Washington
Pac-12 finances: Washington attempts to restructure stadium debt as Big Ten move looms
Washington’s athletic department broke the $150 million mark in revenue last year for the first time in school history and reported an operating surplus, according to financial documents reviewed by the Hotline.
But the most significant money matter on Montlake wasn’t included in an 81-page report to the NCAA and is months away from unfolding … if it materializes at all.
The school is “evaluating options” for refinancing the debt on the Husky Stadium renovation, a move that potentially could free up valuable cash for operations as the Huskies transition into the Big Ten.
Washington’s $280 million renovation of Husky Stadium in the early 2010s relied heavily on debt provided by the university’s internal lending program (ILP) over a 30-year period.
The athletic department paid $12.3 million in debt service in the 2022 fiscal year, per the financial report submitted to the NCAA.
But that figure dropped by approximately $3 million in 2023 after Washington’s board of regents approved a temporary restructuring plan.
The new approach allows the Huskies to make interest-only payments through the 2025 fiscal year, according to the regents:
“Restructure ILP debt service so that fiscal years 2023 – 2025 are $3.1 million lower per year, leaving (athletics) to pay interest only during these years. The principal amounts will be amortized over the life of the loans.”
The interest-only window ends in the summer of 2025, but the pressure on Washington’s budget will not.
The Huskies begin play in the Big Ten later this year after agreeing to enter the conference, along with Oregon, at a steep discount.
The schools will receive half-shares of the Big Ten’s annual media rights deal with Fox, CBS and NBC.
Over the course of the six-year contract term, that discount will result in the Pacific Northwest powers receiving about $180 million less than their peers in the Big Ten, including USC and UCLA, which were granted full shares when they agreed to join the conference in 2022.
Every dollar UW saves on debt service could help offset the revenue disparity.
As a result, president Ana Mari Cauce’s office and the athletic department have been “evaluating options for debt service in both the near and long term as a part of (the) annual budget development,” per a statement issued to the Hotline by Cauce’s office.
Any restructuring of the debt beyond 2025, when the interest-free window expires, must be approved by the regents. UW plans to make its case at the June meeting “in conjunction with board budget approvals.”
The savings from a restructured payment plan are not publicly known. But if, for example, the new rate lowered UW’s annual debt service by the same amount as the temporary shift to interest-only payments ($3.1 million annually) — and if that process played out for the entirety of the Big Ten’s media rights deal — the Huskies would save about $19 million.
If funneled to operations, that would cover the salary for a top-tier offensive or defensive coordinator over the entire timeframe.
Other news and notes from UW’s financial report to the NCAA, which was submitted earlier this year:
— The Huskies were one of five schools in the Pac-12 that reported an operating surplus in the 2023 fiscal year, along with Oregon, Cal, Arizona and Utah.
UW booked $151.6 million in revenue against $150 million in expenses.
— However, the schools include financial support from campus as revenue, in accordance with NCAA reporting regulations.
Washington’s campus support, which took the form of student fees allocated to athletics and direct transfers from the university, totaled $10.3 million last year — the fourth-lowest amount in the conference.
Oregon received no direct help from campus while UCLA received $2.1 million in support and Washington State received $6.8 million.
The total amount of campus support for the 11 schools was $150.5 million, according to an analysis by the Hotline. (USC’s budget was not available.)
— When campus support was removed from their revenue total, the Huskies showed an $8.7 million operating loss.
Only Oregon, which generated a $3.8 million surplus, fared better.
Arizona State, Cal, Colorado, Stanford and UCLA all produced shortfalls in excess of $30 million when campus support was removed from the revenue total.
— The Huskies declined to provide budget projections for the 2024 fiscal year, citing the changes in athletic directors and head coaches, the Pac-12’s negotiated settlement with the outgoing schools and the university’s new financial accounting system.
The combination has “created uncertainty in FY24 revenue/expenses that we are still actively reconciling.”
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*** Pac-12 Hotline is not endorsed or sponsored by the Pac-12 Conference, and the views expressed herein do not necessarily reflect the views of the Conference.
Washington
Washington passes new AI laws to crack down on misinformation, protect minors
Washington just became the latest state to regulate artificial intelligence.
Under a pair of bills signed by Gov. Bob Ferguson Tuesday, companies like OpenAI and Anthropic will have to include new disclosures in their popular chatbots for Washington users.
Ferguson asked legislators to craft House Bill 1170 to crack down on AI-generated misinformation. When content is substantially modified using generative AI, that information will now have to be traceable using watermarks or metadata. The new law applies to large AI companies more than 1 million monthly subscribers.
“ I’m confident I’m not the only Washingtonian who often sees something on my phone and wondering to myself, ‘Is that AI or is it real?’ And I feel like I’m a reasonably discerning person,” Ferguson said during the bill signing. “It is virtually impossible these days.”
RELATED: WA Gov. Bob Ferguson calls for regulations on AI chatbot companions
House Bill 2225 establishes new guard rails for AI chatbots that act like friends or companions. It applies to services like ChatGPT and Claude, but excludes more narrowly tailored chatbots, like the customer service windows that pop up when visiting a corporate website.
Chatbots that fit the bill will have to disclose to users that they are not human at the start of every conversation, and every three hours in an ongoing chat. The tools will also be barred from pretending to be human in conversation with users.
The rules go further if the user is a minor. Companies that operate chatbots will have to disclose that the tools are not human every hour, rather than every three hours, if the user is under 18. The bill forbids AI companions from having sexually explicit conversations with underage users. It also bans “manipulative engagement techniques.” For example, a chatbot is not allowed to guilt or pressure a minor into staying in a conversation or keeping information from parents.
“AI has incredible potential to transform society,” Ferguson said. “At the same time, of course, there are risks that we must mitigate as a state, especially to young people. So I speak partly as a governor, but also as the father of teenage twins who grapple with this as a lot of parents do every single day.”
Under the law, AI chatbots will not be allowed to encourage or provide information on suicide or self-harm, including eating disorders. The companies behind these tools will be required to come up with a protocol for flagging conversations that reference self-harm and connecting users with mental health services.
The regulations come in the wake of several high-profile instances of teenage suicide following prolonged interactions with AI companions that showed warning signs. Many more AI users of all ages have reported mental health issues and psychosis after heavy use of the technology.
Washington
Washington faces Utah, aims to stop 16-game skid
Washington Wizards (16-55, 14th in the Eastern Conference) vs. Utah Jazz (21-51, 14th in the Western Conference)
Salt Lake City; Wednesday, 9 p.m. EDT
BOTTOM LINE: Washington heads into the matchup with Utah after losing 16 in a row.
The Jazz have gone 13-24 in home games. Utah ranks second in the Western Conference with 16.6 fast break points per game led by Lauri Markkanen averaging 3.3.
The Wizards are 5-29 in road games. Washington is 9-10 when it has fewer turnovers than its opponents and averages 15.3 turnovers per game.
The Jazz score 117.4 points per game, 6.7 fewer points than the 124.1 the Wizards give up. The Wizards’ 46.1% shooting percentage from the field this season is 2.9 percentage points lower than the Jazz have allowed to their opponents (49.0%).
The teams square off for the second time this season. The Jazz won the last meeting 122-112 on March 6, with Ace Bailey scoring 32 points in the victory.
TOP PERFORMERS: Kyle Filipowski is averaging 10.5 points and 6.9 rebounds for the Jazz. Brice Sensabaugh is averaging 19.9 points over the last 10 games.
Alex Sarr is averaging 16.5 points, 7.4 rebounds and two blocks for the Wizards. Will Riley is averaging 14.4 points over the past 10 games.
LAST 10 GAMES: Jazz: 3-7, averaging 116.4 points, 43.3 rebounds, 27.7 assists, 9.9 steals and 4.4 blocks per game while shooting 45.9% from the field. Their opponents have averaged 122.7 points per game.
Wizards: 0-10, averaging 114.3 points, 37.4 rebounds, 24.5 assists, 6.9 steals and 4.5 blocks per game while shooting 47.1% from the field. Their opponents have averaged 130.6 points.
INJURIES: Jazz: Lauri Markkanen: out (hip), Isaiah Collier: out (hamstring), Keyonte George: out (leg), Cody Williams: out (shoulder), Walker Kessler: out for season (shoulder), Jusuf Nurkic: out for season (nose), Jaren Jackson Jr.: out for season (knee).
Wizards: Anthony Davis: out (finger), Tristan Vukcevic: day to day (back), Cam Whitmore: out for season (shoulder), Alex Sarr: day to day (toe), Tre Johnson: day to day (foot), Kyshawn George: out (elbow), D’Angelo Russell: out (not injury related), Trae Young: out (quad).
___
The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
Washington
Washington sues USDA, alleging billions in funds illegally withheld
OLYMPIA, Wash. — Washington Attorney General Nick Brown has filed a lawsuit against the U.S. Department of Agriculture, alleging the federal agency is illegally withholding billions of dollars in funding and attempting to force states into compliance with unlawful demands.
The complaint, filed as part of a multistate effort, argues the USDA has threatened to cut off critical funding tied to the Supplemental Nutrition Assistance Program, or SNAP, unless states agree to federal conditions that exceed the agency’s authority, according to the Washington State Office of the Attorney General.
Other critical programs that would be affected include the school lunch program; Special Supplemental Nutrition Program for Women, Infants and Children (WIC); The Emergency Food Assistance Program (TEFAP); and the Volunteer Fire Capacity Program.
Brown’s office said the funding at stake supports the administration of SNAP, a federally funded, state-run program that provides food assistance to millions of low-income Americans. Washington alone receives about $129.5 million annually to administer the program, and disruptions could have “catastrophic” consequences for residents who rely on it, according to the attorney general’s office.
In the lawsuit, the state alleges the USDA is effectively holding those funds “hostage” to compel states to comply with federal directives, including demands tied to program data and administration, according to the complaint and accompanying news release from Brown’s office.
The legal challenge contends the USDA’s actions violate federal law, including constitutional limits and statutory authority governing the SNAP program. The coalition of states argues the federal government cannot condition funding on requirements that were not authorized by Congress, according to the complaint.
Brown said the lawsuit is aimed at protecting both funding and the people who depend on it.
“The rule of law is on our side,” Brown said in a statement, adding that the state is seeking to ensure continued support for vulnerable residents and prevent federal overreach.
According to the attorney general’s office, SNAP serves as a key safety net nationwide, delivering billions of dollars in food assistance. States administer the program but rely on federal funding to operate it.
The lawsuit asks the court to declare the USDA’s actions unlawful and block the agency from withholding funds or imposing conditions the states argue are illegal.
The case is the latest in a series of legal challenges involving SNAP, as states push back on what they describe as unprecedented federal demands tied to the program’s operation and funding, according to the Washington attorney general’s office.
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