Does anybody know what our stadium debt is? Curious how this will impact our decisions or options with conference realignment.

oregoncalbear said:

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Does anybody know what our stadium debt is? Curious how this will impact our decisions or options with conference realignment.

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Sounds enormous and stretched out. Glad we got all those Rose Bowls out of it. Other than that, we are in great shape.

Without stadium upgrade…we look very "lesser conference"…which suggests how bitter Ore St. must be after their $160M has been invested in their stadium.

Without looking it back up, I believe the debt is between 300 and 400 million, we're paying nothing but interest until the mid 2030s, we will continue paying until the next century, and somewhere down the line there's a huge one-time payment of several tens of millions due.

The university has assumed that debt.

Roughly $18 million per year all the way out to 2112.
That annual payment then jumps to $26 million per year in 2032.
The peak payment arrives in 2039 at $37 million per year.

HateRed said:

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The university has assumed that debt.

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Not true.
They assumed 54% of the approximately $440 million of debt.

DiabloWags said:

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HateRed said:

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The university has assumed that debt.

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Not true.
They assumed 54% of the approximately $440 million of debt.

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Correct. One of the biggest things a Chancellor ever did for Cal Athletics (Carol Christ agreeing that the University would assume 1/2 the stadium debt).

Big C said:

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DiabloWags said:

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HateRed said:

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The university has assumed that debt.

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Not true.
They assumed 54% of the approximately $440 million of debt.

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Correct. One of the biggest things a Chancellor ever did for Cal Athletics (Carol Christ agreeing that the University would assume 1/2 the stadium debt).

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In exchange for some on-campus land, correct? Edwards stadium?

At the end of the day the campus should assume all the debt. What difference does it make? Were they really going to ignore the law and leave Memorial Stadium as a condemned building? They had to repair it.

At some point we have obligations to external parties. It seems like it needs to be power 5 or no way we can meet our obligations.

Oski87 said:

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Big C said:

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DiabloWags said:

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HateRed said:

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The university has assumed that debt.

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Not true.
They assumed 54% of the approximately $440 million of debt.

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Correct. One of the biggest things a Chancellor ever did for Cal Athletics (Carol Christ agreeing that the University would assume 1/2 the stadium debt).

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In exchange for some on-campus land, correct? Edwards stadium?

At the end of the day the campus should assume all the debt. What difference does it make? Were they really going to ignore the law and leave Memorial Stadium as a condemned building? They had to repair it.

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They have taken on 100% of the debt for the stadium renovation.

They have taken on 0% of the debt for the Simpson Center for Student-Athlete High Performance, which was about half of the 500 million dollar renovation.

Oski87 said:

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In exchange for some on-campus land, correct? Edwards stadium?

At the end of the day the campus should assume all the debt. What difference does it make? Were they really going to ignore the law and leave Memorial Stadium as a condemned building? They had to repair it.

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No, there was no "exchange" for Edwards Stadium.
It was merely a proposal by Christ made in Nov. 2017.

You dont seem to be aware of the Simpson Center.

UC Berkeley to pay $238M of Cal Athletics debt from stadium renovations (dailycal.org)

DiabloWags said:

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Oski87 said:

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In exchange for some on-campus land, correct? Edwards stadium?

At the end of the day the campus should assume all the debt. What difference does it make? Were they really going to ignore the law and leave Memorial Stadium as a condemned building? They had to repair it.

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No, there was no "exchange" for Edwards Stadium.
It was merely a proposal by Christ made in Nov. 2017.

You dont seem to be aware of the Simpson Center.

UC Berkeley to pay $238M of Cal Athletics debt from stadium renovations (dailycal.org)

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I mean the Cal administration can do whatever it wants with Edwards regardless, but would need to figure out which sports stay and go with regard to title ix and the cost of rebuilding facilities on the same site or elsewhere.

The new financial statements clearly show the reduction of debt payments by that 54%. But the question now is where does that money come from if it's being paid for by central campus. Overhead? Skimming off the top of other endowments/donations? And of what value will it be for Cal if central campus is paying for the benefit of a football stadium with no meaningful games being played there (ie no front porch value for bringing alumni together). If Cal isn't in a Power conference the entire stadium debt nedleds to be assumed by UCOP, or there will be a severe hole in futire budgets with virtually no benefits, as can be argued now.

What gets de-funded to prop up the athletic dept?

Thanks for link Diablo as it confirms my understanding. People say Cal doesn't commit to their sports program but spending $440M on our FB stadium and funding 30 sports is one of the biggest financial commitment in the nation

But new realities will force Cal to reduce teams and Edwards would be moved or downsized. I'm a big fan of T&F but it might have to be one of the cuts. Men's soccer might also need to be cut to save costs and to comply with prong 1 of title IX. If both of those teams are cut then would the women's soccer team also be cut and there eliminating the need for a soccer stadium?

Tough decisions

DiabloWags said:

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Oski87 said:

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In exchange for some on-campus land, correct? Edwards stadium?

At the end of the day the campus should assume all the debt. What difference does it make? Were they really going to ignore the law and leave Memorial Stadium as a condemned building? They had to repair it.

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No, there was no "exchange" for Edwards Stadium.
It was merely a proposal by Christ made in Nov. 2017.

You dont seem to be aware of the Simpson Center.

UC Berkeley to pay $238M of Cal Athletics debt from stadium renovations (dailycal.org)

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Look on the bright side - after inflation we will be able to pay off the stadium debt with a bake sale.