06-27-2017, 01:25 PM
http://www.mercurynews.com/2017/06/27/co...are-flush/
Wilner, who really should be a financial reporter, dives into the financial health of the various Pac-12 AD's (excluding private Stanford and USC).
Cal... ouch
I would argue that while operationally it is not as bad as it appears, it is actually worse than it appears because so far the payments are interest only. Cal is like a homeowner with an interest only loan who is barely avoiding foreclosure... and when the principle is due they are going to be screwed.
BC
Wilner, who really should be a financial reporter, dives into the financial health of the various Pac-12 AD's (excluding private Stanford and USC).
Cal... ouch
Quote:Cal
The ledger: $21.8 million loss (projected)
Nitty gritty: Yes, the Bears receive $5 million in institutional support, but they returned $4.95 million to campus as part of an internal taxation process.
Comment: Not nearly as bad operationally as it appears: $18 million of the deficit is interest-only payment on debt service for stadium renovation/training center projects.
Health rating: Bed-ridden, thanks to decisions made years ago by officials no longer around to feel the pain.
I would argue that while operationally it is not as bad as it appears, it is actually worse than it appears because so far the payments are interest only. Cal is like a homeowner with an interest only loan who is barely avoiding foreclosure... and when the principle is due they are going to be screwed.
BC