https://www.bizjournals.com/tampabay/news/2023/09/06/usf-football-stadium-interest-rates.html
The university of south florida has submitted revised financial projections regarding its planned on-campus football stadium ahead of a significant vote later this week.
If approved by the Florida Board of Governors on Friday, usf will build an approximately $340 million stadium and take out a $200 million loan to help pay for it. Truist Bank has quoted usf an interest rate of 7% on the loan, an increase of 1.5% from the originally projected rate.
Revenue projections from the stadium are now "fully dependent" on realizing consultants' estimates, which banked on over 30,000 fans attending each game, according to a Sept. 5 memo.
If usf's projected revenues can't be met, either the usf foundation would have to pick up the tab, or there would have to be cuts within the athletics department. Watkins wrote on Aug. 8 that usf's projections for increases in ticket revenue at the new stadium and in athletics revenue — including game guarantees, royalties and conference and NCAA distributions — are "arguably ambitious."
"The revisions to the projections for the project highlight the uncertainty of future financial performance," Ben Watkins, director of Florida's division of bond finance, wrote in the Sept. 5 memo to the board of governors.