or moving. If you are planning for a large financial commitment in the near future, Weil recommends that you plan to build a larger emergency fund.

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Do monthly finance check-ins

Alev recommends regularly adjusting your budget to keep your financial goals on track. Monthly budget check-ins can help identify when you are overspending or if your needs change.

“A budget is only as good as it is to help you actually make decisions, so don’t be afraid to update and adapt your budget as the months go by,” Alev said.

Choose which type of debt to tackle first

Many people struggle with debt, whether it’s credit card debt or student loan debt, which limits their ability to save. But, if you want to create an emergency fund while also tackling your debt, it will take some prioritisation.

“I would think about different kinds of debt differently,” Weil said, adding that you can place debt in three buckets: short-, medium- and long-term debt.

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Weil recommends that you prioritise paying off high-interest debt such as your credit card. By making extra payments or paying over the minimum payment, you will be able to pay it off quicker. Student loan debt and long-term debt such as a mortgage can be tackled with more modest payments while you focus on creating an emergency fund.

If you have credit card debt and you can’t make too much progress in paying it down, Alev recommends you try to eliminate or reduce the amount of credit you use.

Don’t panic about your investments

While the stock market has had some bad days, it’s best that you are not reactive to the market. If you have investments, especially in retirement vehicles, it’s best not to make rushed decisions, Alev said.

“You really want to try not to panic. It can be unnerving but most likely, you should have time to make that up,” she added. If you’re closer to retirement, Alev recommends that you look into more conservative investments.

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After seeing a series of bullet-point slides and hearing a slew of buzzwords about UCLA’s athletic department finances, Bob Myers put the crisis facing his alma mater in much simpler terms.

“It’s like water’s coming in the boat and you’re trying to get it out, but how does this thing not sink?” asked Myers, who sandwiched a hugely successful run as the Golden State Warriors’ general manager between his time as a reserve forward on the Bruins’ 1995 national championship basketball team and his appointment as the newest member of the UC board of regents, Tuesday afternoon at the UC regents meeting. “Or how can we help, I suppose?”

Myers was inquiring about an athletic department deficit that has ballooned to $219.5 million after running in the red for six consecutive fiscal years, including a $51.8-million shortfall in the 2024 fiscal year.

To address the increasingly complex issue, new UCLA chancellor Julio Frenk and athletic director Martin Jarmond brought Stephen Agostini, who recently started his second year as the school’s vice chancellor and chief financial officer, to speak to the regents’ special committee on athletics at the University of California, San Francisco.

Agostini outlined many of the UCLA athletic department’s financial challenges, including an anticipated House settlement with the NCAA that will prompt UCLA to make an annual payout of roughly $22 million to its athletes, Olympic sports running about $34 million in the red during the most recent fiscal year, the lack of suite and premium-seat revenue at the Rose Bowl as part of UCLA’s lease agreement with the stadium, and licensing and sponsorship agreements with Associated Students UCLA that provides the lion’s share of revenue to the student organization.

“As many of you know, we have a fairly substantial financial challenge ahead of us,” Agostini said. “We are folding in the athletics deficits within that and will endeavor to address that. We are looking at other revenue streams … but it won’t be easy and given the volatility of the space, we’re hoping to stay abreast in an environment that changes almost monthly.”

In addressing Myers’ question, Agostini said the football and men’s basketball teams — with the women’s basketball team likely following suit — were moving toward a professional sports model in which media revenue is shared equally within conferences. USA Today recently estimated that every Big Ten Conference school besides Oregon and Washington, which agreed to take reduced shares for seven years, would receive a $75-million distribution from the conference for the 2025 fiscal year.

Since that figure is the same for almost every Big Ten school, additional income streams are essential.

“That means that what you generate out of your facilities and your other revenue opportunities becomes really critical to your bottom line,” Agostini said. “And as Martin [Jarmond] just mentioned, if we can’t generate additional revenue from tickets or premium seating or the arrangement we have with ASUCLA, it really makes that challenging for us.”

Myers then asked about tangible ways in which the athletic department could mitigate those issues.

Jarmond said the Rose Bowl had agreed to construct a premium seating section in the south end zone that could generate revenue for the school after the 2026 season. The lack of suite or club-level revenue as part of UCLA’s lease agreement with the Rose Bowl because it doesn’t own the stadium is depriving the school of roughly $15 million to $25 million a year, according to Jarmond. UCLA is also examining the possibility of Pauley Pavilion renovations that could include premium seating, Jarmond said.

Earlier, Jarmond had discussed ways that his department was doing its best to cut costs. He noted that UCLA was in the bottom quartile of coaching salaries after all nine head coaching hires he had made in his nearly five years on the job were from candidates who were assistant coaches.

“That’s been a strategy that I’ve utilized,” Jarmond said, “to give opportunities to assistant coaches but also to help us competitively with personnel and cost containment.”

The school has also regionalized nonconference schedules as much as possible, with the men’s basketball team pulling out of the CBS Sports Classic to reduce travel and increase scheduling flexibility. Jarmond said UCLA was on track to come in below the $5-million increase it had budgeted for travel expenses during its first year in the Big Ten.

“We’re working our way up toward building more revenue and being able to compete in the Big Ten [and] we’ve got to do more, I will tell you that,” Jarmond said. “We can’t do it on a shoestring budget and be competitive and win at the level that we have won and want to win. It’s something that we’ve been ramping up.”

There was no mention of UCLA’s $30 million in direct campus support to the athletic department during the most recent fiscal year, an unprecedented move to help offset the massive deficit. But in his first public comments about UCLA’s athletic department, Frenk both recognized the school’s rich athletic history and acknowledged the many challenges facing a university that will host the athlete village for the 2028 Olympics.

“There continues to be a lot of uncertainty, the landscape continues to shift, the outcome of recent litigations, which have been adverse to universities, the NIL changes, new models of athlete compensation — all have huge financial implications for us,” Frenk said. “But by joining the Big Ten, we have put UCLA in the strongest possible position to navigate the current volatility and to continue supporting our students in every dimension of their lives.

“So this is a key moment in the history of intercollegiate athletics; I think it’s going to continue to be transformed rapidly in the years to come and we are trying to face this with a strategic vision, a commitment to the fact that these are students first and foremost — our commitment to their education, a commitment to competition with integrity, fair competition and those values will continue to be upheld during this time of transition.”

After UCLA’s nearly hourlong session was finished, officials from UC Santa Cruz offered a presentation on their athletic department, an NCAA Division III outfit with a tiny budget but also a corresponding $2.2-million deficit for the most recent fiscal year that might more closely align with the ideals of college athletics.

“It will be interesting, I think,” UC Santa Cruz chancellor Cynthia Larive said, “for you to see the juxtaposition of UCLA and UC Santa Cruz.”