Monday, June 22, 2009
Arlington facility provides huge revenue to Big 12 teams
By ESPN.com staff
Posted by ESPN.com's Tim Griffin
Dallas Cowboys officials are intent on making the new stadium in Arlington, Texas, one of the key centers for college football games in the nation.
As such, they are providing deep revenue streams that will enable college teams to reap vast profits by playing in the new facility.
Gary Jacobson of The Dallas Morning News had an interesting story about some of the contract provisions from some of the college games that will be played in the stadium in the next several seasons, after copies of the contracts were obtained by his newspaper through open records requests.
Some of the more notable findings included:
- When Baylor meets Texas Tech on Nov. 28, no alcoholic beverages will be sold in the general concession areas, although it will be available in club areas and private boxes. At other college games at the facility, alcoholic beverages will be available throughout the facility.
- The stadium rental fee for the Texas A&M-Arkansas game Oct. 3 and the Baylor-Texas Tech game will be $100. The schools will receive revenue from ticket sales and from team-specific merchandise sales and game-specific sponsorship deals.
- Cowboys Stadium, L.P., controlled by Cowboys owner Jerry Jones, staffs and manages the games at no cost to the teams, and gets revenue from parking, food, beverage and non-participant merchandise sales. Legends Hospitality Management, the food service provider at the stadium, is owned by the Cowboys, the New York Yankees and two investment firms.
- The stadium partnership will also receive 1,000 club seats, among the best seats in the stadium, to each game at no cost.
- In 2013, when Notre Dame plays Arizona State in Arlington, Notre Dame will be the host institution and be responsible for managing the game at its cost, according to a copy of ASU's contract for the game. Notre Dame's payment for the game was shielded because the school is a private institution and not subject to open records acts. Arizona State will be paid $1.4 million for the game and receive free use of two suites, according to its contract.
- Oklahoma will receive $2.25 million and BYU about $1.5 million in fixed payments for their Sept. 5 game. Oklahoma's contract also specifies that it will receive 1,000 free tickets behind its bench and four free suites.
- Texas A&M and Arkansas will evenly split the free use of 16 suites; Baylor and Texas Tech split the free use of 22 suites, six for administrative purposes, according to the contracts.
- In another piece of correspondence to Texas Tech, the Cowboys guaranteed that gross revenue for eight of the school's suites would total at least $125,000.
The Cowboys have been very open about their plans to fill the facility with games other than NFL contests. Dallas executive vice president and chief operating officer Stephen Jones said earlier this year that the team hopes one day to schedule more college football games at the facility than NFL contests.
As those figures become known to other schools around the country, it won't be a surprise if it eventually fulfills those wishes.