Wouldn't it be more value added for Washington and Oregon to borrow from their future full shares for the next 6 years? Essentially $30M/Annual + $15 Borrowed Annual

This is an automated archive made by the Lemmit Bot.

The original was posted on /r/cfb by /u/InevitableAd2436 on 2024-05-31 17:09:58+00:00.

---

Per Washington and Oregon’s inclusion into the B1G, they’re currently awarded half shares until 2030 - However, they’re able to borrow against their future full share at zero percent interest.

With Interest Rates as high as they are and money being more expensive than at any point in the past few decades, couldn’t they just borrow an extra $15M annual until 2030 and then take their full share less $15M annual commensurate with their borrow length (likely 6 years).

Could easily deploy that $15M into treasuries paying 5.2% or even use for Capex projects (UW’s nutrition center for athletes) at a much cheaper rate than getting a loan. I can’t remember what Troy Dannen has said of this situation in the past, but I remember he discussed loans would be 0% interest.