ISG, Univ. Of Kentucky Discuss Financing Details Of Facilities Plan
Int'l Stadia Group North and South America President Steve Moore, whose company is conducting a feasibility study with IMG College for the Univ. of Kentucky's (UK) proposed downtown basketball arena, renovations to Commonwealth Stadium and a new on-campus baseball stadium, said that financing "would be based on marketing and branding opportunities and naming rights and part of an overall strategy to search for ways to maximize revenues," according to Beverly Fortune of the LEXINGTON HERALD-LEADER. Moore added that a new source "would be non-traditional technology deals that better integrate television, the Internet and consumer advertising at a stadium." UK AD Mitch Barnhart said that "the trick for this plan to go forward is to come up with a business plan to make more money off these new facilities than the existing ones, and borrow against that." IMG College Senior VP & Managing Dir Thomas Stultz said that Commonwealth Stadium improvements "would include [HD] video boards and scoreboards, more suites, premium seating, plus easy access to in-house restaurants and other facilities." Meanwhile, Moore said that "it was premature to talk about whether the name on a basketball facility would be Rupp Arena." Moore noted that a new basketball arena "would be owned by the city through the Lexington Center Corp." Moore also said that ISG and IMG College "would enter into a revenue-sharing plan with Lexington Center 'until we paid down the debt.'" Moore: "We would be a limited partner for a limited time" (LEXINGTON HERALD-LEADER, 8/22).
CONFIDENT PARTNERS: Barnhart said that UK went forward with the plan because the "new financing model ... would require nothing up front." In Kentucky, Mark Story writes in order for IMG to borrow against future earnings, IMG "must come up with a business plan showing that it could create enough new cash through additional luxury suites, innovative arena signage, new club seating, etc. ... to attract private capital." Story: "It all sounds too good to be true -- and it may prove to be." However, Story notes it is "the model IMG used that allowed the financing of the new Wembley Stadium in London." Story: "One can't help but wonder if IMG and UK would have gone public if they didn't have a pretty strong feeling this could work" (LEXINGTON HERALD-LEADER, 8/22).
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