Athletic Department debt

[Stan Raymond]

#1 difference between a business brain and the “use cash for everything and be Debt free like Dave Ramsey told me” is the basic lack of understanding that not all debt is bad combined with the time value of money.


Let’s say hypothetically $150 million of Michigan’s debt started between 2016-2021 and let’s say the average interest on that debt is 3.5%.

vs.

trying to do a similar project but without incurring debt means plundering cash accounts or reducing the size/price of the project



PS: much like our Unicameral and splitting of electoral votes, Nebraska is a unicorn albeit with lots of room for improvement or: “mid” as the kids say.

If you get the money from donations then you pay 0 in interest and don't plunder the cash accounts. If the current project was reduced then I can't imagine what it would look like.

 

[BradWesley]

t
They hrew a half billion into their stadium 10-12 years ago.

Yep…I figured that was the case. There’s a perception that A&M is just made of money. Was just shocked to see that they were in debt that much.

 

[SOHusker11]

Yep…I figured that was the case. There’s a perception that A&M is just made of money. Was just shocked to see that they were in debt that much.

Kyle Field renovation jumps to $485 million

The massive redevelopment of Kyle Field, the Aggies' on-campus stadium, has increased in cost to $485 million, thanks to donors contributing another $35 million to the multi-year project.

www.sportingnews.com

 

[God is a Husker]

If you get the money from donations then you pay 0 in interest and don't plunder the cash accounts. If the current project was reduced then I can't imagine what it would look like.

Well in your hypothetical why not use that donation money as leverage to secure a larger low interest loan and make your planned project bigger/better or have multiple projects?

 

[Interloper]

Somehow and in some way, there has got to be a method for DONU to turn this into a competitive advantage.