Discussion in 'Colorado Football Message Board' started by Liver, Jun 26, 2009.
Thank you Louise
Wow that is amazing.
She sounded like an interesting woman.
Awesome news...Thanks! Hopefully many of us can follow in your footsteps once our ship comes in!
God Bless Louise Bennett Reed's heart!
Best news I've seen all week.
Go Buffs. Long live the memory of Louise Reed!
Awesome news. RIP to what sounds like a wonderful lady.
Now hopefully they can move some $$ around because of this donation and get that basketball facility paid for:thumbsup:
:dance: Great news. Great lady. :thumbsup:
What a wonderful gift!
Also, I couldn't help but to notice this...erm...nugget...
Turns out TBD is on to something after all.
haha that caught my eye. thank you louise! sad to lose such a loyal fan, but her gift will work wonders for the AD.
Hey TBD - Mammon be damned. If you ever want to unload that Au...
I wonder how they'll use it. Endowment, perhaps? No, I know that that's a piddly amount for an endowment, but it would pay for 4-5 scholarships a year.
It will endow 10 schollies per the article.
OK. I was just doing my own math and guestimating at the annual cost of a scholarship. So yeah, I would think that would be a good start. I heard through some kind of grapevine that USC's entire athletic department is funded via endowments. That has to be pretty nice.
More impressive than USC is Stanford's, all sports are basically endowed forever; given the size of their AD that is unbelievable.
how much was the loan the AD took out from the school year before last (?)?
Very nice. Does anyone have an idea how to explain in what ways this will benefit the AD? Will it free up money for things like the basketball facility? Or, something else?
After I actually read the article, it mentions that the funds are to be used to fund athletic scholarships. If they do establish an endowment (or add to an existing one), then it will allow the AD to spend those funds on other things in coming years.
In roundabout figures, I'd guess that CU has something in the area of 200 athletes on scholarship. This would fund 5% of that annual cost.
But she specifically focused on football and men's/women's basketball. Does this money automatically go into the CU Fund?
it mentions that the money will fund 10 scholarships from here in perpetuity.
My interpretation is that the gift endows 10 scholarships on the FB and BB teams. This means the AD could take funds normally directed towards these scholarships and allocate that money elsewhere. That might include debt service, facility upgrades, equipment, coaching salaries, whatever.
I could see how a school like Stanford might have 50 donors for every Louise Reed at CU, thereby endowing 500 Stanford scholarships. With that kind of dosh, it gets easier to understand how Stanford can field all those sports programs.
Maybe a few sugar daddies are out there who can match or exceed the generocity of Ms. Reed. She didn't even get her degree from CU and she is the record setter.
that is something to aspire for.
Bu wha if they use the money for the schollys and take what is saved from the AD.
I'm guessing that you are asking if CU's athletic budget could be reduced by an amount equal to the benefit that Mrs Reed has provided.
My understanding is that the CUAD is a different and stand alone revenue center within the University. The intended business model is for the AD to be self-sufficient through ticket sales and television revenue.
Other sources of AD revenue include fees that are voted on by the students and revenue from endowments.
At times there will be one time events, such as capital projects (e.g. construction of luxury boxes), or payouts of contracts (e.g. Barnett's $3M buy-out). Bohn can go over to the chancellor, hat in hand, and arrange for a loan from the university that will have to be paid back.
It is possible that the university could use this newly found scholarship money as an excuse to demand an accelerated payback of loans. Maybe they could withhold capital. Or the CU foundation could choose to fund non-athletic projects. It all comes down to university leadership prioritizing needs and allocating according to priorities.
This is a pretty common strategy among fundraising organizations these days. Get somebody to put you in his/her will and wait for the inevitable. I would suspect that there are a lot more of these kinds of deals out there, with the benefactors remaining among the living.
Don't be surprised if we see more of this kind of thing over the next several years.
DBT. you are barking up the right tree..
I'm thinking it will eventually be spread out over all the different teams. Not just football and basketball.
less FB and BB scholarships on the books means more (a LOT more) $ for the AD to spread around.
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