tommie317;842865045 said:

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I hate professions that make other people take the risk and loss if their fuzzy math came out unrealistic at the end by a large margin. Perhaps there could have been some insurance or outcome based contract we could put in place (besides defaulting)

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First of all, if you want to lay your risk off on someone else, it will cost you. No one will do that for free; just ask your insurance company. As long as both sides are have their eyes wide open when going into the deal there is nothing wrong with taking risk to seek returns. It's not as if UC was doing this without very sophisticated advisors.

Secondly, I will repeat my caveat that I do not know anything about the stadium financing plan. For all we know, they also locked in a rate of return on the reinvestment side (at a cost).

tommie317;842865043 said:

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Att park season was a temporary, one off season so it's hard to judge just on that season alone. As a season ticket holder I even skipped it cuz they screwed me over. Again, Levi's was also an exception case as a weekday night game build as the first ever football game at Levi's vs an opponent that travels extremely well and was highly ranked. I expect the that the true results would be better than those cases.

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But those are true results. Being outdrawn 30 miles from your stadium by a opposing team that travels well! Because it's too much of a chore for us! What does that say about us other than Cal fans don't want to leave campus to see their team play be it ATT, Candlestick or Levi

GB54;842865062 said:

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But those are true results. Being outdrawn 30 miles from your stadium by a opposing team that travels well! Because it's too much of a chore for us! What does that say about us other than Cal fans don't want to leave campus to see their team play be it ATT, Candlestick or Levi

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Was the Levi's game part of the season ticket package? I thought it wasn't

dajo9;842864880 said:

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Everybody needs to calm the eff down. Everybody is thinking about these debt repayments in terms of current dollars. We are all so trained by the financial community to hate inflation that we don't understand how we benefit from inflation. Inflation will be Cal's friend as we pay off this debt. Let's assume 2% inflation / year for the duration of this debt repayment (and 2% is historically low). We currently pay $18M and in real dollars that amount will go down every year. Also, that means when the debt jumps to $26M in 2032 we are only paying $19.2M in today's dollars. If inflation is 4% we're only paying $14.1M in today's dollars in 2032. The debt is due in 2112. With 2% inflation that is only a $5.4M payment in today's dollars ($37M in nominal value). With 4% inflation that is a $0.8M payment in today's dollars. I think it's fair to guess that inflation over the next 100 years will be 2% - 4% if America is still a country worth playing college football in.

Viewed differently, if 50 years ago (1967) you established a $1 repayment plan. Today the earnings behind that plan are $7.34.

Cal isn't alone in this. The entire country is awash in debt - public and private. The country would benefit greatly from higher inflation which reduces the burden of debt for Cal, the public sector, and the private sector. Inflation haters are trained to say that inflation is theft and bad for us, etc. But here's the key - historically, INFLATION HAS ONLY BEEN SUSTAINED WHEN DRIVEN BY WAGE GROWTH. Cal football, and the country overall would benefit from inflation around 4% for a sustained period of time. That would greatly reduce the debt burden to Cal and every student debt and mortgage holder out there.

Cal's biggest issue is making sure I/A revenue growth meets or exceeds inflation. If that is the case then over time the debt will take care of itself, if we can manage the near term difficulties.

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absolutely correct, assuming we get inflation. Good stuff.

thank god debt always take care of themselves. Sarcasm

tommie317;842865193 said:

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thank god debt always take care of themselves. Sarcasm

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If only somebody had said that