University of New Mexico


Stadium And Arena Premium Seating Market Analysis And Financial Analysis

In 2007 the University of New Mexico commissioned B&D to conduct a market study for the potential development of premium seating programs at University Arena (“The Pit”) and University Stadium. The study specifically addressed the market potential for luxury suites and club seats, the definition of appropriate seating programs, the identification of revenue enhancements, and the debt capacity of the associated net new revenue streams. Our market analysis included a comparable market, conference school, and peer school analysis of premium seating programs and pricing strategies. It also included a premium market share analysis and a focus group consisting of university athletics donors and supporters. The focus group discussions enabled us to test project concepts informed by the quantitative analysis and examine potential user tastes and desires for seating location, and amenities. A financial analysis of the tested project concepts was completed with all operating revenues and costs modeled. Based on our quantitative and qualitative market analysis, we identified a demand for between 49 and 55 new luxury suites and between 1,300 and 1,700 club seats. The net new revenues generated by the additional premium seating were estimated to have the capacity to support between $31,000,000 and $43,000,000 in debt. The $49 million renovation of The Pit was completed in 2009. It includes 40 new luxury suites, courtside club seats, loge seats, and a total seating capacity for 14,743.