Connect with us

Finance

What Kind of Debt Do Athletic Departments Carry for Facilities?

After posting on LSU’s booster club/athletic foundation and its financials last week, I received a number of emails and tweets asking for more about the debt athletic departments service each year for facilities. So, we’re going to take  look at Michigan, Florida, and Georgia. I’m giving you multiple schools to show how different the situation is at each institution – not necessarily for comparison’s sake.

Michigan (based on budget or fiscal year 2012):

  Interest Principal Total Debt Service   Scheduled Balance – June 2011  
Stadium Project $6,470,000.00 $2,945,000.00 $9,415,000.00   $144,440,000.00  
Crisler Projects $1,169,000.00 $880,000.00 $2,049,000.00   $19,765,000.00  
Fieldhouse $518,000.00 $215,000.00 $733,000.00   $11,245,000.00  
Stadium Concrete $314,000.00 $170,000.00 $484,000.00   $7,345,000.00  
Hartwig Renovation $132,000.00 $65,000.00 $197,000.00   $3,025,000.00  
Softball Renovation $165,000.00 $85,000.00 $250,000.00   $4,485,000.00  
Rowing Facility $32,000.00 $60,000.00 $92,000.00   $635,000.00  
            Total $8,800,000.00 $4,420,000.00 $13,220,000.00   $190,940,000.00  
                          Plus bridge loans against pledge receivables     $6,170,000.00  
            Net debt service         $197,110,000.00  

Florida (based on audited financials from fiscal year 2010):

Before I show you the debt service, here’s what each of Florida’s bonds was used for:

1990 Series: Used to retire outstanding 1982 and 1985 Stadium Revenue Bonds and finance construction cost ofthe North End Zone.

1994 Series: Used to finance construction of a volleyball practice gymnasium and to renovate the athletic field house.

2001 Series: Used to retire the 1994 Series and to finance the construction cost of the Basketball Practice Facility and the expansion of Ben Hill Griffin, Jr. Stadium.

2005 Series: Used to finance the construction of improvements and the expansion of McKethan Stadium at Perry Field, the construction of a new football equipment storage facility/restroom/training room and the renovation and improvements to the Lemerand Atletic Center.

2007 Series: Used to finance the acquisition, construction and equipping o capital improvements to Ben Hill Griffin Stadium.

There have been numerous redemptions and conversions of these bonds, but you I’m only giving you the basics. Here are the outstanding balances and payment amounts:

Series Outstanding Amount Term Interest Rate    
1990 $10,000,000.00 09/01/05-10/01/10 3.50%    
2001 $14,235,000.00 10/01/06-10/01/11 3.80%    
2007 $9,000,000.00 10/31/07-10/01/11 3.75%    
1990 $5,600,000.00 12/17/09-10/01/14 4.39%    
2001 $22,130,000.00 12/17/09-10/01/24 4.39%    
2005 $7,000,000.00 12/17/09-10/01/20 4.39%    
2001 $10,970,000.00 Daily Rate Variable    
2001 $4,980,000.00 Weekly Rate Variable    
Total $83,915,000.00        
           
2007 Principal 2005 Principal 2001 Principal 1990 Principal Total Principal Total Interest
$500,000.00 $600,000.00 $770,000.00 $1,200,000.00 $3,070,000.00 $2,727,167.00
           

Total payments for year ending June 30, 2011: $5,797,167.

Georgia (based on budget for fiscal year 2012):

First, here’s what each bond was used for:

Bond Series 2003: Stadium N. Deck, Softball Stadium, BM Football Locker Room & Trophy Area

Bond Series 2005A: N. Sky Suites and refinancing of Sky Suites II

Bond Series 2005B: Basketball/Gymnastics Practice Facility

Bond Series 2011: Refinancing of previous bond, BM Expansion, Reed Plaza, Stegeman Coliseum

And here are payments to be made by the athletic department in fiscal year 2012:

Series Principal Interest Other Total
2003 $423,858.00 $535,223.00 $250,000.00 $1,209,081.00
2005A $1,005,000.00 $575,700.00 $200,000.00 $1,780,700.00
2005B $690,000.00 $913,848.00 $375,000.00 $1,978,848.00
2011 $0.00 $3,056,269.00 $50,000.00 $3,106,269.00
Ramsey Center $423,858.00 $54,059.00 $0.00 $477,917.00
      Total $8,552,815.00

Keep in mind, this is debt simply for construction, renovation and expansion of facilities. There are millions more spent each year for operation and maintenance of those facilities not reflected here.

Author

  • Kristi A. Dosh is the founder of BusinessofCollegeSports.com and has served as a sports business analyst and contributor for outlets such as Forbes, ESPN, SportsBusiness Journal, Bleacher Report, SB Nation and more. She is also the author of a book on the business of college football, Saturday Millionaires. Kristi is a sought-after consultant and speaker on topics related to the business of college sports and a former practicing attorney. Click to learn more

Click to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.