What do we do with $25M?

[TherapyBull]

It is my understanding that Skips buyout was a fixed amount, which makes no sense then to pay it off early. That would be a waste of capital which any finance major could point out. Now if it could be negotiated down then we have something to look at.

Paying off our other debts depends on what the rates are. If we could get a better return on the capital then paying off the debts early does not make sense. We are a large public university, I would think that we could negotiate some pretty good rates, but who knows.

[Who'sYourData?]

 

Greg Auman â€@gregauman

USF, like Cincy and UConn, should get between $18 million and $25 million from Big East reserve fund, @mblauds says @ http://ajerseyguy.com

 

Build the indoor practice facility $14M and put the rest in the bank. 

 

Before any $$ goes towards building anything new, USF needs to pay off our current loans on the Sun Dome, Soccer Stadium, Baseball/Softball Stadium, the Claw, and the Tennis Courts. Does anyone know how much $$ we still owe on these things?

 

I say pay off the existing debts, or at least pay them down. If we can pay off the debts then we need to start a new football OCS fund. If we still owe $$ then just continue the status quo until all of the debts are paid off.

 

We can wait on the covered practice facility... practicing out in the elements is a major bonus for us in my view. We don't play in a domed stadium so I don't see a bennefit for practicing in a climate controlled dome that is room temperature.

Right on Bubba...No need to put it in the bank and receive 0.015% interest....I bet our loans have higher rates than what banks are paying...With today's bubble and bust politicians getting rid of debt makes lot's of sense  to me...

 

remember when the board proposed cutting  our funds..????..

 

Go Bulls

 

0.015% interest?  What idiot would put this in a standard savings account?

 

Our loans are all at very low interest rates, the money can be invested conservatively for a far higher rate of return than our loans are.  Finance 101.

[dabull80]

Hate to make this political, but with hyperinflation and our U.S. dollar depreciating every year, i say we spend the money NOW.  pay off our debts on former coaches salaries and built facilities

 

Get out of the red so that everything forward will be profit

 

Sorry guy but if you believe what you just said you are right in only one part.  Spend the money but don't pay down debt.  If you think hyper-inflation is coming you go as far as you possibly can into debt.  So  spend the money and then awhole bunch more that you don't even have.

[bull-71]

 

 

Greg Auman â€@gregauman

USF, like Cincy and UConn, should get between $18 million and $25 million from Big East reserve fund, @mblauds says @ http://ajerseyguy.com

 

Build the indoor practice facility $14M and put the rest in the bank. 

 

Before any $$ goes towards building anything new, USF needs to pay off our current loans on the Sun Dome, Soccer Stadium, Baseball/Softball Stadium, the Claw, and the Tennis Courts. Does anyone know how much $$ we still owe on these things?

 

I say pay off the existing debts, or at least pay them down. If we can pay off the debts then we need to start a new football OCS fund. If we still owe $$ then just continue the status quo until all of the debts are paid off.

 

We can wait on the covered practice facility... practicing out in the elements is a major bonus for us in my view. We don't play in a domed stadium so I don't see a bennefit for practicing in a climate controlled dome that is room temperature.

Right on Bubba...No need to put it in the bank and receive 0.015% interest....I bet our loans have higher rates than what banks are paying...With today's bubble and bust politicians getting rid of debt makes lot's of sense  to me...

 

remember when the board proposed cutting  our funds..????..

 

Go Bulls

 

0.015% interest?  What idiot would put this in a standard savings account?

 

Our loans are all at very low interest rates, the money can be invested conservatively for a far higher rate of return than our loans are.  Finance 101.

Finance 101 also says rates of return are based on risk...Not arguing....People lost millions in the bubble..not only the persons who took the "STUPID" risks but many Engineers and other professionals who lost their jobs when the bubble Broke...and had houses forclosed on...There are no GUARANTIES...GM PENSION FUND.....company bennefits etc...

 

So my point is this...Finance 102...You loose money on the Stock Market..WHEN YOU SELL..YOU LOCK IN YOUR LOSS...Debt is Debt...The State of Florida lost millions of dollars in their pension fund as many others...THEY WERE EXPERTS....So Please NO FINANCE 101.

 

Go Bulls

[wiltznucs]

Yikes, not many econ and finance majors in this thread.

 

A few points, USF is by no means unable to meet its current debt obligations.  The $30M used to build the athletic village included major donations and also took on NO money from the state.  The reality is a considerable part of the tuition generated from students right now is paying for the athletic village.  Shhhh, its a poorly kept secret.  Unless you predict a significant decrease in enrollment I wouldnt worry about the ability to pay for the village too much at this time.

 

My concern is that the BE/NCAA contributed some $7M per year to the USF athletics budget which accounts for 20% of its total funding.  The $20M+ from the BE will go a long way toward building the program assuming we land in another conference with comparable payouts.  If we dont, that money may be needed to simply keep the athletic department funded in the fashion that we've become accustomed to.

 

Until such time as we land in a stable Conference and the realignment settles down I dont expect much if any of that money to be spent.

[gibbsak]

NO.. Throw it at the SEC, Big1G, Big 12 or the ACC and beg them to get us out of the Big Leftover Conference.......

 

JMHO

 

No ACC.  Though they'd still be better than the current situation.

Edited March 4, 2013 by gibbsak

[chrisdashley]

I say we take the $25MM and buy the rights to rename UCF's frying pan.  Then we can paint it all green and gold and they can have the PA announcer say "Welcome to USF stadium".  Kinda like when the St Pete Times bought the naming rights to the Forum in Tampa.

 

lol

[Paisa el Toro]

How about we use the money for a new AD?

[MonsterBullMCMXC]

Just fix the giraffe bull in front of MSC. More feed for the ducks and squirrels. More trees too, trees are nice.

[MonsterBullMCMXC]

Take recruits to Mons Venus, Deja Vu, or the spaceship.