I’m sure a portion of it does or is allowed to be used. Even if it’s not or is an incredibly small amount no one should be worried about Stanford athletics. 3 phone calls could fund the athletic dept for a generation.
Realignment Megathread (All The Moves)
- Thread starter ISUcyclones11
- Start date
Yeah all endowments probably say something like that but to actually access the funds is another story. Most of those $$$ are specifically earmarked for things not related to athletics, and a huge chunk is probably in the form of real estate and other assets. Iowa State has around a $1.9 billion endowment, but during Covid a $40 million shortfall in athletics wreaked havoc, similar to other schools. Programs were cut, employees were laid off, because of a $40-$50 million hit. That amounts to a rounding error when compared to $1.9 billion. If it were as easy as just tapping into the endowment everyone would've done it. It's just not how it works.
Why coronavirus-battered universities may not be able to use their endowments
"Rarely does a family say if some random pandemic come up feel free to use it however you wish."
abcnews.go.com
Was in a meeting with Bob Bowlsby when he was interim AD at UNI and he said he forgot how hard real fundraising is because there's no one just showing up at your office looking to write you a check like there is at Stanford.
Ehh 2-3% of a total endowment isn’t exactly insignificant considering the return they are expecting.Yeah all endowments probably say something like that but to actually access the funds is another story. Most of those $$$ are specifically earmarked for things not related to athletics, and a huge chunk is probably in the form of real estate and other assets. Iowa State has around a $1.9 billion endowment, but during Covid a $40 million shortfall in athletics wreaked havoc, similar to other schools. Programs were cut, employees were laid off, because of a $40-$50 million hit. That amounts to a rounding error when compared to $1.9 billion. If it were as easy as just tapping into the endowment everyone would've done it. It's just not how it works.
Why coronavirus-battered universities may not be able to use their endowments
"Rarely does a family say if some random pandemic come up feel free to use it however you wish."
Also Stanford has one of the largest endowments in the world at 37bil so it’s a little different.
Endowments are a better indicator of the wealth of the alumni which is why a deficit is never a concern for a school like that
I am saying:
- TV folks would be willing to give the Big10 let's say 30% more because of market pricing on the existing 18 team conference.
- Plus there are still schools among ND, ACC and Big12 that in 2030 the networks would pay to televise and be accretive to the exisitng 18 schools- another 10%.
- Plus a wildcard. Do deep pocketed streaming players take the 40% (#1 & #2) and make it a 50% or 60% bump?
But the money would be there, if instead of 5 elite properties (OSU, Michigan, PSU, USC and Oregon), there were 8 elite properties with ND, FSU and Clemson added. Plus a new partner might be willing to pay similar $ as NBC and CBS for a dedicated timeslot, maybe Fridays at 7pm.
I just think it's going to be easier for the Big10 to structure a deal for a 20, 22 or 24 team conference that is accretive for the existing 18 teams if they are holding a open auction for their Media Rights in 2030. But again, market forces have make that possible. There's no guarantee networks and streamers are going to be willing to pay 30% more than today.
Yeah I get that. Just saying endowments aren't like a rainy day fund or bank account that schools can just dip into whenever for whatever. Those funds are bound to very specific uses mandated by the donors.
Big Ten Courts Private Equity Investment, Retains Evercore
America's richest athletic conference has retained investment bank Evercore to solicit bids from PE investors.
www.sportico.com
**** all the way off with that Big Ten. I hope this is fake or nothing comes from it because that is the stupidest thing I’ve heard the conference do in a long time.Big Ten Courts Private Equity Investment, Retains Evercore
America's richest athletic conference has retained investment bank Evercore to solicit bids from PE investors.
I hope the presidents come down like a hammer on this. They got pissed with the last media deal so they better stop this **** asap
One phone call probably .Phil Knight has recently given the endowment $1 billion, some restricted some not.
Agree. Right now, depending on what source you read between $4 billion and $10 billion is unrestricted, so the athletic department can’t depend on an unlimited spigot from the endowment, but it’s quite a big security blanket.
Yep.
We've seen this play out EXACTLY in our own conference. Odds are it works out about the same (although movement options have become more limited).
Didn’t we discuss this not even a month ago?
I’m not sure what you don’t understand.
If the BIG doesn’t use PE, PE will use Big 10 institutions (aka poach and marginalize the BIG)
They think they can start the money race but can also tell us all when it stops apparently!
If/when the P2 get in bed with PE, instead of PE doing a takeover of college athletics, it’s going to expedite the end of the P4 era
Yep and I said and stand by that PE ruins everything it touches and higher education institutions shouldn’t touch this with a ten foot pole. You want to get in bed with the cancer of modern society go ahead but I pray that someone will the common sense puts a stop to this before it infects the schools I love.
No doubt about it. We all bought the ticket though. So we take the ride.
The only actual way off is to get the antitrust exemption for the sport, collectively bargain with the players, and negotiate on behalf of everyone. But since that wouldn't allow for top programs to peacock by flashing a monetary advantage that proves to everyone how special they are, it doesn't get better until it gets a lot worse.
Fox owns B10 rights well beyond 2030. The only thing expiring are the NBC and CBS sublicense deals which both got hosed on.
Look forward to the fine details of this ESPN-ACC deal. Expect it to be a deal where the schools generating the best ratings are paid more. Then we'll hear that FSU, Clemson, and Miami will be on ABC/ESPN prime slots and also against ND yearly. Then voila, end of the year, the ACC will trot out the revenue distribution calculation and FSU, Clemson, and Miami "earned" the lion share of the revenue.
THEEE Ohio state used to put academics ahead of athletics. Woody Hayes changed that.
Will we ever see those details? The ACC has a history of not allowing a contract to be sent in a manner that opens it up to FOIA acts. Which is partially why they are in this mess because schools didn’t know what was being agreed to. But I’d expect that to happen again because college athletics are dumb sometimes.
