December 23rd, 2009 at 11:37 PM ^

That was a really cool article to read.

Not being anything close to an Econ major, I find it fascinating that $1Million can cover a scholarship FOREVER. Pretty cool stuff. With Stanford's $600M fund, it's no surprise they can fund all those teams.

PS: Buckeyeman, welcome. Step carefully, as your words are heavily susceptible to negbangs, for obvious and deserved reasons.


December 24th, 2009 at 1:07 AM ^

$1MM invested in fixed income funds will yield ~5% per year, meaning about 50k/yr, more than covering the cost of out-of-state tuition/fees for the time being. Thus, the $1MM stays in the bank without being touched.

The balance goes back to the principal, hopefully, such that when costs go over $50k/yr, hopefully the investment can cover that too.

They probably manage it so that in some years this particular endowment covers an in-state scholarship so that more money can be cranked back into the base fund. (If they actually manage them separately.)

Here's to putting $2MM in the bank and living off of the interest...


December 24th, 2009 at 9:54 AM ^

I'm actually pretty amazed that only 4 Michigan players in history have given $250k to the athletic department given how many have gone to the NFL.

Not that I necessarily think they "should," just that $250k is paid for cars that just sit in their garages for a good number of successful NFL players. You'd think that would be a small enough number that they'd do it just for the press.

The others were James Hall, Curtis Greer, and Jim Mandich. James Hall made good money but I doubt the other guys were getting too rich.


December 25th, 2009 at 6:04 PM ^

I agree, that should be higher. If I were an ex-Michigan athlete who was making a few million a year for a decent run in the pros, I would give back for two reasons. One, my college program played a big part in getting me to where I am, and also because I would want to see my college team be as competitive as possible, and my donation would help them get there.

I wouldn't be surpised if guys like Henne, Long, Breaston, Avant and certainly Mike Hart (if he stays in the league long enough) who are past teammates of Braylon's and who are doing well in the NFL, are added to that list.


December 25th, 2009 at 7:14 PM ^

I think you also have to keep in mind that money in the NFL is not guaranteed and that these guys are lucky to have 4-year runs in the league. That's not a ton of time to make the money that you would theoretically use for the rest of your life. Of course, if you invest wisely, it helps. However, the NFL simply provides no financial security unless you are lucky enough to get that huge signing bonus as a rookie. And not many get those.