Are you saying that the Steelers have a crappy stadium?
PSU can't afford the Beaver Stadium renovation -Fenchak
- Thread starter heckmans
- Start date
I don't see any huge demand for events that would make a dent in that debt. And what is going to be the average net to the University for such an event? Nowhere close to a football game. How are classrooms a money maker?
I agree completely that we have to maintain the current facility. I also think we have to make improvements in order to stay competitive. I'm just questioning how much we can spend and have the project continue to make financial sense.
Florida is spending $400 million for the first major renovation of Ben Hill Griffin Stadium in 94 years. My question is if we could maintain competitiveness with that type of money.
Without knowing anything about the specifics of either renovation, Gainesville doesn't need to spend $70M to winterize anything or build for a 4-season venue
Billy Joel and Elton John have both played at Rec Hall / Bryce Jordan Center in the past. They both might have stopped touring by the time stadium renovations are completed. Like I said before, I could see a large multi band concert weekend in early July. People might come stay overnight for that. Maybe an NHL game in late January. That said, those things aren't going to make a huge dent in the $700 million cost. Best hope IMO is the "brand exposure" you're talking about. But is that as important as NIL money? How much money are PSU donors willing to spend?
Personally I think one of the likely ways to pay for some of it is to eliminate a couple non revenue sports.
Fair enough but the difference between $400 million and $700 million is a lot more than $70 million.
That would be my only complaint if that actually happens. I really don't think $700 million is that bad. A more extensive renovation would be much more. Anyone who's been on a tour of the stadium has seen how that tin can is pieced together. It's costly to fix decades of band aids.
$700 million expenditure to make an extra $200k per year from an additional event?
I'm not saying those are the numbers. I'm just saying that's the way I'm thinking.
agreed, but it's 23% of the difference just for "emergency" winterizing. No idea how the UF stadium is constructed, but the Beav is an erector set and concrete. This probably makes it more expensive for PSU to bring it up to standards and I have no idea if/what considerations there may be, having to build for cold weather vs warm. My point is that the state of Beaver stadium and geography likely makes it more expensive for PSU to do what needs to be done. IDK if it accounts for the remaining 77% of the difference, but I don't think it's near zero.
EDIT: Pics can be deceiving, but from looking at the UF stadium, it looks a lot more modern than what PSU is working with.
Ben Hill Griffin Stadium - Wikipedia
The debt service on $700 million is about $50 million per year, or $1 million per week. I used a 30-year amortization, and a bond rate of 6%. If they can get a tax-free rate, the debt service drops to $35 million, $700,000 per week, or $100,000 per day.
I realize there will be a capital campaign, but much of that will probably go toward paying down existing debt.
I realize there will be a capital campaign, but much of that will probably go toward paying down existing debt.
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Modern or not at least it has a full facade with enclosed space.agreed, but it's 23% of the difference just for "emergency" winterizing. No idea how the UF stadium is constructed, but the Beav is an erector set and concrete. This probably makes it more expensive for PSU to bring it up to standards and I have no idea if/what considerations there may be, having to build for cold weather vs warm. My point is that the state of Beaver stadium and geography likely makes it more expensive for PSU to do what needs to be done. IDK if it accounts for the remaining 77% of the difference, but I don't think it's near zero.
EDIT: Pics can be deceiving, but from looking at the UF stadium, it looks a lot more modern than what PSU is working with.
Ben Hill Griffin Stadium - Wikipedia
en.wikipedia.org
Here’s another potential savings. Add enclosed spaces for staff offices, weight room, football classrooms, video center and free up what is currently being used for the academic side of the university. Probably cheaper than building brand new teaching centers.
Or that space can be convenient to more dormitory space or space for married and non-traditional students. Has to be demand for it.
You are probably right, but this is a debt you have to incur at some point. Whether it be for repairs, or building new or something. It isn't going away and with football becoming a bigger cash cow, you can't neglect it.
Again, cutting non revenue sports may have to occur without donors. Just a realistic thing.
Again, it’s not one or two events. You could hold 8-10 large events. Plus professional meetings/conferences training sessions for marketing groups. Imagine what people would pay to have a spring/summer wedding at the stadium.
That 21,000 space has huge potential. Add in some smaller meeting rooms/ office space and a video center.
There will always be big concerts no matter the act. As time goes by, they are going to go where they get the biggest bang for the buck. They only have so many tour stops in them. The bigger the venue, the more they make
If Penn State drops out of the stupidity laughingly called “college football,” fine with me.From our former regular poster...
Penn State 'Can't Afford' Proposed $700 Million Beaver Stadium Renovation, Trustee Says
Barry Fenchak, an alumni-elected trustee, says he will vote against the stadium plan. 'I do not believe the Board should approve this project,' he writes.www.si.com
Yes, I'm beginning to see the potential demand. Since the stadium is located smack-dab in the middle of a vast transportation hub with massive hotel and eating establishments, acts like the Stones, the Who and Tay-Tay are chomping at the bit to book the venue.
Nothing to prevent these concert bookings from being made today. Why aren't they?
Because they don't view things through blue and white glasses and realize that putting lipstick on a pig is just that.
There are much better, more accessible options available.
Beaver Stadium Renovation: Reliable Loyal Fans, Students, Faculty & Alumni Deserve Better
On Tuesday May 21st on a remotely held Zoom meeting Penn State’s Board of Trustees will be asked to vote on a proposed $700 million renovation that remains, even to Trustees being asked to vote on it, shrouded in mysterious details with mystical future revenue predictions. No one argues that we...
www.jayvpaterno.com
Jay's thoughts.
I'd have to see the math. Actually I wonder if anybody did the math. It seems to me that the proposal should have included revenue estimates that would have shown how they were going to pay for this. Then Fenchak and Lubrano would have either accepted the proposal or else they would have questioned the assumptions (ie the liklihood of 10 large events, the amount of donations, etc).
I just read an article on victorybellrings that talked about how Franklin couldn't get a WR in the portal because we didn't have enough NIL money (I wonder if that's why KLS left). I worry that the assumption was that we'll get donors to cover much of the cost. I wonder how likely is if we can't get enough money from donors to keep us competitive with NIL.
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That's my point.Beaver Stadium Renovation: Reliable Loyal Fans, Students, Faculty & Alumni Deserve Better
On Tuesday May 21st on a remotely held Zoom meeting Penn State’s Board of Trustees will be asked to vote on a proposed $700 million renovation that remains, even to Trustees being asked to vote on it, shrouded in mysterious details with mystical future revenue predictions. No one argues that we...
Jay's thoughts.
- Trustees being asked to vote on it, shrouded in mysterious details with mystical future revenue predictions.
- No one argues that we need to renovate Beaver Stadium. No one argues that it has an economic impact on this community. The question about the renovation is simply the scale of the renovation
They’ll need to do a lot more than fill meeting rooms. They do that now with the Club… Their expectations are a couple big concerts a year and an NHL game along with a playoff game every now and then. Plus naming rights will pay off the debt. Not enough. NHL is not an annual event. Where is parking to fill a stadium that size in the winter? It ain’t the fields.
They need a football type of event in all the non football months which won’t happen because the field will be unusable from July through December unless they install synthetic turf. January through March will be empty because it’s winter. So you have 3 months to really monetize. Would really like to see their revenue generating ideas.
That’s insane if accurate. According to Barry, their capital campaigns can’t raise a lot of money since the scandal. I wonder why? It really is a hope and a prayer with unidentified other events that generate revs… funny how in the presentation Neeli and Krafty were on zoom reading a script. Hardly convincing.
That's true but how many concerts can we have without wrecking the field. We just did one. How many more?
I just want to see the numbers and assumptions.
Great article by Jay. Didn’t realize how secretive and vague the proposal was. Should have been tabled until more detailed designs and a financial analysis was completed.Beaver Stadium Renovation: Reliable Loyal Fans, Students, Faculty & Alumni Deserve Better
On Tuesday May 21st on a remotely held Zoom meeting Penn State’s Board of Trustees will be asked to vote on a proposed $700 million renovation that remains, even to Trustees being asked to vote on it, shrouded in mysterious details with mystical future revenue predictions. No one argues that we...
Jay's thoughts.
Jay hits the nail on the head! We continue to disregard the most loyal people to the point they will no longer careBeaver Stadium Renovation: Reliable Loyal Fans, Students, Faculty & Alumni Deserve Better
On Tuesday May 21st on a remotely held Zoom meeting Penn State’s Board of Trustees will be asked to vote on a proposed $700 million renovation that remains, even to Trustees being asked to vote on it, shrouded in mysterious details with mystical future revenue predictions. No one argues that we...
Jay's thoughts.
Sounds like whining to me. “I don’t like it. I know it’s needed. I don’t have any better ideas. I hate the future and improvements. “.
Could be.
Could also be "what are the alternatives?"
Heck, we should all wish they borrowed this money 2-3 years ago. The savings in interest alone would have paid for this once over.
Leadership of the BOT says..."Not to worry about the financing, we have it covered"
wilbury: I ask the genius you pretend to be, thru what funds do you expect the 700 million+ be paid?
Never claimed to be a genius, I'm just critical of Barry. He's an egomaniac. Why is he on the board? He won't even listen to anyone's opinion but his own so it's impossible for him to take a leadership role or to get people to side with him. All he wants to do is argue about everything.
I love the Paterno family, but Jay's article is pathetic. What does he want us to do? Wait until every season ticket holder older than 55 dies before we do anything so that we don't offend or alienate them?
I sit right in the bullseye so I'm impacted as much or more than most of you. I'll be fine. I'll find a way to cope.
$700 million comes from fundraising, concessions, naming opportunities, sponsorships, ticket sales, new events, etc. Everyone is missing the fact that the University already has $200 million in maintenance already scheduled for the stadium. That goes away with this project. It's really an extra $500 million which seems on par with other college football stadium projects.
If you want to be critical of anything, then question why the same people are always involved in the design and construction of this work. I'm sure there's 10-20% lost just by not keeping this more competitive. Populous, Alexander and Hawbaker always find themselves involved.
Don't worry. Onward State already has the beaver stadium calendar filled!!!
Staff Picks: Future Events Beaver Stadium Should Host
Michael Bublé concert? NFL games? Beaver Stadium could host it all.
onwardstate.com
Everyone has been dreaming of a Pens/Flyers Winter Classic since they stared. Would be huge.Don't worry. Onward State already has the beaver stadium calendar filled!!!
Staff Picks: Future Events Beaver Stadium Should Host
Michael Bublé concert? NFL games? Beaver Stadium could host it all.
Could easily do a Sabres/Pens game, especially since the Pegula family owns the Sabres and funded our hockey team and rink. Would be a natural matchup.
Could also add games against Rangers, Islanders, and Devils. Even throw in the Blue Jackets…..wouldn’t that be fun!
Steelers/Eagles would be a blast and set an NFL record….way cool.
Three or four summer concerts. Put up a temporary shell and have the world renowned Pittsburgh Symphony.
Incorporate some Arts Festval activities.
the symphony, wow. I dont know if the county has the infrastructure to handle that many visitors. Just think of how a saturday concert affects Pitt attendance...
Anything in the winter comes with enormous logistical problems because most of the stadium parking lots cannot be used. Satellite lots in four locations? Sure but moving 60k people is diabolical especially after the event. And you’re going to tell retailers that they need to be closed on the day of the event? Forget about using the Beav from mid December thru March…
And you can’t use the Beav from September through mid December so you have 5 months to generate revenue… sure let’s book 5 concerts which at best will pay off annual interest on a loan that big. At best! Everything else will have to come from tickets, suites, and concession sales and is why they would not release detail on additional revenue opportunities because it will be the fans that pay for it even with naming rights.
Because it’s not available for three years… the Combs concert got the phone ringing but can’t do anymore because of the renovation.
