IN Pac-12 conferenceThe COVID Loan Program, which was once discussed as a nearly $ 1 billion vehicle for all 12 participants to offset the pandemic’s deficit, will eventually become a much smaller activity with only one school to attend, according to several people familiar with the plan. …
IN Colorado university it is the only Pac-12 sports division to borrow money through the conference, said people, who have been granted anonymity because the details are confidential. The remaining 11 programs were able to meet their borrowing needs (if necessary) in other ways.
Colorado is borrowing about $ 18 million, which is the entire 2021 deficit to be paid over the next seven or eight years through annual conference allocations. The school declined to comment on the interest rate other than being in line with current market rates.
“I’m very happy with how we ended up financially,” Colorado-based reporter Rick George told reporters last week about the ministry’s $ 18 million deficit. “When you don’t have ticket revenues – and you had $ 23 million a year earlier – and you have roughly 50-60% of your distribution at conferences, those two numbers alone translate into about $ 40-45 million in revenue. I am very pleased that I can work the way we do. “
A Pac-12 spokesman did not immediately respond to a request for comment.
Last summer like college football the season looked less likely and the sports departments loved Oregon as well as Washington In preparation for a $ 75 million cut in revenues, Pac-12 has begun discussions on a conference-wide program to provide financial aid to its schools. At some point, the negotiations concerned a line of credit worth about 1 billion dollars, $ 83 million per member, paid over 10 years at a 3.75% rate.
However, circumstances have changed over the past six months. Pac-12 canceled the fall football season in August, but eventually reversed the decision and played a shorter season, which helped save millions from television contracts. The NCAA men’s basketball tournament also passed in full, retaining another important source of income. Donations have also increased in many schools to cover part of the deficit.
Perhaps most importantly, sports departments have found other ways to fill their deficits. Some were able to borrow from their school or system on more favorable terms, while others covered the losses unnecessarily pay for their schools at all. Some sports departments have gone directly banks themselves and many have used government aid packages such as Care law and American Rescue Plan…
Colorado’s athletics budget was $ 91 million in fiscal 2019, a year before COVID-19 disrupted a pivotal football season. Like many other departments across the country, Buffaloes have gone through a series of layoffs, vacations and wage cuts. (George said the trainers’ salaries are back to normal and that the department is starting to bring people back.)
A spokesperson for the sports department said he prefers to take loans through a conference rather than going to a university or directly to a bank because the school expects Pac-12 payouts to rise after the conference revises its TV deals. This made planning easier for the school in terms of budget.
However, at least one other conference organized a league-wide credit program. In May, the SEC announced the distribution of 23 million dollars to each of its 14 members to help offset the COVID deficit. This money was borrowed against future guarantees of media rights.
Pac-12 reported $ 534 million revenue for 2019-2020, which is roughly the same as before the previous year’s pandemic. The new league commissioner, the former head of MGM, Georgy Klyavkov, took office on July 1.
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