Starting a new thread on the Stadium and its impact on the University and Athletic Department budget...
Original baseline
The original baseline was a $800 million stadium, financed with $400 million from the Ryans and at least $100 million from other NU mega-donors. This meant $300 million would be financed via debt. At 5% interest and 20-year payback, the $300 million loan would cost $24 million per year to pay off. This cost would be offset by $10 million in incremental concert revenue, plus corporate naming rights, suites, etc.
- Debt Payment = $24 million per year
+ Concerts = $10 million per year
+ corporate naming rights
+ suites
+ improved parking/concessions/gear/ticket sales
Easy to see how this scenario gets to be a cash flow positive proposition for the university (i.e. BEAUTIFUL !!)
After Schill Declares NU Athletics Has a Cultural Problem
$800 million stadium. Ryan stay in at $400 million, but say 'it's up the University if they want to proceed', which means they ain't donating more.
loss of $100 million in mega-donors
loss of concert revenue
- Debt payment = $32 million per year
+ Concerts = zero
+ corporate naming rights = none today
+ suites = none today
Stadium looks like it could be a huge drag on University.
Worst Case
@techtim72 worst fears come true and stadium costs explode to $900 million, and university has to borrow $500 million to build it.
- Debt payment = $40 million per year
+ Concerts = zero
+ corporate naming rights = none today
+ suites = none today
In this case, the new stadium would use up most of the incremental B1G media money and leave no new money for our varsity teams (and maybe even take money away from the some team's budget). Buried in debt. Awful scenario.
What say the experts?
Original baseline
The original baseline was a $800 million stadium, financed with $400 million from the Ryans and at least $100 million from other NU mega-donors. This meant $300 million would be financed via debt. At 5% interest and 20-year payback, the $300 million loan would cost $24 million per year to pay off. This cost would be offset by $10 million in incremental concert revenue, plus corporate naming rights, suites, etc.
- Debt Payment = $24 million per year
+ Concerts = $10 million per year
+ corporate naming rights
+ suites
+ improved parking/concessions/gear/ticket sales
Easy to see how this scenario gets to be a cash flow positive proposition for the university (i.e. BEAUTIFUL !!)
After Schill Declares NU Athletics Has a Cultural Problem
$800 million stadium. Ryan stay in at $400 million, but say 'it's up the University if they want to proceed', which means they ain't donating more.
loss of $100 million in mega-donors
loss of concert revenue
- Debt payment = $32 million per year
+ Concerts = zero
+ corporate naming rights = none today
+ suites = none today
Stadium looks like it could be a huge drag on University.
Worst Case
@techtim72 worst fears come true and stadium costs explode to $900 million, and university has to borrow $500 million to build it.
- Debt payment = $40 million per year
+ Concerts = zero
+ corporate naming rights = none today
+ suites = none today
In this case, the new stadium would use up most of the incremental B1G media money and leave no new money for our varsity teams (and maybe even take money away from the some team's budget). Buried in debt. Awful scenario.
What say the experts?
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