The University of Kansas is hoping a hefty loan will stem its athletic department’s budgetary problems related to the COVID-19 pandemic.
KU chancellor Douglas Girod Wednesday put forth a plan to have KU Athletics pursue a $20 million line of credit that would “provide emergency liquidity in the event the COVID pandemic modifies the upcoming football and/or basketball seasons in such a way that creates significant operational deficits, even after significant cost-cutting measures.”
Girod is hoping that the move would keep KU Athletics afloat while avoiding the department having to seek financial assistance from the the university.
Board members have until tomorrow to move the measure forward, with final authorization coming at an upcoming Sept. 16 board meeting.
The $20 million line of credit would mature on Dec. 31, 2021, Girod said, with a variable interest rate that Girod said was “currently approximately 1.50%.”
According to The Kansas City Star, Girod also proposed that KU Athletics pursue a $30 million bridge line of credit, working to refinance its approximately $29.8 million in outstanding bond debt.
