If we can't get the Haslam money, here are some alternative ways we can finance the hire of Phil Jackson or Coach K:
1) Our endowment is roughly $1 billion (it hit a high in 2007 and has fluctuated with the equity markets in recent years but should be back up near the $1 billion mark). About $200 million of this endowment is sitting in money market funds, which means that we are earning next to nothing with interest rates being at historic lows. If we want to improve our return on capital, we need to invest in something that produces a higher revenue stream....and that my friends is ATHLETICS!! Now my proposal is that we take the $200 million that is in money market funds, use it as collateral, and open a revolving credit facility with a consortium of banks. Now, keep in mind that we don't lose the money market investments, and the interest we pay on the revolver will be partially offset by our return on the collateral (which is still earning interest in the money market). The revolver will be for $200 million (fully collateralized); we then borrow off of this facility, and set up a new fund....we'll call it the "Phil Jackson Fund". Once we hire Phil (or Coach K or both), we will use the additional revenue stream from all the fan support and success we are having to pay down on the revolver. In addition, if we can get locked into a fixed rate on this facility, we can utilize the additional interest income off of the collateral to pay down on the debt as interest rates rise in coming years.
2) Get rid of all athletic programs other than football, basketball, women's basketball and baseball. These programs are nothing but cash burn and are financed through the money we make off of football and basketball (our only two programs w/ positive net income). We take the additional money from cutting these programs and offer it to Phil or Mike.
3) **Warning: this suggestion is a long-shot and highly risky, but I'm trying to encourage us to think outside of the box** We hire Charlie Sheen as our recruiting coordinator. If there is one thing we know about Charlie, it is that he is a Winner...he wins here, he wins there...its called bi-winning. Charlie could throw parties and invite the recruits over for a good time (only seniors would be allowed to come of course). The downside to this suggestion is that we would obviously be at risk for NCAA recruiting violations. However, the upside is huge...Charlie definitely knows how to throw a party!