USF's new football stadium could draw inspiration from Houston and Colorado State
By Henry Queen
Tampa Bay Business Journal
Published: May 18, 2023

A study analyzing the financial feasibility of the University of South Florida's proposed $340 million football stadium has projected the university could cover $150 million in debt with stadium revenue.

That falls short of the $200 million loan that the USF Financing Corporation is asking the USF Board of Trustees and Florida Board of Governors to approve. The university expects to make up the gap with non-stadium-related revenue.

The report, completed in 2021 by Conventions Sports & Leisure International Inc. as an update to its 2017 version, pinpointed two primary aspirational projects for USF: TDECU Stadium (University of Houston) and Canvas Stadium (Colorado State University). San Diego State's Snapdragon Stadium was also mentioned.

Those three stadiums cost about $163 million, $272 million and $318 million in today's dollars, respectively. They can all seat at least 35,000 fans — the estimated capacity of USF's unnamed stadium.

The study projects USF to earn $15.2 million in net operating income before debt service in the first year of stadium operations in 2026. Only $13.4 million would be available for debt service after taking into account the approximately $1.8 million in USF's net income from its current home at Raymond James Stadium.

CSL estimated the net income available for debt finance to climb to over $32.5 million within 30 years, $8.7 million of which would actually go toward debt service. The study assumed the university would take out a 30-year, $150 million loan with a 4% interest rate.

The debt proposal on the table is a 20-year loan with a 5.5% interest rate, the first three years of which are dedicated to solely covering interest. If the finance committee approves the deal on Tuesday, it will head to the general board of trustees on June 13.

Revenue from ticket sales is expected to start at $7.62 million in year one and could increase to $17.97 million in year 30. That assumes a paid attendance of 31,130 — 6,000 of which would be students.

Private donations — Jeff Vinik and Frank and Carol Morsani have already contributed a combined $10 million to the stadium — will help the university reach its funding goal. The stadium's naming rights haven't been determined; CSL projected the stadium to generate $2.5 million from naming rights in its first year.

Increases in student athletic fees aren't expected, according to an agenda document.

The stadium will be located on a recreational sports complex site, displacing 13 acres of multisport field space. Several relocation options are being considered, including USF Research Park.