On Wednesday, the Pac-12 is reportedly planning to put a huge loan program in place that would provide a security blankets for athletic departments that have been affected by the COVID-19 pandemic. This program is being offered in the event that the 2020 college football season ends up being canceled. The loan will be $83 million available to Pac-12 schools at a 3.75 percent interest rate for a 10-year term.
During Wednesday's installment of "Nothing Personal with David Samson," David Samson weighed in on the conference's decision and believes that this is simply a crutch for schools that could be affected by the hardship of potentially no college football in 2020.
"These teams are in trouble. I understand what the Pac-12 wants to do and why they're doing it," Samson said. "But if the players in the Pac-12 believe that by definition this new loan will mean that their demands will be met, I've got bad news for you. They're not related in any way. This is to try to cover the shortfalls from the loss of revenue from having fans in the stands and the possibility of no college football this season."
As Samson points out, a large amount of an athletic department's revenue comes from college football. For example, Oregon State relies on football for around 80 percent of their annual sports revenue and Utah generates $86 million from college football last year.
If the college football season does end up being canceled or even scaled back, this loan could be huge for many Pac-12 schools.