The meltdown of capital markets has hit Rutgers, hard, per breaking news from Bloomberg: “Rutgers University’s interest rates on some of its commercial paper more than quadrupled this month as concerns about its buyer of last resort, Wachovia Corp., drove up borrowing costs for New Jersey’s largest university.
The rates rose to as much as 8 percent from 1.7 percent on some of the commercial paper it offered this week, said Linda Fan, a managing director in the higher education financing division of Prager, Sealy & Co., Rutgers’ financial adviser.”
There also are questions about capital availability at any price — all of which puts into question the cockamamie stadium expansion plan, which would involve issuing around $100 million in paper backed up by a delusionary plan (it presupposes near sell outs for years along with fan acceptance of stiff ticket price hikes).
Particularly impacted, says the Bloomberg story, is financing for capital construction projects.
Speaking of sell-outs, tickets are easily available to all remaining RU home games. Talk about a junk bond backed by voodoo economics!
Meantime…women in the political science department are loudly complaining about gender bias, and the story is getting picked up broadly. The Chronicle of Higher Education leads off its story with this: “Female faculty members and graduate students in Rutgers University’s political-science department feel unfairly compensated and shut out of leadership positions by their male counterparts, says an internal university report obtained by The Chronicle. In at least one case, a woman has been afraid to complain about sexual harassment because of worries about retaliation.”
It’s all just more shame on Rutgers as the McCormick Era pursues jocks over all else.