SAN FRANCISCO — The University of Oregon has been forced to plunge deeper into a special reserve fund seeded by sneaker magnate Phil Knight to cover interest payments on $200 million of debt sold to pay for one of the most expensive college basketball arenas in the country.

Since the state’s flagship university has been unable to find the money in the athletic department’s operating budget to pay its part of annual debt service on the general obligation bonds, it will now have to lean heavily on its $129 million Legacy Fund, according to an internal memo dated Sept. 28.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.