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Bloomberg - College Football’s Top Teams Are Built on Crippling Debt
Posted on 1/4/17 at 9:15 am
Posted on 1/4/17 at 9:15 am
18
Posted on 1/4/17 at 9:18 am to MartyMoose09
How is FSU not in there?
Posted on 1/4/17 at 9:20 am to MartyMoose09
quote:
Top Teams
quote:
Texas A&M
Fake News.
Posted on 1/4/17 at 9:20 am to MartyMoose09
Posted on 1/4/17 at 9:25 am to MartyMoose09
They saved the best for the very last paragraph:
It's only crippling if you can't service it.
Duh.
quote:
Debt can be a tool to grow—especially when interest rates are low—but only if it’s used properly, according to the Georgia Tech athletic director Todd Stansbury. In September, he inherited a department with $226 million of debt. Most of the $13 million annual debt service, however, is linked to pledged donor contributions. “When it’s done that way, it’s both healthy and sustainable,” Stansbury said. “When it starts to eat into your operations budget, then it becomes highly problematic.”
It's only crippling if you can't service it.
Duh.
Posted on 1/4/17 at 9:27 am to MartyMoose09
No top teams there.
Posted on 1/4/17 at 9:28 am to WildTchoupitoulas
Bloomberg SMH
Posted on 1/4/17 at 9:28 am to WildTchoupitoulas
aTm aggies
Posted on 1/4/17 at 9:29 am to lestertheghost
LOL at wildthangtheghost.
Posted on 1/4/17 at 9:31 am to MartyMoose09
A&M did just complete a massive renovation to Kyle Field. It wasn't cheap, but I think it can afford the debt.
LSU's recent upgrades have been funded by TAF. That isn't LSU's debt. I bet most of the debt Bloomberg labels as school debt is actually private debt or debt being serviced by alumni & boosters.
LSU's recent upgrades have been funded by TAF. That isn't LSU's debt. I bet most of the debt Bloomberg labels as school debt is actually private debt or debt being serviced by alumni & boosters.
Posted on 1/4/17 at 9:32 am to MartyMoose09
That info graphic isnt even supported by the article
But it all doesnt really even matter in institutional finances, its about cash flow
quote:
The Crimson Tide owes $225 million
But it all doesnt really even matter in institutional finances, its about cash flow
Posted on 1/4/17 at 9:34 am to Ghost of Colby
quote:
LSU's recent upgrades have been funded by TAF. That isn't LSU's debt.
They arent talking about School's debt here, but AD and their fundraising arms, like TAF for LSU or TUF for Auburn, etc....
Posted on 1/4/17 at 9:37 am to NYCAuburn
quote:
That info graphic isnt even supported by the article
quote:
The Crimson Tide owes $225 million
I noticed that as well.
The only one that would seem to have an issue would be Illinois. Not many people in the Chicago area care about Illinois athletics.
Posted on 1/4/17 at 9:42 am to MartyMoose09
quote:
There may be limits to how much help can come from central campus. Overall, Cal had a $150 million deficit last year and is up against its borrowing limit. “Not only does athletics have a problem on account of the debt service, but it’s also taking up a huge chunk of our available borrowing,” said physics professor Bob Jacobsen, a faculty representative for athletics. Meanwhile, he added, professors are losing research opportunities due to funding concerns.
Finances for higher education is pretty murky, especially in terms of state schools. However, if this is true:
quote:
Meanwhile, he added, professors are losing research opportunities due to funding concerns
then that is a major problem
Posted on 1/4/17 at 9:42 am to NYCAuburn
quote:
But it all doesnt really even matter in institutional finances, its about cash flow
Correct as long as it keeps flowing. I don't see how so many teams get into such deep debt with all the wonks they have on staff to crunch numbers and with all the tv money being supplied to even the shitty programs.
Cal seems to always be in financial trouble and as smart as they are supposed to be over there, they have some stupid motherfrickers running their AD.
This post was edited on 1/4/17 at 9:44 am
Posted on 1/4/17 at 9:46 am to UAtide11
I am pretty shocked if Cal doesn't keep it's athletics separate from the school like most. I thought only Vanderbilt co-mingled the athletics with the school.
Posted on 1/4/17 at 9:48 am to MartyMoose09
I have a strong feeling that the "debt" of college football teams is the same kind of "debt" that Fortune 500 companies and billionaires claim on their tax returns. They're crying poor because they don't want to pay student athletes.
Posted on 1/4/17 at 9:50 am to MartyMoose09
fake news
the only place LSU isn't the poors is Athletic Department
the only place LSU isn't the poors is Athletic Department
Posted on 1/4/17 at 9:56 am to MartyMoose09
The states of Texas & Louisiana are the poors. They are leasing Acura NSXs when they should have purchased Honda Accords. There will soon be eviction notices on the front door of their double-wides.
Posted on 1/4/17 at 10:01 am to MartyMoose09
The only two on the list with brand new nice shite are Oregon and Texas A&M.
What the frick are the rest of those programs spending their money on?
What the frick are the rest of those programs spending their money on?
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