Kinnick Stadium Renovation hawkeyesports.com
Financial Plan

Kinnick Stadium Renovation
Construction Packages
Celebration of 75 Years
We Thought You'd Enjoy This
As described in the master plan and programming statements for this project, renovation improvements to Kinnick Stadium are envisioned to include the replacement of the south end zone seating area and construction of a new press box on the west sideline.

The south end zone structure must be replaced before the current scaffolding support system reaches the end of its useful life. A new press box will be constructed to accommodate the demand for premium seating and to provide a source for new revenue streams that will be necessary to meet the debt service requirements on bonds sold to finance the project.

In addition, the overall game-day experience will be enhanced for all fans by improving access and circulation in and around the stadium, updating and increasing the number of restrooms and the number of concessions stands, improving handicap accessibility, and providing other important general aesthetic improvements.

Preliminary cost estimates for this project made earlier ranged from $75 million to $96 million. Realizing the magnitude of this project, the University approached the UI Foundation to undertake a study to estimate the amount of funds that could be raised to support the Kinnick Stadium renovation. The UI Foundation hired Martin Grenzebach from the firm of Grenzebach, Glier and Associates to evaluate the recent donations history of the UI Department of Athletics and the potential for future philanthropic support for improvements to Kinnick Stadium.

In this process, Grenzebach conducted personal interviews with several of the UI Athletic Department's top donors. Grenzebach, Glier and Associates, in conjunction with CSL, also conducted a random telephone survey to gauge the interest in premium seating at a renovated Kinnick Stadium. Grenzebach has worked on similar studies for the University and the UI Foundation over the last 25 years including the Carver-Hawkeye Arena capital campaign. The services of his firm are widely used by universities across the nation.

Given the complexity and scope of this project, the University acknowledged early in the process the need to employ a consultant who was an expert at performing market analysis of the demand for premium seating options contemplated in the design of a larger press box area. A Request for Qualifications for this work was prepared culminating in the selection of the consulting firm, Conventions, Sports and Leisure International (CSL), to perform the marketing and financial feasibility analysis for this project. Jay Lenhardt is the principal with the firm who is working directly with the University. He also was the principal on the recently-completed renovation of Ross-Ade Stadium at Purdue University, a project that was very similar in scope to the UI's vision for Kinnick Stadium.

CSL has worked with many college and universities throughout the country on stadium and arena renovation projects. CSL is currently working with the University of Wisconsin, Michigan State University, and the University of Minnesota on analyses related to renovating or building new football stadiums at these campuses. A critical part of CSL's work is to collaborate with Grenzebach, Glier and Associates in the evaluation of revenue potential from the remodeled Kinnick Stadium. Analysis by CSL will include survey work of UI football patrons and evaluation of UI premium seating potential based on experiences at other universities.

The renovation of Kinnick Stadium is proposed to be accomplished in two phases. Phase 1 will begin immediately after the fall 2004 football season with the demolition and reconstruction of the south end zone seating. This work will be completed by August 2005. Phase 2 will begin immediately after the fall 2005 season with the demolition and replacement of the press box pavilion. This work will be completed by August 2006. To meet this aggressive construction schedule the University must issue bonds to finance the project. Anticipated bond sales would extend from January 2005 until September 2006.

Projected Cost
$86,800,000

Bond Issue Size
$95,000,000 - $100,000,000

The Board of Regents financial advisor, Springsted, Inc., is preparing a number of debt service schedules that will match cash flow needs for the project. It is assumed that each bond issue would have 25 principal payments.

Revenue to cover debt service will come from the following sources:

Capital Campaign
Based on past experience and recent survey work, Grenzebach, Glier and Associates estimates that $10-$15 million can be raised for this project. The firm's principal, Martin Grenzebach, expects that gifts will flow to the University during the first five years.

Premium Seating Opportunities Within New Press Box

  • Suites - Approximately 40 suites will be available which can yield approximately $2 million in annual revenue potential in the first season (fall 2006)
  • Indoor Club Seating - Approximately 310 indoor club seats will be available which can yield approximately $1.5 million in annual revenue potential the first season (fall 2006)
  • Outdoor Club Seating - Approximately 1,100 outdoor club seats will be available which can yield approximately $2.49 in annual revenue potential the first season (fall 2006)

    I-Club Priority Seating Gift Program
    The UI Athletic Department will continue its practice of assigning seat locations for season ticket purchases based on customer ticket priority. It is likely that a minimum annual gift to the National I-Club will be required to access seats in several of the sections in the east and west grandstands. The gift will vary but will increase in value relative to the 50-yard line.

    Concessions
    Concessions facilities will be expanded inside the renovated Kinnick Stadium, increasing the amount and diversity of concession sales at the facility on game days. Conservative estimates from CSL indicated approximately $195,000 in additional net revenue per game result from increased sales.

    Scoreboard Sponsorship
    Approximately $4 million included in the projected cost of the project will be invested in upgrading the stadium's scoreboards and sound systems. It is expected that these new scoreboards will generate additional revenue for the UI Athletic Department, but no amount from this revenue source has been included in the financial plan as a contribution to debt service.

    Ticket Surcharge
    Many universities have implemented a ticket surcharge to help fund major stadium renovations. There are no plans to implement a surcharge in the immediate future, but it is important to note that this is a potential revenue source that can be considered if needed.

    For additional information about the renovation of historic Kinnick Stadium,
    contact the appropriate staff member.