Delicious Irony: Tennessee is almost "out of business."

Crimson1967

Hall of Fame
Nov 22, 2011
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I am up here this week and having a little time to listen to sports radio and they are laughing at themselves to keep from jumping off a bridge. Some talk show was saying something along the lines that the AD was paying Dooley around $100,000.00 a month to NOT work. I do not know if that is true but if it is, then good for Dooley!
They'll save some money since his salary from the Cowboys is deducted from the buyout, assuming his deal was the same as Cheesy's.
 

4Q Basket Case

FB|BB Moderator
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Nov 8, 2004
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That is a good question. I hear on local radio that the academic side is going to give the UT AD something near $18 million over the next 5-6 years to try to make up some of their deficit. In order to do this, they are cutting $5-6 million in academic scholarships. There will most likely be tuition increases as well.
I'm not a lawyer, but I deal with a lot of bankruptcy issues in my job. I also slept at a Holiday Inn Express last night : - )

Given a layman's understanding, I think the answer to your question would depend on a lot of things.

First, is the UT Athletic Department legally separate from the University? I'm guessing so. But if the University guarantees any of the debt, that might not matter. Would the fact that the University's Board of Trustees approved the contract that led to the debt figure in? I don't know, but I'd bet a lot of money that this would be a point of contention.

Who actually owes the money? The Athletic Department? The University? The UT version of the Crimson Tide Foundation? Sounds like form over substance, I know. But trust me, it makes a HUGE difference.

Can the legal obligor on the debt file without dragging a much larger institution (i.e., the University) in as well?

What Chapter of the code applies? Chapter 11 is what most corporations file under for reorganization. But I don't know if it would apply to the obligor. Chapter 9 applies to municipalities. Does it apply to bigger governmental entities (like states)?

I'm unaware of any bankruptcy filings brought on by financial difficulties in the Athletic Department of a major public University. My guess is that there would be all sorts of precedents set, and that nobody really knows how all that would fall out.
 

selmaborntidefan

TideFans Legend
Mar 31, 2000
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Well given what they pulled on us, I honestly don't care if the place burns down. Other universities will offer those majors. Besides, they could have kept Dooley.
 

chris

All-SEC
May 17, 2001
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No one gets more satisfaction outta seeing their downfall BUT,I'd much rather see Alabama beat their ...,especially when it's in knoxville,on the field than this. To me that's even more humiliating! ROLL TIDE ROLL!!!
 

ALA2262

All-American
Aug 4, 2007
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I knew our program was flush with cash, but $120 million IN RESERVES? I want to believe that, but I'd like to see that verified.
This article says most SEC schools have reserves between 50 and 100. Bama certainly should be above average.

"With those savings, Tennessee projects a balanced budget in 2012-13, which is a necessity for a program with just $1.95 million in reserves. Building reserves into the $50 million range or more is a priority, said Hart, who added that most SEC schools have reserves ranging from $50 million to $100 million."

http://aol.sportingnews.com/ncaa-fo...t-debt-200-million-sec-derek-dooley-dave-hart
 

Al A Bama

Hall of Fame
Jun 24, 2011
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I sent a daughter to two degrees at UT because her major wasn't available in the state of Alabama, and what she's doing today is a direct result of those degrees. Sometimes, academics have to trump emotions and loyalty...
But, does it have to be there at that stinking place. Was that institution of "higher" learning the only place with degree offering needed? I'm sure it wasn't so stinking when Neyland was there or when Johnny Majors was there. That place started to emit a very bad odor while The Phat man" was there. I'm sure they got what was coming for providing that double Secret Witness.

Now, I love driving through the hills of Tennessee, but that awful color they use is revolting. I have to turn my head when I see that color. How would you like your office to be painted that color? I'd QUIT!

Well, I do believe what goes around also comes around. It seems that it is currently coming around.
 

TIDE-HSV

Senior Administrator
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Oct 13, 1999
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But, does it have to be there at that stinking place. Was that institution of "higher" learning the only place with degree offering needed? I'm sure it wasn't so stinking when Neyland was there or when Johnny Majors was there. That place started to emit a very bad odor while The Phat man" was there. I'm sure they got what was coming for providing that double Secret Witness.

Now, I love driving through the hills of Tennessee, but that awful color they use is revolting. I have to turn my head when I see that color. How would you like your office to be painted that color? I'd QUIT!

Well, I do believe what goes around also comes around. It seems that it is currently coming around.
This was a long time ago, about thirty years, long before Fulmer and the current hard feelings, and no, there wasn't a good alternative anywhere reasonably close for her field...
 

TIDE-HSV

Senior Administrator
Staff member
Oct 13, 1999
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This article from ESPN downplays the ut debt and makes it sound as if schools like lsu and BAMA are suffering massive debt

http://m.espn.go.com/general/blogs/blogpost?blogname=playbookdollars&id=2837


Sent from my iPhone using Tapatalk
Written by people ignorant of accounting. Our debt is long-term bond issues to cover the last two expansions, which, given recent history, we'll pay off early. We could have paid cash, but bonds made more sense because, given current interest rates, it's almost free money. The new weight facility, IIRC, was covered by advance pledges. UT's problem is what's called the "quick ratio," in accounting terms and they have to turn things around soon or the state will have to start subsidizing the football program (the way we do UAB), instead of the football program helping fund the university, as in Bama's case...
 

GeorgiaTider

All-SEC
Oct 30, 2005
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I sent a daughter to two degrees at UT because her major wasn't available in the state of Alabama, and what she's doing today is a direct result of those degrees. Sometimes, academics have to trump emotions and loyalty...
I agree. I could care less if UT ever wins another game or fields a competitive team, but I do not want them to go out of business.
 

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