(08-31-2019 09:07 AM)ljmhurons Wrote: Mismanagement 101
https://www.michiganradio.org/post/easte...ion-pay-it
This is a well understood fact that when Stone withdrew his financial support that there was a big hole to fill.
That said, public and personal finance 101 indicates, that most big things are not paid for cash on the barrel.
I assume most here know what a 30-year mortgage is.
The funding for this project is through a bond issue, kind of like a mortgage, where EMU got the money upfront and has to make payments over time.
Those who bought their houses with a mortgage understand this.
No different than say Little Caesars Arena where both the public and private dollars were borrowed.
Boys and girls get out your mortgage calculators and pretend you are buying a very, very expenses house and need say a 20-year mortgage for say 6M. Assume 4% interest rate and it would be say 400 - 450K per year.
One way to finance these dollars is to say give up a home game vs. a power 5 school and try to earn between 1.0 and 1.5M (or even more - Kent is getting 1.9M for playing at Auburn this year) with a good road game guarantee.
I might add that the facility was much needed. The old scoreboard was fitting for a high school.
Who would want to put up a new scoreboard in front of the old football building (actually I was told that it couldn't have been put on top of the old FB building).
This was the time to go big.