Same strategy at Cal

By: crunchgodabruinknees



failed miserably. They sold only a handful when they had forecasted tens of millions. thats how the taxpayers got stuffed with the bill UCB couldnt pay.

https://deadspin.com/cal-is-fucked-because-of-its-stupid-stadium-deal-1795896858

By June 2011, only 49 of the 3,000 long-term seats had been sold. By December, the school said that they were $113 million short of their goal. Kansas tried a similar long-term seat plan and they abandoned it after it failed spectacularly. Cal tried to pivot away from the seat selling plan by 2013, but by that point, a gaping budget shortfall was staring them in the face, and that was just from paying off the debt. The Bears now owe at least $18 million per year in interest-only payments on the stadium debt, and that number will balloon to at least$26 million per year in 2032 when Berkeley starts paying off the principal stadium cost. Payments will increase until they peak at $37 million per year in 2039, then subside again in 2051 before Berkeley will owe $81 million in 2053. After that, the school is on the hook for $75 million more and will have six decades to pay it off. The stadium might not get paid off until 2113, by which time, who knows, an earthquake could send the stadium back into the earth or football as we know it might be dead.

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