Posted on: Friday, July 16, 2004

Loan from chancellor to aid UH athletics

By Stephen Tsai and Ferd Lewis
Advertiser Staff Writers

For the second consecutive year, the University of Hawai'i-Manoa chancellor's office will issue a loan to the school's athletic department to cover a sports deficit that could be as much as $1.48 million for the recently completed fiscal year.

"We're not bailing anybody out," Chancellor Peter Englert said, referring to the projected shortfall announced by UH athletic director Herman Frazier. "We will, so to speak, 'help' him. But we will put him on to (a repayment) agenda."

Frazier yesterday told the UH regents the athletic department faces a deficit of up to $1.4 million for the fiscal year that ended June 30.

"The figures that are quoted are the figures as is," Englert said. But he said there are outstanding payments to the athletic department that could reduce the deficit.

Englert said Frazier's five-year financial plan, which was announced at yesterday's meeting of the regents' committee on university audits, is "ambitious but achievable." Englert said he decided to extend the loan "to make sure (Frazier is) not having a bad start (with his plan). I will be making sure he has a good start."

Last year, Englert's office issued a $1 million loan to the athletic department to help cover a $2.4 million deficit from the previous fiscal year. The athletic department agreed to repay the loan in annual installments of $200,000, $400,000 and $400,000.

Englert said he does not anticipate any problems in receiving the payments from Frazier.

"He's on the payback schedule for that," Englert said. "I think ... he's on a good track. I don't know of anything that's outside of regular."

Frazier would like to repay the loan in the next three years "or sooner, if we can."

Reach Stephen Tsai at stsai@honoluluadvertiser.com or 525-8051. Reach Ferd Lewis at flewis@honoluluadvertiser.com or 525-8044.