SEC provides it's own Stimulus payment to member schools

royboy

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Nov 9, 2001
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SEC says it sent each school $23M to make up for financial losses related to COVID-19


The conference estimates an average shortfall of $45 million per athletic program.

"The extraordinary circumstances produced by the global pandemic have presented colleges and universities with an unprecedented disruption to their programs and budgets," SEC commissioner Greg Sankey said in a statement. "This supplemental revenue distribution will help ensure each SEC member will continue to provide high levels of support to its student-athletes."

The $322 million distribution will be paid for from future revenues generated through media rights, beginning in 2025. The SEC said it expects its annual distributions in 2025 and beyond to continue to increase even after a portion is used to fund the one-time payment.

A new 10-year deal between the SEC and ESPN will begin in 2024.

The conference said in a statement that each school can use its one-time distribution at its own discretion, albeit with the expectation that it would help "maintain each school's historically high standards for academic, athletic, medical, nutritional and mental health support for their student-athletes and help offset the significant costs associated with COVID testing during the 2020-21 athletic year."


 
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WaylonJ

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Mar 25, 2021
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$23 Mil is nice. That's coffee cup level at PSU.

Pack it up in the bubble wrap ay
 

PSU&Trout

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SEC says it sent each school $23M to make up for financial losses related to COVID-19


The conference estimates an average shortfall of $45 million per athletic program.

"The extraordinary circumstances produced by the global pandemic have presented colleges and universities with an unprecedented disruption to their programs and budgets," SEC commissioner Greg Sankey said in a statement. "This supplemental revenue distribution will help ensure each SEC member will continue to provide high levels of support to its student-athletes."

The $322 million distribution will be paid for from future revenues generated through media rights, beginning in 2025. The SEC said it expects its annual distributions in 2025 and beyond to continue to increase even after a portion is used to fund the one-time payment.

A new 10-year deal between the SEC and ESPN will begin in 2024.

The conference said in a statement that each school can use its one-time distribution at its own discretion, albeit with the expectation that it would help "maintain each school's historically high standards for academic, athletic, medical, nutritional and mental health support for their student-athletes and help offset the significant costs associated with COVID testing during the 2020-21 athletic year."


and so we sit here anxiously awaiting the start of the college football season. Score me a 1 on the excitement poll today.
 
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91Joe95

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And where did they get the money? Oh, that's right, the schools. I guess latte and scones Wednesdays at the SEC headquarters has been canceled for the immediate future.
 
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Art

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And where did they get the money? Oh, that's right, the schools. I guess latte and scones Wednesdays at the SEC headquarters has been canceled for the immediate future.

Borrowed in some shape or form. SEC doesn't have near enough in the way of (member-generated) assets to make that sort of distribution.
 
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interrobang

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Here's Kevin Warren's response:

i-ll-give-you-a-dollar-1.png
 
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Art

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Here's Kevin Warren's response:

i-ll-give-you-a-dollar-1.png
So Warren (and Greg Sankey) are responsible for the profligacy of their conferences' member schools? Well, I imagine you'd have 56 athletic directors and college presidents agree with you.
 

NittPicker

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The Big Ten loaned Maryland money to help with their transition into the conference. It all depends on whether you want to bite the bullet now or bite the bullet later.
 

Art

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The Big Ten loaned Maryland money to help with their transition into the conference. It all depends on whether you want to bite the bullet now or bite the bullet later.

Which, along with the SEC bankrolling its members, is kinda dumb all around.
 

LionDeNittany

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And where did they get the money? Oh, that's right, the schools. I guess latte and scones Wednesdays at the SEC headquarters has been canceled for the immediate future.

It's probably even worse. They borrowed against future revenue and paid it out today.

Seems like this must be cheaper than the individual schools borrowing on their own. Likely cannot get tax benefits for the for profit portion of athletics so this was best.

LdN
 

Art

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May 29, 2001
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It's probably even worse. They borrowed against future revenue and paid it out today.

Seems like this must be cheaper than the individual schools borrowing on their own. Likely cannot get tax benefits for the for profit portion of athletics so this was best.

LdN

Nope, with the possible exception of Vandy and I'm guessing it's a better credit risk than the SEC is.
 

Art

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I agree, but one is secured directly by future revenue. Hence my comment of it potentially being cheaper.

LdN

So a university with a AAA, or at worst AA, rating couldn't borrow in the tax-exempt market, pledging its future revenue (which is what they generally) do and a shitload of assets, cheaper than unrated SEC in the taxable market. And if the SEC can engineer such an advantageous rate, why limit the deal to cover only half the shortfall?

Why? Because this was all it could borrow. This is window dressing.
 

LionDeNittany

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So a university with a AAA, or at worst AA, rating couldn't borrow in the tax-exempt market, pledging its future revenue (which is what they generally) do and a shitload of assets, cheaper than unrated SEC in the taxable market. And if the SEC can engineer such an advantageous rate, why limit the deal to cover only half the shortfall?

Why? Because this was all it could borrow. This is window dressing.

Those are good questions Art.

You dont seem to have a firm grasp on the ability for cash strapped Universities to borrow right now.

Typically the cheapest source would be secured borrowings.

This, if my assumptions are correct, is more of an advance payment so would likely be even cheaper.

LdN
 

Art

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Those are good questions Art.

You dont seem to have a firm grasp on the ability for cash strapped Universities to borrow right now.

Typically the cheapest source would be secured borrowings.

This, if my assumptions are correct, is more of an advance payment so would likely be even cheaper.

LdN

Since you have your finger on the pulse of the financial conditions in higher education perhaps you can give us a list of SEC schools that are so strapped that they can't borrow $45mm?
 

LionDeNittany

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Since you have your finger on the pulse of the financial conditions in higher education perhaps you can give us a list of SEC schools that are so strapped that they can't borrow $45mm?

I will but i would have to charge you. Not sure you can afford it.
 

STPGopherfan

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When kevin warren does the same for b1g schools, no doubt he’ll tack on the stolen bowl money to Penn State’s check.
They will spread it 'equally'. In other news, Brinks truck disappears in Columbus, O-H-I-O.
 

AWS1022

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Nov 12, 2011
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When kevin warren does the same for b1g schools, no doubt he’ll tack on the stolen bowl money to Penn State’s check.
Hell, he’d take the money from PSU to give to the other schools....it’s how the Big operates.
 
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