Univ. Of Minnesota, Aramark Renegotiating Alcohol Concessions Contract
The Univ. of Minnesota is “hurriedly moving to renegotiate its contract with its longtime concessionaire to funnel more alcohol proceeds to the school after reporting that it lost money in its first year selling beer and wine at TCF Bank Stadium,” according to Mike Kaszuba of the Minneapolis STAR TRIBUNE. University officials said that the new tentative agreement with Aramark “would substantially increase its percentage of beer and wine sale proceeds from the stadium’s general seating area.” The school two months ago “reported it lost nearly $16,000 in its first year of selling beer and wine at the four-year-old stadium, even though it sold more than $900,000 worth of alcohol.” UM and Aramark “have since been renegotiating the contract,” and a new agreement “would raise the university’s percentage" from 22.5% of net sales to 35% of net sales up to $475,000 and 40% of sales "above $475,000 in the stadium’s general seating area.” UM officials said that the school in the new agreement “would make $110,000 this coming football season based on last year’s sales.” UM Exec Associate AD David Benedict said that Aramark, as part of the new agreement, also “pledged to give the school $37,000 to help erase its first-year loss” (Minneapolis STAR TRIBUNE, 5/15).