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Tenn's money woes
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Posted: 1/28/2013 1:59 PM
Tenn's money woes
Wow. $200m. in debt and spending $21m. a year in debt service. Attn down to 89K ...The financial cavalry is on the way, though, in the form of additional TV revenue from the SEC’s contracts with ESPN and CBS. Those deals average $205 million a year for the league and they are expected to jump to about $300 million annually when they are updated. The conference is renegotiating the contracts to account for the growth to 14 teams with the addition of Missouri and Texas A&M. Hart said SEC athletic directors have not been told exactly how much new revenue that will mean, but projections are $5 million to $10 million a year for each school. Nowhere in the SEC will that be more welcome than at Tennessee.... www.sportsbusinessdaily.com/Jo.../Tennessee.aspx |
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Posted: 1/28/2013 2:15 PM
Re: Tenn's money woes
Who cares? Looks to me like you're on the wrong message board.
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Posted: 1/28/2013 2:21 PM
Re: Tenn's money woes
Imagine the value of that TV contract with UNC/Kentucy bball twice per year included, as well as UNC/Dook twice per year.
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Posted: 1/28/2013 2:35 PM
Re: Tenn's money woes
This can't be true, I thought that all of the SEC athletic departments were awash in money.
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Posted: 1/28/2013 3:14 PM
Re: Tenn's money woes
Even with an extra $10M that would still put Tennessee $11M debt/year. That's not good.
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Posted: 1/28/2013 4:09 PM
Re: Tenn's money woes
If Tennessee moved to a conference where they could complete for a championship, then perhaps the boost in attendance would make up for the loss in TV revenue. Hmmmm...
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Posted: 1/28/2013 4:11 PM
Re: Tenn's money woes
They're not $21MM in debt per year, they have $21MM in "debt service". That is accounting jargon for the amount of principal and interest on their existing outstanding debt.
But, I get your point.
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--- NCU08 wrote:
Even with an extra $10M that would still put Tennessee $11M debt/year. That's not good.
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Posted: 1/28/2013 4:20 PM
RE: Tenn's money woes
hang on. i thought schools in the sec were always rolling in cash?!?!?!?!?
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Posted: 1/28/2013 4:29 PM
RE: Tenn's money woes
You would think that right. Especially sense there's a thread trying to get UNC to rush to SEC (debt)
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Posted: 1/28/2013 4:57 PM
Re: Tenn's money woes
Bless your heart. cdn.bleacherreport.net/images_....jpg?1267850819--------------------------------------------- --- goheels7777 wrote: Who cares? Looks to me like you're on the wrong message board. --------------------------------------------- |
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Posted: 1/28/2013 8:43 PM
Re: Tenn's money woes
Rocky Top to the Big 10????
Well the bail out is work for Maryland and they had about half as much debt as Knoxville Community College does.
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Posted: 1/28/2013 8:43 PM
Re: Tenn's money woes
Not if Marquez North is reading this....
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--- goheels7777 wrote:
Who cares? Looks to me like you're on the wrong message board.
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Posted: 1/29/2013 7:39 AM
Re: Tenn's money woes
Would maybe be a good idea to get as many of their current players as possible to renegotiate their contracts. Get those salaries down.
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Posted: 1/29/2013 7:19 PM
Re: Tenn's money woes
No worries, just raise the debt ceiling. It's just money.
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Posted: 1/30/2013 3:41 PM
Re: Tenn's money woes
Am I reading that correctly? $200 million in debt? So if the increase in SEC money is that high end ($10 million extra per season), and there is no intereste on that debt, and we assume that they are able to balance their budget today, they still would be in debt for 20 more years--best case scenario? That's worse than Maryland's situation...
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Posted: 1/30/2013 4:08 PM
Re: Tenn's money woes
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--- CornbreadandCollards wrote:
Am I reading that correctly? $200 million in debt? So if the increase in SEC money is that high end ($10 million extra per season), and there is no intereste on that debt, and we assume that they are able to balance their budget today, they still would be in debt for 20 more years--best case scenario? That's worse than Maryland's situation...
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that's if things go as planned. and we all know that unexpected stuff always happens.
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Posted: 1/30/2013 4:39 PM
Re: Tenn's money woes
It is not the existence of debt service that is the issue -- it is that it has grown to $21m. per year.
You can bet that was not the intention, that the improvements to Neyland were supposed to "buy" more attendance, not lose it. The loss of revenue has made it impossible to pay down that debt at the rate that I'm certain UT and its creditors intended.
In other words, they budgeted for perfection and got reality instead.
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--- CornbreadandCollards wrote:
Am I reading that correctly? $200 million in debt? So if the increase in SEC money is that high end ($10 million extra per season), and there is no intereste on that debt, and we assume that they are able to balance their budget today, they still would be in debt for 20 more years--best case scenario? That's worse than Maryland's situation...
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