Sorry, the University has $$$, the Tiger AD doesn't
Posted on: November 1, 2018 at 23:11:36 CT
ScottsdaleTiger MU
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The Tiger AD is legally part of the University just like the College of Arts & Science. The AD's revenue goes into University accounts and it pays the AD's expenses.
The university has a reserve account for the AD that essentially maintains a running balance of whether the AD has an accumulated deficit or surplus, but there's no account with those funds sitting in it.
The facility upgrades (the East Stands renovation) were financed with revenue bonds. They typically require only interest payments with principal due in full at maturity.
The amount of the bonds for the East Stands project was about 52 million. At 5%, that's 2.6 million a year in debt service with no reduction in principal.
The anticipated amount of the bonds for the SEZ according to the BOC resolution approving the project could be another 52-54 million. If you assume 5 percent interest and no principal reductions, that's another 2.6 to 2.7 million.
And its not clear they debt service on the East Stands project is included in the roughly 102 million of AD expenses.