Is UT in financial trouble thanks to Hammy?

#1
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VegasVol

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#1
From another often well-informed poster on another board:

"A decade without a system president will do that. When a division head (Athletic Director) is in over his head, he needs a strong boss to have a chance to succeed. With no one in charge, the UTAD debt level ballooned and the financial situation, in the words of an ex-UT president, are 'in shambles, built on smoke and mirrors.' Some places that pay their coaches much, much more than UT are in better financial condition. This, despite the oft-repeated mantra 'UT is one of the only athletics departments to make money.' You can defer and hide a lot of operating expenses with a credit card - until you reach the debt limit."

This is something that's been gurgling for a while, but no one ever wants to talk about the debt-leveraged "fundraising" (e.g., project-inspired donations with less funds coming in than the projects cost), and will likely be the last death-nail in the Hamilton legacy coffin. Wonder why ADs with Tennessee ties across the country are jumping out of their seats to say they DON'T want the Tennessee job?
 
#6
#6
This is why I feel that the most important single issue for the new A.D. is for us to win.
If we win, then the money will come in, usually. (1) Winning will help cure the money issues.
(2) Winning will keep our current coaches in tact and we won't have to continue to pay them when they leave.
(3) Winning will bring more positive attention to the University and
will attract better recruits.
 
#8
#8
VegasVol said:
From another often well-informed poster on another board:

"A decade without a system president will do that. When a division head (Athletic Director) is in over his head, he needs a strong boss to have a chance to succeed. With no one in charge, the UTAD debt level ballooned and the financial situation, in the words of an ex-UT president, are 'in shambles, built on smoke and mirrors.' Some places that pay their coaches much, much more than UT are in better financial condition. This, despite the oft-repeated mantra 'UT is one of the only athletics departments to make money.' You can defer and hide a lot of operating expenses with a credit card - until you reach the debt limit."

This is something that's been gurgling for a while, but no one ever wants to talk about the debt-leveraged "fundraising" (e.g., project-inspired donations with less funds coming in than the projects cost), and will likely be the last death-nail in the Hamilton legacy coffin. Wonder why ADs with Tennessee ties across the country are jumping out of their seats to say they DON'T want the Tennessee job?
Click to expand...

I believe we were one of only 16 schools in the NCAA to make money last year and not lose it. That includes the $10 million we have paid to coaches who are no longer here. Also, we have over a $100 million athletic budget. I have never read or heard by word of mouth that UT is in financial trouble of any kind.
 
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#9
#9
EasyVolunteer said:
I believe we were one of only 16 schools in the NCAA to make money last year and not lose it. That includes the $10 million we have paid to coaches who are no longer here. Also, we have over a $100 million athletic budget. I have never read or heard by word of mouth that UT is in financial trouble of any kind.
Click to expand...

"Creative Accounting"
Posted via VolNation Mobile
 
#13
#13
Ever get tired of people using innuendo, probing with BS, second/third hand reports, and unnamed sources for their proof of their position? I do. Lay the facts out there to support your statement. If you are truthful people will support your position, or at least your right to say it. If you are not you should find something else to do with your time.

Fact: This economy is the second or third worse since the Great Depression based on unemployment, capital investment, balance of trade, etc. It is the worse by far on national debt service compared to annual GDP. All of this while having the lowest interest rates since well before the Great Depression. Yet, UTAD has a significant annual surplus and made large capital expenditures in facilities. Why?

Because there are winners and losers in every endeavor and during any period of history. UT's base of support is deep, well established and relatively stable. Some of the largest contributors are having incredibly good business fortunes during these times. They are a huge part of the success of UT in good times and bad. The debt on the facilities expansion is well supported by proven contributors and the interest rate paid prior to the debt being paid off is at nearly record lows. So as the economy rebounds along with the fortunes of the football and basketball programs the revenues will continue to increase and more than cover any unpledged capital expenditures.

Or I could have more simply said what Tux posted. Either way you swung and missed OP.
 
#15
#15
The football players are going to have to pay for their own uniforms and helmets. Not only that, the power T on the helmets are going to become lower case.
 
#16
#16
VegasVol said:
From another often well-informed poster on another board:

"A decade without a system president will do that. When a division head (Athletic Director) is in over his head, he needs a strong boss to have a chance to succeed. With no one in charge, the UTAD debt level ballooned and the financial situation, in the words of an ex-UT president, are 'in shambles, built on smoke and mirrors.' Some places that pay their coaches much, much more than UT are in better financial condition. This, despite the oft-repeated mantra 'UT is one of the only athletics departments to make money.' You can defer and hide a lot of operating expenses with a credit card - until you reach the debt limit."

This is something that's been gurgling for a while, but no one ever wants to talk about the debt-leveraged "fundraising" (e.g., project-inspired donations with less funds coming in than the projects cost), and will likely be the last death-nail in the Hamilton legacy coffin. Wonder why ADs with Tennessee ties across the country are jumping out of their seats to say they DON'T want the Tennessee job?
Click to expand...


Which ex-president?
 
#20
#20
tigervol9802 said:
So where are they hiding the debt?
Posted via VolNation Mobile
Click to expand...

I'd love to see the financials and know whether there is any truth to this. I'm not an expert in non-profit reporting, but the most common method used by for-profit entities was burying debt in off-balance sheet variable interest entities and/or arrangements / commitments which didn't require balance sheet reporting and were buried in the footnotes.
 
#21
#21
General Jack said:
I'd love to see the financials and know whether there is any truth to this. I'm not an expert in non-profit reporting, but the most common method used by for-profit entities was burying debt in off-balance sheet variable interest entities and/or arrangements / commitments which didn't require balance sheet reporting and were buried in the footnotes.
Click to expand...

Which is exactly why I want to know where they are hiding the debt. It would be pretty hard for ut to pull that off.

Im also not sure if non for profit or governmental accounting standards would apply here. Not sure how ut and the utad is classified.
Posted via VolNation Mobile
 
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#22
#22
General Jack said:
I'd love to see the financials and know whether there is any truth to this. I'm not an expert in non-profit reporting, but the most common method used by for-profit entities was burying debt in off-balance sheet variable interest entities and/or arrangements / commitments which didn't require balance sheet reporting and were buried in the footnotes.
Click to expand...

The records should be available since they are a public institution.
 
#25
#25
Would it do any good to mention that UT is a state of Tennessee owned and operated system? Or would that confuse the issue? Have not heard of any illegal Madoff type investments during the Bredesen administration. Kind of thought the state received very high ratings recently.
 
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