[NU Sports] Venture capital funding

[Mark Ament]

Interesting article in today's WSJ (subscriber's only online so no link) 
that discussed how alumni at several schools ( Duke, UCLA, Stanford and 
NU) had set up venture capital to benefit the athletic departments of 
the schools. The funds would be contributed by donors and then invested 
just like any other vc funds with proceeds accruing to the school's 
athletic department.  Of the four, Stanford was the oldest and, not 
surprisingly, the most successful.  It started in 1982 with $100,000 and 
was now worth $85 million.

NU's fund was started in 1996 with $500,000 and was now worth $2.5 
million.  Proceeds had been used to build the weight room for the 
football team as well as the lakefront field for the lacrosse and field 
hockey team.

It's a good idea if not a somewhat borderline idea from a tax 
standpoint.  Obviously Stanford hit a grandslam but then again it 
probably had Gooble, Yahoo and Cisco in the fund.  It's good to see NU 
using creative fund raising ideas.

Mark
http:\\thesportsbizblog.blogspot,com