OU Athletic Department Debt

[WP76]

Little brother's favorite narrative on their boards is that OU had to go to the SEC because OU's athletic department is $1B in debt.

Is it fake news, true or partly true? Googling it shows that the narrative appears to be mostly true with $1B reflecting the entire debt for the university. However, little brother seems to be omitting the fact that those same sources reveal that OSU's debt is essentially the same. Obviously, our football team generates considerably more than theirs does.

Bottom line, is it a legit issue in light of the debt other public universities (and specifically in the Big 12) are carrying? Is OSU in substantially better shape in light of the relative debts of the two universities?

 

[Oklabama]

Evidently debt isn’t anything to be concerned with anymore based on Congress.

 

[LAY THE WOODY]

I've heard the stories of brokeback cowboys displaying T bones phallus on the walls of their houses. Now it's confirmed. 😁

 

[AVeritas]

The Pac-12 suffers from heavy dept with some of its’ schools as Cal-Berkely has the highest athletic department debt in Division I at $438 million. In the top 15 are Washington at $249.5-million, Arizona State at $209.6 million, and Oregon at $207.9-million. From the Big 12 there is only Oklahoma in the top 15 at no. 11 with $218.4 million in debt. robert allen

oSu is $87 million
k-state is $60 million
ku is $104 million

these numbers were taken from those athletic departments' latest financial reports. so, ou has a relatively high debt load. beyond that, i'm not sure what's to draw from the numbers.

 

[JConXtsy]

I've always been taught that debt is healthy.

Nobody carries enough cash to make the kind of yearly upgrades and improvements to facilities that it necessitates. I'd bet not many that read this post purchased their homes in full with cash.

If your interest gained on cash reserves is more than the interest paid on debt, who cares what the debt number is?

I got my last car with a loan @ 0%. What sense does it make for me to pay it off in full even if I have the cash to do it? Now, I get it if you're Joe Blow who has horrible financial sense and is going to blow the reserves necessary to make the payments.

 

[AVeritas]

the problem comes when cash isn't available to cover short-term liabilities, like debt service. then the department has to go somewhere else, which in this case isn't prudent given the top 10 revenue stream flowing into ou athletics.

 

[8085sooner]

The athletic Dept is in good shape. Boren financing, the building construction and that Apt complex is the issue. Especially the Apt Complex, that students are subject to On Campus Rules. Moving to an apartment, usually means a better time and less rules. The Cross Complex has had issues since day one. Then add a full year of no tenants. Stupid idea

 

[LAY THE WOODY]

the problem comes when cash isn't available to cover short-term liabilities, like debt service. then the department has to go somewhere else, which in this case isn't prudent given the top 10 revenue stream flowing into ou athletics.

Donors/Boosters need to pick it up. 😁

 

[PortLavacaSooner]

I've always been taught that debt is healthy.

Nobody carries enough cash to make the kind of yearly upgrades and improvements to facilities that it necessitates. I'd bet not many that read this post purchased their homes in full with cash.

I got my last car with a loan @ 0%. What sense does it make for me to pay it off in full even if I have the cash to do it? Now, I get it if you're Joe Blow who has horrible financial sense and is going to blow the reserves necessary to make the payments.

I pay cash for everything, except when I charge it...

 

[Soonerheart]

The future success of OU football and other sports along with the entire university is highly dependent on OU's largest donors and their future donation's. Because of the universities over spending and the incurred debt, OU athletics has a limited ability to borrow major amounts of money for new athletics facilities. Without huge new donations this problem that was created by Boren and his team will exist for a significant time period and continue to hinder the entire university as the debt is paid down.