Can CU buy out Hawkins AND pay a top salary to a new guy?

[Lt.Col.FrankSlade]

Before the crash the fund was up in the $750/$800 million range. I think I saw that it is down to the $500 million range since the crash. Schools like Harvard, Notre Dame, etc. are in the billions.

Correct me if I'm wrong. That is just my recollection.

According to the CU Foundation website, they have approximately $700 million as of June 2009.

 

[Idot Buff]

According to the CU Foundation website, they have approximately $700 million as of June 2009.

Damn...that is a lot of dough that Bohn should have available to buy out Danny, get Shanny and his assistants (or Gary P from TCU), and get this Beooch turned around. My money is in the foundation, and I thought that went to the benefit of the football program.

 

[stampy]

My understanding of the CU Foundations money is that its and invested trust designed to generate revenue. That means they are in bonds and stocks and other interest returning vehicles. Those investments produce a cash return representing a fractional equivalent of the principal. That money is likely earmarked for (scholarships, payroll, infastructure, etc.) The trick to maintianing your wealth is NEVER spend the principal

Lets say they are getting back 5% on each Million which would be about $50k. Your taking $200,000 to $300,000 out of play for several years as well as liquidating your initial investments. Money seriously needed to supplement the states budget woes.

They may have more cash on their books than I know of. in which case it could make sense (though market dips are the best time to buy). That said our AD is running out of bank windows to go to finance their mistakes.

I don't think you're understanding me, or maybe I'm not explaining it well. The Foundation could lend money to the AD at whatever interest rate they require. Using your hypothetical number it could mean a loan at 5%. Therefore, it wouldn't be taking money away from any university concern, only replacing one investment vehicle with another.

Barring a flood of donations to the AD, I believe this is how the buyout will occur.

 

[stampy]

Before the crash the fund was up in the $750/$800 million range. I think I saw that it is down to the $500 million range since the crash. Schools like Harvard, Notre Dame, etc. are in the billions.

It would be nice to have Notre Dame money. From footballscoop.com

Asked if economics would play a role in the decision to retain or fire Weis, Notre Dame athletic director Jack Swarbrick firmly told Sportinghttp://www.sportingnews.com/college...dame-ad-says-buyout-wont-affect-weis-decision News, “No.”

Should Notre Dame fire Weis, it will owe him $18 million for the remaining six years on his contract, sources told SN, and more than $1 million for the guaranteed contracts of his assistant coaches.

“I evaluate programs at the end of the season,” Swarbrick said. “I don’t evaluate coaches, I evaluate programs.”