Offense, defense, special teams. When preparing for Saturday night’s ACC match with Clemson, Mike Norvell could draw inspiration from the passion shown by the Florida State administration when addressing members’ concerns this past week.
On Tuesday, President Richard McCullough sent a letter to Florida State supporters regarding the restructuring plan for FSU Athletics and a timeline for hiring an athletic director. On Friday morning, while addressing a regularly-scheduled meeting of the Board of Trustees, Chairman Peter Collins added strong comments on a number of topics in the news, including reporting he termed “uneducated” or “malicious” regarding the $430 million facility debt investment the BOT approved. He was particularly miffed by those who inaccurately referred to the debt as a “deficit” rather than a facility investment that generates revenue to pay for itself.
We encourage you to listen to his report to the Trustees for yourself:
You could also feel his passion when addressing accusations by proponents of the Protect College Sports Act who claim FSU, Miami, Clemson and North Carolina are trying to sabotage the bill.
Following the President and the Chairman’s lead, Seminole Boosters President and CEO Stephen Ponder sent a letter to Booster members with all the details on the bonds (see FAQ below) for his members to digest.
The facility debt is not a ‘deficit’
“We don’t talk about a lot about things (publicly), and so I guess we ultimately open ourselves up to other people saying or putting a narrative out there,” Collins said to the Board members. “This board is taking criticism for (approving the debt), but let’s be clear about one thing: We don’t have a $400 million deficit. We have debt of $400 million that is paid for by the receipts of the stadium’s new income. So, you have an asset, you have a liability, and that asset pays for the liability.”
You shouldn’t have to be a businessman to understand the difference between a debt that generates enough revenue to pay more than the debt payments, and a deficit, which is typically an operational loss.
It was good to see the Chairman show some passion while correcting the record.
“We have the highest debt rating in the state of Florida and of any university,” he noted. “We’re Double-A plus. We issued the debt at 4.1 percent (interest). I’ve heard everything from 9 to 16 percent (interest). Somebody just says that out there, and they go, ‘Can you believe this.’ ”
President Trump parroted the fake news when stumping the need for the Protect College Sports Act.
“I even saw President Trump (say): ‘You know Florida State had a $400 million deficit?’ ” Collins said. “No, no, he should know the difference between debt and deficits,” Collins said. “It’s debt that has a revenue source that is paying for it!
“I’d like to think some of it is just uneducated comments,” Collins said. “But I think that it just gets to the point where it’s just lies and it’s malicious. Do you think you’re going to issue that debt at 4.1 percent and have it rated Double-A plus if there wasn’t money there to pay it?
“Or the notion that, somehow, you would have had all of those new receipts that you could have just put into the sports without having built the facility? But the stadium renovation paid not only for the stadium, it also paid for the football-only facility,” Collins said. “So, we’re not going to go issue debt?”
The incredulous Chairman said he even heard some say FSU should have spent that facility money on players.
“What bond agency is going to let you go out and bond $400 million to just give it to a bunch of players, where you’ve got no revenue source coming (to pay the debt)?” he asked. “So, this board approved that debt issuance, and I’d do it again tomorrow if it came up for us (to vote),” Collins said. “We got better for it. We’ve got an asset. We’ve got two assets that are being paid for by one of the assets. So, I hold my head high, and I’ll have that argument with anybody that wants to come and talk to me about it.”
Trustee Vivian de las Cuevas-Diaz spoke in support, offering an analogy with the new dormitory being built on campus.
“I agree 1,000 million percent,” Cuevas-Diaz said. “Something near and dear to my heart is student experiences (and) the No. 1 place for that is housing and living on campus and we’re building a brand-new dorm.”
Collins noted FSU has approved facility debt on that dorm and that the bond payment is being paid by the students who pay for their housing.
Cuevas-Diaz agreed, noting the dorm is being paid for with revenue generated by the dorm, just as the stadium projects are being paid with the revenue generated by the stadium.
“We have 85% of our freshmen live on campus,” Cuevas-Diaz said, noting other state universities do not. “They don’t invest in (housing). Their students are not living on campus.”
The trustee from Miami challenged those in attendance to talk to FSU students.
“Their best experience was their freshman dorm, big, small, 18 people, three people. It doesn’t matter,” Cuevas-Diaz said. “This debt that we talk about is an asset, and that’s how any real estate deal gets done. We have the benefit of the bond rating we have. Some of the changes for the stadium are also opportunities … for our students to have a better experience.”
Cuevas-Diaz cited the night with the Savannah Bananas as memorable.
“We are all businessmen and women that think about what we’re doing and how we pay it off, and how to put this university in a better place than what it is today,” Cuevas-Diaz said. “And I agree with Peter. I will vote for that 20 times over, every time.”
FSU is not trying to sabotage the PCSA
Collins was also fired up about comments published by proponents of the Protect College Sports Act who accuse FSU, Miami, UNC and Clemson of trying to sabotage the bill.
"To be clear, we support this,” Collins said. “We support it. … It’s dozens of pages long, and there’s lots of things in there, 98 percent of which we all think is great.”
What Collins and other schools oppose is language forcing any school who leaves a conference to compete as an independent for three years before joining the new conference.
Scheduling as an independent would be difficult and there are serious concerns about loss of television revenues.
“They’ve sent it over to the House and basically said, ‘Hey, you have to pass it as-is. Because we’re not going to take anything that you send back,' ” Collins said. “Well, try to tell 400-plus representatives, and their constituencies, that they can’t comment on a law. There’s gonna be a lot of amendments to this in the House. I’ve been told this by House leadership several times, as recently as last week.”
Seminole Boosters FAQ on facility debt
Doak Campbell Stadium Renovation and Dunlap Football Facility Financing:
Frequently Asked Questions
How was the stadium renovation financed?
Through a state-approved bond at a 4.1 percent interest rate. The bond went through the state’s full review and approval process before it was issued.
Why does FSU Athletics use debt?
Debt is an important component of the financial strategy of major athletics programs. It allows institutions to build and renovate long-lived facilities, such as Doak Campbell Stadium, while spreading their cost over their useful lives.
Is debt used to pay operating expenses?
No. FSU Athletics’ debt finances capital facilities, not recurring operations. Operating expenses cannot be financed through issuing bonds.
What are the benefits of taking on debt to upgrade and build facilities?
Using debt to build and upgrade facilities allows the university to invest in athletics assets that will serve the program for the long-term future. The renovated Doak Campbell Stadium and newly constructed Dunlap Football Center strengthen recruiting, retention, training and competitive performance while improving the fan experience. Doak’s renovations also create revenue opportunities through premium seating, hospitality, sponsorships and other unique experiences.
Did the stadium renovation project create financial challenges for athletics?
No. The debt issued for the Doak Campbell Stadium renovation is supported by dedicated revenue streams created as part of the project, including premium seating, seat licenses and enhanced seating options. It is important to distinguish between debt and operating deficits, as they are often conflated. The renovation financing is structured to be repaid through revenues generated by the project itself.
Could the money spent on the stadium have gone to the football roster instead?
No. The renovation was financed through a state-issued bond, and under the bond’s terms, the funds can only be used for capital improvements. They could never have been used for roster building or student-athlete compensation. Facility investment and roster investment are separate, and Florida State is committed to both.
Does my annual gift to Seminole Boosters pay off stadium debt?
No. Gifts to the Seminole Athletic Fund support athletics operations and student-athlete services.
Does FSU Athletics have the capacity to meet its debt obligations?
Yes. FSU’s Athletics debt has approximately 7.0 times debt-service coverage for fiscal 2026. By comparison, a debt-service coverage ratio of 2.0 to 2.5 times is generally considered strong. This indicates substantial capacity to meet current debt-service obligations.
How can I support the roster directly?
There are two primary ways to support Florida State student-athletes: revenue sharing and NIL. Revenue sharing is compensation provided directly to student-athletes by FSU Athletics. Seminole Boosters helps provide the financial resources that support revenue sharing and the broader needs of the athletics program. Fans and businesses can also support student-athletes through separate NIL opportunities.
Did the stadium bonding impact the university’s bond rating?
No. FSU has the highest credit ratings of any public university in Florida and among the highest in the country. The university holds an Aa1 / AA+ / AA+ issuer rating from Moody’s, Fitch and S&P Global respectively. FSU’s rating is characterized as “extremely strong,” with Moody’s citing its position as a preeminent research university, exceptional student-quality measures and steady institutional leadership.
How does FSU’s strong credit benefit FSU Athletics?
Strong credit ratings can allow the university to borrow at lower interest rates. This helps finance facilities designed to serve student-athletes, coaches and supporters for decades and allows for more funds to be directed to other strategic priorities because of the lower cost of capital.
Who can I contact with other questions?
E-mail [email protected] or contact your representative with Seminole Boosters.
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