College Football Debt Making Bond Markets Nervous

Discussion in 'General College Sports' started by 3rdCoastClone, Jul 5, 2020.

  1. 3rdCoastClone

    3rdCoastClone Member

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    Some interesting stats regarding athletics debt and annual debt services. According to the ratings agency Moody's, "In April, a planned $15.4 million bond offering to be backed by athletic facility revenues at the University of Iowa was pulled from the market, probably due to lack of interest stemming from the pandemic, say two market participants. The Iowa bonds included a university pledge to impose student fees to cover the debt."

    www.sportico.com/2020/business/finance/debt-laden-college-football-programs-making-muni-market-nervous-1234608360/

    Anyone know what the annual Cyclone athletics debt service is this year?
     
  2. Remo Gaggi

    Remo Gaggi Well-Known Member

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    That might not be an issue for the hoks if Bartooth wasn't such an inept AD. Millions in settlements really add up, don't they?
     
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  3. ribsnwhiskey

    ribsnwhiskey Well-Known Member

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    $6.5 Million.
     
  4. ArgentCy

    ArgentCy Well-Known Member

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    They should be nervous. Perhaps they can just get the FED to offer a backstop. They've done it for most other bonds. Interest rates should be going up.
     
  5. ArgentCy

    ArgentCy Well-Known Member

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    Municipal bonds are quite likely the WORST possible investment right now. And for reasons very much like outlined in this article. Just expand that to all areas of these local and state governments.
     
  6. 3rdCoastClone

    3rdCoastClone Member

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    #6 3rdCoastClone, Jul 6, 2020
    Last edited: Jul 6, 2020
    Lead donors rock... IJPWT
    The annual debt service is lower than what I thought it might be.

    Good job outta the entire Cyclone Nation too.
     
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  7. CyCloned

    CyCloned Well-Known Member

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    I like the way that JP was being proactive in getting salary reductions from the coaches early on. Probably not enough to handle the shortfall of half full stadium, but it is good to get ahead of these things instead of waiting until it is a panic situation.
     
  8. ArgentCy

    ArgentCy Well-Known Member

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    Not sure where you are seeing a full list of schools. Anyway, man how about that $EC Texas A & M. They are not looking so hot. Highest annual debt service at $23.3 million / year and second highest debt.

    Then yesterday I was surprised because a radio showed asked for 3 of 4 teams who've never made the SEC football title game. Guess who, yep A&M was one. I was surprised. Down in the bottom of the forgotten barrel with Kentucky (football), Ole Miss, and the ever powerful Vanderbilt.
     
  9. Cyched

    Cyched Minister of Culture
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    I find it funny that Misery has made it twice while AtM has none
     
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  10. ArgentCy

    ArgentCy Well-Known Member

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    The radio host guessed Missery but kinda knew that was wrong. Lol, can't believe that A&M hasn't gone but I think that shows they've just been buried by being in the West division. Just no shot. They've had better teams than Missery but they aren't getting by the LSU and Bama's.
     
  11. Cyched

    Cyched Minister of Culture
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    I'll allow it.
     
  12. 3rdCoastClone

    3rdCoastClone Member

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    Iowa State total revenues have more than doubled over the last ten years - IJPWT

    2019 = $95,411,884
    2010 = $46,871,554

    Screenshot 2020-07-07 at 7.07.53 AM.png
     

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  13. OPButtrey

    OPButtrey Active Member

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    Licensing went from approx 15 mil to 52 mil. That really shows the increase in the popularity of the brand.
     
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  14. VeloClone

    VeloClone Well-Known Member

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    #14 VeloClone, Jul 7, 2020
    Last edited: Jul 7, 2020
    I don't know the exact dates of it but a huge increase in the league's TV deals accounts for the majority of that.

    EDIT: Fox deal was in '11-12 and ESPN deal was in '12-13. In 2018 per school distribution (not including third tier revenues) was about $36.5M which is more than twice the entire rights/licensing number for either 2010 or 2011 before those deals were in place.
     
  15. SEIOWA CLONE

    SEIOWA CLONE Well-Known Member

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    When you play in a division with Alabama, LSU and Auburn, even when you are aTm, its never easy to win the division. Its not quite like the Big 10 West. Their annual crossover game is S. Carolina, not to many horrible/bad teams on the yearly conference schedule for aTm.
     
  16. Sigmapolis

    Sigmapolis Minister of Economy
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    Coaches of the SEC West as of now...

    Nick Saban
    Sam Pittman
    Gus Malzahn
    Ed Orgeron
    Mike Leach
    Lane Kiffin
    Jimbo Fisher

    Good luck, Coach Pittman.
     

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