re: Texas Athletic Department in debt?

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Long term, short term, it doesn't matter--only the interest terms matter.

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There are sound reasons for borrowing money. Borrowing to expand the stadium, which will eventually pay for itself many times over, makes sense. Suddenly taking money from the academic mission of a cash-strapped university (see the toilet paper issue Big Kat referenced) to cover reckless spending by an unqualified AD doesn't make sense.

I know these are tough times or you guys. By now, you had planned on celebrating your 2011 Conference Realignment National Championship.....until Baylor pulled out a Hail Mary late in the 4th Qtr. I know you are desperately searching for any kind of victory. It won't come by comparing checkbooks with Texas. Hang tight......basketball season isn't very far away.

Again, the Texas "debt" was a well planned investment in substantial capital expenditures. A&M's loan was radically different:

https://www.theeagle.com/local/A-amp-amp-M-lent-athletics--16-million-

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“Basically, it was provided to the athletic department to address some deficiencies we had, to bring it so that we thought we could be competitive,” said Terry Pankratz, chief financial officer and vice president for finance at A&M.

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The line of credit had not been previously disclosed in the media, but was revealed Thursday in a self-critique of current A&M President Elsa Murano that was obtained by The Eagle through an open records request. “The athletics department has been operating in a deficit situation for several years,” Murano wrote, adding that no effort to improve that department’s finances had been included as a provision in the $16 million loan agreement between Gates and Byrne. “It is imperative that a business plan now be developed and implemented by athletics, to ensure that expenditures are kept in check and that strict adherence to the budget is realized,” she wrote.

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Byrne said in his e-mail that the loan was designed to cover anticipated deficits from the 2004-05 to 2008-09 fiscal years, which means it was first used the year after Dennis Franchione’s 4-8 debut as the A&M football coach. Since then, major department expenditures have included a $300,000-a-year raise for Franchione after he led the team to the Cotton Bowl and a $4.4 million buyout when he was fired three years later.

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Lol some people don't seem to understand how captial expansions work

lol at poors.