The Financial Impact Of The Paycheck Protection Program On Major Organizations

The Paycheck Protection Program was designed to offer financial relief to small businesses and nonprofits across the country. However, it has come to light that even well-funded organizations, such as Florida State University, have benefitted from this financial support. This raises questions about the original intent of the program and who truly needs the assistance during challenging economic times.

The United States Small Business Administration recently published a database revealing that 82,708 small businesses and nonprofit organizations received at least a million dollars in funding from the PPP. Among them is Seminole Boosters, Inc., which is the booster club for Florida State. This trend isn't isolated; even high-profile sports teams like the Los Angeles Lakers managed to secure a $4.6 million loan, despite their franchise being valued at approximately $3.7 billion.

Seminole Boosters received a substantial amount of $1,017,455. Yet, after reviewing the loan terms, they opted to return $130,430, ultimately retaining $887,725. This loan, awarded in mid-April, was intended to support 54 employees and help them keep their jobs through June 30. Despite this relief, Florida State has announced job cuts in their athletic department, reflecting the ongoing uncertainty surrounding the 2020 college football season, which is a significant revenue source for the university.

The university's financial situation is further complicated by a buyout agreement with former head coach Willie Taggart. After being dismissed in November 2019, Taggart's contract resulted in an $18 million payout for the university. When considering the buyout packages for his coaching staff, the total financial impact rises to $22 million. This hefty expenditure appears even more concerning as the university faces layoffs, even after receiving a substantial PPP loan, highlighting the precarious balance between financial aid and operational viability.

In conclusion, while the PPP aims to support those in need, it seems that some organizations that are already financially stable are also reaping the benefits. The hope is that institutions can rebound from these financial challenges, but for now, it appears that lean times may lie ahead for many.