Comments on: College football realignment spurs stadium upgrades Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 By: JarrodTaylorCFA Thu, 23 Jan 2014 15:15:22 +0000 I do not disagree with your piece on College Stadium Financing. However, I would like to point out that it is a bit misleading in that gross revenues to debt service isn’t a good measure of an institutions ability to make debt service payments because it is based on gross revenues as opposed to net. In addition, Texas A&M’s deal was not typical as the University was able to back the bonds. Depending on state law, a university may not be able to issue debt for non-essential purposes; i.e. non-instructional projects. Therefore, they use auxiliary enterprise systems which actually may depend on very volatile revenues such as ticket sales and concessions which move in the direction of winning and losing. K-State would be a good example of this.

Thank you for your posts. I enjoy following your commentary.