Friday, March 02, 2007
Oklahoma State University announced on Thursday that it has secured $280-million for its athletics program by establishing $10-million life-insurance policies on 28 of its athletics boosters.
The university borrowed $20-million to set up the policies, and will be the sole beneficiary of the plans after the donors die.
The deal is believed to be one of the largest charity-owned life-insurance programs established by a university. Oklahoma State plans to use the money to create an endowment for athletics scholarships and to help pay for its sports facilities and operations. In the next five years, the university expects to spend more than $300-million on six new athletics buildings and an upgrade to its football stadium. All of those plans were in the works before Thursday's announcement.
...Oklahoma State officials appeared incredulous at the deal's potential payoff and what it might do for the university's sports program, which has one of the smallest budgets in the Big 12 Conference.
I am looking forward to the University of Minnesota's "Gas 'em for Goldy" program. (Source: Chronicle of Higher Education, subscriber's link.)