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UPDATED: OSU fund loses $282 million; Pickens makes another donation

OSU athletic director Mike Holder answers questions during a news conference at Boone Pickens Stadium in Stillwater. Booster T. Boone Pickens announced a $63 million donation Monday to bolster the school's athletics fund. MICHAEL WYKE/Tulsa World

 
By BILL HAISTEN World Sports Writer
Published: 10/27/2008  12:46 PM
Last Modified: 10/27/2008  9:50 PM

 Audio: Listen to a Q&A with OSU athletic director Mike Holder, who discusses the OSU athletics fund’s decline and Boone Pickens’ latest donation. (approx. 10 minutes)

Related Story: Watch the "60 Minutes" segment on T. Boone Pickens that aired Sunday night.


STILLWATER — While announcing that T. Boone Pickens had made a $63 million donation on Monday, Oklahoma State University athletic director Mike Holder reported the specific and staggering effect that the stock-market crisis had on the Cowboy athletics fund.

Since July, Holder said, the value of OSU’s fund — managed by Pickens’ BP Capital hedge fund — had dropped from $407 million to a recent total of $125 million.

After the fund performed well during the second quarter of the year, losses over a period of less than four months amounted to $282 million.

“Looking back, (could) we have done things differently? Absolutely,” Holder said. “But we don’t have the luxury of hindsight. It’s pretty amazing that we got from zero to $407 million in a span of 2½ years.”

The fund was established in January 2006, after Pickens had donated $165 million — the largest single donation ever made to any university’s athletic department. When the OSU-BP Capital fund was established, the starting point was $202 million.

Before the stock-market crash, it had more than doubled in value.

The Oklahoma State money — committed to the completion of the Boone Pickens Stadium renovation and the Athletic Village development — has been removed from the BP Capital hedge fund and deposited in a bank, Pickens said. With Monday’s $63 million donation added to the $125 million that was removed from the fund, OSU has $188 million in that bank account.

Pickens, a 1951 OSU graduate who became an oil-industry billionaire and his alma mater’s most prominent donor, did not attend Monday’s press conference. During OSU’s 28-24 football loss at No. 1-ranked Texas on Saturday, he said, “We’ll get (the OSU account) pumped back up and we’ll go again. We’ll get to where we want to go, but maybe a little slower.”

“There’s no way I will ever let OSU come out short,” he added.

Since 2003, Pickens has donated more than $250 million to the OSU athletic department.

Asked how Pickens arrived at a figure of $63 million for his latest gift, Holder replied, “I think that Boone probably looked in his piggy bank and got down to the last penny he had for charitable giving. I think we’re No. 1 on his list for charitable giving.”

Because of Pickens’ Monday donation, Holder said OSU is ensured of completing the ongoing west-end stadium construction project. The west-end structure, which at 460,000 square feet is larger than the Oklahoma Capitol, has a price tag of about $180 million.

Within the west-end building will be a locker room, coaches’ offices, a strength-and-conditioning facility and 56 luxury suites.

The six-year stadium renovation project is scheduled to be completed next year at an estimated cost of $283 million.

“This is about finishing what we started,” Holder said. “We made a commitment to our football program that we’d get them facilities necessary to compete at the highest level of the Big 12 Conference. We intend to honor that commitment.

“Beyond that, absolutely, we want to build the indoor practice facility. It’s critical in our plans. We have a commitment to Sherman Smith (a 1948 OSU grad and Tulsa oil man), who gave the lead gift ($20 million) for that.”

Holder said there is no timeline for the start of the Athletic Village.

“We won’t be seeing anything happening out there until the economy turns around,” he said.

The proposed Village would include an indoor practice facility, a baseball stadium and new competition facilities for the track, soccer, tennis and equestrian programs. When OSU does have the financial ability to proceed, Holder said, the indoor practice facility will be the first new project.

Holder also said that he does not regret having spent $25 million to acquire and clear an 80-acre tract of land immediately north of the stadium. The tract is the planned Village site, and OSU purchased and removed all structures within the area (27 owner-occupied homes, 190 single-family rental units, 50 multi-family rental units and three commercial buildings).

“My only regret is that we had to stop,” Holder said. “I don’t want to use the term stop, because I really believe it’s a pause. We have every intention to build (the Village). It’s just a matter of taking a little longer than we anticipated. Three months ago, we were accelerating plans rather than slowing down.”

As a result of the stock-market situation, Pickens has acknowledged a loss of about $1 billion in his BP Capital-managed funds.

“This is a tough time, but I have no question that (Pickens) will be back and we’ll be back,” Holder said. “Not if, but when.”
By BILL HAISTEN World Sports Writer

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COMMENTS 
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14 comments have been made for this team so far. Tell us what you think below!
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Report Comment
Rhymeister, Tulsa (10/27/2008 4:47:02 PM)
No, it means hardball is......Warren Buffett! Good job on the recent infusion of cash to Goldman Sachs and getting guaranteed 10% yield and preferred stock.
Report Comment
KJNOKIE, TULSA (10/27/2008 4:52:38 PM)
That money would surely help a lot of students get a college degree.

On the other hand, maybe a venue for tailgate parties is more important.
Report Comment
Ben, (10/27/2008 4:56:18 PM)
Increased success in athletics tends to increase alumni interest and attracts new students. It's good for the school all around. Regardless, Boone made an enormous gift to OSU academics earlier this year.
Report Comment
Matt in BA, Broken Arrow (10/27/2008 5:01:20 PM)
TBoone knows what he's doing, gotta get rid of the profits before his taxes go up and he has to get his stadium done too.
Report Comment
avr, (10/27/2008 5:13:03 PM)
too bad he does not actually do something useful and helpful like give the med school some $$ to fund the residencies.
Report Comment
RN@OSUMC, Tulsa (10/27/2008 5:57:19 PM)
Hey Boone Pickens,
We sure could use that money at the OSU Medical Center. I guess athletics is more important than healthcare for the indigent. Shame on you Boone.
Report Comment
2curious, Tulsa, OK 74104 (10/27/2008 6:22:04 PM)
Hey...I"m no t-boone fan...but his donations to his alma-mater have been "across the board." SO...don't go hatin' for the sake of hatin'.

And, I'm a Sooner...
Report Comment
cobweb, (10/27/2008 7:07:38 PM)
Isn't leverage wonderful? You live by the sword, you die by the sword. Pickens lackey Holder is powerless to protect the money.
Report Comment
golfwife, (10/27/2008 7:37:53 PM)
My thanks and sincere appreciation to Mr. T. Boone Pickens for his generous donation to a fine University.

His investment will help students for years and years to come.
Report Comment
MexiMike, tulsa (10/27/2008 8:49:16 PM)
Ok, guess what? IT'S HIS MONEY! He can do with it whatever he pleases! If he wants to build a giant gold statue of Barry Sanders he can! Nobody tells you how to spend your paycheck. What gives you the right to tell him how to spend his? My gosh, it astounds me how many people have their hands out with some false sense of entitlement and yet they make no charitable contribution to anything themselves. Hypocrites.
Report Comment
Stomp, (10/27/2008 9:14:40 PM)
It is nothing short of hilarious when people yell at a guy for donating money to a cause that doesn't benefit them directly. RN@OSUMC, avr, thanks for representing the totally self-centered element of our society. What have you donated your money to this year?
That's what I thought. Go stand on the corner and yell at the homeless for taking that loose change that could have been yours.
Report Comment
definedego, (10/28/2008 4:21:05 PM)
Lose 282 million in 4 months and Holder still has a job? I hear an internal audit coming to see how many benefits Holder has received. Goodbye Holder. You were always a sham!
Report Comment
Rhymeister, Tulsa (10/28/2008 9:41:00 PM)
As an alum of Ok State I would like to say: Many thanks, Mr. Pickens!

Kind of sad that people criticize when someone donates money for whatever cause and yet don't grind any axes to other rich folks who don't give a red cent. It wasn't until his wife put pressure on him that Bill Gates gave anything away.

Sure, it would be great if some funds went to academic pursuits but I believe T. Boone has given in that area as well.
Report Comment
T Bone, (10/30/2008 11:01:39 AM)
Sure seems like a lot of people want to tell Boone how to spend his money. Heck, I don't even like my wife telling me how to spend my little pittance that is left over after paying the bills. Go BOONE and have a good time and enjoy your money.
 

 
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