Anyone Have a Couple Million Lying Around?
A friend of mine e-mailed me the brochure that the Athletic Department put together to explain the stadium renovation and "enhanced giving opportunities" to the University that are resulting from the construction. I hadn't seen this before, so I thought I'd throw out some high lights.
You can click on any image for a higher resolution version.
This is probably my favorite page, simply because of the ludicrous amounts of money they're asking for and how I can't believe they won't get it all. The naming rights on this page (except for the Stadium Door Reception Wall) total up to $38.5M, almost 20% of the total construction budget.
These are the club seats that will be under the suites on the Crisler side of the stadium. I wonder how much more the necessary annual contribution is for these than say the 50 yard line row 20. Anyway, if we say the seats average about $2,500 and there are 3,000 of them, that means at least $7.5M per year in gifts in addition to the cost of season tickets. This comes on top of keeping the premium seats in the bowl as well if the rich people want to be with the unwashed masses.
These aren't super exciting, and I can't really get a number, but the rendering is pretty cool...
And now the big money makers:
There are 83 available suites (46 on the West side, 37 on the East Side). They come with free parking and "premium food and beverage service." How premium?
So let's recap:
Not too shabby. Assuming an overly simplistic model where all the prices stay the same and no interest has to be paid on the $226M construction costs, just the money from the premium seating could and capital gifts could pay back the costs in 13 years.
You can click on any image for a higher resolution version.
This is probably my favorite page, simply because of the ludicrous amounts of money they're asking for and how I can't believe they won't get it all. The naming rights on this page (except for the Stadium Door Reception Wall) total up to $38.5M, almost 20% of the total construction budget.
These are the club seats that will be under the suites on the Crisler side of the stadium. I wonder how much more the necessary annual contribution is for these than say the 50 yard line row 20. Anyway, if we say the seats average about $2,500 and there are 3,000 of them, that means at least $7.5M per year in gifts in addition to the cost of season tickets. This comes on top of keeping the premium seats in the bowl as well if the rich people want to be with the unwashed masses.
These aren't super exciting, and I can't really get a number, but the rendering is pretty cool...And now the big money makers:
There are 83 available suites (46 on the West side, 37 on the East Side). They come with free parking and "premium food and beverage service." How premium?Q13. Will beverage alcohol be available for premium seating patrons?Not premium enough. So continuing with our math, lets assume the suites average $70,000 per year. That totals about $5.8M a year, and that doesn't even count the gifts one would have to make to the Athletic department in order to get to the point in line to buy a suite.
No. Michigan Stadium, including all premium seating areas, will be an alcohol free environment.
So let's recap:
| Area | Revenue | Additional Revenue |
|---|---|---|
| Capital Gifts | $38,500,000 | Stadium Donor Recognition Wall |
| East Side Club Seats | $7,500,000/year | Season Tickets Cost |
| West Side Chairback Seats | $1,300,000/year | Season Tickets Cost |
| Suites | $5,810,000/year | Gifts required to get a chance |
| Total | $53,110,000 | $14,610,000/year |
Not too shabby. Assuming an overly simplistic model where all the prices stay the same and no interest has to be paid on the $226M construction costs, just the money from the premium seating could and capital gifts could pay back the costs in 13 years.
Labels: athletics, facilities, football, I posted, stadium renovation
This entry was posted by Paul, on
Tuesday, June 03, 2008.
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