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re: Saban $20 mill in hole due to bad real estate investments w LSU and Bama alums
Posted on 12/11/13 at 9:19 am to Jesus Prejean
Posted on 12/11/13 at 9:19 am to Jesus Prejean
Last year or the year before an apartment complex in Houston went into Bankruptcy. Spinosa (the same person that developed Perkins Row was the promoter on the complex,) Saban was a partner personally liable on the debt. I think he guaranteed part of the bank note. It was $10 million. (you can check the Bankruptcy records in Houston). However the bank never took any action against Saban.
FYI a Bankruptcy of a partnership does not stop the creditors from suing or collecting from the partners or anyone who guaranteed the debt,
At the time there was talk of Saban going to Texas and speculation Texas boosters had bought the note to keep Saban from having to pay.
Maybe the deal was cut then.
Think about this for awhile. Mack at that time was going to be President of the College Football Coaches Association this year. To be President you have to be an active coach. This maybe why Texas allowed him to stay on even if the deal was cut with Saban. Being President of the Association is an honor and I doubt Texas would deny Mack this honor. There can only be what maybe 20 living past presidents at anytime
If you remember LSU did the same with Coach McClendon. LSU let him stay one more year because he was going to be President of the Association. The only difference they announced what was going to happen and why.
FYI a Bankruptcy of a partnership does not stop the creditors from suing or collecting from the partners or anyone who guaranteed the debt,
At the time there was talk of Saban going to Texas and speculation Texas boosters had bought the note to keep Saban from having to pay.
Maybe the deal was cut then.
Think about this for awhile. Mack at that time was going to be President of the College Football Coaches Association this year. To be President you have to be an active coach. This maybe why Texas allowed him to stay on even if the deal was cut with Saban. Being President of the Association is an honor and I doubt Texas would deny Mack this honor. There can only be what maybe 20 living past presidents at anytime
If you remember LSU did the same with Coach McClendon. LSU let him stay one more year because he was going to be President of the Association. The only difference they announced what was going to happen and why.
This post was edited on 12/11/13 at 9:28 am
1
Posted on 12/11/13 at 9:32 am to 1970tiger
Saban also invested in a house on a lake in Ga. It was an $11 million property. It sat for over a year, even with the price dropped to $9.6. It finally went to auction over the summer
Rumored to have lost several million on it
Rumored to have lost several million on it
Posted on 12/11/13 at 9:37 am to Jesus Prejean
College football coaches make great marks. They've recently been getting millions dumped in their laps, typically come from poor families, and spent their entire lives revolved around football and pretty much football only due to the time and travel it requires now. They also rub elbows with power players at their schools that have empires and wealth beyond comprehension.
The sharks that are boosters are way more blood thirsty and saavy than a football coach who gets his arse kissed all around the state and has been getting sweetheart deals and hookups for years. There's been some fascinating stories of coaches getting rooked.
The sharks that are boosters are way more blood thirsty and saavy than a football coach who gets his arse kissed all around the state and has been getting sweetheart deals and hookups for years. There's been some fascinating stories of coaches getting rooked.
Posted on 12/11/13 at 9:40 am to Jesus Prejean
Anyone have details on Saban's real estate investment(s) in Baton Rouge?
Never mind, I just saw 1970s post and others.
Never mind, I just saw 1970s post and others.
This post was edited on 12/11/13 at 9:49 am
Posted on 12/11/13 at 9:40 am to Jesus Prejean
The initial investment has to be worth more than thatbloss total - a lump of liquid cash I doubt Saban has - which makes the story questionable, at best. Moreover, it were real estate related there would be public documens verifying it. until someone produces those and explains the math, I'm calling BS.
Posted on 12/11/13 at 9:48 am to HarryBalzack
quote:
Moreover, it were real estate related there would be public documens verifying it. until someone produces those and explains the math, I'm calling BS.
Ehhh, it's likely all done under an LLC or other corporate type entity, wherein the actual investors into the property are not necessarily part of the public record.
Posted on 12/11/13 at 9:50 am to makersmark1
quote:not really. I make just over 100k. I could easily be approved for and afford a $300,000 mortgage. The ratio is the same, or even a little less. Saban: 7 mil earnings - 20 mil debt = 2.85:1 ratio. 100k/300k = 3:1 ratio.
20 million in debt is a tough spot even if you make 7 million a year.
This post was edited on 12/11/13 at 9:51 am
Posted on 12/11/13 at 9:53 am to otowntiger
quote:
quote:
20 million in debt is a tough spot even if you make 7 million a year.
not really. I make just over 100k. I could easily be approved for and afford a $300,000 mortgage. The ratio is the same, or even a little less. Saban: 7 mil earnings - 20 mil debt = 2.85:1 ratio. 100k/300k = 3:1 ratio.
I didn't see the point was that it was tough to qualify for such a line of credit. The point is, it's a tough hit if you get called on to cover it. As I'm sure it would be for you to be called on if called to pay off your $300k mortgage today.
This post was edited on 12/11/13 at 9:55 am
Posted on 12/11/13 at 2:30 pm to Y.A. Tittle
quote:true, if he has to pay it all at once and he doesn't have that much saved up. Its all relative I suppose. 20 mil to him is like 300k to me. I certainly don't have that kind of money.
didn't see the point was that it was tough to qualify for such a line of credit. The point is, it's a tough hit if you get called on to cover it. As I'm sure it would be for you to be called on if called to pay off your $300k mortgage today.
This post was edited on 12/11/13 at 2:31 pm
Posted on 12/11/13 at 10:03 pm to Jesus Prejean
The real estate company was an LLC was it not? Limited Liability. His personal assets are safe.
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