College Football Debt Making Bond Markets Nervous

  • Fanatics -

    Thank you for your patience today and welcome to the newest version of Cyclone Fanatic!

    Most of the changes we have made are very simple, but will greatly improve your user experience while visiting the website.

    We have upgraded our forum software to speed things up. Our homepage is much cleaner and should be even more mobile friendly than before.

    We appreciate your loyalty and are committed to not only keeping Cyclone Fanatic in tip-top shape, but continuing to build this community for the next decade and beyond.

    We ask that if you are experiences any glitches to let us know in this thread . Will will be diligently working on the site all day.

    Thanks again.

    Chris Williams - Publisher

3rdCoastClone

Active Member
Oct 15, 2017
118
96
43
61
Gulf Coast of Texas
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?
 
  • Dumb
Reactions: Macloney

Remo Gaggi

Well-Known Member
Aug 28, 2018
1,453
1,994
113
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?
 
  • Like
Reactions: Acylum

ribsnwhiskey

Well-Known Member
Feb 6, 2009
7,927
2,283
113
80220
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?
$6.5 Million.
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,384
11,168
113
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.
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,384
11,168
113
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.
 

CyCloned

Well-Known Member
Oct 18, 2006
11,714
5,158
113
Robins, Iowa
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.
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,384
11,168
113
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.
 

Cyched

Minister of Culture
SuperFanatic
SuperFanatic T2
May 8, 2009
18,311
26,645
113
Ankeny
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.
I find it funny that Misery has made it twice while AtM has none
 

ArgentCy

Well-Known Member
Jan 13, 2010
20,384
11,168
113
I find it funny that Misery has made it twice while AtM has none
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.
 

Cyched

Minister of Culture
SuperFanatic
SuperFanatic T2
May 8, 2009
18,311
26,645
113
Ankeny
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.
I'll allow it.
 

OPButtrey

Well-Known Member
Nov 21, 2010
593
523
93
52
Iowa State total revenues have more than doubled over the last ten years - IJPWT

2019 = $95,411,884
2010 = $46,871,554
Licensing went from approx 15 mil to 52 mil. That really shows the increase in the popularity of the brand.
 

VeloClone

Well-Known Member
Jan 19, 2010
36,254
21,013
113
Brooklyn Park, MN
Licensing went from approx 15 mil to 52 mil. That really shows the increase in the popularity of the brand.
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.
 
Last edited:

SEIOWA CLONE

Well-Known Member
Dec 19, 2018
2,516
2,512
113
59
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.
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.
 

Sigmapolis

Minister of Economy
SuperFanatic
SuperFanatic T2
Aug 10, 2011
17,885
21,395
113
Washington, DC
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.
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.