PiPress: For Gophers, Ski-U-Mah turning into IOU with $290 million debt load

[BleedGopher]

per the Pioneer Press:

When the University of Minnesota fell short of its goal to privately fund a large athletics department upgrade, school President Eric Kaler recommended last week that the U borrow the shortfall and break ground almost immediately. Twenty-four hours later, the Board of Regents had approved the recommendation.

The decision was a victory for the athletics department and supporters who believe the Athletes Village project is necessary if the Gophers are to keep pace in the increasingly competitive field of big-time college athletics. Some, however, question the wisdom of borrowing an estimated $89 million when the athletics department already has outstanding debt of $201.2 million.

In August, Standard & Poor's -- one of the country's big three credit ratings agencies -- looked at the school's overall debt and lowered its outlook of the U's AA credit rating from "stable" to "negative."

Deficit spending is not uncommon in college athletics, said Dennis Howard, a Philip H. Knight sports professor at the University of Oregon. In fact, he said, "in the new era of college sports," Minnesota's debt "is not excessive," even if combining the current and new debt would give the Gophers one of the most debt-ridden departments in the nation.

http://www.twincities.com/sports/ci_28981395/gophers-athletics-ski-u-mah-turning-into-iou

Go Gophers!!

 

[supadupafly]

This article makes little sense to me. The U of M administrations spent virtually NO real money on supporting Gopher football for what 30 to 40 years. Now they finally have to spend what most unbiased, intelligent people would consider to be appropriate levels of funds on just getting us "on par" (remember we that we ummmmm also had to build a stadium in the last 6 years) with most in the B1G conference and the local media dim wits want to act like they are just a bunch of free wheeling, big spending mavericks and write a ridiculous whole page article about it.

One really just can not win with some of the blow hard media trolls in this town.

P.S. If I am not mistaken the author of the article, John Shipley, also happens to be a big Iowa Hawkeye sports fan. Isn't it just fantastic that we have Badger and Hawkeye rubes in the roles of authors and editors in the sports departments of our local rags? Fantastic indeed. Smh.

 

[dpodoll68]

Why does any school need to take on debt? I read constantly here and other places that the schools are all getting fat off the "unpaid" "labor" of athletes who are "forced" to "work" for "nothing". I would've thought that, since all collegiate athletic departments are so flush with cash, they would be giving out loans instead of taking them on. This guy must be confused and hasn't received the memo.

 

[MNGoldenGophers1]

Why does any school need to take on debt? I read constantly here and other places that the schools are all getting fat off the "unpaid" "labor" of athletes who are "forced" to "work" for "nothing". I would've thought that, since all collegiate athletic departments are so flush with cash, they would be giving out loans instead of taking them on. This guy must be confused and hasn't received the memo.

C'mon dpodoll, Football pays for itself!!! Throw in TV contracts, bowl, revenues, increased ticket prices (I mean donations), concessions including beer sales, parking, apparel deals, etc. but what is missing in all of this is that there just isn't enough to offset the cost of having a rowing team. Damn greedy non-revenue sports teams. If not for them, we could pay our poor football/basketball coaches more than 10-times what they're making now and at least quadruple spending on those team's facilities so we could play more regularly in second tier bowls and the NIT.

 

[Spoofin]

Yawn

 

[Ski U Mah 55]

Yawn

Thanks for the always insightful commentary.

 

[Maroon92]

Big schools are not cash strapped- minnesota has over $2.2 billion in the endowment fund as of this past summer.

 

[Spoofin]

Thanks for the always insightful commentary.

What do you want? It is a non story. It is an investment. The U feels that investment will pay of. Probably will. The Headline is meant to enrage folks by throwing out some huge number that isn't as huge for a University, but sounds real big. A less serious subject, but a similar approach to what the Strib did earlier this week. The fact the U is taking loans to build the village is a non-story. The PP's attempt to create outrage and care from the public is boring to me. Yawn.

 

[Pompous Elitist]

^love your avatar ski-U, best on the board.

The tv contracts are going to be a gold mine going forward. None of us can foresee the future or economic conditionsin 5-10 years, but assuming nothing happens with having to pay players my belief is the more responsible regents, eg Dean Johnson, must have seen a feasible financial plan to pay down the debt and ok'd the deal. My hope is tht 20 years from now, when the facilities are "old" and a renovation is planned the "bones" of the structures are adequate to allow for less outlandish outlays of capital.

I'm hopeful they won't have to nickel and dime with student fees etc to keep the lights on, or shut down less popular sports or services if there is a squeeze down the road.

 

[station19]

What do you want? It is a non story. It is an investment. The U feels that investment will pay of. Probably will. The Headline is meant to enrage folks by throwing out some huge number that isn't as huge for a University, but sounds real big. A less serious subject, but a similar approach to what the Strib did earlier this week. The fact the U is taking loans to build the village is a non-story. The PP's attempt to create outrage and care from the public is boring to me. Yawn.

But it's got you just interested enough to make a comment though, right?

 

[dpodoll68]

Big schools are not cash strapped- minnesota has over $2.2 billion in the endowment fund as of this past summer.

How do you suppose they got that endowment to where it is? Through deficit spending?

 

[Spoofin]

But it's got you just interested enough to make a comment though, right?

Follow along. I didn't comment. I said yawn. I was then basically called out for not providing anything with my one word statement - so I provided it. I'm not interested enough - regretting I did.

 

[Maroon92]

How do you suppose they got that endowment to where it is? Through deficit spending?

nope -- from donations and having that $2.2B grow each year. I would think you could use some of it form actually spending at the U and not just keep it growing every year

 

[Sparlimb]

C'mon dpodoll, Football pays for itself!!! Throw in TV contracts, bowl, revenues, increased ticket prices (I mean donations), concessions including beer sales, parking, apparel deals, etc. but what is missing in all of this is that there just isn't enough to offset the cost of having a rowing team. Damn greedy non-revenue sports teams. If not for them, we could pay our poor football/basketball coaches more than 10-times what they're making now and at least quadruple spending on those team's facilities so we could play more regularly in second tier bowls and the NIT.

I knew rowing was costing Kill his job. Question is, when will Kill mention it?

 

[gopher7]

per the Pioneer Press:

When the University of Minnesota fell short of its goal to privately fund a large athletics department upgrade, school President Eric Kaler recommended last week that the U borrow the shortfall and break ground almost immediately. Twenty-four hours later, the Board of Regents had approved the recommendation.

The decision was a victory for the athletics department and supporters who believe the Athletes Village project is necessary if the Gophers are to keep pace in the increasingly competitive field of big-time college athletics. Some, however, question the wisdom of borrowing an estimated $89 million when the athletics department already has outstanding debt of $201.2 million.

In August, Standard & Poor's -- one of the country's big three credit ratings agencies -- looked at the school's overall debt and lowered its outlook of the U's AA credit rating from "stable" to "negative."

Deficit spending is not uncommon in college athletics, said Dennis Howard, a Philip H. Knight sports professor at the University of Oregon. In fact, he said, "in the new era of college sports," Minnesota's debt "is not excessive," even if combining the current and new debt would give the Gophers one of the most debt-ridden departments in the nation.

http://www.twincities.com/sports/ci_28981395/gophers-athletics-ski-u-mah-turning-into-iou

Go Gophers!!

Shipley wrote this? Please disregard.