Rutgers Athletics: $265 Million In Debt

[DFW HOYA]

This is how you write a story about spending in major college football: lots of details.

"It's unsustainable, but I don't have an answer as to what is the sustainable piece going forward,” Rutgers president Jonathan Holloway said. (Don't say that to the RU board of trustees.)

www.njherald.com/in-depth/news/watchdog/2021/09/04/rutgers-athletics-265-m-in-debt-borrows-to-keep-pace-in-big-ten/8047865002/

[4aks]

made it about halfway through the article

- they are unable to sell sports to the alumni well enough to cover operating costs
- felt the need to build new capital facilities to compete for talent
- responding to a string of upper management/coaching failures with greatly increased salaries
- at this point appears only current student body + taxpayers will foot the bill on costs
- which debtholder/lender flinches first ? the big10 ? the taxpayers ? the school seems open to a haircut/debt forgiveness
- will the athletics program fail to make payroll or will default on interest/principal ?
- So far they have gotten away with hidden loans, improperly sourced loans
- if details like "does not have a copy of contract with big10" , need to further clean house with mgmt

- my guess is the school leadership wants the football program as part of core brand of university
- this means $1000+ per student annual fees to pay operating costs
- don't know if these types of student fees are covered by usual student cash flow sources
- maybe the endowment will need to start paying - is this type of cost within charter ?

[CTHoya08]

Front page headline in today’s Hartford Courant:

www.courant.com/sports/hc-sp-uconn-athletics-deficit-2021-20220118-jsquanrbjnguxhhusmsp6a47cm-story.html