Washington State University may use debt to fix the university’s athletics budget shortfall
By Greg Mason, The Spokesman-Review
Published: May 6, 2021, 8:24am
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For Washington State University, getting the athletics department out of debt might require diving into new debt.
The athletics budget for the current year is facing a projected $31.1 million shortfall, according to the most recent calculations, with officials attributing significant losses to COVID-19 restrictions on collegiate athletics in the past year.
To balance the budget, university administrators have proposed issuing approximately $35.6 millionin general university bonds. WSU officials have estimated the cost of the ensuing debt, which would be repaid through future Pac-12 Conference media and bowl revenues, at approximately $1.6 million per year based on a 20-year repayment term and current market rates.