Quote:
Originally Posted by arkitekte
The entire point of the UofM having it's own stadium is to bring alumni back to campus; having one located anywhere else defeats that purpose and is a waste of money. As it stands now, there's no reason for me to even drive to campus let alone walk around or spend time on campus. Yeah, the UofM would pocket beer and concession sales, but don't begin to think that the City would sell the LBMS after the upgrades that they've done without having it put into the contract that they keep a portion if not all of the revenue from the Liberty Bowl and Southern Heritage Classic.
By seating arrangements what do you mean? Individual chairback seats? The ADA situation has been corrected and the sight lines at the LBMS are actually pretty good. Also, how much revenue do you think the UofM would make to offset its "bad tv payout deal" that would also offset buying the stadium to begin with? I'm not seeing the logic there.
Memphis killed that dream more than Nashville, IMO. One thing I've never understood were Memphians boycotting the Titans after it was announced that they would move to Nashville. Did people not understand that those seasons could and would be looked at as a tryout? Now the league and any other market that in theory would be competing with Memphis for an NFL franchise can point to that season and crush an argument of "can they support a franchise".
Is he going to pay for that 500 million indoor stadium as well?
Realistically I think the Rams are the only team that will potentially relocate...possibly the Chargers, but that all depends on if they can get a new stadium built. One of those two will end up in LA. I just don't see Memphis being able to afford a relocation due to the costs associated with it (mainly building a new stadium), nor actually support an NFL franchise due to multiple reasons.
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The UM campus is not that big to begin with. Sure it would be really nice to be like everyone else and have a stadium on campus. But that is not gonna happen anytime soon or in the foreseeable future. Sometimes you can't be like everyone else. Memphis' campus sits surrounded by residential properties. In order to build an OCS they would have to buy up dozens of homes, then build a parking garage which would cost millions. You'r talking millions just for purchase of additional land on top of the cost for an OCS which would be at least $100M plus.
By buying the LBS the UM wouldn't have to depend on the city to put funding into the stadium anymore. The city is broke and has no extra money even to pay its police and fire departments let alone invest millions more into upgrades. The recent upgrades were part of a phase one. Phase two is now on halt because the city can't afford it. Those plans on hold include a new press box and chairbacking portions of the stadium. The renovation plans were once online but now seem to be private, and they featured chairbacks in the lower bowl section and the rest bleachers, possibly seat rest bleachers that are being installed in older stadiums all over the country now. They're cheaper opposed to chairbacks.
The city has no money, so hanging onto the LBS and being forced to continue to upgrade with tax dollars makes no sense. Yes the city did put money into it. So has the UM. So has FedEx. But it;s other tenants (SHC and LBS Classic) have not put a cent into the upgrades. But if the UM could make them an offer of say, $20-30 million for the stadium, its grounds and Tiger Lane, the city should and probably would strongly consider it. Selling it to the UM would save the city a lot of future investing into the aging stadium. Plus the city desperately needs that extra $20-30 million to keep the city from going bankrupt.
So in the end, the UM would be saving a fortune it already doesn't have to build an OCS by owning, collecting revenue from stadium use, and investing private dollars into upgrades needed to make the stadium attractive. The UM has proven it can raise funding for mid-level upgrades by planning to build indoor practice facility. So they could raise needed funding for upgrades at the LBS such as a new press box and seating improvements. Maybe replace the far end suites tower with a new one closer to the playing field.
Below is a list of revenue streaming that the UM would be able to profit off of annually:
-Beer sales
-Food & Beverage sales
-Rental fees (from SHC and LBS Classic plus any other use of the stadium)
-Merchandise sales
The above can add up to a lot more than people may realize. The reason the MLS is succeeding today is because of having total control and ownership of its facilities. They make more money by ownership where they wouldn't in a rental position.
Looking at the difference between owning a stadium opposed to building a new one on campus.
ON CAMPUS STADIUM
-Cost of land projection: $20-30M
-Cost of stadium construction: $100-110M
-Cost of landscaping & road work: $5-10M
-Cost of a parking garage of 3,000 cars: $20M
Projected total amount: $170M
OWNERSHIP OF LIBERTY BOWL MEMORIAL STADIUM
-Cost of purchase: $20-30M
-Cost of potential renovations: $50M
-Cost of Stadium upkeep: $2-3M every two years
Projected total amount: $83M
The UM can afford and raise capital for the latter but not the former. This is why they need to suggest buying the stadium and then charging whoever wants to use it with what they feel a rental fee should be. It would for once in their school's history give them some power over the city and the SEC.