"Gift of a Lifetime" Dead

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TouchdownCowboys

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What other universities did this successfully? I recall that some showed an interest after OSU did it and started looking into it, but it was pretty clear that OSU was out front on this one. I still do not understand the base logic on taking this insurance bet. Sounded ridiculous to me at the time and still cannot believe Pickens and the OSU execs thought this could do better than break even.

Regarding an appeal, I'm not sure why some of you are expecting a different result than the trial court. Appeals are not usually succesful and can only be successful when the lower court got the law wrong (but the appeal court has to accept the facts found by the trial court).
My memory was Harvard using it for their endowment.
 
Apr 16, 2008
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$33 Million lost in the bad insurance deal
+ $275 Million lost in the athletic village hedge fund crapping out*
Over 300 Million dollars lost!

I know Boone and Holder have done great things for OSU athletics, but that's an inexcusable amount of money lost.:cursing:




*Over the next two years, the gift from Pickens would grow to roughly $400 million.
...By October 2008, Pickens' gift had shrunk to an estimated $125 million, at which point it was returned to OSU.
http://newsok.com/osus-athletic-village-finally-under-construction/article/3656439#ixzz1p2PNdZPU
The $275 million wasn't a loss. Pickens donated around $165 million that had a paper value of up to $400 million at one time, a small amount of which was pulled out for periodic funding of the football stadium. So, worst case, the loss was $40 million ($165 - $125), but was slightly less.
 
Apr 16, 2008
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Your numbers come from when the fund/economy were at thier worst. I would think now that the economy has recovered some that the fund would have regained some. I wonder how much.
The fund was depleted to pay for the rest of the stadium (along with an addition $63 million from) so there was no further growth in the fund - it wen to zero.
 

TouchdownCowboys

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$33 Million lost in the bad insurance deal
+ $275 Million lost in the athletic village hedge fund crapping out*
Over 300 Million dollars lost!

I know Boone and Holder have done great things for OSU athletics, but that's an inexcusable amount of money lost.:cursing:




*Over the next two years, the gift from Pickens would grow to roughly $400 million.
...By October 2008, Pickens' gift had shrunk to an estimated $125 million, at which point it was returned to OSU.
http://newsok.com/osus-athletic-village-finally-under-construction/article/3656439#ixzz1p2PNdZPU

Your stat shows your statement is wrong. If you go to Vegas with $200 run it up to $1000 until you ultimately cash out with $100 in chips you have lost $100. You statement implies an $800 loss.
 
Oct 30, 2007
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The athletic department was in control of a hedge fund investment that totalled over $400 million. After the economy collapsed the hedge fund lost around $280 million. $280 Million was lost. Now if you want to make the arguement that the net loss was much lower that's true. But that doesn't change fact that the money was lost.
The truth is the money in the hedge fund should've been pulled long before that much was lost. We didn't do it because Boone Pickens didn't want us to.

Anyone who thinks Boone Pickens doesn't call the shot in our athletic department is fooling themselves. He doesn't run the athletic department on a day to day basis. He hand-picked Coach Holder to do it for him. He makes the important decisions.

Don't get me wrong. Boone Pickens loves this school. I'm extremely gracious to BP for all that he's done for both the school & the athletic department. I'll never forget Lewis Field. That's where I first watched college football. I loved it rust & all. But I see what BPS is now & it's hard to imagine how far we've come.

The hedge fund collapse combined with the failed insurance scheme cost our athletic department hunderds of millions of dollars. They cost us facilities in our athletic village that we still don't have & I don't see us funding in the near future. They were incredible mistakes that deserve to be recognized as such.
 

Donnyboy

Lettin' the high times carry the low....
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Here's a question for a legal eagle on this site.....

We filed eminent domain and destroyed a ton of homes for an Athletic Village that the funds were in high risk investments and lost.....if you were a home or rent house owner would one have a claim against the school and maybe even the state in those matters?
 

Donnyboy

Lettin' the high times carry the low....
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Ok....that's good to know I remember there being a fight over one. Does that one who was an issue now have grounds again?
 
Jan 2, 2007
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Ok....that's good to know I remember there being a fight over one. Does that one who was an issue now have grounds again?
That house is where one of the grass fields are so it's about to be used. And I think it was immediately a parking lot. If it was north of McElroy MAYBE, but I strongly doubt a case wouldn't get thrown out.
 
Apr 16, 2008
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...The truth is the money in the hedge fund should've been pulled long before that much was lost. We didn't do it because Boone Pickens didn't want us to....
Hindsight is always 20/20. Did Pickens not want to pull it or did the AD not want to pull it? Also, a hedge fund is not like a mutual fund. You can't withdraw it at any time. Usually it can be withdrawn only quarterly or even less frequently, with 30 to 120 days notice. It was withdrawn as quickly as possible after the downturn began. Having said that, I thought the lack of diversification was a bad idea, but if diversified similar to the University's general endowment, the funds would have increased substantially less, perhaps to $250 million and then would have seen a loss of 30% or more back to perhaps $150 million.
 
Oct 30, 2007
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Hindsight is always 20/20. Did Pickens not want to pull it or did the AD not want to pull it? Also, a hedge fund is not like a mutual fund. You can't withdraw it at any time. Usually it can be withdrawn only quarterly or even less frequently, with 30 to 120 days notice. It was withdrawn as quickly as possible after the downturn began. Having said that, I thought the lack of diversification was a bad idea, but if diversified similar to the University's general endowment, the funds would have increased substantially less, perhaps to $250 million and then would have seen a loss of 30% or more back to perhaps $150 million.
Totally agree hindsight is 20/20.
If it took a great deal of time to pull the money out of the hedge fund that would explain why we lost so much. I was under the impression that BP kept assuring us the economy would bounce back & not to pull the funds. Then as the funds dwindled to the point we wouldn't be able to pay off the football stadium if they got any lower, we were forced to pull them.

The truth is we should've seen it coming. We got greedy. Mike Holder said in an interview once that they envisioned the fund topping $1 billion. If we would've just pulled the money out of the hedge fund after it topped $400 million we could've built the athletic village.

At this point it's water under the bridge. There's no value in dwelling on past mistakes. We've also had great achievements over the past decade that have overshadowed those mistakes.
 

L-Town Poke

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I do not understand putting that amount of money into such high-risk places. Was it not spread out to high-risk high reward , low-risk low reward accounts. I thought the best thing was to be divirsified ? amirite?
 

Jostate

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I do not understand putting that amount of money into such high-risk places. Was it not spread out to high-risk high reward , low-risk low reward accounts. I thought the best thing was to be divirsified ? amirite?
Boone didn't get to be a billionaire by doing the traditionally safe things.
 
Jan 7, 2012
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Your numbers come from when the fund/economy were at thier worst. I would think now that the economy has recovered some that the fund would have regained some. I wonder how much.
Also, when the economy tanked large companies and alot of individuals all over the world lost their a$$ with regard to their investments. Can't blame that all on Boone and Holder.
actually, i CAN blame ALL that on Boone and Holder. the fund achieved the number they were after but they kept the $$$ in there in hopes of it going higher. then it tanked.

and i don't care about the economy being at it's worst because that's what the entire hedge fund is about; trying to predict what the economy is going to do.

And no he does not run the athletic program. Mike Holder does.

you're crazy/delusional if you believed that years ago, much less now.


Attorneys produced a paper trail from Holder's emails with him writing once that if it wasn't done soon as Pickens wanted, "I will be in a cave with Bin Laden."
http://espn.go.com/college-sports/s...-state-cowboys-lose-bid-regain-33m-fundraiser
 

AshlandFlash

It seemed like a good idea at the time
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actually, i CAN blame ALL that on Boone and Holder. the fund achieved the number they were after but they kept the $$$ in there in hopes of it going higher. then it tanked.

and i don't care about the economy being at it's worst because that's what the entire hedge fund is about; trying to predict what the economy is going to do.




you're crazy/delusional if you believed that years ago, much less now.


Attorneys produced a paper trail from Holder's emails with him writing once that if it wasn't done soon as Pickens wanted, "I will be in a cave with Bin Laden."
http://espn.go.com/college-sports/s...-state-cowboys-lose-bid-regain-33m-fundraiser
I like you. Your delusions and paranoia are much stronger than most people's. I bet you make your own tin foil hats.

The constant bashing of Holder and Pickens seems to always ignore that great big stadium sitting there on Hall of Fame in Stillwater, as well as all those other improvements being made on campus. It seems that SOMEONE funded a LOT of construction.