https://floridastate.forums.rivals.com/threads/college-town-and-finances.251806/#post-4305339
the report referenced is after amortization and depreciation and after paying the FSU Athletics Endowment $960,000 in interest earning as CT is an investment of the endowment. Those investment earnings, along with about $2 million additional endowment investment earnings are transferred from SBI to athletics to help fund the cost of scholarships.
That timing of that audited report is only for the First Phase of CT. We are now on phase 3.
In addition to what the investment is earning for scholarships, CT has appreciated tremendously which is a huge benefit to the scholarship endowment so many of you all care about. When we sell CT, the proceeds from that sale go directly into the endowment fund. So CT is actually helping FSU build our scholarship endowment.
In additon to the appreciation on the actual land on which CT resides, CT has driven up the value of all the land in the area of which SBI owns some 20 acres. Some of it is used for parking (lot 10 is one such parcel). Some for RVs. And some is a commercial investment, for instance the CVS on Woodward and Pensacola is a long term lease of SBI land and we still own Burt Reynolds Hall on Hayden Road and Pensacola and Champions Hall which houses football an regular students. All of those properties are income producing with the income earned a part of the $21 million annual transfer from SBI to Athletics.
All of these properties, and others, serve as a safety net or reserve fund. While we don't care to sell any of the appreciating land we accumulated through donations, bargain sales, or life estates, it is a reserve fund for a rainy day.
CT has been the catalyst for a lot of appreciation in our "reserve fund" and helped to provide our fans with amenities when coming to Seminole sports events.
Good question. I think I gave a pretty thorough answer above.
Short answer: it is generating almost $1 million a year in earnings to the scholarship endowment with those earning being transfered to athletics for scholarships each year.
But it also has driven up the value and the earnings on a lot of other income producing property in the area which helps SBI fund a $21 million annual transfer to the athletics budget.
See my previous post for more.
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