T. Boone Pickens $165 Million Donation To Oklahoma State Football Is Completely Gone. School In Massive Debt.

Oklahoma State Is Officially Screwed

10/22/08 in NCAAF   |   100%InjuryRate   |   1283 respect

You probably heard a few years ago that T. Boone Pickens, who chairs the hedge fund BP Capital Management, gave Oklahoma State a $165 million donation to be used all for helping the school's athletic program. And the largest portion of it was going to be used to beef up the school's football stadium and football facilities.

Well, there was one problem with Boone's donation. He left the donation in the hedge fund, which initially seemed to be a good idea as oil prices soared in a post Katrina economic climate, swelling the initial gift to over $300 million.  That was before things began to turn in 2007, as international demand for oil failed to meet projections, causing the fund to come to a sudden standstill, and then dropping on mistakes made by fund managers, who were managed by Pickens.

Anyway, Pickens resisted pleas by some OSU Regents to bank a good deal of the balance out of the fund when it exceeded $300 million, which was only 14 months ago. Instead Pickens decided on borrowing almost $200 million needed to expand and renovate Boone Pickens Stadium on the Stillwater campus, despite the fact that the donation was dropping in value.

Now, here's the bad news. Yesterday all indications were that OSU Regents had been told last Friday afternoon that a large portion of the Pickens donation in the BP Capital hedge fund was virtually wiped out by margin calls on the funds investments in the third quarter.

Well, that's not actually the case. It seems that ALL of the money is gone (the link provided is for a members site, but you can read the full article here).

Officials were told that actually, the entire $ 165 million donation, and the earnings, which once inflated the gift to over $300 million, had recently been eliminated by margin calls due to drastically falling oil prices.

As of Monday OSU's gift had flat-lined completely and was declared 'gone.
'

And just so you know, the school has already made a lot of those improvements to the football field . That's because the school borrowed almost all funds used in the stadium expansion plans using the $300 million balance in BP Capital as collateral.

Yikes. So, um, Oklahoma State is now in debt of close to $300 million dollars.

I have no idea how in God's name they're going to get out of this. State schools don't exactly have an extra $300 million sitting around.

Has a college ever actually declared bankruptcy? I'm not sure, but we're probably about to find out.

It can only get better, it can't get any worse... [
OU Insider]
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10/26/11   |   CaptainTerry   |   2 respect


http://www.marketwatch.com/news/story/oklahoma-state-university-issues-statement/story.aspx?guid={6760866A-A848-42F3-8A61-6B29A9163358}&dist=hppr

STILLWATER, Okla., Oct 24, 2008 (BUSINESS WIRE) -- Oklahoma State University is issuing the following statement through spokesperson Gary Shutt in response to erroneous and anonymous blog postings concerning the status of the funds donated by Boone Pickens and reinvested in BP Capital, as well as the future of the west end zone project.
Rumors circulating that the funds generously donated by Boone Pickens to Oklahoma State University's athletic program have been completely depleted and the massive west end zone project will not be finished are, without question, false. They are simply not true.
While it is our practice to refrain from commenting on specific donor activity, the fund still has considerable assets and plans continue unabated to finish the west end zone, which is the cornerstone of transforming Boone Pickens Stadium into an exceptional college football venue. The west end zone project remains on schedule with an expected completion next summer. The OSU/A&M Board of Regents remain in complete support of our direction.
Boone has been very generous to Oklahoma State University with historic gifts to both athletics and academics. His gifts remain transforming, and the impact of his generosity will be enjoyed by OSU students, faculty, alumni and supporters for decades to come.
We are considerably further ahead now than we ever would have been without Boone Pickens incredible gifts, as well as the many others who have stepped up in recent years to support both athletic and academic programs and initiatives at record levels. Thanks to donor support, we have tremendous momentum and great enthusiasm in academics and athletics across our campus and among our alumni.

***

1/19/09   |   ldove64gus

This would be a sensational story if it had much truth to it but as usual we have yellow journalism ad litem trying to create something from nothing.  There have been significant losses to the OSU foundation buidling fund but those losses were almost entirely paper profits that had not been realized.  For the most part, this article is wishful thinking from OU fans who hope that OSU's recent success in building all athletic programs is short lived.  However, as we have seen with Oregon and Phil Knight's initial donations, they were the impetus for continued donations not only from him and his related entities but a significant broadening of their donor base.  Time will tell if this recipe will work for OSU but a continued emphasis on building and strengthing all programs and improvement of facilities in order to assist in continuing to recruit outstanding student athletes.  OSU does not and never will have the benefit of tens of thousands of fans with no association to the university other than supporting a football team.  However, with one of the most successful overall athletic programs in the United States (2nd or 3rd in overall National Championships) and a committment by many alumni to fund facilities that can allow them to be even more competitive, it is likely that the fear mongered by some OU fans may be justified.

10/28/08   |   iam_honest

Jubanator14 wrote:
You can't buy tradition.

Sure you can you buy tradition.  Just ask Clay Bennett and all OKC Plunder fans who bought Seattle's history along with the team.  They all actually believe all of the 41 years of history happened in OKC.  Just ask them.  Its how all the OK hicks roll.  As a Laker fan in Cali, Seattle was my enemy but they were never OK crooked sooners.

10/24/08   |   Jubanator14   |   367 respect

wrote:
Once again, typical OU response. No one said anything about tradition. Boone is trying to help OSU compete with the best by giving them some of the best facilities in the nation. Your idol Barry Switzer said it best:

http://www.youtube.com/watch?v=7KV-jBcLqeM

The funding was never available in the past, and now it is, despite James Hale praying as hard as he can that it isn't.

I know what Switzer said. Even with all of those facilities, OSU still won't be on the level of OU. They will be a 8-4 or 7-5 team year in and year out. Sorry.

10/24/08   |   Jubanator14   |   367 respect

wrote:
Considering OSU fans don't care that you call us that, I don't get how it is an insult. Just another OU fan that thinks you are being clever.

Some people will believe anything they read. Boone's $165 million is Ok State's, period. He promised the $165 million no matter what. He is rich and still has money to pay if forced to. He just invested it in his fund to try and help Ok State fund the "Athletic Village" they are building.

And, the money isn't gone, Boone said so himself:

http://www.cnbc.com/id/27240502

"Darren: Are you still in the positive on that initial $165 million investment?

Pickens: We're up a little bit. Not much though."


James Hale is a convicted felon and a complete hack. I have heard him on the radio trash a 5 star recruit who didn't choose OU then go on and on about a 2 star. Most of the time the 2 star never sees the field. The guy hates OSU and has written multiple Ok State articles on OUinsider, all have stretched the facts and shown his hate for Ok State.

You can't buy tradition.

10/23/08   |   firemanflip

Here is another stupid article that isn't even true, but I guess you can beleive anything you read on OU Insider.  Boones original $165 mil is safe along with a little of the interest.  Most of the interest was lost, but the money was pulled before it was all gone.  There is enough money to finish the stadium ON SCHDULE, but they are pushing back the starting of the indoor practice facility till the market goes back up.  But don't all you sooner fans worry, Boone has plenty more money and he is already planning a party for when his donations reach 1 Billion.  So I see plenty more money coming OSU's way.

10/23/08   |   illsidewebm

(Edited by illsidewebm)

10/22/08   |   Boski93   |   375 respect

billywa wrote:
Easy Pickens Stadium also works well, but Nose Pickens gives the aggies a concept they can relate to without making them think too much...

and the crowd goes wild!

+1000

10/22/08   |   billywa   |   658 respect

Boski93 wrote:
Les Miles is giggling like a school girl right now.

Another suggestion for the Stadium  "Boone's Farm Stadium"
(Edited by billywa)

Easy Pickens Stadium also works well, but Nose Pickens gives the aggies a concept they can relate to without making them think too much...

10/22/08   |   Pat   |   5135 respect

Jubanator14 wrote:
You should know that being OSU's number 1 fan and all

Don't even ask me how THAT happened...

10/22/08   |   Jubanator14   |   367 respect

Pat wrote:
Gotcha.

You should know that being OSU's number 1 fan and all

10/22/08   |   derms33   |   17642 respect

I thought of Slim Pickens riding that bomb

10/22/08   |   Pat   |   5135 respect

Jubanator14 wrote:
Something we call OSU, as an insult, since they were originally known as the Aggies when they were Oklahoma A&M and they are a known for being a big agriculture school. Hence...Aggies

Gotcha.

10/22/08   |   Jubanator14   |   367 respect

Pat wrote:
Aggies?

Something we call OSU, as an insult, since they were originally known as the Aggies when they were Oklahoma A&M and they are a known for being a big agriculture school. Hence...Aggies

10/22/08   |   kantwistaye   |   4201 respect

Ahh, Boone's Farm.... nothing like having to chug multiple bottles of wine just to get slight buzz.

10/22/08   |   Pat   |   5135 respect

Jubanator14 wrote:
Nice...And that right there is why Oklahoma St. will always be the younger brother (or sister) to OU. Poor Aggies...Ha!

Aggies?

10/22/08   |   Boski93   |   375 respect

Les Miles is giggling like a school girl right now.

Another suggestion for the Stadium  "Boone's Farm Stadium"

10/22/08   |   100%InjuryRate   |   1283 respect

billywa wrote:
Here's an easy solution: Rename the stadium Nose Pickens Stadium then sell the naming rights to the folks at Mucinex for $30 million a year for 10 years and voila! Problem solved! 

Guess this is what happens when you decide to expand the stadium you don't sell out unless OU is in town (every other year).  But fortunately, the pokes have those powerhouse golf and wrestling programs we always hear about to pick up the revenue slack!

+100 for Nose Pickens Stadium.

10/22/08   |   billywa   |   658 respect

Here's an easy solution: Rename the stadium Nose Pickens Stadium then sell the naming rights to the folks at Mucinex for $30 million a year for 10 years and voila! Problem solved! 

Guess this is what happens when you decide to expand the stadium you don't sell out unless OU is in town (every other year).  But fortunately, the pokes have those powerhouse golf and wrestling programs we always hear about to pick up the revenue slack!

10/22/08   |   Ryan   |   153 respect

Suddenly I don't feel so bad about not having enough money to buy an iPhone......

10/22/08   |   Jubanator14   |   367 respect

Nice...And that right there is why Oklahoma St. will always be the younger brother (or sister) to OU. Poor Aggies...Ha!