What happens when the GTAA can't pay back its debt?

18in32

18in32

Petard Hoister
Joined
May 23, 2010
Messages
27,979
The other thread got me wondering...

I would be very curious to know when the last time a loan like this to a college AA actually went into some kind of workout/collections situation. Just what is the creditor's recourse?

Presumably it would involve attempting to garnish the ACC/TV dollars — but I'd bet those payments are contingent on a whole bunch of things (like fielding teams in various sports, etc.) that would be crippled if the AA lost the dollars. Plus there are all kind of rules — from the NCAA, from the ACC, from Title IX — that would limit the ability of the creditor to defund our programs.

Do the creditors have security interests in any of the AA's assets? And do any of the AA's assets have any value if the AA isn't operating them? I mean, who'd pay anything significant for the rights to Buzz and our other marks if they were no longer associated with the schools' teams? They would have a fraction of their value.

Or consider the physical assets. Once the creditors came and took away the office chairs and weights and so forth... what are they going to do with Grant Field? Imagine the hurdles to redeveloping that or using it for any purpose other than playing GT football.

Perhaps the AA would file bankruptcy and get themselves under the protective shield of the court, which is allowed to take a whole bunch of factors into consideration when approving workouts. Creditors gonna get screwed on that one.
 
Didn't the Vols borrow from the school? Of course, GT would let football die
 
Most of the debt is in bond form. I don’t have it right in front of me but I want to say some were issued by the state and some by Fulton county. They probably aren’t going to look to kindly on someone not paying back bonds in their name.
 
Diseqc said:
Most of the debt is in bond form. I don’t have it right in front of me but I want to say some were issued by the state and some by Fulton county. They probably aren’t going to look to kindly on someone not paying back bonds in their name.
Click to expand...
So we're in bondage? Count me in!
 
Diseqc said:
Most of the debt is in bond form. I don’t have it right in front of me but I want to say some were issued by the state and some by Fulton county. They probably aren’t going to look to kindly on someone not paying back bonds in their name.
Click to expand...
Not all municipal bonds — even those issued in the name of an authority with taxation power — are entitled to general tax revenues. And if they're not, default is essentially a political choice.
 
18in32 said:
Not all municipal bonds — even those issued in the name of an authority with taxation power — are entitled to general tax revenues. And if they're not, default is essentially a political choice.
Click to expand...
If you know so much, why’d you start the thread?
 
18in32 said:
The other thread got me wondering...

I would be very curious to know when the last time a loan like this to a college AA actually went into some kind of workout/collections situation. Just what is the creditor's recourse?

Presumably it would involve attempting to garnish the ACC/TV dollars — but I'd bet those payments are contingent on a whole bunch of things (like fielding teams in various sports, etc.) that would be crippled if the AA lost the dollars. Plus there are all kind of rules — from the NCAA, from the ACC, from Title IX — that would limit the ability of the creditor to defund our programs.

Do the creditors have security interests in any of the AA's assets? And do any of the AA's assets have any value if the AA isn't operating them? I mean, who'd pay anything significant for the rights to Buzz and our other marks if they were no longer associated with the schools' teams? They would have a fraction of their value.

Or consider the physical assets. Once the creditors came and took away the office chairs and weights and so forth... what are they going to do with Grant Field? Imagine the hurdles to redeveloping that or using it for any purpose other than playing GT football.

Perhaps the AA would file bankruptcy and get themselves under the protective shield of the court, which is allowed to take a whole bunch of factors into consideration when approving workouts. Creditors gonna get screwed on that one.
Click to expand...
You do know that some uga troll that works for the ajc will see this. And the next sports headline will scream "Georgia Tech facing Bankruptcy"!
 
What will happen? Tech will start recruiting again and our football team will be in the Top 25 regularly.
 
18in32 said:
The other thread got me wondering...

I would be very curious to know when the last time a loan like this to a college AA actually went into some kind of workout/collections situation. Just what is the creditor's recourse?

Presumably it would involve attempting to garnish the ACC/TV dollars — but I'd bet those payments are contingent on a whole bunch of things (like fielding teams in various sports, etc.) that would be crippled if the AA lost the dollars. Plus there are all kind of rules — from the NCAA, from the ACC, from Title IX — that would limit the ability of the creditor to defund our programs.

Do the creditors have security interests in any of the AA's assets? And do any of the AA's assets have any value if the AA isn't operating them? I mean, who'd pay anything significant for the rights to Buzz and our other marks if they were no longer associated with the schools' teams? They would have a fraction of their value.

Or consider the physical assets. Once the creditors came and took away the office chairs and weights and so forth... what are they going to do with Grant Field? Imagine the hurdles to redeveloping that or using it for any purpose other than playing GT football.

Perhaps the AA would file bankruptcy and get themselves under the protective shield of the court, which is allowed to take a whole bunch of factors into consideration when approving workouts. Creditors gonna get screwed on that one.
Click to expand...
 
18in32 said:
The other thread got me wondering...

I would be very curious to know when the last time a loan like this to a college AA actually went into some kind of workout/collections situation. Just what is the creditor's recourse?

Presumably it would involve attempting to garnish the ACC/TV dollars — but I'd bet those payments are contingent on a whole bunch of things (like fielding teams in various sports, etc.) that would be crippled if the AA lost the dollars. Plus there are all kind of rules — from the NCAA, from the ACC, from Title IX — that would limit the ability of the creditor to defund our programs.

Do the creditors have security interests in any of the AA's assets? And do any of the AA's assets have any value if the AA isn't operating them? I mean, who'd pay anything significant for the rights to Buzz and our other marks if they were no longer associated with the schools' teams? They would have a fraction of their value.

Or consider the physical assets. Once the creditors came and took away the office chairs and weights and so forth... what are they going to do with Grant Field? Imagine the hurdles to redeveloping that or using it for any purpose other than playing GT football.

Perhaps the AA would file bankruptcy and get themselves under the protective shield of the court, which is allowed to take a whole bunch of factors into consideration when approving workouts. Creditors gonna get screwed on that one.
Click to expand...
We can just file bankruptcy and re-organize you know, the Donald Trump way
 
I've half-considered going down to the Fulton County Clerk office and pulling records on Grant Field. $111 million of our debt is for the north deck. The bonds have to be filed as deeds of trust, right?

Cal Berkeley athletics had $400 million in debt, because of required seismic improvements to their stadium. The main University bailed out Cal and took on $200 million of the debt.
 
You must log in or register to reply here.
Back
Top