UCF construction

[D1DDY]

This is probably an easy question for some you fellas... but how did UCF get the loot for a new stadium and arena at the sametime?  Donors?

[86atlbull]

Good question!!

I'm a 86 USF grad and now live in the Atlanta area and usually catch at least one football game a year with some old college buddies (Auburn & UL this upcoming season planned).  I was in Orlando last week on business and decided to get a jog in at the UCF track since it was close by (with my USF teeshirt on of course) and was shocked to see how they have progressed with their facilities.  New football, basketball, softball, baseball stadiums along with a indoor football practice facility were all very visible surrounded by a bunch of new dorms with a nice downtown college feel. 

How did UCF get all this money to build these facilities and USF just seems to have a bunch of nice artist renditions?  With all the construction around UCF's athletic area you would think they just joined the Big East not USF and it was disturbing to see how they have beat USF to the punch regarding upgrading their facilities.  Like many USF alumni I do not like to lose to UCF and we are definitely losing the athletic facilities battle.  I believe UCF used some creative financing (bonds etc...) and USF is unwilling to go down this path from my understanding for fear of running into an athletic department deficit.  I think we need to change our strategy.

[DawgPound]

Well, these were two seperate projects.

The stadium was initially financed with bonds with a decent down payment(about 12mil, I believe).  The total amount taken for the building and surrounding infrastructure was around 60mil.  With 12mil off the top via donations, UCF has been privately raising other donations.  UCF has over 14mil in donations and signed a deal with Bright House Networks for naming rights, which is for 15 years at 1mil each.  Throw that all together, you have 29mil already accounted for.

In UCF's feasibility study, a break even analysis was done where the max attendence average was 23,500 like 3 years from now.  That, combined with concessions and other revenues will help pay off stadium workers and the debt interest.  UCF is also offering a limited amount of "student season tickets", which cost a bit of money, but guarantee that student will have students seats all season long.  Recently, word has been spreading around that only around 5,000 season tickets remain, which does not include visiting seats, reserved areas for students or football related.  With the summer push not even upon us yet, it is possible the stadium could sold out by the start of the season.

The new convocation center is part of a 107mil project that is rather comprehensive.  The new arena is just the start.  Coming with that are 4 different phases of retail shops, restaurants and other stores in that general area, which will get plenty of business from football games too.  Also, 4 new apartment like housing towers were built with small private garages nearby.  These apartments are run by people hired by Athletics and the revenue goes to help pay off this project.  Also, basketball games and concerts(other events) will go to help pay for the project.  The convo center is going to be run by Global Spectrum, which is a part of Comcast, but owned by UCF.  It is expected that naming rights for the convocation center will be sold.  We have been hearing rumors of it being called the AirTran Arena for months.

Currently, both projects are right on schedule with the convocation center scheduled to open first(it was always planned that way).  Let me know if you have any other questions.

[Knight_Light]

DP...good thorough answer.

I was just thinking the other day while on campus...that just a few years ago (2003 or so), UCF's Student Union use to be basically the northern boundary of UCF's main campus...with just a small Arena and surface lots built basically in the middle of no where.

Now?

UCF Student Union is almost smacked dab in the middle of campus.

All I can say is WOW!!!

Can't wait till the LAWN is completed...basically connecting the Student Union/Conservation Area to the Convo Center.

[Triple B]

Like many USF alumni I do not like to lose to UCF and we are definitely losing the athletic facilities battle.

:-X

[MavTechKNIGHT2]

Wow!  We finally have an intelligent USF poster.

USF can do all the things UCF has done but they may have the luxury of waiting for the money to come up front.  UCF did not have that luxury and had to vacate the CB.

But the athletic village is the model for other schools as well.

[CyberBull]

This is probably an easy question for some you fellas... but how did UCF get the loot for a new stadium and arena at the sametime?  Donors?

Easy.....

Anyone can borrow money they don't have. I always laugh at people who I know make much less money than me, yet I see driving their BMWs into their 5 year arm homes. These people are in debt up to their ears. Similar situation at UCiF. They have borrowed a lot of money in hope of making an impression to the BigEast. something they have not been able to do on the field.

[DawgPound]

Go figure it would be you to be the first to really urinate on this thread.

I borrowed over 16k for my education(was lucky to get plenty of grants and scholarships through my first couple of years).  Considering how much money I was making at that time(minimum), that's a lot, but I finished school, got a real job and am paying it off like they expected me to.

Until I see UCF being unable to meet their debt demand, there is no reason to think they can't.  They have more people and resources that know more than you do about the whole thing and guys who professionally specialize in analyzing this stuff think they will be fine.  It's really only a couple of party poopers who think otherwise.

[Guest Square Knight]

UCF's financing is much less risky than CyberBull like to pretend it is.  Almost every major athletic facility is built using borrowed money, so borrowing in of itself is no big deal.

UCF has already passed the number of football season ticket sales necessary to pay off the stadium.  By the time you add the late summer season ticket push and single game sales, we will be in excellent shape.

In reality, the income from the dormatories as well as the retail facilities greatly REDUCES the default risk.  Most arenas depend completely on private donations and arena revenue from concerts, etc.  Having private donation, arena revenue, AND dormatory revenue, AND revenue from retail facilities makes UCF's athletic fracility improvements much LESS risky than average.

[Knight_Light]

Here's a past Orlando Biz Journal feature article about how UCF's Athletic Village is the first of its kind for any FL State University.

http://orlando.bizjournals.com/orlando/stories/2006/04/17/story5.html