October 22, 2008

I've got to go...T. Boone Pickens just walked in my door...and he's broke!

With all of the hype surrounding this weekend's clash between undefeated and No. 7 ranked Oklahoma State heads to Austin to take on No. 1 ranked and fellow undefeated Big XII member Texas, there's an interesting story brewing back in Stillwater. One that could have far broader implications than the outcome of Saturday's nationally televised tilt.

Earlier in the decade, renowned business tycoon and oil man T. Boone Pickens-who also happens to be a huge OSU Cowboys fan-donated $165,000,000.00(US) to the school's athletic department. It was the largest ever to a single AD in collegiate athletic history.

The only caveat was that Pickens be the ultimate decision maker with how and whom spent the money. When OSU readily accepted those terms, Pickens put the money into his hedge fund kitty, BP Capital. After just a few years, and a few shrewd moves by the wily Pickens, the gift had ballooned to over $300 million.

OSU, in the meantime, went on a huge building spree, renovating (you guessed it) T. Boone Pickens Stadium to the tune of $200,000,000.00, as well as an audacious "Athletes Village" that would be a facility unparalleled in collegiate athletics. Oklahoma State was positioning the Cowboy Athletics Program to compete on a level no one could come close to in terms of facilities and support system.

What's that old saying about what comes up...and where it must go?

Well, we all know the economy's bad, but is it this bad in Stillwater?

Google News & the link at Fan IQ have basically chronicled the fact that T. Boone's decision to leave the gift-all $300 million-in the hedge fund, combined with the sudden drop in oil and the market volatility on Wall Street have rendered the gift completely "gone" in the words of those close to the situation.

The problem now is that Oklahoma State had borrowed the $200,000,000.00 to renovate their football stadium, and the interest on the debt alone is $1.3 million, monthly. The collateral for the renovation loan? You guessed it...the gift in the BP Fund. Which is now gone...

Various media reports indicate that Pickens has lost at least a billion dollars in the markets himself. So, dear readers...Whose gonna pay this month's million dollar bill for the Cowboys?

Comments:

I've got to go...T. Boone Pickens just walked in my door...and he's broke!
With all of the hype surrounding this weekend's clash between undefeated and No. 7 ranked Oklahoma State heads to Austin to take on No. 1 ranked and fellow undefeated Big XII member Texas, there's an interesting story brewing back in Stillwater. One that could have far broader implications than the outcome of Saturday's nationally televised tilt. Earlier in the decade, renowned business tycoon and oil man T. Boone Pickens-who also happens to be a huge OSU Cowboys fan-donated $165,000,000.00(US) to the school's athletic department. It was the largest ever to a single AD in collegiate athletic history. The only caveat was that Pickens be the ultimate decision maker with how and whom spent the money. When OSU readily accepted those terms, Pickens put the money into his hedge fund kitty, BP Capital. After just a few years, and a few shrewd moves by the wily Pickens, the gift had ballooned to over $300 million. OSU, in the meantime, went on a huge building spree, renovating (you guessed it) T. Boone Pickens Stadium to the tune of $200,000,000.00, as well as an audacious "Athletes Village" that would be a facility unparalleled in collegiate athletics. Oklahoma State was positioning the Cowboy Athletics Program to compete on a level no one could come close to in terms of facilities and support system. What's that old saying about what comes up...and where it must go? Well, we all know the economy's bad, but is it this bad in Stillwater? Google News & the link at Fan IQ have basically chronicled the fact that T. Boone's decision to leave the gift-all $300 million-in the hedge fund, combined with the sudden drop in oil and the market volatility on Wall Street have rendered the gift completely "gone" in the words of those close to the situation. The problem now is that Oklahoma State had borrowed the $200,000,000.00 to renovate their football stadium, and the interest on the debt alone is $1.3 million, monthly. The collateral for the renovation loan? You guessed it...the gift in the BP Fund. Which is now gone... Various media reports indicate that Pickens has lost at least a billion dollars in the markets himself. So, dear readers...Whose gonna pay this month's million dollar bill for the Cowboys?