Oregon Media Services
December 17, 2007

The University of Oregon has received a copy of the 200-page Conventions, Sports & Leisure International (CSL) feasibility assessment for the proposed arena. The report details the independent, third-party consultant’s findings on revenue projections for the new University of Oregon sports arena and includes the following key findings:

• CSL concluded that the lack of significant competition from other local facilities bodes well for the arena’s market potential.

• CSL estimates a new UO arena will generate annual incremental net revenues of approximately $9.6 million to $15.6 million (in 2010 dollars, adjusted for inflation).

- These funds, together with unrestricted annual contributions as necessary, should provide the revenue to pay the estimated $11.25 million annual debt payment for the bonds UO will use to fund the arena without a negative impact on the UO Athletic Department’s ability to be self-supporting.

- UO previously estimated net revenues of approximately $8 million to $14 million in the first year of operations.

• Based on the Eugene-Springfield market and experiences at other similarly sized facilities in similar markets, CSL estimated the new arena could host between 21 and 54 non-university events a year.

• The CSL report is based on multiple sources of information including market research, CSL’s knowledge of the collegiate sports and entertainment industries, and data provided by university officials.

• CSL compared the UO to other college and university arenas in the Pac-10 and nationally to estimate the costs to operate the arena and to gauge its likely success.

• CSL suggested various pricing scenarios for tickets, annual contributions and one-time construction fees based on focus groups, comprehensive market surveys and sports and entertainment industry expertise.

The CSL feasibility assessment is available at:
http://pmr.uoregon.edu/current-uo-news/archive/media-advisory-file-2007/UO-Arena-%20Report.pdf

Tags: Arena, Basketball, University of Oregon