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Cal scrambling to cover stadium bill - 82lsju - 06-18-2013

Cal won't start paying down the principal until 2032, when its yearly payments rise to $26 million, then $37 million, before tapering off in 2051. After a brief respite, Cal will owe a lump sum of $82 million in 2053 alone. Then it will have six decades to pay off the final 17 percent, or $75 million.

does this mean the debt will be paid off ~2113?

http://www.sfchronicle.com/collegesports/article/Cal-scrambling-to-cover-stadium-bill-4604221.php?t=7903d5abac47b02379

Re: Low APR U scrambling to cover stadium bill - FarmBoy - 06-18-2013

I can see why Ca.l fans don't have a sense of urgency to man-up and fund the stadium. On that kind of a timeline, a lot of the current fans will be dead and buried long before the chickens come home to roost. It's like telling people back in the 90's that social security would start to become insolvent in the 2020's.

Ca'l internet trolls seem to take glee in the fact that Stanford alumni will eventually pay for this debacle through CA tax dollars, but I think they fail to appreciate the cuts to education that will result and will erode the quality of UCB as an institution. The California legislature will not be amused if it is asked to provide increased funding to pay debt on a football stadium built on the Hayward fault.

Re: Low APR U scrambling to cover stadium bill - Farm93 - 06-18-2013

Saw the Chronicle article yesterday and decided it was not board worthy.  Isn't this old news really?  Nothing to see here.  UCB needed to renovate the stadium to keep Tedford, then they fired him anyway.

UCB only has about 55% of the revenue they anticipated from the elite section sales.  Worse, much of that 55% is pegged to mortgages that can be discontinued at any time.  So the UCB AD definitely is in for a world of hurt on this little scheme.  But what often goes unmentioned is that those seat rights eliminate a critical future revenue stream for UCB too.  Even if they sold all of those seats they will not be able to command additional ticket revenue from owners.

In the world of the UC budget the annual shortfall is not too demanding.  However, this little experiment should make it much more difficult for other creative UC funding projects in and out of athletics.  If that is the end result, then I guess it will be for the best.

FWIW - I still think the bigger crime is that UCB spent $300+ million on a project that looks like it could have been done for $40 million at the other Pac-12 university in the area.

Re: Low APR U scrambling to cover stadium bill - Bruce Wang - 06-18-2013

(06-18-2013, 12:46 PM)82lsju link Wrote:Low APR U won't start paying down the principal until 2032, when its yearly payments rise to $26 million, then $37 million, before tapering off in 2051. After a brief respite, Low APR U will owe a lump sum of $82 million in 2053 alone. Then it will have six decades to pay off the final 17 percent, or $75 million.

does this mean the debt will be paid off ~2113?

Relax California tax-payers, inflation will render these amounts insignificant.

Re: Low APR U scrambling to cover stadium bill - Farm93 - 06-18-2013

(06-18-2013, 05:10 PM)Publius link Wrote:Relax California tax-payers, inflation will render these amounts insignificant.

That's the perspective we need to have!!!  Because remember, there is a Phase III to this project.  Just another bill that will be picked up, in full, by UCBAD donors.  Honest  ;)

Re: Low APR U scrambling to cover stadium bill - OutsiderFan - 06-18-2013

It's unbelievable that the UCB admin was trusted on this whole stadium renovation.  Responsible people would have razed CMS and re-built somewhere not bisecting an active fault line.  The retrofitting and special engineering required to keep the stadium on the fault line probably added another $200 million in cost to the project.

In any event, what is the total bill going to be once all the cost of creative financing is factored in? 

Re: Low APR U scrambling to cover stadium bill - Bruce Wang - 06-18-2013

Maybe they should try selling seat licenses to Stanford alums for Big Game.

Re: Low APR U scrambling to cover stadium bill - terry - 06-19-2013

What a fiasco. How does Sandy Barbour still have a job?

Re: Low APR U scrambling to cover stadium bill - 71Bear - 06-22-2013

(06-19-2013, 09:54 PM)terry link Wrote:What a fiasco. How does Sandy Barbour still have a job?

A succinct summary of the mess........