Rutgers Board of Governors Approves New Financing Plan for Stadium Expansion

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NEW BRUNSWICK, N.J. – The Board of Governors of Rutgers, The State University of New Jersey, today approved a new financing plan for the expansion of Rutgers Stadium – ensuring the project will be completed in time for the 2009 football season.

The $102 million project will increase the stadium’s seating capacity to approximately 54,000. The project will be funded entirely by revenue generated by the success of the athletics program – including ticket sales for the approximately 12,500 new seats as well as parking fees, concession sales and donations from season ticket holders.

Due to rising cost projections, the university has scaled back the scope of the project to stay within the original $102 million budget. Some portions of the project that will not generate revenue – such as new locker rooms – will be deferred to a later date.

“Rutgers football has generated tremendous excitement throughout the university community and the state of New Jersey. Coach Greg Schiano has built a program that is successful both on the field and in the classroom,” said Rutgers President Richard L. McCormick. “The university has thoroughly reviewed all options related to the construction and financing of the Rutgers Stadium expansion project. The consensus is clear – the completion of this project is the right economic decision.

“The revenue generated by the football program will cover the cost of construction. This project will create badly needed construction jobs, contribute to the state’s economic recovery and dedicate a permanent source of new revenue for Rutgers athletics,” McCormick added. “Now it is time to complete the stadium expansion project and give thousands of additional fans the opportunity to root for the Scarlet Knights in person.”

Rutgers students will continue to have access to football tickets free of charge.

The Rutgers football program has experienced a dramatic resurgence, including four consecutive bowl appearances and 33 wins in the past four seasons. The Scarlet Knights will compete for their third consecutive bowl victory when they face North Carolina State in the

Papajohns.com Bowl in Birmingham, Ala., on Dec. 29.

The achievements of the athletics program also have contributed to:

• Record levels of academic fundraising.
• Record numbers of applications from prospective students.
• Record numbers of prospective students taking campus tours.
• The largest first-year class in three decades, with rising SAT scores among students who enroll at the university.
• A significant increase in national awareness of Rutgers and its academic programs.

In addition, the university has received deposits for more than 12,000 new season tickets for football.

The first phase of the stadium project – construction of nearly 1,000 mezzanine seats and related infrastructure – was completed on time and on budget for the 2008 football season. The second phase will add approximately 11,500 seats, restrooms and concession stands to the stadium’s south end.

The overall stadium expansion project remains on schedule to be completed by fall 2009. The total project cost remains $102 million.

The Board of Governors approved a resolution authorizing the university to borrow $102 million to finance the stadium expansion project. Under the revised financing plan, the university will issue $85 million in bonds; the remaining $17 million has been borrowed through low-interest commercial paper.

Over the past five years, outside revenue generated by the athletics program has jumped 101 percent – from $20.2 million in 2004 to a projected $40.7 million this year. This revenue comes from ticket sales, broadcast revenues, sponsorships, donations and other income.

“The dramatic growth of this revenue in recent years demonstrates that the university’s plan to finance the stadium expansion project is both prudent and fiscally responsible,” President McCormick said.