Comments on: Arena may be paid for completely in bonds http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/ Free Minds, Free Markets, Free Booze Sun, 07 Sep 2008 00:25:56 +0000 http://wordpress.org/?v=2.3.3 By: michael_grey http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95959 michael_grey Wed, 10 Oct 2007 18:20:57 +0000 http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95959 Ms. Stiff~ Please sign my breasts. Ms. Stiff~
Please sign my breasts.

]]> By: A http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95956 A Wed, 10 Oct 2007 16:04:33 +0000 http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95956 Ms. Stiff, I like the way you think. But what I'm worried about, if I read this correctly, is that the athletic dept. is potentially runing a much-needed overhaul of cellblocks Hamilton, Debusk, and Carson. Ms. Stiff, I like the way you think.

But what I’m worried about, if I read this correctly, is that the athletic dept. is potentially runing a much-needed overhaul of cellblocks Hamilton, Debusk, and Carson.

]]> By: Niedermeyer http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95952 Niedermeyer Wed, 10 Oct 2007 07:20:18 +0000 http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95952 Dear Linda, You crack me up. Now the only question I have is, whether or not to check the box "do you consider the taxpayer dangerous?" That one needs some thought... but then I don't need to tell you that, do I? Regards, Ted Dear Linda,

You crack me up. Now the only question I have is, whether or not to check the box “do you consider the taxpayer dangerous?” That one needs some thought… but then I don’t need to tell you that, do I?

Regards,

Ted

]]> By: Linda E. Stiff http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95949 Linda E. Stiff Wed, 10 Oct 2007 04:46:31 +0000 http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95949 Dear Commentators: Here's the deal. UO uses its status as a gov't institution to sell $200 million in tax exempt bonds. Since the income on these is tax free to the buyers, we only need to pay, say, 4%. To high income buyers, that's like 6% after tax. Meanwhile, we invest Phil's $100 million in stocks. Stocks are riskier than bonds, so they pay 8%. So we can cover the $200 million in debt with a $100 million donation. Probably. If not, we just raise tuition. What's not to love? The alumni get to liquor up in their skyboxes, and the Feds were just going to blow that tax money on ethanol subsidies anyway, so it's a wash, in terms of dollars and alcohol! You got to love Phil on this one. He's a charitable dude for sure - and he's working every angle at the same time. As for Dave, he's just hoping nobody goes to http://www.irs.gov/pub/irs-pdf/f3949a.pdf and fills out the form, until he's safely retired. Sincerely, Ms. Linda E. Stiff, IRS Commissioner Dear Commentators:

Here’s the deal. UO uses its status as a gov’t institution to sell $200 million in tax exempt bonds. Since the income on these is tax free to the buyers, we only need to pay, say, 4%. To high income buyers, that’s like 6% after tax. Meanwhile, we invest Phil’s $100 million in stocks. Stocks are riskier than bonds, so they pay 8%. So we can cover the $200 million in debt with a $100 million donation. Probably. If not, we just raise tuition.

What’s not to love? The alumni get to liquor up in their skyboxes, and the Feds were just going to blow that tax money on ethanol subsidies anyway, so it’s a wash, in terms of dollars and alcohol!

You got to love Phil on this one. He’s a charitable dude for sure - and he’s working every angle at the same time.

As for Dave, he’s just hoping nobody goes to

http://www.irs.gov/pub/irs-pdf/f3949a.pdf

and fills out the form, until he’s safely retired.

Sincerely,

Ms. Linda E. Stiff, IRS Commissioner

]]> By: JB http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95948 JB Tue, 09 Oct 2007 23:05:16 +0000 http://www.oregoncommentator.com/2007/10/09/arena-may-be-paid-for-completely-in-bonds/#comment-95948 This strikes me as unnecessarily risky. The basketball arena will only be able to meet Kilkenny's projections if the basketball team is consistently successful. If Kent leaves, the team slips, or some scandal hits the program, fans will not pay top dollar to fill the seats. In this scenario, the Duck Athletic Fund (DAF) will have to cover the bill. Here again, too much risk. The foundation of DAF money is football boosters. If the football team slips (again, as a result of scandal or coaching changes), then the DAF money dries up . . . and the University is left holding the bill. I recognize that this scenario requires several negative hypotheticals, so it is in no way probable. Also, I recognize that the Knight-backed Legacy Fund provides a large cushion. But there is still an element of risk. Too much risk for my liking. The Athletic Department is willing to take risks, because it believes that only through bold and aggressive moves will it reach its goal of assembling national championship-caliber teams in every sport. I am glad that the folks at the Athletic Department operate this way, it's their job. But I do not think the University should put its own welfare as an educational institution at risk by co-signing for the Athletic Department. This strikes me as unnecessarily risky. The basketball arena will only be able to meet Kilkenny’s projections if the basketball team is consistently successful. If Kent leaves, the team slips, or some scandal hits the program, fans will not pay top dollar to fill the seats. In this scenario, the Duck Athletic Fund (DAF) will have to cover the bill. Here again, too much risk. The foundation of DAF money is football boosters. If the football team slips (again, as a result of scandal or coaching changes), then the DAF money dries up . . . and the University is left holding the bill.

I recognize that this scenario requires several negative hypotheticals, so it is in no way probable. Also, I recognize that the Knight-backed Legacy Fund provides a large cushion. But there is still an element of risk. Too much risk for my liking. The Athletic Department is willing to take risks, because it believes that only through bold and aggressive moves will it reach its goal of assembling national championship-caliber teams in every sport. I am glad that the folks at the Athletic Department operate this way, it’s their job. But I do not think the University should put its own welfare as an educational institution at risk by co-signing for the Athletic Department.

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