re: Athletic Department Debt

From the article you linked:

quote:

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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.”

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Why do people see debt and freak out? There could be a separate fund making more than the cost in interest.