AJC Report: Cobb New Ga. St. AD

[AppinVA]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

No and they won't be for many years. The debt is set up to be paid back over 21 years, There should be 13 or 14 "debt service" payments remaining to be paid. Once per year plus interest (debt service). It was done through bonds. Bonds are repaid on a schedule designed to pay the lenders yields on their money.

Thanks. That is the first full explanation I have seen on here. I think it was a horrible way to do it but at least now everyone knows.

So, you pay cash for your homes and cars? Must be nice.

[Rekdiver]

Bcoach. If you want to build a house you borrow money. Why is issuing bonds and taking on debt a bad idea to expand facilities that were inadequate for the increase in fans? If fans don't give what choice do you have?

Quite a few people have vilified CC for the JM issue, yet I still believe JM shared in the blame for the way it unfolded.

The biggest mistake CC made in hindsight was the Capel hire.

The best thing he did was not firing JM as soon as he got here. It did force JM to take a chance with the spread to save his job .

We are light years ahead of the Laney era yet there is still plenty of room to improve after CCs departure.

[eggers76]

I believe JM went to the spread a year before CC's arrival.

[MDaniels84]

I believe JM went to the spread a year before CC's arrival.

That is exactly right ! We had many 2004 battles like the losing end of the 59-56 Chatty game while introducing the spread. Devon Fowlkes had a field day with that offense.

[App91]

Beasley is interim AD just announced.

Edit Link: http://chancellor.appstate.edu/messages/id/39

Any chance Beasley could end up getting the job? Why not???

No. Rick is a back-patting, baby-kissing politician. He's not accustomed to working with the large amounts of money that it takes to run an entire athletic department. He's where he needs to be. He's not an accountant or a big wheeler or dealer.

Very true but a really important part of the CC run. He was the guy who would interact with the folks that CC wouldn't look at. Good at what he does.

Man, I just dont know where that statement comes from. I know for a FACT that RB would have rather dealt with 1 10k donor than 10 1k donors. IMO, that is exactly NOT the way to build fundraising of this type. Also, that was NOT a CC directive.

[bcoach]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

No and they won't be for many years. The debt is set up to be paid back over 21 years, There should be 13 or 14 "debt service" payments remaining to be paid. Once per year plus interest (debt service). It was done through bonds. Bonds are repaid on a schedule designed to pay the lenders yields on their money.

Thanks. That is the first full explanation I have seen on here. I think it was a horrible way to do it but at least now everyone knows.

So, you pay cash for your homes and cars? Must be nice.

Well I do pay for cars with cash but not the home. That is not my point. 21 years is my point. If it takes that long you can't afford it. During that 21 years you will need more expansion or facilities or god knows what so that you are just building more debt. Only government type organizations can get away with that. The government raises taxes and we raise student fees. Again we always want more than we can pay for.

[bcoach]

Beasley is interim AD just announced.

Edit Link: http://chancellor.appstate.edu/messages/id/39

Any chance Beasley could end up getting the job? Why not???

No. Rick is a back-patting, baby-kissing politician. He's not accustomed to working with the large amounts of money that it takes to run an entire athletic department. He's where he needs to be. He's not an accountant or a big wheeler or dealer.

Very true but a really important part of the CC run. He was the guy who would interact with the folks that CC wouldn't look at. Good at what he does.

Man, I just dont know where that statement comes from. I know for a FACT that RB would have rather dealt with 1 10k donor than 10 1k donors. IMO, that is exactly NOT the way to build fundraising of this type. Also, that was NOT a CC directive.

I was not talking about fundraising. I was talking about just smiling and saying hello to people. I have stood and watched it a hundred times. Every interaction with a fan does not have to be about money but if you treat ALL people well it can turn into money in the long run.

[AppinVA]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

No and they won't be for many years. The debt is set up to be paid back over 21 years, There should be 13 or 14 "debt service" payments remaining to be paid. Once per year plus interest (debt service). It was done through bonds. Bonds are repaid on a schedule designed to pay the lenders yields on their money.

Thanks. That is the first full explanation I have seen on here. I think it was a horrible way to do it but at least now everyone knows.

So, you pay cash for your homes and cars? Must be nice.

Well I do pay for cars with cash but not the home. That is not my point. 21 years is my point. If it takes that long you can't afford it. During that 21 years you will need more expansion or facilities or god knows what so that you are just building more debt. Only government type organizations can get away with that. The government raises taxes and we raise student fees. Again we always want more than we can pay for.

I do not totally disagree, though I'm not sure much could've been done differently. If so, how do you see it?

[AppState2014]

Hopefully we pay the next AD well. It's obvious Cobb took this job because of the huge pay raise. Wonder what our next AD will make?

[Saint3333]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

No and they won't be for many years. The debt is set up to be paid back over 21 years, There should be 13 or 14 "debt service" payments remaining to be paid. Once per year plus interest (debt service). It was done through bonds. Bonds are repaid on a schedule designed to pay the lenders yields on their money.

Thanks. That is the first full explanation I have seen on here. I think it was a horrible way to do it but at least now everyone knows.

So, you pay cash for your homes and cars? Must be nice.

I bet he didn't take out the max loan and won't be buying another house before paying the current one off or selling it. To bcoach's point 21 years is a long time for state bond repayment.

[The Annoying Peasant]

Beasley is interim AD just announced.

Edit Link: http://chancellor.appstate.edu/messages/id/39

Any chance Beasley could end up getting the job? Why not???

Rick is a great guy, an admired part of ASU's athletic history and as asu66 said a politician. Anyone who has been around Rick for any length of time can tell you he has never taken a position contrary to that of the administration who is in place. When Borkowski and Laney were running the show Rick was in 100% agreement with their actions and agenda. Peacock came along, hired Cobb, did a 180 from the previous administration and Rick jumps in 100% behind the new team's ideas. One thing you have to say about Rick, he is Mr Positive. Some say to the point of living in a fantasy world.

Rick is not a leader, he's a follower. He is also not AD material.

[asu66]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

I see you only joined the forum in 2012, so perhaps you can be viewed as a relative newcomer. The info about bonds and ASU is about as old as our campus. You can stand in the direct center of campus and look in any direction you wish and you'd be hard-pressed to find a building of ANY size that didn't have at least some bond funding in its history. The same would be true at any state university in North Carolina not named UNC or NC State. Even those two are on the bond hook to some extent.

For your reading pleasure. This has been posted before at least twice...probably more. This is my second time...

Appalachian’s Board of Trustees to seek $65 million in bonds to finance campus construction projects
Posted December 10, 2007 at 8:00 am · By ASU News
Filed under Academics, General

BOONE—The Board of Trustees at Appalachian State University will seek approval from the UNC Board of Governors to issue up to $65 million in bonds to finance two construction projects on campus and refinance bonds issued in 1998 to upgrade the campus utility system.

Of that amount, $32 million in bonds would finance planned enhancements to the athletic facilities at Kidd Brewer Stadium.

A total of $8 million would be used to renovate Frank Residence Hall.

A combination of student fees, private dollars, projected increased ticket sales and other funding sources would be used to retire the 25-year athletic enhancement facility bonds.

The enhancements include 4,400 additional seats, new restrooms and concessions to the stadium’s east side, and improvements to restrooms on the south side of the stadium.

Begun in 2005 when trustees approved issuing $16 million in bonds, the revised athletics facilities enhancement plan is estimated to cost $53 million.

The trustees also approved a modest increase in campus-based tuition, fees and charges related to room, board, book rental and transportation. With these changes, undergraduate students living on campus will pay a total of $9,893 a year to attend Appalachian beginning fall 2008.

Campus- based tuition will increase $42, athletic fees will increase $40, the student union fee will increase $8, and the book rental charge will increase $25. In addition, trustees approved a $2 increase in the transportation fee, a $100 increase in the room fee, and an increase of $20 to $100 in the meal fee, depending on the meal option selected by students.

Committees comprising more than 50 percent students first approved the fees, which were then recommended to the chancellor and the trustees.

“We are trying to be good stewards of the students’ money, and be open and transparent about the tuition and fee increase process,” said Interim Vice Chancellor for Business Affairs Greg Lovins.

Lovins explained that $18 of the $40 athletics fee increase would be used to support a portion of the east side improvements to Kidd Brewer Stadium. Half of the new seating will be reserved for students. That portion of the athletics enhancements project will cost an estimated $8.5 million. The remainder of the athletics fee increase will be used to support increased scholarship costs and salaries for employees in the athletics department.

Student Government President Forrest Gilliam expressed concern about the athletics fee student would pay for years to support the athletics facilities. “We are looking at a lot of student support for a lot of years,” Gilliam said. “The vast majority of students are willing to pay this, but it’s important to remember students will be paying a large portion (to reduce the bond debt).”

The trustees also approved a new book rental policy that will limit the number of years a textbook is used, from three to two years, and give academic departments the option to adopt different books for multiple-section courses.

In other action, emeritus status was granted to Ming Land, former dean of the College of Fine and Applied Arts and a professor in the Department of Technology. Land began his career at Appalachian in 1983 as chair of the Department of Technology. He served as dean of the College of Fine and Applied Arts from 1989-2002. He returned to teaching in the Department of Technology in 2002 and retired from the university in June.

###

[Rekdiver]

I believe JM went to the spread a year before CC's arrival.

That is exactly right ! We had many 2004 battles like the losing end of the 59-56 Chatty game while introducing the spread. Devon Fowlkes had a field day with that offense.

I stand corrected!

[asu66]

My memory has been refreshed on the indebtedness. The university issued 25 year bonds. We probably still have 20 years of payments to make. It's just the way things things are done in the public sector. The only other options are to get many more folks to write athletic facilities enhancement checks for five, six or seven figure amounts or drop athletics.

Prediction: When our new AD develops a plan to renovate and enlarge KBS, the university will issue bonds.

[TheMoody1]

Again we always want more than we can pay for.

It is the American way.

If App hadn't borrowed the money we would have been stuck in the SoCon forever.

[Rekdiver]

I work in the investment industry and 20 to 30 (some longer) year bonds- are normal with the ability to "call" the bond ( refi) or prepay the bond. With historically low rates there has never been a better time to issue debt .....or get a 30 year personal mortgage for that matter It may seem a long time but it's about cash flow. Borrowing money at low rates believe it or not helps keep costs down for students (even though some will lament the rise in student fees which I blame the Legislature for). Nice summary by 66.....again! If we didn't borrow money the Stadium Lot might still be gravel and we might be playing LR every year and we'd be eating in the B I.

[NewApp]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

No and they won't be for many years. The debt is set up to be paid back over 21 years, There should be 13 or 14 "debt service" payments remaining to be paid. Once per year plus interest (debt service). It was done through bonds. Bonds are repaid on a schedule designed to pay the lenders yields on their money.

Thanks. That is the first full explanation I have seen on here. I think it was a horrible way to do it but at least now everyone knows.

Evidently borrowing money was the only way to improve the facilities to the extent that we did, but like a couple other posters on here once said (something to the effect of) let's try to pay for what we now have before we talk about lowering the field and and/or moving toward 40K seating capacity. Equating it to a mortgage or car loan doesn't cut it for me.

[NewApp]

Beasley is interim AD just announced.

Edit Link: http://chancellor.appstate.edu/messages/id/39

Any chance Beasley could end up getting the job? Why not???

Rick is a great guy, an admired part of ASU's athletic history and as asu66 said a politician. Anyone who has been around Rick for any length of time can tell you he has never taken a position contrary to that of the administration who is in place. When Borkowski and Laney were running the show Rick was in 100% agreement with their actions and agenda. Peacock came along, hired Cobb, did a 180 from the previous administration and Rick jumps in 100% behind the new team's ideas. One thing you have to say about Rick, he is Mr Positive. Some say to the point of living in a fantasy world.

Rick is not a leader, he's a follower. He is also not AD material.

Do you recall that Rick was town manager of Newton for many moons? One has to support the elected officials in the hierarchy to hold that type job for a couple decades or so.

He's not AD material for a university of our size, but has definitely shown leadership skills during his careers. He raised a great deal of the money that Gerald Adams has been credited for since he has been onboard. On the playing field, Rick exhibited a great deal of leadership when he was hooked up as a sure handed receiver with Steve Brown back in the day. It could be argued that Steve wouldn't be our color announcer today had it not been for Rick's part in the duo. Of course Rick might not be an employee of ASU today had it not been for Steve's influence input in getting Beasley on board. . To me, that says a lot a about leadership skills even as a 22 + or - a year old or so..

[Rekdiver]

All I am going to say about fundraising capabilities is, " are the facilities paid for yet?"

No and they won't be for many years. The debt is set up to be paid back over 21 years, There should be 13 or 14 "debt service" payments remaining to be paid. Once per year plus interest (debt service). It was done through bonds. Bonds are repaid on a schedule designed to pay the lenders yields on their money.

Thanks. That is the first full explanation I have seen on here. I think it was a horrible way to do it but at least now everyone knows.

Evidently borrowing money was the only way to improve the facilities to the extent that we did, but like a couple other posters on here once said (something to the effect of) let's try to pay for what we now have before we talk about lowering the field and and/or moving toward 40K seating capacity. Equating it to a mortgage or car loan doesn't cut it for me.

It's an analogy......to help you understand why an institution would take on debt for a long period of time...Heck, even Goldman, IBM and Caterpillar issue 30 year bonds.....it wasn't to minimize the burden of debt.

[App91]

I work in the investment industry and 20 to 30 (some longer) year bonds- are normal with the ability to "call" the bond ( refi) or prepay the bond. With historically low rates there has never been a better time to issue debt .....or get a 30 year personal mortgage for that matter It may seem a long time but it's about cash flow. Borrowing money at low rates believe it or not helps keep costs down for students (even though some will lament the rise in student fees which I blame the Legislature for). Nice summary by 66.....again! If we didn't borrow money the Stadium Lot might still be gravel and we might be playing LR every year and we'd be eating in the B I.

This!! We are using my favorite kind of money, OPM (other people's money) to build. The cost of money right now is so cheap, that it makes sense to take the debt and keep the money we have. This is a time where it makes all the sense in the world to take on debt at these rates.