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Athletic Department Debt
Posted on 1/12/17 at 9:58 pm
Posted on 1/12/17 at 9:58 pm
So how does a place like LSU that brings in huge revenue and gives some back to the university have one of the top 10 largest debts in college athletics? And yes, these numbers are for the Atlantic department not the school. LINK
11
Posted on 1/12/17 at 9:59 pm to GeauxTigersLee
I refuse to believe that..
Posted on 1/12/17 at 10:02 pm to GeauxTigersLee
That's the TAF debt not LSU Athletic Dept., IMO.
Posted on 1/12/17 at 10:02 pm to GeauxTigersLee
The only thing I can see is that is long term debt where debt for large building projects comes into play (i.e. recent south end zone expansion).
Posted on 1/12/17 at 10:07 pm to Sasquatch Smash
Maybe it's cheaper to keep a cash surplus and keep the debt out there on a loan due to low interest rates?
Another article in the series talks about Alabama's debt over 200k, but...
LINK
Very interesting reads regardless.
Another article in the series talks about Alabama's debt over 200k, but...
quote:
Just in case they don’t, Alabama athletics has set aside a reserve fund of about $180 million, enough to cover the costs of the entire athletic department at most top-tier football schools for three years.
LINK
Very interesting reads regardless.
Posted on 1/12/17 at 10:09 pm to rsbd
quote:.
I refuse to believe that..
it's public data reported by the athletic departments themselves. What's to believe?Posted on 1/12/17 at 10:10 pm to Sasquatch Smash
That's a poorly written article, no mention of the TAF, which is taking on all that debt, not LSU AD. TAF, private LLC, pays for all the additions to ath. dept. additions.
Posted on 1/12/17 at 10:13 pm to GeauxTigersLee
quote:
it's public data reported by the athletic departments themselves. What's to believe?
Wrong.
Posted on 1/12/17 at 10:29 pm to GeauxTigersLee
From the article you linked:
Why do people see debt and freak out? There could be a separate fund making more than the cost in interest.
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.”
Why do people see debt and freak out? There could be a separate fund making more than the cost in interest.
This post was edited on 1/12/17 at 10:30 pm
Posted on 1/12/17 at 10:41 pm to bayouman
Here's another article from 4 years ago with similar data, and it includes links the the TAF financial statement. Believe what you want, but this isn't rooted in fiction.
LINK
This isn't a LSU issue, but one that will end up separating the large schools in the Power 5 conferences from everyone else eventually.
LINK
This isn't a LSU issue, but one that will end up separating the large schools in the Power 5 conferences from everyone else eventually.
Posted on 1/12/17 at 10:49 pm to GeauxTigersLee
Google LSU Athletic Department budget and read, it might enlighten you.
ETA, go to page 190.
ETA, go to page 190.
This post was edited on 1/12/17 at 10:51 pm
Posted on 1/12/17 at 10:56 pm to GeauxTigersLee
Well obviously it's managed well at LSU if Athletics gives millions back to the university each year. Having debt in business does not mean problematic.
If you're critical of Athletics, I don't think finances should be the target. They operate purely based on fan support and not state dollars. Decision making on hires is a separate issue but the business seems to be very stable in terms of dollars and cents.
100% relies on the fans for those revenues to keep coming though.
If you're critical of Athletics, I don't think finances should be the target. They operate purely based on fan support and not state dollars. Decision making on hires is a separate issue but the business seems to be very stable in terms of dollars and cents.
100% relies on the fans for those revenues to keep coming though.
This post was edited on 1/12/17 at 10:57 pm
Posted on 1/12/17 at 10:58 pm to GeauxTigersLee
quote:
So how does a place like LSU that brings in huge revenue and gives some back to the university have one of the top 10 largest debts in college athletics?
For the same reason that Exxon has more debt than you do.
That's not a net figure. LSU Athletics is a 9-figure operation. They incur debt in their operations and they are easily able to service that debt with current revenue. For example, they borrowed millions to pay for the expansion of Tiger Stadium and they are paying it off, plus making a huge profit besides, by selling the tickets, suites, etc. that it added.
This post was edited on 1/12/17 at 11:02 pm
Posted on 1/12/17 at 10:59 pm to bayouman
TAF has done a lot of debt financing but Athletics itself has done buildings requiring bonds as well
Posted on 1/12/17 at 11:48 pm to GeauxTigersLee
its not a big deal, we have 3 bonds I believe, the 2000 Tiger Den expansions, the 2005 west stadium expansion, and then the recent south end zone expansion. TAF ran the numbers and found that with tick sales, SEC channel money, SEC money, and Low interest rates it was the perfect time to expand the South End Zone. They is where the bulk of the debt is from, but it is debt with low interest rate and went to something that will produce additional revenue. In my mind that is proper and pragmatic use of the leverage model.
Posted on 1/13/17 at 7:41 am to GeauxTigersLee
Quit trying to stir shite up! You know damn good and well that TAF is the Guarantor and Co-maker on that debt!
When that is calculated into the net revenue vs. debt equation, LSU athletics runs entirely in the black with a net surplus! LSU is one of the only schools in the country to consistently have its athletic department run in the black!
The author is only giving half of the facts and he's a jackass!
When that is calculated into the net revenue vs. debt equation, LSU athletics runs entirely in the black with a net surplus! LSU is one of the only schools in the country to consistently have its athletic department run in the black!
The author is only giving half of the facts and he's a jackass!
Posted on 1/13/17 at 7:51 am to GeauxTigersLee
As stated, debt can help too. Keep the cash surplus or invested as some is can gain higher growth then on a debt with low interest rates. It depends on what the net gain or loss is. That's bot even getting into the businesses expenses that paying back the debt is a deduction for taxes for the growth. So no debt is not a bad thing, especially as a business.
This post was edited on 1/13/17 at 11:48 am
Posted on 1/13/17 at 8:05 am to LSUtiger89
Oregon is on the list and Nike could clear the books with his personal checkbook.
Posted on 1/13/17 at 8:35 am to GeauxTigersLee
quote:
So how does a place like LSU that brings in huge revenue and gives some back to the university have one of the top 10 largest debts in college athletics? And yes, these numbers are for the Atlantic department not the school. LINK
LSU has built several big projects of late and has funded them through TAF. The SEZ expansion was pretty expensive but like everything else it would not have been built if revenue was not tagged to pay for it.
Posted on 1/13/17 at 10:29 am to GeauxTigersLee
LSU has a billion dollar athletic bank account FAKE NEWS!!!!!
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