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The upgrades cost 150 million 100 million of which is debt
Posted on: November 1, 2018 at 23:22:29 CT
ScottsdaleTiger MU
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My understanding is the 52 million for East Stands was financed entirely by debt and its likely that the SEZ will require another 50 million or more of debt.
The debt is revenue bonds. Those bonds typically require only debt service payments, no principal until maturity.
If you assume 5% interest and 100 million in debt, that's 5 million a year in interest. If you assume the bonds are 20 years bonds, then another 2 to 3 million a year will need to be put into a sinking fund in order to accumulate the 100 million of principal (assuming the sinking fund earns interest).
That's another 7-8 million of expenses a year for the football program. What that may mean is the debt service costs on the bonds may eat up all the additional revenue generated by the East Stands and SEZ renovation.
The debt is revenue bonds. Those bonds typically require only debt service payments, no principal until maturity.
If you assume 5% interest and 100 million in debt, that's 5 million a year in interest. If you assume the bonds are 20 years bonds, then another 2 to 3 million a year will need to be put into a sinking fund in order to accumulate the 100 million of principal (assuming the sinking fund earns interest).
That's another 7-8 million of expenses a year for the football program. What that may mean is the debt service costs on the bonds may eat up all the additional revenue generated by the East Stands and SEZ renovation.
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The upgrades cost 150 million 100 million of which is debt - ScottsdaleTiger MU - 11/1 23:22:29