Kansas Athletics Takes on $115 Million Debt for Stadium Revamp

Kansas Athletics is set to acquire $115 million in new debt to finance ongoing construction efforts at the David Booth Kansas Memorial Stadium, a senior official from the University of Kansas (KU) has confirmed. This development comes as part of a broader project that has seen pledges and donations for the stadium rise to $248 million, marking a significant increase from previous updates.

«That has actually gone remarkably well,» remarked KU Chancellor Douglas Girod during a brief conversation, highlighting the successful fundraising efforts. Additionally, the university has secured approximately $85 million in state grant money to support the approximately $450 million renovation project.

The revamp is expected to drastically boost the stadium’s revenue, with KU projecting a sevenfold increase once the construction is complete and the stadium reopens in August. Chad DeWitt, KU’s Chief Financial Officer, indicated that modern suites, improved concessions, and new merchandise options are poised to drive substantial new revenue.

«People haven’t really experienced a modern stadium in Lawrence,» DeWitt stated. «This will be as nice as any one they will go to. It will generate more food and beverage revenue. Concerts and events will be there. It is not just a stadium. It has the conference center. There will be 200-plus events per year. There will be trade shows and all those kinds of activities.»

This optimism is crucial as the new debt significantly increases Kansas Athletics’ financial obligations. Previously, the athletics department held about $31 million in long-term debt, making the new stadium project a more than threefold increase. The final annual debt payment will depend on the bond sale in March and prevailing interest rates, with projections estimating payments to be slightly under $10 million annually.

DeWitt expressed confidence in the revenue potential, stating, «The incremental revenue of the stadium will pay that debt service one-and-a-half times. That is why you are able to do it.»

Financial comparisons with nearby institutions suggest room for growth. KU reported approximately $1.7 million in concession revenue for fiscal year 2023, closely trailing schools like Kansas State and Iowa State, which recorded significantly higher figures in NCAA reports. Even more substantial differences were noted in ticket revenue, where KU’s $6.7 million from football ticket sales was notably lower than its regional peers.

Despite the optimistic outlook, KU faces challenges with its stadium size. The revamped facility will have a reduced capacity, likely around 45,000 seats, making it the smallest among regional contenders, which could impact revenue generation capabilities.

Regarding future projects, the university has hinted at further developments for the stadium’s east side, including potential additions like a hotel and retail spaces, which would involve collaboration with private partners.