Deleted_User
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I was replying to your statement in post #61, “Second, no school is going to give their athletic departments loans, when financial survival of the school is in question.”
I’m sure the school employs a professional financial company or perhaps even a fund manager to grow the endowment. That has nothing to do with if the school has sports.
Before Covid, the U State budge allocation went from 43% of the budget to 22%. Next biennium, it will be a fraction of that. Strap that thought on while the state takes on a half a million or more unemployed. The endowment has restricted uses and the rules of the endowments require that they be used for legitimate academic purposes. Athletic scholarships may or may not fall under that rule. I don't know. But, non scholarships don't. Travel unrelated to academic purposes do not. TCF stadium does not. It is owned by the Alumni Association, I recall. Correct me if that is wrong.
There are some schools who will not weather the storm, and you know this. The Great Recession had many colleges closing permanently, endowments or not. If we had multiple billions in an endowment, so what! The U has a budget of 4.2 billion dollars. We have a financial crisis of lower tax revenue and the allocation to the U will be lowered in future bienniums to make up for the shortfall. We cannot all borrow our way out of this crisis. The U will not be in a position to just pay for everything it had before. This isn't like 2007. It is 10 times worse. The national debt is going to be in the range of half of the GDP for the remainder of this year. Let me repeat that. It will be $7 Trillion dollars. That was the authorization. The state revenue is already falling to levels past the amount held in reserve. Where do you think this is heading, exactly? Why does everyone believe things are OK? The only thing that you will dispute in this is my 7 Trillion in budget debt. Well, let's add it up. It was already planned to be at 1 trillion. We had an authorization of 600 billion in additional spending, then followed with a bill for the additional 2 trillion, with authorization for another 4 trillion, if needed. So, really it is closer to 8 Trillion dollars in debt spending.
The last recession was a cakewalk compared to this. This is disruption on a scale comparable to total war with casualties to boot.
As for professional managers growing the endowment, that made me laugh. Magical thinking. Wrap you heads around this folks, this is going to be a monumental task to reboot when this is all said and done. Football is the least of our priorities right now. I hope I am totally wrong. Some of you will crow away saying exactly that. I don't mind your criticism. Just wait for my next post. It will make all the doctors crazy. I guarantee it.