Tennessee financial woes mostly due to Neyland Stadium renovations | Saturday Down South
"Tennessees athletic department is over $200 million in debt, according to a report this week from Street & Smiths SportsBusiness Journal. The report notes the department 'spends a startling $21 million a year on debt payments, $13.5 million of which comes from the schools stressed $99.5 million athletic budget and the rest from donations.' Most of the debt is attributable to costly renovations made to Neyland Stadium in the past decade."
"While its easy to say this in hindsight, Tennessee shot itself in the foot with the Neyland Stadium renovations. Its a classic example of malinvestment during an economic boom fueled by easy access to credit, not to mention the inability of Harts predecessors to assess their economic reality. Tying long-term capital improvements to the football teams win-loss record is a shaky proposition at best."