BSU Sells “Non-Stock” Corp. Shares For $100

A fund raising campaign by Boise State’s athletic department appears to be a deceptive meaningless promotion at best and a cheap gimmick at worst.

In an effort to raise $20,000,000 for athletic programs Boise State has created a non-profit corporation comprised of thin air–we’ve dubbed it “Bronco BLUE SKY.” A ton of questions arise from yesterday’s announcement.

Checks by the GUARDIAN reveal the scam is just that–a scam. The Idaho Dept. of Finance put it in perspective when a spokesman told us there is NO registration of the stock and, “It is our understanding the certificates clearly state they are a certificate of donation and not ownership.”

We have had a bunch of queries about the BSU Bronco, Inc. stock offering. Even diehard fans are questioning the deal–some crying SCAM right out of the starting blocks.

–Why create a private non-profit corporation for the purpose of “enhancing athletic facilities” when BSU already has the Bronco Athletic Association (BAA) and the BSU Foundation has been around for years?
–Next question is WHO will own those facilities, especially when they are on State of Idaho land and even within state structures?
–They say there will be no dividends, but can a shareholder sell their stock?

Founders are the who’s who of BSU sports, including a member of the State Board of Education. The 12 are board members for now, but could apparently be replaced if “investors” gather enough shares to vote them off the board.

As we read one news report, the board will report to BSU President Bob Kustra and Athletic Director Gene Bleymaier–who will decide where to spend the money. They say it will go toward facilities rather than salaries.

We would like to have some legal minds take a look at the deal and tell us WHY there is a need for another corporation and see if there are any glaring loopholes that need to be plugged. The Attorney General’s office was not consulted about the offering and normally doesn’t represent universities in Idaho.

Bottom line: If it is nothing more than a fund raiser seeking $20,000,000 just be honest and say, “BSU IS LOOKING FOR CASH DONATIONS FROM FANS.”

Boise awaits the big game
The rivalry is always the same
Will the Vandals snatch defeat
From the team of Coach Pete
Or go back to Moscow in shame?

Comments & Discussion

Comments are closed for this post.

  1. Maybe U of I Alumni will have a hostile takeover of the board.

    GO VANDALS everyday and especially Saturday.

  2. My guess is the guys at BSU thought about all the angles on this one before putting it out there. I think it’s pretty obvious that by “shares” it’s basically a piece of fancy paper saying you’ve got team spirit. My question is, what happens when they’re done with the $20 million? Do you give more and get more shares or does your share expire? As a vandal I wish U of I would do something like this and jump into the facilities arms race that is college athletics.

  3. Justin Beller
    Nov 12, 2009, 5:15 pm

    I can just imagine receiving one of these crappy pieces of worthless paper as a Christmas gift.

  4. Flyonthewall
    Nov 12, 2009, 5:32 pm

    It is clear they are not raising enough money with the local “Fat Cats” via the Bronco Athletic Association, ticket sales, Bronco gear sales and they want to run with the big boys and all their trappings of old money and fame on the gridiron.

    I view this as just like the LOTTO. You pay money for essentially a worthless piece of paper and you know it going in on the deal. (You are not going to win the LOTTO with the odds)Anytime someone is willing to self impose a tax on themselves who am I to cast dispersions. Buyers of the worthless stock certificates can proudly frame their certificates and hang them in a place of honor in their abode.

    Sell the worthless stock, have the annual stockholders meeting where everyone gets to pony up more dough and feel good about college football.

  5. Rod in SE Boise
    Nov 12, 2009, 8:45 pm

    Sheeesh, it’s just a fundraising promotion.

    Go Broncos! And I’d like to again publicly thank BSU and the professors there for an excellent education that has allowed me an enjoyable career and a comfortable retirement. Thank you all!

    Education. The way to a good life (one that doesn’t include poverty).

  6. I am a Bronco fan and donor, but I’m upset that they have resorted to basically a scam to get money. I really don’t think the need to resort to this “stock promotion.” It seems dishonest and offensive to me as something who believes in public high education.

  7. Has anyone heard if the game this weekend is sold out? As I understand it, the Oregon game has been the only sold out game this year. So all the money was spent on fancy sky boxes and increased seating for a season they can’t sell out.Now that the money has been spent, they want more for the programs they neglected over the past years! Really??

  8. UI game is sold out.
    The others, with the exception of UC Davis, were close enough to sell outs that it is splitting hairs to quibble.
    They can’t regularly get big-time opponents to come to Boise without offering a bigger payday. They can’t do that without more seats.
    A 40-50k seat stadium will sellout with ease with an Oklahoma, USC, or Texas coming to town.
    A 34k seat stadium won’t sellout when BSU is forced to schedule a UC Davis because a Pac-10 team (OSU in this case) cancels at the last minute.

  9. Go Broncos !

    I’m sorry but I don’t have any money to give you though. Economy being bad and all. But good luck against the vandals!

  10. Grumpy ole guy
    Nov 14, 2009, 3:26 am

    They probably just hope that someone’s been smoking blue grass and will want to frame a certificate to the effect.

    No one has ever gone broke underestimating the intelligence of the American public – HL Mencken.

  11. Boo effing hoo. BSU needs 20m to “improve athletics facilities?” Didn’t they just get that skybox? and that indoor practice facility a few years ago? You want to raise some money? How about cutting the coach’s salary?

  12. James, thanks for the update. Let’s split some hairs for grins and giggles. If we are spliiting hairs on the current capacity of the stadium, where are the butts going to come from to fill the extra 15,000 seats we get when the south end is enclosed? I agree that BSU is getting short changed in the opponent area, (I recently met a very nice young man who is a huge Oklahoma fan and when I introduced myself as being from Boise State, he just slumped and hung his head)but the reality of our inability to play a SEC type schedule must be realized. We can beat any team on any given day, but we aren’t good enough to beat them all over the course of a season. Go Broncos!

  13. Yo Cyclops, I believe the rationale for filling the extra seats is that the BCS teams will “travel” some number of their own fans, much greater than a SJ State or UC Davis. Plus locals like me who aren’t very interested in showing up and watching 65-7 mismatches against 1-AA teams will show.
    SEC teams don’t typically “beat them all” over the course of a season, either. And they schedule cupcakes for their out of conference games.
    There is always a key fact left out with the argument that BSU couldn’t compete against a full SEC or Pac-10 schedule; If BSU was in a position to play that kind of schedule, they would be able to recruit the players to play that type of schedule, not recruiting WAC type players.

  14. Cyclops, the butts are there. This is a simple pricing issue. Remember your Supply and Demand graph with regard to price? The powers that be have figured out that having a 95% sellout with premium prices makes more money than a total sellout at cheaper prices. From a revenue standpoint they are absolutely correct. If they are smart (and I think they are) once they expand they will lower prices, thus increasing demand. Alot of families have been priced out with the current cost of tickets. My family only has two tickets and we rotate who gets to go to the game. If prices were more reasonable we would spring for four.

    This stock thing is silly, and I feel that it wasn’t marketed correctly. Either way its not that big of deal. I don’t think there was any malice just another way to make a buck for the University, its hard to blame them for trying.

  15. James, what you say makes sense. My problem is that recruiting pays no rewards for 4-5 years. That means we would be someone’s “cupcake” for enough years to lose interest, away as well as home.

  16. BSU begging for more money!
    I had to give up season tickets this year because of the 17% increase. Had them for 10 years.
    Everyone connected to BSU football got a raise. I had to take a 20% cut to keep my job.
    God I hope no one give me BSU stock for christmas.

  17. Excellent fund raising program for a cause. I believe that many people will benefit from this. I admire the people to take charge of program like this.

  18. This is just stock in Gene B’s paycheck and retirement program.

Get the Guardian by email

Enter your email address: