FC: Beaver Stadium renovation Phase 1 to be presented to BOT....
- Thread starter Midnighter
- Start date
I think the revenue number might be more when taking into account parking and concessions.Math (apologies to LionJim):
PSU Brings in roughly $50 million per year in football ticket/seat license revenue.
So, assuming:
A $700 million spend on renovations, financed by debt
A 5% annual interest rate on the debt
The number of seats in the stadium remains the same (that's certainly not a sure thing), and that the stadium would continue to sell out every game (more or less, ie: whatever they do now)
In order to pay off that debt over 25 years, the average ticket/seat license charge, just to account for that new debt, would have to immediately increase by.... 100%. (Along with, of course, the normal annual ticket increases over time)
To pay it off over 30 years, would have to have an immediate increase of just over 90%.
At current long-term debt rates (which are still relatively low, and assuming PSU's bond issue would be looked on very favorably in the markets) of around 3.5%, the required price increase would be roughly 80%.
And that would assume no other significant CapX spends would be required over the next 25-30 years.
Bottom Line, If PSU ICA has to pay for it themselves - not funded by Pennies from Heaven, Donations, or Tuition Revenue:
Requires roughly doubling average price per ticket - with no negative impact on the market (fan willingness to pay) - for the next 30 years
(Lion Jim can check the math)
Also-there is the TV revenue to take into account.
Although I don't know what the expense line might be which will impact how this gets paid.
Neeli needs to hit up the mayor of State College for the funding with a threat of moving the university to another city.
Neeli to the bot: “…and this renovation will cost $700 MM.”
schuyler: “Thank you, Dr. Bendapudi. And the ayes have it. The motion passes. On to the next topic on our agenda…”
Tear the stadium down and play all home games at Lincoln Financial Field. That's more than Barry has come up with on this topic. If I'm wrong he can post here what he has on his blog if he has.
Look, I'm all for "fiduciary responsibility" and have a daughter on campus at this moment so I know ALL THE COSTS of way too well, but to just point out what's wrong ALL THE TIME without a solution does nothing. COME UP WITH SOLUTIONS and maybe people will listen.
Has Barry ever posted anything good about our University since he's been posting at the other site or this one? I can't recall one time.
Why would PSU do that? It would have to pay to rent a field that has a capacity of 30k+ fewer than Beaver Stadium and might lose all or part of parking and concession revenue in the bargain.
aTm played all of its scheduled home games in Kyle Field while it was under renovation and set a single-game attendance record, which may never be broken, in the process.
As a trustee it isn't Barry's responsibility, or that of any other trustee (other than Dr. Bendapudi wearing a different hat), to make and execute proposals. That's what senior administrators are paid big bucks to do
I agree that would be stupid. I'd just like to hear what his ideas are for the stadium. He's the one that commented on this thread. I know he's got his numbers together and I respect that. The consensus was this from the article:
"Other estimates through the course of the planning process landed at more than $1.2 billion for a whole stadium renovation and $1.5 billion to build new on a site adjacent to Beaver Stadium’s current location. Both options were rejected as financially unviable."
Is the best option to do nothing until it's unsafe then ask for state money to bail out like usual? I just want to know his take. He's a public figure now on this forum so I'd like his take moving forward to vote accordingly.
He's seemingly cordial here since he got elected, but has avoided questions from me as well.
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This unsafe stuff is BS - not even the administration is arguing that. Why? Because it is routinely inspected, is within specified tolerances, and when something wears down is easy and cheap to rapidly repair. Unless you're trying to argue the administration is borderline criminally negligent and/or incompetent, which I'm pretty sure you're not, then it looks like you're just trying to throw anything out there and hope something sticks.
When did concepts like finance, budgets, fiscal responsibility, etc stop being taught? Where is the attempt at fundraising for this project? Have you ever put together project proposals? One of the options is always to do nothing. Believe it or not, sometimes it's valid. Barring a competent fundraising campaign this project can't even break even on the payback, and this project is being pitched on revenue generation. Let thar sink in. This university does appear to have an unspoken plan in place - run the finances so far into the ground that they will have to be bailed out. I can't say I blame them, it's a pretty successful strategy, and when the **** does hit the fan most of the primary actors will have moved on and already have their spoils safely tucked away. This project, as currently financed, is a big waste of resources with no tangible value to the football program and should be voted down.
I said it right after the NCAA Supreme Court ruling - stop the obsession with expensive facility upgrades and focus on how to get athletes their coin. That's what this football program really needs. I'm sorry, hard plastic chair backs do nothing to help this program take the next step, and because of the resources consumed are counter-productive to it.
They're way ahead of the game. First, they got the state to bail out Pitt when Ned Litchfield ran it into the ground. Then, when construction costs of the Pete ran out of control, the state bailed them out to the tune of $60mm+.
Doubt that it will ever happen, but I'd really like to see the numbers underpinning the proposal.
When was the last time you went to a game at Beaver Stadium? Just curious as I've never heard you post about game day experience.
I have a second daughter strongly considering PSU as an option so it's possibly going to directly effect me twice.
For $700 MM, we’d better get a WiFi upgrade.
I have a friend at an engineering firm that was working on that 15 years ago. I think the main issue is cell tower capacity.
The students stand the entire game. Maybe they should just promote that for the fans?
That'll be a $20 per game "convenience fee" upgrade for anyone that wants to pay it
Oh geez, spend, spend, spend, even when the project can't meet its own metrics and criteria. Sadly, the criteria is not the comforts and amenities that I like even though mine come with a viable financing plan and new revenue streams.
Make Beaver Great Again!
What is that? 21 guns?Oh geez, spend, spend, spend, even when the project can't meet its own metrics and criteria. Sadly, the criteria is not the comforts and amenities that I like even though mine come with a viable financing plan and new revenue streams.
Make Beaver Great Again!
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Titans are building a new stadium for $2.1 billion to replace their stadium that was built in 1997.
Kinda helps when someone else is putting up half of the cost. Do you believe PSU has a white knight somewhere in the wings?
SoFi cost $5.5bn. Not sure that there are many apples-to-apples-to apples comparisons when it comes to estimating stadium constructions costs.
I'm not. That'll put a lot of union tradesmen to work for a quite a while on a good living wage.
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