"Randomly"? I never said, or implied, that.
One or two, his predecessor, Larry Scott, holds the other spot.
If needed, they could survive.
Endowments for the most part are restricted for what they can be used for. Don't know what restrictions Cal's endowments are under. I don't think anyone who donated to Cal's endowment had bond defaults in mind.
Yes, most know that endowments are somewhat restricted. However, it seems that most monies held by Universities is completely fungible. They'll figure it out.Endowments for the most part are restricted for what they can be used for. Don't know what restrictions Cal's endowments are under. I don't think anyone who donated to Cal's endowment had bond defaults in mind.
Here's an article, while a little dated, speaks to the concern about the football program.
Hanging in the balance.
That's an easy one. It's tOSU vs. Michigan every year no matter what their records are.
Penn State has a long-term investment pool (including its $4.4bn endowment) of roughly the same amount and is running a nine-figure operating deficit. Guess they're having trouble figuring it out.
Just 2 months ago we heard how the new scheduling format was going to allow each school to play each other school in the conference at least twice in a four year period.
The conversation was about Cal, not Penn State. But either way I hope you realize that first you have to be interested in lowering debt and costs before you do anything about these issues. Given two alternatives, one being defaulting on loans and the other "figuring" it out, I suspect they'd figure it out.
Guess you have trouble with analogies, so let's try this. Schools factor cash thrown off by the endowment into their operating budget. Presently, Cal runs an over $80mm deficit. That includes approximately $25mm to subsidize the athletic department. Doesn't appear that they have a lot of easily "fungible" cash to throw around,
Why don't you first lookup the word fungible and consider what a knowledgeable person can do with $7 Billion when they are faced with defaulting.
Cal could survive. They have the endowment and they have a lot of alumni with money but the question is how committed are they to remaining competitive? Not enough to keep up in the college football/NIL arms race. Cal's identity is not wrapped up with their football team. They are not Alabama or Ohio state or even Penn State. They care more about the ranking of their law school or graduate physics program than where they are in the football polls. Same is true with Stanford but even more so. Also those teams don't draw fans who aren't affiliated with the university like SEC teams or some of the other big names. it's just different out there. College football isn't as big a deal as it is other parts of the country.
Should Cal lack sufficient cash flow to make a required interest payment thereby placing the bonds in default, the bondholders would likely take an immediate hit and then have to sue the university and/or the state if the state was the guarantor of the debt. Yes cash is fungible but cant legally be used for things that lacked budgetary appropriation from the university or state.
Who gives a ****? Either turn on the tv and watch the games or don’t. This isn’t life or death matters and the B1G schedule makers don’t owe anybody any explanation.
They will not play to protect the rivalry game. It's a Big 2 bonus. i.e. this will help get BOTH of them in since it prevents an extra loss.
You should look up contracts, specifically endowment agreements. A university can only distribute endowment funds if they conform to the purpose expressed in the agreement., even to stave off bankruptcy. To do otherwise it would need permission of everyone who established an endowed fund. Otherwise it would have declare bankruptcy, in which disposition of residual assets, including full value of the endowment, would be under direction of the courts. No quite the same situation as using the endowment to support a failing athletic department that you suggested.
They could always try to invoke the doctrine of cy pres. Good luck with that.
I've heard of it being used a couple of times in connection with university endowments, usually on a very limited scale. Typical case: John Smith establishes an endowment at University A. Proceeds are to fund a scholarship for a student majoring in Latin. University decides to discontinue Latin.
