Stadium Renovation to be paid by Athletics alone

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Football facilities renovations were announced at an athletics board meeting today. The timeline and financial specifics  were discussed, with renovations that will cost $110 million. This will be paid off by UK athletics in 30 years at $6.6 million a year.

According to Eric Monday, UK’s new executive vice president for finance and administration, the project will be focused on two ideals: to increase our competitiveness as well as fan satisfaction. The stadium renovations is to be completed in the fall of 2015 or early spring of 2016. Jen Smith of the Herald Leader discusses this in her article in more detail.

After the overview of the project, C.B. Akins, chairman of the athletics committee, said he was pleased that it was being paid for with athletics dollars alone.

“We’re appreciative of the fact that this will be totally paid for by athletics and that we have an athletics program that is operating in the black, unlike many institutions across the country, whose programs are subsidized by universities because they have deficits annually,” Akins said.

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  • LeisureKing

    6.6 million times 30 years = $198 million for $110 million of renovations. Are they saying there is $88 million of financing costs incurred which is almost as much as the renovations themselves?

    • Jennifer Campbell

      If it wasn’t for the Interest on the debt, it would be paid for in a little over 16 years. It looks to me like they are getting skinned for 80% interest. They must be doing business with Loan Sharks?

      • http://www.facebook.com/jbart1981 James Bartlett

        Actually 6% interest. Not great but not bad based on the size of the loan and the fact that it is backed by whether or not the athletics program is profitable for the next 30 years

        • Jennifer Campbell

          It wouldn’t cost them $88 million in finance charges if it was 6% Something doesn’t add up with this. It would only cost them $660,000 in Interest at that rate.

          • http://www.facebook.com/StarkyLove Ryan Stark

            Actually with a yearly payment of $6.6 million on a 30 year loan for $110 million, the interest rate is 4.387% which means that yes there will be $88 million dollars of interest paid over 30 years which if you know much about loans isn’t too bad considering the amount of the loan and collateral. As a monthly payment, it would equal up to a $550 k payment amount.

            Reference: Mortgage Banking Background

  • disqus_QnFSh7B6yZ

    I think they meant 20 years.


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