UCF Fans...I am genuinly sorry

[DawgPound]

Exactly, UCF's revenue isn't as high as the money they have tossed out for these projects.

It could be for 1 of a few reasons...

It could be that the revenue that does come will pay it off over the years.

It could be to create a better position for the next shuffle

They could know something we don't about affiliations

Who knows?  There could be plenty of under the table talking.  I don't think UCF would just jump all over these projects unless they have a way to balance out.

[Joe]

UCF is relying one creditors, which can be as bad as paying all your bills from credit cards.

Darth, there is no money in basketball unless you make the Big Dance. USF Bball is operating in the red this year.

[Guest 1Knight]

Knights,

No worries Knights.  The Bulls know not what they speak.  I don't know of many people that pay cash for their house.  I don't know of many people that start businesses without going into debt.  Do you?

UCF's bonds have highest ratings (yes even higher than of USF's.  Don't believe me?  Check for yourself.) because when UCF borrows money to pay for capital projects it's based upon very strong financials and a very good history fiscal responsibility and mangement.

From what some well placed friends at UCF have relayed to me...

The stadium will cost approx $45 million plus another $5 million for infrastructure.  The $45M figure will increase depending on the bells and whistles they decide to add to the stadium.

The club seats are sold out with over 700 people on a waiting list.  The suites are sold out too with a waiting list.  Both have minimum 5 year committments.  The name sponsor negotiations have narrowed and are about to wrap it up.

UCF will finance $60M with a $4M annual debt service.  Revenue projections, based on conservative attendance figures (18K, 6 games) project revenue at $7M.  Operating costs project at $1M plus a small reserve.  Conservatively, UCF will clear approx $2M by having games on campus in our own stadium.  Plug in attendance figures of 25K, 30K, 35K, 40K or sellout into the pro-forma and earnings after costs are very very nice!  That's just football operations!

Let the Bulls rant about UCF being in debt all they want...as if it was a bad thing.  Ha!

[Joe]

1Knight I don't, I was just pointing the dangers of crediting and the possibility of hurting finances in the AD in the future. I applaud UCF for taking the steps to make all of their athletic facilities top notch. It will definitly help with recruiting and give students something to be proud of. While USF may be ahead of UCF in a football aspect, I believe UCF has done a very good job of ridding the "commuter school" aspect from their image.

USF on the other hand has the campus life of a morgue on most weekends, I wish they would do something to keep the students around.

[DawgPound]

Well, UCF and USF have taken notes from each other on numerous occassions.  Maybe USF should look into some of UCF's on campus activities.

[ucfknights04]

UCF borrows money to pay for capital projects it's based upon very strong financials and a very good history fiscal responsibility and mangement.

Sorry, I for one won't listen to you because you took time to speak overly proper English.

You make some valid points, but nothing that we don't already know.  The part I quoted is where you went invalid (actually it happened sooner when I saw you weren't registered).  UCF's financial history under the current leadership (Hitt, Orsini) has bee fine, but it has the problem of being a SHORT history.  

Secondly, under past regimes, our athletic department nearly folded because is financial mismanagement.  How on Earth did you not know that????

Finally, my point isn't to blast UCF (obviously).  Are we spending money we don't have? Sure.  Is it a bad thing?  Could be.  Will it be?  I dont' know and neither does anyone here.

All of the figures that we've seen are very conservative though, with the one that stands out the most being an estimated attendance of 22,000.  We saw how quickly the fans caught on this year...we should have a great showing at our on campus stadium each year.  The USF game every other year will be huge, which incidentally falls on the off year that we play Marshall away.  Those two games should be sellouts...which, on a 6 home game season...would mean we would need to average 17,400 for the rest of the games....assuming a 2nd sellout is homecoming...we only need an average of 10,500 at our other 4 games

Everything will be great.

[FazaUSF]

USF on the other hand has the campus life of a morgue on most weekends, I wish they would do something to keep the students around.

Sounds like SG could be doing something about that....

[Guest 1Knight]

Sorry, I for one won't listen to you because you took time to speak overly proper English.

But you did listen because you wrote the rest of that garbage below.

You make some valid points, but nothing that we don't already know.  

Well aren't you the smug one.

The point I was making was that it's okay to use debt for capital projects if revenues generated from that project are sufficient.  A strong business plan and some careful study will attract investors.  The bulls say that we're tapped out and we're going about it the wrong way which is nonsense.  UCF has managed to keep it's annual athletics budget at the same level of USF despite being in lessor conferences.  The same will be true while USF is in the Big East due to the revenue generated from projects like the stadium and the athletic village.

The information came from a recent meeting confirming the direction and timeline of the stadium financing.  You may have heard similar figures in the feasability studies but this is based upon an even more conservative attendance projection of 18K...but of course you knew that.  Of course you also knew the other details to so I won't bore you.

The part I quoted is where you went invalid (actually it happened sooner when I saw you weren't registered).  UCF's financial history under the current leadership (Hitt, Orsini) has bee fine, but it has the problem of being a SHORT history.

I disagree with your assessment but, in any case, please tell me how this is a problem?  How has this problem held back the university in it's ability to secure bond financing?  I suppose you should ignore all of the capital improvement projects in the last 10 years and forget about all the cranes on campus now.  Details...

Secondly, under past regimes, our athletic department nearly folded because is financial mismanagement.  How on Earth did you not know that????

Again, I disagree with your assessment and oversimplification of UCF's history.  It's true the Bill Peterson spent more money than the athletic department raised in the early 80's.  However, you discount all actions taken since the early 80's to correct a deficit?  Not to mention that it had nothing to do with debt service as Athletics did not have any debt financing at that time.  Athletics went over budget and it was corrected.  It made a nice controversial story but as far as nearly folding the athletics department, I can assure you that it was a hot topic with professors and maybe a media story or two but it was never close to "folding."

Finally, my point isn't to blast UCF (obviously).  Are we spending money we don't have? Sure.  Is it a bad thing?  Could be.  Will it be?  I dont' know and neither does anyone here.

The probability of this being a very very good thing for UCF is quite high and the interest rate and bond ratings will back that statement up.  Oh, by the way, did you check on UCF's existing bond ratings?

All of the figures that we've seen are very conservative though, with the one that stands out the most being an estimated attendance of 22,000.

That number may have been in the feasability study it is not in the pro-forma now.  Use 18K.

We saw how quickly the fans caught on this year...we should have a great showing at our on campus stadium each year.  The USF game every other year will be huge, which incidentally falls on the off year that we play Marshall away.  Those two games should be sellouts...which, on a 6 home game season...would mean we would need to average 17,400 for the rest of the games....assuming a 2nd sellout is homecoming...we only need an average of 10,500 at our other 4 games

Voodoo math and wishful thinking.  What makes you so certain that USF will remain on our schedule.  I know it makes all the sense in the world to UCF but not necessarily to USF.  Orsini doesn't even know if it will continue yet.  

Everything will be great.

Yes, it will be.

[smazza]

i never liked cusa from day one

[DawgPound]

After crap like this, I'm not very fond of it either.  Weak leadership and rule enforcement is not the way to go.