What Kind of Debt Do Athletic Departments Carry for Facilities?

Last Updated on August 5, 2011

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):

 InterestPrincipalTotal 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:

SeriesOutstanding AmountTermInterest Rate  
2001$10,970,000.00Daily RateVariable  
2001$4,980,000.00Weekly RateVariable  
2007 Principal2005 Principal2001 Principal1990 PrincipalTotal PrincipalTotal Interest

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:

Ramsey Center$423,858.00$54,059.00$0.00$477,917.00

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.

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