Woohoo! Yay us!

[Norm Peterson]

 

[Norm Peterson]

Pull quote: "DOUBLE CORNHUSKER HONOR ROLL: Give kudos to Nebraska: They are the ONLY public FBS athletic dept with NO subsidy from the school, and NO athletic debt. That's pretty impressive, Cornhusker friends!"

[49r]

Now let's compare the football and basketball winning percentage of the teams in the top list to the teams in the bottom list...

[cornfed24-7]

16 minutes ago, 49r said:

Now let's compare the football and basketball winning percentage of the teams in the top list to the teams in the bottom list...

Cal is really tearin' it up! 

[Swan88]

That’s impressive for NU!!
No debt is a solid base for continuing the Trev-era redevelopment that is already underway in football, basketball and other teams.

Can’t believe that Illinois, Michigan, Iowa and Ohio State have that much debt—looks like some poor leadership got them in deep waters.

[49r]

9 minutes ago, cornfed24-7 said:

Cal is really tearin' it up! 

 

Yeah, they're definitely an outlier I agree.

[49r]

Just now, Swan88 said:

Can’t believe that Illinois, Michigan, Iowa and Ohio State have that much debt—looks like some poor leadership got them in deep waters.

 

Well, not necessarily.  As is pointed out in the twitter thread, that debt often comes at extremely favorable rates and can be leveraged very effectively.  I wouldn't necessarily consider their debt as being bad, per se.

[cornfed24-7]

1 hour ago, 49r said:

 

Yeah, they're definitely an outlier I agree.

To be fair when you have to redo your football stadium that lies on a major fault line I could see why that costs some major coin. 

[Swan88]

Here's from a public report on Illinois athletics dated January 5, 2022:

 

The median accumulated debt for Big Ten schools grew from $133.3 million in 2014 to $164.5 million in 2019.

Illinois’ debt problem is much worse. Our athletic department paid interest on facilities debt of $11.2 million (2014), $16.7 million (2015), $26.1 million (2016), $20.0 million (2017), $21.3 million (2018), and $22.7 million in 2019. Illinois’ 2020 NCAA financial statement reported total athletics-related debt of $315,822,286. Our athletically related facilities annual debt service was $21,564,413.

Simply put, Illinois’ athletic program has been deeply mired in debt since 2014.

[HuskerFever]

It's also part of the reason Cal tried every possible legal method to keep UCLA out of moving to the Big Ten.

[Handy Johnson]

No Money No Honey  

[cipsucks]

8 hours ago, cornfed24-7 said:

To be fair when you have to redo your football stadium that lies on a major fault line I could see why that costs some major coin. 

Insurance won't be covered by State Farm.  Like a good neighbor, Jake says I'm getting the hell out of this state.  

[AuroranHusker]

Cal could have moved their stadium, they chose to dump funds into it. You get what you desire, and evidently debt is what they were looking for. It's an odd situation, especially for a program that doesn't make much money.

 

[Norm Peterson]

2 hours ago, cipsucks said:

Insurance won't be covered by State Farm.  Like a good neighbor, Jake says I'm getting the hell out of this state.  

 

She sounds hideous.

[busticket]

Even Bill Moos couldn’t get us out of operating in the black.

[Handy Johnson]

11 hours ago, cipsucks said:

Insurance won't be covered by State Farm.  Like a good neighbor, Jake says I'm getting the hell out of this state.  

Don’t forget Cip there was an Earthquake down by Superior 2 years ago, so if that’s not a sign of the End Times (or National Champ Creighton) I don’t know what is…

[49r]

8 hours ago, busticket said:

Even Bill Moos couldn’t get us out of operating in the black.

 

Fortunately the University leadership wised up and managed to can his ass before he was able to do that much damage.

[MitchMcGaryMunchies]

On 5/30/2023 at 10:46 AM, 49r said:

 

Well, not necessarily.  As is pointed out in the twitter thread, that debt often comes at extremely favorable rates and can be leveraged very effectively.  I wouldn't necessarily consider their debt as being bad, per se.

 

Also, most of this funding was obtained during a period where we witnessed the lowest interest rates in most of our lifetimes.  Issuing new long-term debt during that timeframe seems like a rather logical move.

 

For consideration, I live in a small municipality in Nebraska.  In 2014 we approved a $50 million dollar bond for the construction of a new high school and to remodel an old high school into a new middle school.  The city refinanced the bond in 2020 and was able to save $13 million.

 

Without knowing the WACC, this is a very useless tweet.

[Swan88]

2 hours ago, MitchMcGaryMunchies said:

 In 2014 we approved a $50 million dollar bond for the construction of a new high school and to remodel an old high school into a new middle school.  The city refinanced the bond in 2020 and was able to save $13 million.

At least the tax payers voted for the bond.  But even a 2.0% interest rate on $50 million is a million dollars every year on top of paying back the entire $50 million—that’s  real money for any town.  At least they managed a $13 million break—and that’s real money too.

 

It’s sort of like student loans: they are painless to take out, but paying them back can be a real bear, if not impossible.

 

[hskr4life]

Also didn’t make this list.  #Success