$14 million a year for debt service

daBuzz

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I'm confused. In one breath, he points out that GTAA is a separate entity from the academic institution then, a paragraph or so prior, he compares the debt of the athletic program as a percentage of the institute's total debt. They either are separate or they're not. Cause if they aren't separate...let's tap into some of that $1.5 billion endowment and pay off the debt.

However, if our favorite usually-obtuse college athletic authority is being uncharacteristically clear with its terminology, I am simply awestruck by the fact that athletics makes up a whopping 48.5% of the Institute’s total debt and 27.9% of its annual debt service expenses.
Now, before we panic more, it’s important to note that the Institute itself is not footing the bill for athletics facility debt — we’ve already discussed GTAA’s annual debt service situation — but the proportion of the total Institute debt at play here is staggering.
Why compare the two in the light he's doing? Seems disingenuous to me.
 

pianoman

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My reading of it is the school over all is better/more conservatively managed than GTAA. Comparing athletics to the overall university is (according to this writer) a way of normalizing the numbers to better gauge the AA balance sheet.

Dumb question: Could GTAA go bankrupt without the university providing some kind of backstop? I just did a search and found no cases, so must be nearly impossible, which I suppose means the AA and university must be somehow intertwined (but how?).
Regarding endowments, they are targeted for very specific uses, so to move the money you have to go to donors and get written permission (I know this first hand, having done it).
 

BrentwoodJacket

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Two observations:
1) I am surprised that the baseball contributions are so low given the overall success of the program and the number of MLB players who should have resources.
2) I am also surprised that there are no contributions for any of the other men's or women's sports. We have several PGA golfers who should be able to contribute something to the golf program.
 

clapper

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2) I am also surprised that there are no contributions for any of the other men's or women's sports. We have several PGA golfers who should be able to contribute something to the golf program.
The key is that the contributions the article is talking are specifically for operations, debt service, leases, etc.. That is not a standard AA/AT Fund solicitation, particularly for non-revenue sports. Additionally, if anyone is considering a donation like that, they are typically encouraged to contribute to the AD’s discretionary fund for more flexibility, which is not addressed in the article.

As far as the School/AA debt service comingling, they are separate, but it’s a fuzzy gray line on how help can be given. The school provides services (like utilities) to the facilities and the AA pays them for it, or they are supposed to. That part is very negotiable.
 

YodaBee

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In this state the Athletic Depts are firewalled in such a way as to not be bailed out by the university. However the AD can give money to the university. It’s a 1 way firewall.
 

OptionsJacket

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I'm confused. In one breath, he points out that GTAA is a separate entity from the academic institution then, a paragraph or so prior, he compares the debt of the athletic program as a percentage of the institute's total debt. They either are separate or they're not. Cause if they aren't separate...let's tap into some of that $1.5 billion endowment and pay off the debt.





Why compare the two in the light he's doing? Seems disingenuous to me.
I'll cut the guy some slack as FTRS isn't some sort of bastion for journalistic professionalism or integrity.
 

daBuzz

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I'll cut the guy some slack as FTRS isn't some sort of bastion for journalistic professionalism or integrity.
You're a better person than I am then. It seems like a really bad comparison to make and I would think the most likely reason for making it was to stir up some type of a negative response.
 

OptionsJacket

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You're a better person than I am then. It seems like a really bad comparison to make and I would think the most likely reason for making it was to stir up some type of a negative response.
They're amateurs looking for clicks. How's that?
 

Techbert

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They're amateurs looking for clicks. How's that?
I know the secret that Big Tech does not want you to know about getting clicks. It is so easy that Atlanta, GA tried to ban it. Competitors HATE it. To learn more, click on my link between this girl's enormous breasts.
 
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