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Octavian
3/4/2007, 10:25 PM
Amarillo takes a shot at O-State



Winning with the Grim Reaper at Oklahoma State University

TIM DAHLBERG - AP Sports Columnist

Let's get something straight before we begin: I'm not as smart as Boone Pickens. I can't be, because he has $2.7 billion in the bank and, well, I don't. He also owns a major college athletic program at Oklahoma State University, and I don't.

He may be a bit eccentric about things, but that's a billionaire's right. Howard Hughes was so afraid of germs that he refused to leave his hotel room for months, but as long as the money kept coming, no one said a thing.

No one is saying much around Boone Pickens Stadium, either, because the oil and gas investor recently gave $165 million to renovate the football stadium and build a new athletic village.

Who knows, if there's anything left over, they might even build a classroom or two.

Actually, there was some handwringing from academic types when Pickens made the donation last year. They might have preferred a new science building, or some more distinguished chairs.

Pickens, though, certainly has the right to give his money to wherever he wants to give it, and he wants to give it to his beloved Cowboys.

Still, you have to wonder just what they're putting in the water in Stillwater, Okla., these days.

Because now things have turned just plain creepy.

The news out of America's heartland the other day was that Pickens had put together a plan for OSU to borrow some $20 million and buy life insurance policies for 25 well-heeled supporters with the university listed as the sole beneficiary.

Upon the demise of each booster, the university would be paid another $10 million to add to it's already bulging athletic coffers.

A Cowboy death pool, if you will. From the grave, the gift that keeps giving.

Take that, Oklahoma and Nebraska! You may live for your teams, but we die for ours.

The best part is that OSU shouldn't have to wait all that long for the money to start coming in. All of the boosters are between the ages of 65 and 85, and you don't have to be an insurance actuary to figure out that some will be kicking off in the not so distant future.

The numbers don't make much sense to me but, like I said, I'm not nearly as smart as Pickens. My idea of making some money off the Cowboys is to bet 20 bucks against them anytime they're playing the Sooners.

Anyway, the plan is called "Gift of a Lifetime," which probably made it a bit easier to sell to the would-be donors. Other suggestions were "You Die, We Win," "Kick The Bucket, Help Build An Arena," and "From The Casket To The Basket."

OSU fans will now need to change their reading habits. Instead of turning to the sports pages to see how things are going, they'll read the obits first to see if any of the gang of 25 have croaked.

Could make for some good conversation over morning coffee.

"Hey honey, I see here that old Jim Jones died yesterday. He sure was a great guy, wasn't he?"

"Yes, he was dear. Now if Hank Evans goes too, we'll have just enough for that new weight room. That should really help with the recruits."

The athletic director reportedly plans to install a direct line in the Strode Funeral Home in downtown Stillwater to get first word on the timely demise of any of the Fab 25. No sense letting any of that money languish any longer than necessary.

The NCAA hasn't weighed in on the plan as of yet, but it's hard to believe the organization would pick a fight with one of the richest men in the country. And (wink, wink) Pickens doesn't really run athletics at OSU, because the school has assured the NCAA that it has employees who make decisions without picking up the phone and calling him first.

Besides, it's not like Pickens doesn't donate elsewhere. He did give $5 million for brain research recently to the University of Texas, though that might simply be a reflection that there are a lot fewer brain surgeons in Texas than there are football players in Oklahoma.

Still, this could lead to some interesting scenarios.

Imagine if OSU's basketball team is up two points with 10 seconds left against Nebraska and coach Sean Sutton forgets to call a time out to remind his team to guard against a 3-pointer that wins the game.

Who could blame him because he was busy looking at a courtside donor desperately grasping his oxygen tank and trying to breathe.

He goes, and the Cowboys get a new practice court.

And don't think the golf coach doesn't have his eye on a couple of old geezers hanging out at the bar in the clubhouse at the Karsten Creek Golf Club. They could be worth a new driving range, and maybe a putting green, too.

Speaking of new things, maybe it's time OSU changes its slogan to keep up with the new theme. Right now, it bills itself as "The State's University," which doesn't really say a lot.

This kind of has a nice ring to it:

"OSU: Winning With The Grim Reaper."

http://ap.amarillonet.com/pstories/sports/college/20070303/153744012.shtml

tommieharris91
3/4/2007, 11:14 PM
Hmmm...


No one is saying much around Boone Pickens Stadium, either, because the oil and gas investor recently gave $165 million to renovate the football stadium and build a new athletic village.

Who knows, if there's anything left over, they might even build a classroom or two.

Actually, there was some handwringing from academic types when Pickens made the donation last year. They might have preferred a new science building, or some more distinguished chairs.
I've heard thier college of geology is named after him now. This is about the same as E.K. Gaylord building a new journalism school at OU, or Michael F. Price naming the business and the main walk on the South Oval after himself.


Take that, Oklahoma and Nebraska! You may live for your teams, but we die for ours.
And they say OU fans' feelings and lives depend on how the teams are doing...:rolleyes:

Imagine if OSU's basketball team is up two points with 10 seconds left against Nebraska and coach Sean Sutton forgets to call a time out to remind his team to guard against a 3-pointer that wins the game.
This might have already happened for them at Texas Tech.


Speaking of new things, maybe it's time OSU changes its slogan to keep up with the new theme. Right now, it bills itself as "The State's University," which doesn't really say a lot.

At least this guy knows that "The State's University" is in Norman!

Ohh, and I always thought it seems suicidal cultish. Any over/unders about when we hear about any mass poisonings from Stillwater, OK?

OSUSam
3/4/2007, 11:42 PM
Wow, people really are jumping all over this like it's a bad thing. I guess just because Pickens is helping to facilitate it. I imagine some donors could do this themselves without involving the university and without such a grand payout.

Soonerus
3/4/2007, 11:47 PM
If it works, it sounds like a decent idea to me...we'll see if it works...

RedstickSooner
3/5/2007, 12:09 AM
If it works, it sounds like a decent idea to me...we'll see if it works...

C'mon, Soonerus - this is investing on margin. The stuff that had all those nitwits jumping out of windows back in the '20s after Black Tuesday.

From what has been reported so far, the Pokies have borrowed money to pay for 25 $10 million policies on fairly elderly boosters. If all the geezers keeled over tomorrow, it'd be a great investment -- they'd make $230 million profit, minus whatever paltry sum they owed in interest on the original loan.

Thing is, they're gonna have to keep paying interest on that loan, as well as paying additional premiums on the policies. If they had a larger pool, like 2500 donors, each with a $100,000 policy, then they could predict accurately when those folks would die, and this would qualify as an investment. Albeit a confusing and underhanded one.

That's the other thing about this -- if you do this as a true investment, and hope that the donors die at an "average" rate - that none die early - then the only reason to invest this way is if you're looking for some specific advantage to life insurance payouts. Like, that they're tax-free. Which I believe they are, right?

So, we have two reasons to do this for OSU so far.

1) They're gambling, and simply hope that their boosters kick the bucket early, so they can get a rich payout before they've had to pay too much in the form of annual premiums.

2) They're not gambling (or don't mean to be gambling) and simply *hope* that the boosters die at "appropriate" ages, so that OSU can get their payouts, and make a modest percentage return on the money they spent towards premiums. As this sum would be rather modest, one can assume that the attraction must be some sort of tax dodge -- the payouts must be tax free, unlike what'd happen if the university invested the money in "regular" securities like stocks & bonds.

Here's another possible reason:

3) The university wants to borrow money to invest, but that kind of margin investing is probably regulated and forbidden, since "investing" with borrowed money is a good way to get our economic system to collapse. Investing in life insurance policies, since life insurance isn't thought of as an investment normally, and isn't regulated the way most investments are, could be a way around that rule. And I'm talking purely paper investment -- I realize you can borrow to invest in, say, real estate developments -- but those are an entirely different flavor of investment. One which can't be made simply with the fluorish of a pen.

Is there some other angle to this I'm missing? If you just wanted to make money, you'd invest it. You could, for instance, buy shares in the insurer you would otherwise buy these policies from.

The fact that the pokies borrowed this investment money, as well as the fact that they're insuring such a small group, raises two very prominent red flags to me. If there's something I'm missing here, please tell me. From what I see, this sounds like it's one step up from going to the casino and charging chips to your mastercard so you can go bet the roulette wheel. The step up being that the odds are slightly in the Pokies favor (by 5%, from what one of the articles seemed to say -- although they didn't mention what the interest rate was on the $20 million loan).

Wonder what they used as collateral for that $20 million loan, anyhow. If the geezers refuse to keel over, is Bank of America gonna own Booger Picken Stadium? Or did the Booger himself guarantee the loan, seeing as the scam is his to begin with?

tommieharris91
3/5/2007, 12:10 AM
Wow, people really are jumping all over this like it's a bad thing. I guess just because Pickens is helping to facilitate it. I imagine some donors could do this themselves without involving the university and without such a grand payout.

No, I just find it really strange that they wouldn't list their kids, grandkids, other relatives, etc. If they have other plans, good for them. That, and it also seems perverse to tie your death to a large money windfall for someone else. Yea, I know about inheritance, and I did inherit some money from my grandfather when he died, but I was sad. He was family. Since some rich people have to die to make a lot of other people happy, it makes it so that a lot of people are happy when someone dies, which is a strange way of looking at someone's death.

tommieharris91
3/5/2007, 12:10 AM
This is where my double-post goes.

Soonerus
3/5/2007, 12:18 AM
OK, I admit it is a weird,aggie-type deal...

RedstickSooner
3/5/2007, 12:19 AM
No, I just find it really strange that they wouldn't list their kids, grandkids, other relatives, etc.

You're misunderstanding what's going on here, TH -- the donors aren't paying for the policies.

The university itself is. The university borrowed the money to pay the premiums.

The donors aren't "giving" the university anything. They're simply providing their signatures & co-operation so the university can buy policies in their name and collect on the policies when they die.

So, imagine "Bob" is a Pokie booster. The university arranges a policy on Bob, and Bob declares the university the beneficiary of the policy. Then, the university cuts a check to the insurer for the cost of the premium on the policy.

Bob doesn't spend a dime - and his heirs certainly don't see a dime. The money was never his to begin with.

Soonerus
3/5/2007, 12:21 AM
Unfortunately the selling of life insurance proceeds to "investors" is not that unusual, just weird...

tommieharris91
3/5/2007, 12:31 AM
You're misunderstanding what's going on here, TH -- the donors aren't paying for the policies.

The university itself is. The university borrowed the money to pay the premiums.

The donors aren't "giving" the university anything. They're simply providing their signatures & co-operation so the university can buy policies in their name and collect on the policies when they die.

So, imagine "Bob" is a Pokie booster. The university arranges a policy on Bob, and Bob declares the university the beneficiary of the policy. Then, the university cuts a check to the insurer for the cost of the premium on the policy.

Bob doesn't spend a dime - and his heirs certainly don't see a dime. The money was never his to begin with.

OK, so if I understand this right, it becomes a little bit like gambling on when or how soon people will die. It's not something I completely understand, but I don't understand insurance too much anyway.

Doged
3/5/2007, 12:37 AM
You're misunderstanding what's going on here, TH -- the donors aren't paying for the policies.

The university itself is. The university borrowed the money to pay the premiums.

The donors aren't "giving" the university anything. They're simply providing their signatures & co-operation so the university can buy policies in their name and collect on the policies when they die.

So, imagine "Bob" is a Pokie booster. The university arranges a policy on Bob, and Bob declares the university the beneficiary of the policy. Then, the university cuts a check to the insurer for the cost of the premium on the policy.

Bob doesn't spend a dime - and his heirs certainly don't see a dime. The money was never his to begin with.

What happens when Pokie Bob gets all ****ed off about yet another 2-win football season, calls up the insurance company and changes his beneficiary? :D

goingoneight
3/5/2007, 12:56 AM
First, take their homes... offer them life insurance policies, convince them to leave their benefits to OSU atletics. Watch heartless fans (not all of them are heartless) wait by the clock for that big orange dome ove BPS. Seems very fair to the people who have supported your university by buying tickets, memorabilia, and merchandise since their early aggy fan days/ college days, doesn't it?

Big Red Ron
3/5/2007, 02:23 AM
What happens when Pokie Bob gets all ****ed off about yet another 2-win football season, calls up the insurance company and changes his beneficiary? :DRedstick, could this happen?

Seamus
3/5/2007, 02:37 AM
OK, so if I understand this right, it becomes a little bit like gambling on when or how soon people will die.


That's why I expect we'll be seeing some unusual "accidents" and a spate of "natural causes" in quick succession.

RedstickSooner
3/5/2007, 09:45 AM
Redstick, could this happen?

I actually wondered about this as well -- it seems to me that this possibility would have to be why they're using such a small group, and only using life-long Pokie fans that they trust.

Otherwise, it'd be much safer from an actuarial standpoint to have a larger group insured with smaller policies -- like 2500 fans each with a $100,000 policy.

Insuring only 25 people is a very, very risky thing statistically. Or, at least, I *think* it is - we'd probably need one of our resident math whizzes to confirm that :)

Rus - I've heard of people selling their proceeds if they've got, like, cancer and want to spend their death benefits before they die... Is that what you mean? This is all a side of insurance I'm not real familiar with.

RedstickSooner
3/5/2007, 09:48 AM
That's why I expect we'll be seeing some unusual "accidents" and a spate of "natural causes" in quick succession.

Oh, I doubt they'd do anything that direct. Were I the pokies, I'd simply start adding a lot of "Extreme Sport" events for boosters. Cowboy Bullriding, perhaps? Maybe serve fugu (how the heck do you spell it?) in the skyboxes, or whatever passes for a luxury box in Booger Pickens. And what booster party would be complete without the room-temperature egg salad & oyster bar?

:D

XingTheRubicon
3/5/2007, 09:54 AM
Redstick, could this happen?

If they wanted to pay the rediculous premiums, sure....and no they won't leave that open to possibility.

Paperclip
3/5/2007, 10:05 AM
The numbers don't make much sense to me but, like I said, I'm not nearly as smart as Pickens. My idea of making some money off the Cowboys is to bet 20 bucks against them anytime they're playing the Sooners.

:D

CrimsonChampion
3/5/2007, 01:18 PM
Man, I used to kinda pull for the little in state schools like O-State and Tulsa just because i'm proud of Oklahoma as a state, but this death fund garbage is creepy. I still like TU, as long as they aren't playing us ofcourse, but I will never try to talk up osu to other agg fans just to be a good sport. I just prefer not to even talk about that b.s. excuse of a program anymore. For one, aggies and shlonghorns are the dumbest fans in the nation, you can do as I do and hit them with the cold hard facts of football and they still won't let up. Second, you know you're a ****ant program when you're fanbase could care less about losses, just as long as they beat OU.


I'm just so glad I was brought up a Sooner, otherwise I'd be throwing up the loser sign hoping to win just 1 game, the big one.....BUTTLAM

Flagstaffsooner
3/5/2007, 01:31 PM
That's why I expect we'll be seeing some unusual "accidents" .Yup, they give Eddie Sutton his car keys back and have him drive around Stoolwater before big alumni meetings.

badger
3/5/2007, 01:50 PM
don't fear the reaper.
fear the cowbell.
http://www.daveheinzel.com/blog/cowbell.jpg
coincidence? cowbell, osu? methinks NOT!