$16 million loan to A&M athletics department news to me, how about you?
Published Friday, June 05, 2009 1:17 AM
robert.cessna@theeagle.com
View all Robert's Blogs
How about that $16 million line of credit that former Texas A&M President Bob Gates gave the athletic department?
That’s news to me, and I don’t think I’m the only one.
But the bigger news is yet to come. Where has the money been going? When did the loan kick in? How close is the department to being self-sufficient? Is this something that the Athletics Department will pay back or was it an Aggie stimulus package?
If A&M needed a loan before these tough economic times, what’s ahead?
In case you missed it, A&M President Elsa Murano talked about the $16 million line of credit in response to her annual evaluation by Chancellor Mike McKinney.
Under her goals and projects not addressed or incomplete, the athletic department’s line of credit is No. 6 in her list of six.
“The athletics department has been operating in a deficit situation for several years. President Gates extended a line of credit to them, totaling $16 million, in order to alleviate the situation. Unfortunately, it does not appear that concomitant with the line of credit that was extended, that the Athletics Department was required to implement measures that would enable it to become self-sufficient, or to at least reduce its expenditures to more tolerable levels. This year will be the last installment of expenditures to be covered by the university to complete the line of credit agreement that Dr. Gates authorized. It is imperative that a business plan now be developed and implemented by Athletics, to ensure that expenditures are kept in check and that strict adherence to that budget is realized. Rigorous oversight by the university’s Office of Finance is being established to ensure compliance with the plan.”
Remember, her evaluation covers Jan. 2, 2008, to Dec. 31, 2008. So, if I’m reading this right, the loan might have only half a year left.
I can see why Murano might be a little sensitive. If she’s getting blasted for not getting her act in gear in 12 months, why can’t the Athletics Department be self-sufficient after getting an extra $16 million to work with?
This is a sidebar from the Murano-McKinney battle that will provide plenty of fireworks on its own. I’m anxious to hear what the Board of Regents, athletics director Bill Byrne and McKinney have to say about the loan. Remember, McKinney has a somewhat vested interest in athletics. His two sons played football at A&M.
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Comments
19 comment(s) found!
Posted by: On: 6/13/2009
Comment Title:
bEAT IT
Posted by: miller58 On: 6/10/2009
Comment Title: OOP'S !!! MIKE SHERMAN DID IT AGAIN?
My personal opinions;_____ Mike Sherman proved for the 13th time in recent weeks, that A&M can't even recruit tu's leftovers?_____San Antonio Cornerback John Jay 5-10 175 4.4 today pulled the trigger to commit to tcu?
Posted by: miller58 On: 6/10/2009
Comment Title: OOPS !!! SHERMAN DID IT AGAIN?
My personal opinions: Mike Sherman proved again that we can;teven recruit tu's leftovers, when San Antonio Cornerback John Jay 5-10 175 4.4, turned down Mike for the 13 time in the past few weeks to commit to tcu?_____miller58
Posted by: miller58 On: 6/10/2009
Comment Title: $16 MILLION QUESTIONS, NO FACTS, OR CONCLUSIONS, JUST RUMORS AND SPECULATION?
My personal opinions:_____ On another blog, it hinted that McKnney wanted to fire Murano, combine his and her jobs into one, and make room for McKinney's friend to be hired in that job, after leaving the state house?_____No facts or sources were presented to confirm this, and I don't know any new facts, so it's strickly speculation and rumor at best?_____But again a strickly unsubstanciated speculative question came up: was Coach Fran fired, just to make room for McKinney's seemingly super unqualified friend, Mike Sherman?_____The speculation was With No NCAA violation found involved, Fran A&M contract was due salary up to 2013, and did Mckinney authorize spending about $9 million or so of that $16 million to pay off Fran' salary, and make room for his friend, Mike Sherman?_____More speculation by some, suggest Mckinney's friend Sherman, was grossly overpaid, no one else was even competing for mikes almost $5000 per day services at A&M, and a 7 years contract was ridiculously long?_____Mikes 9 assistant coaches reportedly, are paid about $2 million a year?_____If any of this speculation is true, $9 million to Fran and a couple of years of Mike and his 9 assistants salaries at almost $4 million per year, and McKinney has already authorized spending and spent the $16 million??????????_____Just all specultion and questions at this point!_____miller58
Posted by: Crocker R.A.B. On: 6/9/2009
Comment Title: Who is the answer
Good question. If Sherman flames out in 2011 (face it Ags, Sherman's going to get at least four years to prove he can win), who will replace him. I'd heard lots of comments about "young energetic coaches". The only problem with them is they are unproven wild cards. Think Bob Petrino or Jeff Tedford. They might succeed at A&M, they might not. You want someone proven? Here's a list of the best coaches in the country: Bob Stoops, Mack Brown, Pete Carroll, Jim Tressel, Urban Meyer, Nick Saban, and Butch Davis. Those guys are proven winners and they've won at and/or resurrected programs. In most cases they've won big at more than one school. The only dude in that bunch that would even possibly leave their current position for Texas A&M is Butch Davis. And that's "maybe".
Posted by: Crocker R.A.B. On: 6/9/2009
Comment Title: Re: Florida Mike
Correction: Fran was absolutely NOT his hire. He got stuck with Fran. From what I understand it was Lowry Mays who pushed very very hard for Fran. Shows you why a CEO shouldn't be running an AD. Gillispie was a great hire but the basketball team is still in great shape with Turgeon. Childress won the Big 12 last year, hasn't made it to the CWS yet, but he had a young team this year and might make it next year. Almost every other AD in the country agrees that Bill Byrne is among the best AD's around.
Posted by: Florida Mike On: 6/9/2009
Comment Title: Line of Credit
Face it aggies, Bill Byrne is not a quality AD and he has not delivered. Soft sports is carring his water. Look at his major hires, Fran, Sherman, Gillespie, Turgeon and Childress. Outside of Gillespie no one has taken us to the next level! Byrne came in raised our season tickets into the ozone layer with a poor field product. Look he made no great hires in Nebraska either...he had Osborne to carry him...he did hire Osborne's replacement, then jumped shipped and came to TAMU. Look folks, the $16 million hasn't helped one bit. I think it's time to cut your losses and send him down the road kicking beer cans.
Posted by: On: 6/9/2009
Comment Title:
Now that we have examined the fact that RC, Fran, and Sherman are not the answer why not turn our attention to who is rather tahn comparing bad against worse.
Posted by: Crocker R.A.B. On: 6/9/2009
Comment Title:
What was Fran's record against the Big 12? Didn't he go 0-5 against OU, 2-3 against tu, and 1-4 against Tech? Why do you leave Fran's record out miller58? It wasn't even as successful as RC mediocre record. You said in an earlier posting that RC inherited five years of Jackie's players. If that's the case, then Sherman inherited 5 years of Fran's players. So if Sherman doesn't do squat for his first three years, we know who to blame. If you're going to give Jackie credit for RC's first five years, then the least you can do is give Fran credit (or discredit) for Sherman's loses during his first three seasons.
Posted by: On: 6/8/2009
Comment Title:
Anybody ready to extend Sherman's contract til he is ready to retire and name Kines as his replacement when he does. How do you think they got away with that at tu. Oh, wait........
Posted by: miller58 On: 6/8/2009
Comment Title: __________RE: AGS SICK OF 20 YEARS OF LOSING?
My persomal opinions:_____FACTS are, we have not won or even played in an mnc game during this period!_____Facts are RC's record against other Big 12 teams is 35-23._____Facts are stoops Big 12 record is 73-14; and Mac's record is 73-18._____Since joining the Big 12, A&M has lost more than 4 games out of every 10 to Big 12 teams; and lost additional games to out of conference ranked teams and ranked bowl teams?_____A&M must get a good experienced winning coach that can compete within two years for the Big 12 and MNC every year, just like sadly only tu and ou do now>_____miller58
Posted by: Houston Astros fan- ALUM 1999 On: 6/8/2009
Comment Title: Good article...
for so long now, aTm athletics are being controlled by the university. The sole reason for this is that -our athletics has'nt been a national powerhouse. Looking at this year's big12 overall championship report, we are not that very much competitive (what more of a national level). We have had droughts in national television exposures w/c is btw a big time money, and not to mention we losing our credibility as the second largest university system in the conference. Our endowments and royalties are not that competive either. Our rival has had their athletics seperated for quite awhile now. For the reason being, they have had share of national exposure of almost every athletics program there is. SAy for instance for CWS appearances w/c will be telecasted twice and will be more if they proceed onto winning more. They are and has been the flagship of the state. aTm athletics has got to be seperate itself to avoiding polics in the academia. Academics and athletics combined are just for a typical Div. II schools. I don't why A&M has to be that way. We have the facilities and we have to put 'em in use for t A&M's credibility. Successful athletics program creates attraction and profits.
Posted by: 05 On: 6/8/2009
Comment Title: SOLUTION
Get rid of other sports then concentrate on golf. Get rid of football, basketball then concentrate on GOLF and Track.
Posted by: On: 6/7/2009
Comment Title: Re: Ags sick of 20+ years of losing
First, didn't RC win two South titles and one Big 12 title in the late 90s? So it's really only 10 years, NOT 20 years, miller58. Second, five of the last ten seasons were under Fran. So miller58, we all know you're a Big Fan of Fran. Please answer us this: was Fran's tenure successful? If you claim it was, then why do you complain of such poor records the last ten years? If you claim his time in Aggieland was not successful, then why do you continuously berate the Ath Dept and overall administration for letting him go? I don't believe Fran lived up to expectations. And I think anyone who would suggest otherwise is looking through rose-colored glass. Maybe you're a personal friend of his, maybe you were in Rotary together, maybe you were in the same Sunday School class together. I don't know. I do know this: you would be hard pressed to find anyone who would argue that his time at A&M was a success.
Posted by: John On: 6/7/2009
Comment Title: It worries me
But not as much as the mental health of Miller58
Posted by: miller58 On: 6/5/2009
Comment Title: A&M HAS LOST MORE THAN 4 OUT OF EVERY 10 GAMES TO BIG 12 TEAMS SINCE THE MID 90'S!
My personal opinions:_____Aggies are just sick of 20 years of poor losing coaching and worse recruiting!_____This hanging on to poor losing coaching and worse recruiting must just stop today?_____A hint!_____'bama had a very similar crappy 5 year record to A&M and reportedly, donations and fan support had leveled off,_____They hired a good experienced college winning head coach that recruited 22 difference makers the first full season; and he won 12 regular season games his second full season in the tough SEC!_____Fan support and DONATIONS reportedly went up by multiples, and they are very happy fan wise and financially!_____'bama won't be satisfied until they are winning mnc's again, though?_____A&M could hire a good winning college head coach today, recruit 22 difference makers for the class of Feb 2011, compete for the Big 12 in fall 2011, increase fan support by 10-20-30 thousand; and be rolling in donations in multiples of the current level, and be financially sound all by the end of 2011!_____It still would scare the hell out of me for anyone connected with the current good ole boy administration to select this coach; it must be done by outside independent professionals with a large preaproved budget(~ $4 1/2 million/yr coach salary, plus $15-20 million 10 year performance bonus, plus up to $3 million/yr 9 assistants salary) , Coach subject only to regents final approval!_____And the new coach must only "get" recruiting and winning: and to hell with getting the good ole boys at A&M!_____These good ole boys have had us losing more than 4 games out of every 10 against Big 12 teams, since the start of the Big 12 and they are just done!_____( PS- sorry I kept y'all waiting, early tee time you know, but the wait was worth it!)_____ miller58
Posted by: On: 6/5/2009
Comment Title:
Come on guys !! The rants about miller are beating the miller rants to the board and they are becoming more numerous. Getting to be a battle of who is hardest to deal with.
Posted by: millerr58 On: 6/5/2009
Comment Title: miller58 rant coming in 5...4...3...2...1...
Here it comes. Get ready. As predictable as the sun rising.
Posted by: On: 6/5/2009
Comment Title: OMG!
aTm with financial problems? Well with all the facilities who would have thought? Plus, start winning football. LonghornsInc. is seperated from the university but contributes alot to the university governing bodies. It's also the nation's most profitable athletic program with generous royalties and profits. Start winning football and who knows we would'nt even talk about aTm being broke. BTW, A&M still owes money to the Longhorns Inc. -just so you know.
