(03-30-2012 11:44 AM)cinbinsportsfan Wrote: Therefore, the Nippert challenge for Whit Babcock becomes one of "build it and they will come" or "build it when they come"? In other words, should he spend the money on Nippert now by creating those luxury boxes, adding restrooms, expanding the concourses, and overall making Nippert a more fan-friendly experience that gets people to come back or should he wait to see if Nippert can be sold-out/near capacity before he invests money into it?
While determining whether to expand before or after there is consistent demand is an important consideration, I don't think that it is the most important aspect surrounding Nippert expansion. Instead, I think the single biggest question is whether or not expansion should be undertaken given UC athletics current financial position.
Based on all the articles I've read over the past couple of years, it sounds like the finances in UC's athletic department are a mess. The athletics department has not been able to produce nearly enough revenues to cover its own expenses plus the large amount of debt service that is still owed on Varsity Village. Take this quote from
USA Today:
But the university's support of athletics has risen from $10.7 million in 2007-08 to $14.7 million in 2010-11. Even with that subsidy, the program reported an annual deficit of nearly $1 million that increased its cumulative operating deficit to $33.9 million.
That means that about one-third of UC's athletic department funding come from the university. University support (student fee, direct or indirect funding, state support, etc) isn't necessarily a bad thing as pretty much every athletic department in the country relies on it in some form or fashion. But needing the university to cover one third of the athletic departments budget is at the larger end of the scale.
Now consider the feasibility study UC completed a few years ago. Due to the buildings situated around Nippert, UC would only be able to increase seating capacity by about 10,000 seats for a price tag of $100 million dollars. The report also indicated that even with new income from suites, the project's return on investment was too low to justify expanding the stadium.
When you take everything all together (high cost of the project, low ROI, lingering debt service on varsity village, lack of revenues, etc), I don't see how Nippert expansion is financially possible. Until UC pays down its debt service and increases revenues, I think any expansion is likely to stay on the drawing board. That is especially true if the demand (particular for suites and premium seating isn't there.