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Emerson article on the Reserve Fund...
Posted on 2/10/14 at 8:42 pm
Posted on 2/10/14 at 8:42 pm
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Posted on 2/10/14 at 8:46 pm to K9
Probably a little of both. I have seen articles about the debt. I don't know how that compares to other schools though
Posted on 2/10/14 at 8:50 pm to K9
What a crock. So that SEC TV money is not helping? Try winning more football games and maybe we will make more money.
Posted on 2/10/14 at 8:56 pm to JimDawginTexas
quote:
What a crock
i'm not saying its 100% fact, because idk, but why would he lie?
Posted on 2/10/14 at 9:37 pm to K9
I do not mean to criticize you. Just I do not believe any sob stories about how the University does not have much money.
Posted on 2/10/14 at 9:50 pm to JimDawginTexas
i didnt think you were criticizing me, just wanted you to explain why you think he would lie.
Posted on 2/10/14 at 10:07 pm to K9
It's not AD speak. It's real.
But here's the good news... we've borrowed $130M at an interest rate under 2%.
We don't have as much money as our reserves indicate. But we are managing our money on a spread to maximize every penny that we've got (or leveraged).
Interest rates won't always be this low.
This is smart business.
Florida has won 3 championships without an indoor practice facility. I want one as bad as anyone. But if we get the facility and still do not have a title... the public pandemonium will move on to more important things like water fountains in the team locker room and $200,000 donations for churches.
But here's the good news... we've borrowed $130M at an interest rate under 2%.
We don't have as much money as our reserves indicate. But we are managing our money on a spread to maximize every penny that we've got (or leveraged).
Interest rates won't always be this low.
This is smart business.
Florida has won 3 championships without an indoor practice facility. I want one as bad as anyone. But if we get the facility and still do not have a title... the public pandemonium will move on to more important things like water fountains in the team locker room and $200,000 donations for churches.
Posted on 2/10/14 at 10:16 pm to DawgCountry
quote:
Probably a little of both. I have seen articles about the debt. I don't know how that compares to other schools though
Without reading the article, I believe three schools are above 200 million, and 6-8 are around a hundred or more, with others above 50. If I recall correctly.
Posted on 2/10/14 at 10:16 pm to meansonny
I don't mind them not building an IPF, like you said, you can win without one.
Just thought this article would be interesting to those that think we have a massive amount of money collecting dust somewhere.
Just thought this article would be interesting to those that think we have a massive amount of money collecting dust somewhere.
Posted on 2/10/14 at 10:22 pm to K9
Y'all are about on average as far as reserve funds. In comparison, tenn, has 200 mil debt, and under 5 reserve.
Posted on 2/10/14 at 10:29 pm to K9
Maybe these guys aren't as smart as I give them credit for in terms of managing our university. 
Or maybe this is just a bullshite story. Obviously we don't have access to the balance sheets, accounting, etc. but what they shared makes no sense. Why would you borrow 123 million and have a 67.1 million reserve leading to a debt service of 12 million per year/1 million per month? Generally businesses borrow money on a per project basis to invest not to sit around with that much in reserve. Sure they need to keep a reasonable amount in reserve but not 67 million. sheesh Hell yea. Pay off as much of the debt as you can and become fiscally responsible so you can pay off all the debt and start building a non-fantasy reserve for crying out loud.
Or maybe this is just a bullshite story. Obviously we don't have access to the balance sheets, accounting, etc. but what they shared makes no sense. Why would you borrow 123 million and have a 67.1 million reserve leading to a debt service of 12 million per year/1 million per month? Generally businesses borrow money on a per project basis to invest not to sit around with that much in reserve. Sure they need to keep a reasonable amount in reserve but not 67 million. sheesh Hell yea. Pay off as much of the debt as you can and become fiscally responsible so you can pay off all the debt and start building a non-fantasy reserve for crying out loud.This post was edited on 2/10/14 at 10:46 pm
Posted on 2/10/14 at 10:37 pm to K9
Georgia is just like every other successful "university" which never has enough money. Although they suck the tax payer dry as much as they can, they also bombard the alumni with requests for more money all the time they pay themselves salaries and benefits they could never get in any other field. The board goes along because of the access they receive for football games and other benefits.
He is not telling all of the truth. You usually cannot issue bonds without having a future revenue stream to pay the bonds back which can be over a long period of time. The SEC TV deal and the ESPN deal were probably not counted with regard to the bonds so they are a revenue upside. The dwindling money from football, basketball and baseball does not help. Winning teams bring in more money. Usually only football pays for itself but at some schools the basketball team and the baseball team can break even
So, as LBJ said, "Whenever someone tells me they are just a poor farmer, I reach for my wallet to protect it"., I do not believe them. If things are so bad, why not use the $12 mil to reduce debt and cut all sorts of expenses to save money. shite, fire the coaches and bring in people for a third of the salary who can go 6 and 6 or 8 and 5.
He is not telling all of the truth. You usually cannot issue bonds without having a future revenue stream to pay the bonds back which can be over a long period of time. The SEC TV deal and the ESPN deal were probably not counted with regard to the bonds so they are a revenue upside. The dwindling money from football, basketball and baseball does not help. Winning teams bring in more money. Usually only football pays for itself but at some schools the basketball team and the baseball team can break even
So, as LBJ said, "Whenever someone tells me they are just a poor farmer, I reach for my wallet to protect it"., I do not believe them. If things are so bad, why not use the $12 mil to reduce debt and cut all sorts of expenses to save money. shite, fire the coaches and bring in people for a third of the salary who can go 6 and 6 or 8 and 5.
Posted on 2/10/14 at 10:46 pm to K9
It's a good article, slightly slanted toward the B.O.R and its point of view. I found it a little condescending, but UGA is managed differently than a lot of other SEC programs so that was accurate.
"Purse Strings" that mantra has me thinking we are still on a plantation somewhere.
I don't understand why a practice facility costs so much, nobody said it had to be housed inside a brick and marble structure just rent out a vacant warehouse and refit it by Gosh then you can play the shell game and call it an asset!
That's how most of the BOR members made their money in the first place.
"Purse Strings" that mantra has me thinking we are still on a plantation somewhere.
I don't understand why a practice facility costs so much, nobody said it had to be housed inside a brick and marble structure just rent out a vacant warehouse and refit it by Gosh then you can play the shell game and call it an asset!
That's how most of the BOR members made their money in the first place.
Posted on 2/10/14 at 11:07 pm to JimDawginTexas
quote:
He is not telling all of the truth. You usually cannot issue bonds without having a future revenue stream to pay the bonds back which can be over a long period of time.
We essentially have 10 year bonds at under 2% interest rates. Why not take advantage of that opportunity? Especially when we know that we will have future improvements to add on to the University infrastructure.
We are leveraging those funds in more aggressive investments (in addition to using those funds for Sanford/ButtsMehre renovations).
Moving money to higher paying yields
Posted on 2/10/14 at 11:20 pm to UGAporkchop
The Reserve Fund is much like the average family savings account. A certain amount is set aside (in reserve) for emergency needs and capital improvements. The average homeowner doesn't pull all his savings out and pay down his home mortgage. The mortgage is paid down incremently each month, just as is the UGA debt. The savings account is used for roof repair (or Foley Field) then built back up for the next time it is needed.
There don't seem to be many accounting or finance majors in here.
There don't seem to be many accounting or finance majors in here.
Posted on 2/10/14 at 11:50 pm to K9
I believe ol' Greg but I also think, I could be wrong, but I think other schools have a good bit of debt as well. I know UT has a ton without the reserves we do. I still think they can spend more. Adopt the American motto and ignore debt and just spend wildly.
The SEC network should help a ton at least
The SEC network should help a ton at least
Posted on 2/11/14 at 7:05 am to Damn Good Dawg
Does the sec network money start coming in 2014 or 2015?
Posted on 2/11/14 at 7:19 am to K9
I the deep rig nailed it. Lock up a long term lease for the defunct piggly wiggly and renovate the place for an indoor practice facility.
Things can be built soundly on the cheap and get the job done.
Things can be built soundly on the cheap and get the job done.
Posted on 2/11/14 at 9:13 am to DawgCountry
LSU,Bama and UT are all over $200 million...I think Emerson should have asked McGarity his opinion on those schools.I know we have bigger reserves than UT and probably LSU...I would doubt
we'd have more than Bama...they seem to be rolling in it these days.
we'd have more than Bama...they seem to be rolling in it these days.
Posted on 2/11/14 at 9:18 am to RD Dawg
UT's reserves are below 5 million
Bama's are around 100, I believe, but debt it around 220. They have huge annual debt servicing payments, but are more than able to take care of it, with their cash flows. AD finances arent like normal corporations
Most SEC Schools reserves are between 50-100.
Debt from a few years ago
Bama's are around 100, I believe, but debt it around 220. They have huge annual debt servicing payments, but are more than able to take care of it, with their cash flows. AD finances arent like normal corporations
Most SEC Schools reserves are between 50-100.
Debt from a few years ago
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