UM facing Up to $1 billion financial

[DANC]

The IU system endowment was in the ballpark of ~$2.4B prior to the stock market dip. There is no reality in which anything close to 40% of the endowment is unrestricted.

I thought it was more than that. Do you have a source for your info?

 

[destewart]

I thought the UM projection includes more than athletics. Also, I can not find anything in a brief search that suggest IU has projected that loss (there was authority given to borrow up to that amount). Do you have a source that IU is predicting total losses to be $1 billion? Any breakdown as to athletic department portion?

It is more than athletics. You would not project a potential $1B
loss from athletics. If there is no school, as in the worst case scenario, almost all Big Ten schools would be facing unprecedented losses. There are financial losses and then there are the

I thought it was more than that. Do you have a source for your info?

He probably found it here

https://iufoundation.iu.edu/about/financial/endowment-rankings.html

https://www.ibj.com/articles/67002-smith-demystifying-university-endowments

 

[secondasky]

The donors or their estates would have to change the terms. The university or the state can't change those terms unilaterally.

Not exactly true. Did some asking and there are four types of endowments. Term, Unrestricted, quasi-endowment, and restricted. In concise "terms", Restricted would be if an individual wanted the money to go to a specific area. Quasi would usually be specific money from an institution. The other two would be more at the discretion of the university. And in the case of potential financial insolvency the university could get money from the other types but they would have to go to the courts or the state.

 

[Flooded Timber]

Not exactly what you were asking for, but the Board of Trustees discussed and approved a $1B line of credit to cover all potential needs. I assume that line of credit lines up with a worst-case scenario budget issue. IDS covered the ask here: https://www.idsnews.com/article/202...-trustees-to-borrow-1-billion-due-to-pandemic

Yes, I noticed that. The quote "I had heard the IU BOT had projected a potential loss in the same range." implies an actual projection, not an implied projection based upon a general borrowing authorization. I am unaware of any such actual projection. I have a home equity line with a continued $0 balance, but not sure it aligns with any worst-case scenario projection. Just there if needed.

 

[ORG]

Losses in coming year. I had heard the IU BOT had projected a potential loss in the same range. Likely a target number for most Power 5 universities.
https://iowa.forums.rivals.com/thre...-losses-this-yr-as-result-of-covid-19.313910/

A lot of schools, businesses, states and people are building-up their estimated losses in anticipation of a federal bail out.

 

[MyTeamIsOnTheFloor]

The Big House is now The Poor House

 

[DANC]

The Big House is now The Poor House

I won't be starting a GoFundMe account for them......

 

[goody1986]

I thought it was more than that. Do you have a source for your info?

Straight from the foundation: https://iufoundation.iu.edu/about/financial/endowment-rankings.html