GTAA Debt and Finances

[Augusta_Jacket]

We are not in agreement on this point. Collins was not a proven comoddity when we hired him and he deserved no such financial security as Todd agreed to with the absurd buyout table.

Stan caved to Collins agent and allowed his confidence that Collins was a can’t miss hire to overlook the insane buyout terms Collins agent pushed down Stansbury’s throat.

And its time we all acknowledge that Stansbury isn’t the one who picked Collins in the first place but he’s going to burn for having done so.

 

[BleedGoldNWhite21]

Is it too late to get Jeff Bezos interested in Georgia Tech athletics? Maybe he’s a big volleyball fan?!?

 

[BeeRBee]

Part 2, a brief look at when and why the GTAA debt was incurred for anyone who is interested:

Notes:
1. I developed this based on GTAA financial statements. Any errors or misinterpretations are my own.
2. For the most part these amounts represent the face value of notes and bonds outstanding at the end of the fiscal year, and do not include other long term obligations such as leases, coach payouts or unamortized premiums/discounts. One exception is that I included $12M outstanding on a line of credit at June 30, 2021, because the unpaid balance was converted to a term note in 2022.
3. June 30, 2022 balances are my estimates based on scheduled redemptions and other available documents.
4. AD/President terms are approximate.

The amounts in the boxes are the specific construction costs identified in the bond documents. I'm sure that there were other projects and parts of these projects that were funded directly from contributions.

There are other costs, such as costs of issuance and capitalized interest which add to the total amount of debt. In addition, the Series 2012 bonds which refinanced the Series 2001 bonds also had to cover $28M to terminate an interest rate swap option ("swaption") GTAA had entered into on those bonds.

I assume that the $12M line of credit in 2021 is due to pandemic related shortfalls.

 

[GT33]

I assume that the $12M line of credit in 2021 is due to pandemic related shortfalls.

Wasn't really a shortfall. They accelerated a bunch of facilities maintenance when the campus was on reduced operations during Covid.

 

[MACHETE]

It's OK to run with some debt, most companies do (and most people who have mortgages). Separately, does anyone know how GT is covering the buyout?

 

[GT33]

It's OK to run with some debt, most companies do (and most people who have mortgages). Separately, does anyone know how GT is covering the buyout?

We're leveraged way more than damn near every other program I think. I'm not sure increasing our debt 10x in 20 years was that smart a move. Not sure anyone would argue our facilities needed upgrading, but that upper north expansion was costly and ill-advised. It has been an albatross ever since we erected it.

 

[roadkill]

Part 2, a brief look at when and why the GTAA debt was incurred for anyone who is interested:

View attachment 13186

Notes:
1. I developed this based on GTAA financial statements. Any errors or misinterpretations are my own.
2. For the most part these amounts represent the face value of notes and bonds outstanding at the end of the fiscal year, and do not include other long term obligations such as leases, coach payouts or unamortized premiums/discounts. One exception is that I included $12M outstanding on a line of credit at June 30, 2021, because the unpaid balance was converted to a term note in 2022.
3. June 30, 2022 balances are my estimates based on scheduled redemptions and other available documents.
4. AD/President terms are approximate.

The amounts in the boxes are the specific construction costs identified in the bond documents. I'm sure that there were other projects and parts of these projects that were funded directly from contributions.

There are other costs, such as costs of issuance and capitalized interest which add to the total amount of debt. In addition, the Series 2012 bonds which refinanced the Series 2001 bonds also had to cover $28M to terminate an interest rate swap option ("swaption") GTAA had entered into on those bonds.

I assume that the $12M line of credit in 2021 is due to pandemic related shortfalls.

This is great work - thanks. Clarifies a lot about the sources of our debt and the timing of the events that drove it. One thing I took from this is that while football may be a primary driver of our debt, there have been a lot of investments in other sports that played a significant role as well. Large increment in the 2011-12 time frame. And I thought the football indoor practice facility had been funded by a donor - I guess that was only a piece of it.

 

[roadkill]

This is great work - thanks. Clarifies a lot about the sources of our debt and the timing of the events that drove it. One thing I took from this is that while football may be a primary driver of our debt, there have been a lot of investments in other sports that played a significant role as well. Large increment in the 2011-12 time frame. And I thought the football indoor practice facility had been funded by a donor - I guess that was only a piece of it.

I might also add - thanks, DRad...

 

[Augusta_Jacket]

It's OK to run with some debt, most companies do (and most people who have mortgages). Separately, does anyone know how GT is covering the buyout?

I was told, can't confirm, that Garrett and Zelnak are bankrolling a large portion of it.

 

[85Escape]

I was told, can't confirm, that Garrett and Zelnak are bankrolling a large portion of it.

D*mn. I need to upgrade my friends.

 

[slugboy]

I was told, can't confirm, that Garrett and Zelnak are bankrolling a large portion of it.

If I put my tinfoil hat on, I wonder how much of a contributing factor their financial backing for the buyout and the new coach is in us looking for a new AD.

I believe Cabrera when he says that he wasn’t happy with the direction of the AA. If some of our big donors are actually laying out big bucks, they had to want something. (It might have been one of those concessions where “we were going to do this anyway, so we can give them what they want”).

D*mn. I need to upgrade my friends.

LOL, most people do

 

[LongforDodd]

...but that upper north expansion was costly and ill-advised. It has been an albatross ever since we erected it.

What year was that?

 

[LongforDodd]

Part 2, a brief look at when and why the GTAA debt was incurred for anyone who is interested:

View attachment 13186

Notes:
1. I developed this based on GTAA financial statements. Any errors or misinterpretations are my own.
2. For the most part these amounts represent the face value of notes and bonds outstanding at the end of the fiscal year, and do not include other long term obligations such as leases, coach payouts or unamortized premiums/discounts. One exception is that I included $12M outstanding on a line of credit at June 30, 2021, because the unpaid balance was converted to a term note in 2022.
3. June 30, 2022 balances are my estimates based on scheduled redemptions and other available documents.
4. AD/President terms are approximate.

The amounts in the boxes are the specific construction costs identified in the bond documents. I'm sure that there were other projects and parts of these projects that were funded directly from contributions.

There are other costs, such as costs of issuance and capitalized interest which add to the total amount of debt. In addition, the Series 2012 bonds which refinanced the Series 2001 bonds also had to cover $28M to terminate an interest rate swap option ("swaption") GTAA had entered into on those bonds.

I assume that the $12M line of credit in 2021 is due to pandemic related shortfalls.

Thank you much. I requested a few days ago where this type of info could be found. Thanks for the effort here.

 

[Augusta_Jacket]

If I put my tinfoil hat on, I wonder how much of a contributing factor their financial backing for the buyout and the new coach is in us looking for a new AD.

I believe Cabrera when he says that he wasn’t happy with the direction of the AA. If some of our big donors are actually laying out big bucks, they had to want something. (It might have been one of those concessions where “we were going to do this anyway, so we can give them what they want”).

I'm inclined to agree with you on this.

 

[GT33]

What year was that?

2003 I believe. I got kinda busy around then and wasn't following along too closely. I was about 7k miles away & had other things going on.

 

[Jim Prather]

2003 I believe. I got kinda busy around then and wasn't following along too closely. I was about 7k miles away & had other things going on.

Middle east kind of things?

 

[GT33]

Middle east kind of things?

Yep. Doubt I'll ever vacation there.

 

[SowegaSting]

I saw on my twitter feed that part of the 2.1 Billion fundraising effort would include an endowment for athletic scholarships. How are scholarships currently funded? This seems big if true.

 

[Augusta_Jacket]

I saw on my twitter feed that part of the 2.1 Billion fundraising effort would include an endowment for athletic scholarships. How are scholarships currently funded? This seems big if true.

In football, largely through the A-T giving. Sometimes a person will endow a single scholarship like Peyton Manning just did to honor DT8. (Golf has it's own endowment where donors have given to ensure the players have full rides.) Right now, a large portion of our scholarship funds come from yearly gifts to the A-T. By creating an endowment, we would free up those yearly gifts for other departmental uses.

 

[SowegaSting]

In football, largely through the A-T giving. Sometimes a person will endow a single scholarship like Peyton Manning just did to honor DT8. (Golf has it's own endowment where donors have given to ensure the players have full rides.) Right now, a large portion of our scholarship funds come from yearly gifts to the A-T. By creating an endowment, we would free up those yearly gifts for other departmental uses.

Do you know the yearly cost of a scholarship?