Big XII (10) Football Season?

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ToledoCat#3
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Re: Big XII (10) Football Season?

Post by ToledoCat#3 » May 22nd, 2020, 8:28 am

That was a thoroughly dismal article. We may never see the halcyon days of college sports again. I certainly hope such is not the case, although I admit college coaches & administrators make way more than they're worth.

katlander
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Post by katlander » May 22nd, 2020, 10:00 am

Sadly this may be the tip of the iceberg. We saw this in the housing industry 12 years ago. We are largely a house of cards. We live beyond our means and do ridiculous things and convince ourselves we are deserving. What about the travel and tourism industries, the airlines, and many many others? The government cannot bail them all out. The government is us. Its great that we go for the gusto and live our lives to the fullest but we shouldn't be surprised that there are rainy days. This one could be a tsunami.

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Post by Hypeman » May 22nd, 2020, 10:39 pm

katlander wrote:
May 22nd, 2020, 10:00 am
Sadly this may be the tip of the iceberg. We saw this in the housing industry 12 years ago. We are largely a house of cards. We live beyond our means and do ridiculous things and convince ourselves we are deserving. What about the travel and tourism industries, the airlines, and many many others? The government cannot bail them all out. The government is us. Its great that we go for the gusto and live our lives to the fullest but we shouldn't be surprised that there are rainy days. This one could be a tsunami.
You have a great point. Who do we bail out?

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Post by tmcats » May 23rd, 2020, 10:09 am

the housing bubble was caused by over-inflated prices coupled to unqualified buyers and rising interest rates. that's not what we have in collegiate sports. budgets are balanced today. however yes, if revenue falls off due to this ongoing c'virus then departments will have to make program, salary, and staff adjustments just like any other business. the issue for them will be covering debt payments if everything goes to hell, i.e. no football revenue. that would be a bubble.
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Post by Zoltar » May 23rd, 2020, 10:22 am

The real issue in the 2008 crisis was Lehman Brothers packaging the subprime loans into bundles and then getting an investment grading for the bundle. Then passing them off to other investors as investment grade. The real problem is that they were unable to 'pass' this to other investment banks to 'share the wealth' and took all the loss themselves.

It got down to a lack of oversite on the front end of the loans and then on the backend at Lehman.
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Post by tmcats » May 23rd, 2020, 10:39 am

Zoltar wrote:
May 23rd, 2020, 10:22 am
The real issue in the 2008 crisis was Lehman Brothers packaging the subprime loans into bundles and then getting an investment grading for the bundle. Then passing them off to other investors as investment grade. The real problem is that they were unable to 'pass' this to other investment banks to 'share the wealth' and took all the loss themselves.

It got down to a lack of oversite on the front end of the loans and then on the backend at Lehman.
it was deeper than that, zoltar. lehman and others got caught holding a bag full of bad paper. that was a result not the cause of the bubble. the bubble was fueled by many variables: reduced interest rates, then increased interest rates; a bad stock market, then a rising market; government action encouraging homeownership, then discouraging. those were the primary underpinnings.
"There ain't anybody stoppin' our ass!" CK

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Post by hilltopwildcat » May 24th, 2020, 10:01 pm

I heard on the tv that if there's no football this fall, colleges will take a $4 BILLION hit.

Shoot me. Sorry.

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Post by katlander » May 25th, 2020, 10:28 am

tmcats wrote:
May 23rd, 2020, 10:09 am
the housing bubble was caused by over-inflated prices coupled to unqualified buyers and rising interest rates. that's not what we have in collegiate sports. budgets are balanced today. however yes, if revenue falls off due to this ongoing c'virus then departments will have to make program, salary, and staff adjustments just like any other business. the issue for them will be covering debt payments if everything goes to hell, i.e. no football revenue. that would be a bubble.
That is what I am saying. We live on a very optimistic forecast. No rainy days. We live on the edge and assume there will be no major problems. An interruption in the revenue stream spells major problems very quickly, be it a house payment or fixed expense for the athletic department.

The housing crisis was caused by a poor system which paid everyone to get a loan approved. The banks were paid to originate it, the mortgage companies for rubber stamping it, Ginny Mae and Fanny Mae for selling it as a good investment. The methods used to reduce risk were bogus and greed fueled the fire. It was a race car with no brakes, just an accelerator, and the inevitable crash.

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Post by Hypeman » May 25th, 2020, 1:58 pm

tmcats wrote:
May 23rd, 2020, 10:09 am
the housing bubble was caused by over-inflated prices coupled to unqualified buyers and rising interest rates. that's not what we have in collegiate sports. budgets are balanced today. however yes, if revenue falls off due to this ongoing c'virus then departments will have to make program, salary, and staff adjustments just like any other business. the issue for them will be covering debt payments if everything goes to hell, i.e. no football revenue. that would be a bubble.
You sound like you are selling a Ponzi Scheme. Remind me not to buy a used car from you TM. Budgets were balanced during the housing bubble until they weren’t. Sounds fairly similar to these athletic budgets.

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Post by Hypeman » May 25th, 2020, 2:03 pm

hilltopwildcat wrote:
May 24th, 2020, 10:01 pm
I heard on the tv that if there's no football this fall, colleges will take a $4 BILLION hit.

Shoot me. Sorry.
No, that’s incorrect and being promoted by athletic departments to instill fear. FOOTBALL programs will take a 4 Billion dollar hit. The question is, “will colleges and their students cover it?”

Athletics departments are separate enterprises during the good times, they come looking for bailouts from students and faculty during the bad. A small few are lining their pockets the whole time. Time to cut college sports budgets big time.

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