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+---- Thread: Poor Maryland....literally (/thread-644128.html)
Poor Maryland....literally - 4x4hokies - 08-14-2013 12:04 PM
http://www.washingtonpost.com/sports/colleges/despite-move-to-greener-pastures-marylands-lean-years-likely-to-continue/2013/08/13/1ea58258-0423-11e3-88d6-d5795fab4637_story.html
"The problem, of course, is that Maryland has no money to spend — literally. According to the report issued Tuesday by a school commission, the athletic department has been borrowing, and will continue to borrow, from university funds just to cover its budget. How dire are Maryland’s straits? On June 30, it owed the university $21 million. It is expected to have to borrow an additional $20 million to cover its operating costs for the next 12 months, until the golden ticket to the Big Ten comes through."
RE: Poor Maryland....literally - Hokie Mark - 08-14-2013 12:18 PM
So, who are they going to borrow the exit fee money from?
RE: Poor Maryland....literally - XLance - 08-14-2013 12:18 PM
$21 million plus $20 million plus $52 million is a lot of debt.
RE: Poor Maryland....literally - 4x4hokies - 08-14-2013 12:20 PM
(08-14-2013 12:18 PM)XLance Wrote: $21 million plus $20 million plus $52 million is a lot of debt.
Add that to the 80 they owe on facilities...
RE: Poor Maryland....literally - Hokie Mark - 08-14-2013 12:47 PM
So basically, when you take their higher Big Ten revenue...
...then subtract their high loan payments...
basically, Maryland's athletic budget = G5 normal.
Maryland = Temple (no offense, Owl fans!)
RE: Poor Maryland....literally - westmc9th - 08-14-2013 12:58 PM
So Maryland is leaving a conference they founded for the Big Ten. Leaving rivals, UVA, Duke, and somewhat UNC and NC State. Gaining Penn State who they have beaten one time. (Sorry I don't forsee OSU, Mich, Mich St becoming your rival) have fun with Indiana and Rutgers! They Will not be a part of the best Lacrosse or Basketball or Soccer conference. Three sports which their fans love. No guarantee they get out of a 50 million exit fee and they don't get full member shares from the B1G for years down the road?? Hell of a sales man Delany is. I see (eventually) more money and maybe a better football conference. What else does Maryland get? The CIC? Like that is a deciding factor, the ACCIAC is a big academic collaboration. So count me as one who believes this is never going to end well for Maryland,
RE: Poor Maryland....literally - 4x4hokies - 08-14-2013 01:17 PM
Does the state step in at any point?
How long will they let UMD waste money?
RE: Poor Maryland....literally - OrangeCrush22 - 08-14-2013 01:24 PM
They and Rutgers appear to have a lot in common. Except for Maryland having national championships in football, basketball, and lacrosse.
RE: Poor Maryland....literally - UofLgrad07 - 08-14-2013 01:40 PM
Count me as a big fan of the Terps' inability to do basic accounting
RE: Poor Maryland....literally - ClairtonPanther - 08-14-2013 03:26 PM
But yet they have 12-13 different uni combos every season.
RE: Poor Maryland....literally - Dasville - 08-14-2013 04:32 PM
This move by Maryland was based on "projected future earnings" and "projected future debt". It is very possible that they overestimated their future B1G earnings and underestimated their future debt (paying the FULL ACC exit fee for one).
One thing they absolutely did was underestimate the future earnings of the ACC!
Glad they did, because that opened up an opportunity for us.
Also...
I'm glad that this report confirms that the MD/B1G deal is front loaded to match what they would have been making in the ACC (before the ACC GoR and probable ACCN). Combine the front loading of the contract with the travel expense money and the projected time before they are at the break-even/slight surplus mark and it is obvious that the B1G REALLY wanted NY and Loh REALLY wanted to move Maryland to the B1G.
RE: Poor Maryland....literally - westmc9th - 08-14-2013 05:09 PM
Loh came from a B1G school I believe, if I remember correctly it was Iowa. I'm sure that helped in his decision making,
RE: Poor Maryland....literally - ChrisLords - 08-14-2013 05:28 PM
(08-14-2013 05:09 PM)westmc9th Wrote: Loh came from a B1G school I believe, if I remember correctly it was Iowa. I'm sure that helped in his decision making,
I'm sure the UMD BoT knew what they were doing when hiring a B1G president. This has been in the works for a while.
RE: Poor Maryland....literally - Dasville - 08-14-2013 06:00 PM
(08-14-2013 05:28 PM)ChrisLords Wrote:(08-14-2013 05:09 PM)westmc9th Wrote: Loh came from a B1G school I believe, if I remember correctly it was Iowa. I'm sure that helped in his decision making,
I'm sure the UMD BoT knew what they were doing when hiring a B1G president. This has been in the works for a while.
Not according to Loh and Maryland, otherwise, there may be grounds for interference. So we have to trust all these figures were studied and calculated in short order.
RE: Poor Maryland....literally - westmc9th - 08-14-2013 06:19 PM
Which does that make it any better? Maryland and the Big Ten met for two weeks and that's all it took to dissolve a 59 year relationship. To me it seems if your going to do something that big might wanna take some time. I understand why they didn't though, they didn't want the public (which loved the ACC) to find out and cause an outrage right before the move.
Either way Maryland is basically in the past, the Big Ten's problem now. Looking forward to louisville.
RE: Poor Maryland....literally - Dasville - 08-14-2013 07:56 PM
(08-14-2013 06:19 PM)westmc9th Wrote: Which does that make it any better? Maryland and the Big Ten met for two weeks and that's all it took to dissolve a 59 year relationship. To me it seems if your going to do something that big might wanna take some time. I understand why they didn't though, they didn't want the public (which loved the ACC) to find out and cause an outrage right before the move.
Either way Maryland is basically in the past, the Big Ten's problem now. Looking forward to louisville.
Adcorbett would be the one to ask, but I can see a scenario where MD was looking for a President and a way to right it's ship. Loh may very well have laid out the best plan and the BoT said they had his back.
Everything may not be working out as planned.
RE: Poor Maryland....literally - Wolfman - 08-14-2013 07:56 PM
(08-14-2013 06:19 PM)westmc9th Wrote: Which does that make it any better? Maryland and the Big Ten met for two weeks and that's all it took to dissolve a 59 year relationship. To me it seems if your going to do something that big might wanna take some time. I understand why they didn't though, they didn't want the public (which loved the ACC) to find out and cause an outrage right before the move.
Either way Maryland is basically in the past, the Big Ten's problem now. Looking forward to louisville.
What happens if Maryland can't afford to leave?
They owe/will owe $173,000,000. They could eliminate 1/2 of that with one stroke of the pen. If they stay in the ACC they would get $34,000,000 from the ACC - last years $15,000,000 plus this years $19,000,000. The would not have to pay the exit fee of $52,000,000. That is a total of $86,000,000.
They won't be a full member of the B1G until 2020. I'm guessing they won't be able to do much more than service the debit until then. If the B1G really pays $40,000,000 per year and MD applies half of that to their debt they won't be in the black until ~2030. Lenders have a long memory so they would have to save for years after that to be able to make any physical improvements.
Lots of IFs there and my numbers may be off a bit.
RE: Poor Maryland....literally - UofLgrad07 - 08-14-2013 08:06 PM
Gansler Pushes Lawsuit Against Maryland For ACC Withdrawal
Maryland Attorney General Doug Gansler is asking the state’s highest court to order that a lawsuit over the University of Maryland’s withdrawal from the Atlantic Coast Conference proceed in a Maryland court.
The attorney general’s office has made the request to the Maryland Court of Appeals.
The attorney general says the Prince George’s County Circuit Court has wrongly decided to hold the case while waiting for the outcome of a separate lawsuit in North Carolina.
RE: Poor Maryland....literally - Dasville - 08-14-2013 08:37 PM
(08-14-2013 08:06 PM)UofLgrad07 Wrote: Gansler Pushes Lawsuit Against Maryland For ACC Withdrawal
Maryland Attorney General Doug Gansler is asking the state’s highest court to order that a lawsuit over the University of Maryland’s withdrawal from the Atlantic Coast Conference proceed in a Maryland court.
The attorney general’s office has made the request to the Maryland Court of Appeals.
The attorney general says the Prince George’s County Circuit Court has wrongly decided to hold the case while waiting for the outcome of a separate lawsuit in North Carolina.
Nice find!
RE: Poor Maryland....literally - 4x4hokies - 08-14-2013 08:54 PM
(08-14-2013 08:06 PM)UofLgrad07 Wrote: Gansler Pushes Lawsuit Against Maryland For ACC Withdrawal
Maryland Attorney General Doug Gansler is asking the state’s highest court to order that a lawsuit over the University of Maryland’s withdrawal from the Atlantic Coast Conference proceed in a Maryland court.
The attorney general’s office has made the request to the Maryland Court of Appeals.
The attorney general says the Prince George’s County Circuit Court has wrongly decided to hold the case while waiting for the outcome of a separate lawsuit in North Carolina.
That title is horrible. They aren't pushing a lawsuit against Maryland, they are pushing a lawsuit against the ACC on behalf of Maryland.