UNIVERSITY $60 MILLION ARENA

CONSTRUCTION DECISION

CONSTANTS 2014 2015 2016 2017

Number of Full Time Students N/A 15,000 15,100 15,200
Cost of Assistant Basketball Coach N/A $100,000 $103,000 $106,000
Luxury Box Rental Fee N/A 10,000 10,200 10,400
Concession Income per Fan N/A $3.00 $3.25 $3.50
Expected Volleyball and Gymnastics Attenda N/A 100 100 100
Pro Basketball Attendance per Game N/A 500 500 500
Pro Basketball Rental N/A $20,000 $20,000 $20,000
Women's Football Attendance per Game N/A 2,000 2,000 2,000
Women's Football Rental N/A $20,000 $20,000 $20,000
Naming Rights Revenue N/A $400,000 $400,000 $400,000
Expected Miscellaneous Income N/A $400,000 $410,000 $420,000
Expected Utilities and Maintanence Cost N/A $500,000 $510,000 $520,000

INPUTS
Basketball Recruiting Effort (1=Same, 2=More, 3=Max) 1
Added Student Fee (L=Low, M=Medium, O=Outrageous) L
Do the Women's Football League? (Y or N) N
Expected Bond Interest Rate (Annual) 3%
Number of Concerts per Year 6
Average Concert Attendance 3000
Average Concert Ticket $55

SUMMARY OF KEY RESULTS

Intangibles: Arena Net Income less Bond Payment ($3,347,487.81) ($3,288,612.81) ($3,225,837.81)
Accumulated Value of Intangibles ($42,213,442.15)
 2018 2019 2020 2021 2022 2023
15,300 15,400 15,500 15,600 15,700 15,800
$109,000 $112,000 $115,000 $118,000 $121,000 $124,000
10,600 10,800 11,000 11,200 11,400 11,600
$3.75 $4.00 $4.25 $4.50 $4.75 $5.00
100 100 100 100 100 100
500 500 0 0 0 0
$20,000 $20,000 $0 $0 $0 $0
2,000 2,000 0 0 0 0
$20,000 $20,000 $0.00 $0.00 $0 $0
$400,000 $400,000 $500,000 $500,000 $500,000 $500,000
$430,000 $440,000 $450,000 $460,000 $470,000 $480,000
$530,000 $540,000 $550,000 $560,000 $570,000 $580,000

($3,159,162.81) ($3,088,587.81) ($2,996,612.81) ($2,920,737.81) ($2,840,962.81) ($2,757,287.81)

 2024 2025 2026 2027 2028 2029
15,900 16,000 16,100 16,200 16,300 16,400
$127,000 $130,000 $133,000 $136,000 $139,000 $142,000
11,800 12,000 12,200 12,400 12,600 12,800
$5.25 $5.50 $5.75 $6.00 $6.25 $6.50
100 100 100 100 100 100
0 0 0 0 0 0
$0 $0 $0 $0 $0 $0
0 0 0 0 0 0
$0 $0 $0 $0 $0 $0
$500,000 $600,000 $600,000 $600,000 $600,000 $600,000
$490,000 $500,000 $510,000 $520,000 $530,000 $540,000
$590,000 $600,000 $610,000 $620,000 $630,000 $640,000

($2,669,712.81) ($2,509,437.81) ($2,447,862.81) ($2,384,987.81) ($2,320,812.81) ($2,255,337.81)

CASHFLOW STATEMENT 2014 2015 2016 2017 2018 2019
Revenue:
Men's and Women's Basketball N/A $311,900 $352,650 $396,000 $441,950 $490,500
Concessions N/A $135,300 $155,025 $176,050 $198,375 $222,000
Student Fee N/A $150,000 $151,000 $152,000 $153,000 $154,000
Luxury Boxes N/A $20,000 $20,400 $20,800 $21,200 $21,600
Concerts N/A $990,000 $990,000 $990,000 $990,000 $990,000
Advertising N/A $234,000 $234,000 $234,000 $234,000 $234,000
ProBasketball Rental N/A $20,000 $20,000 $20,000 $20,000 $20,000
Women's Football Rental N/A $20,000 $20,000 $20,000 $20,000 $20,000
Naming Rights N/A $400,000 $400,000 $400,000 $400,000 $400,000
Miscellaneous Income N/A $400,000 $410,000 $420,000 $430,000 $440,000
Total Revenue $2,681,200 $2,753,075 $2,828,850 $2,908,525 $2,992,100
Costs and Expenses:
Utilities and Maintenance N/A $500,000 $510,000 $520,000 $530,000 $540,000
Added Basketball Coaches N/A $100,000 $103,000 $106,000 $109,000 $112,000
Other Added Basketball Cost N/A $0 $0 $0 $0 $0
Luxury Box Expense N/A $6,500 $6,500 $6,500 $6,500 $6,500
Concert Organizer Fee N/A $450,000 $450,000 $450,000 $450,000 $450,000
Total Costs and Expenses N/A $1,056,500 $1,069,500 $1,082,500 $1,095,500 $1,108,500
Arena Net Income: $1,624,700 $1,683,575 $1,746,350 $1,813,025 $1,883,600
 2020 2021 2022 2023 2024 2025 2026 2027

$541,650 $595,400 $651,750 $710,700 $772,250 $805,200 $838,150 $871,100

$204,425 $228,150 $253,175 $279,500 $307,125 $336,050 $366,275 $397,800
$155,000 $156,000 $157,000 $158,000 $159,000 $160,000 $161,000 $162,000
$22,000 $22,400 $22,800 $23,200 $23,600 $24,000 $24,400 $24,800
$990,000 $990,000 $990,000 $990,000 $990,000 $990,000 $990,000 $990,000
$234,000 $234,000 $234,000 $234,000 $234,000 $234,000 $234,000 $234,000
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$500,000 $500,000 $500,000 $500,000 $500,000 $600,000 $600,000 $600,000
$450,000 $460,000 $470,000 $480,000 $490,000 $500,000 $510,000 $520,000
$3,097,075 $3,185,950 $3,278,725 $3,375,400 $3,475,975 $3,649,250 $3,723,825 $3,799,700

$550,000 $560,000 $570,000 $580,000 $590,000 $600,000 $610,000 $620,000

$115,000 $118,000 $121,000 $124,000 $127,000 $130,000 $133,000 $136,000
$0 $0 $0 $0 $0 $0 $0 $0
$6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500
$450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000
$1,121,500 $1,134,500 $1,147,500 $1,160,500 $1,173,500 $1,186,500 $1,199,500 $1,212,500
$1,975,575 $2,051,450 $2,131,225 $2,214,900 $2,302,475 $2,462,750 $2,524,325 $2,587,200
 2028 2029

$904,050 $937,000
$430,625 $464,750
$163,000 $164,000
$25,200 $25,600
$990,000 $990,000
$234,000 $234,000
$0 $0
$0 $0
$600,000 $600,000
$530,000 $540,000
$3,876,875 $3,955,350

$630,000 $640,000
$139,000 $142,000
$0 $0
$6,500 $6,500
$450,000 $450,000
$1,225,500 $1,238,500
$2,651,375 $2,716,850
CASHFLOW STATEMENT 2014 2015 2016 2017 2018
Revenue:
Men's and Women's Basketball N/A $311,900 $352,650 $396,000 $441,950
Concessions N/A $135,300 $155,025 $176,050 $198,375
Student Fee N/A $150,000 $151,000 $152,000 $153,000
Luxury Boxes N/A $20,000 $20,400 $20,800 $21,200
Concerts N/A $990,000 $990,000 $990,000 $990,000
Advertising N/A $234,000 $234,000 $234,000 $234,000
ProBasketball Rental N/A $20,000 $20,000 $20,000 $20,000
Women's Football Rental N/A $20,000 $20,000 $20,000 $20,000
Naming Rights N/A $400,000 $400,000 $400,000 $400,000
Miscellaneous Income N/A $400,000 $410,000 $420,000 $430,000
Total Revenue $2,681,200 $2,753,075 $2,828,850 $2,908,525
Costs and Expenses:
Utilities and Maintenance N/A $500,000 $510,000 $520,000 $530,000
Added Basketball Coaches N/A $100,000 $103,000 $106,000 $109,000
Other Added Basketball Cost N/A $0 $0 $0 $0
Luxury Box Expense N/A $6,500 $6,500 $6,500 $6,500
Concert Organizer Fee N/A $450,000 $450,000 $450,000 $450,000
Total Costs and Expenses N/A $1,056,500 $1,069,500 $1,082,500 $1,095,500
Arena Net Income: $1,624,700 $1,683,575 $1,746,350 $1,813,025

BASE CASE 1
INPUTS
Recruiting Efforts 2
Student Fee M
Womens's League N
Interest Rate 3%
Number of Concerts 12
Average Attendance 3000
Average Ticket Price $55
RESULTS
Shortfall in 2015 ($3,347,487.81)
Accumulated Shortfall ($42,213,442.15)
 2019 2020 2021 2022 2023 2024 2025 2026

$490,500 $541,650 $595,400 $651,750 $710,700 $772,250 $805,200 $838,150

$222,000 $204,425 $228,150 $253,175 $279,500 $307,125 $336,050 $366,275
$154,000 $155,000 $156,000 $157,000 $158,000 $159,000 $160,000 $161,000
$21,600 $22,000 $22,400 $22,800 $23,200 $23,600 $24,000 $24,400
$990,000 $990,000 $990,000 $990,000 $990,000 $990,000 $990,000 $990,000
$234,000 $234,000 $234,000 $234,000 $234,000 $234,000 $234,000 $234,000
$20,000 $0 $0 $0 $0 $0 $0 $0
$20,000 $0 $0 $0 $0 $0 $0 $0
$400,000 $500,000 $500,000 $500,000 $500,000 $500,000 $600,000 $600,000
$440,000 $450,000 $460,000 $470,000 $480,000 $490,000 $500,000 $510,000
$2,992,100 $3,097,075 $3,185,950 $3,278,725 $3,375,400 $3,475,975 $3,649,250 $3,723,825

$540,000 $550,000 $560,000 $570,000 $580,000 $590,000 $600,000 $610,000

$112,000 $115,000 $118,000 $121,000 $124,000 $127,000 $130,000 $133,000
$0 $0 $0 $0 $0 $0 $0 $0
$6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500
$450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000 $450,000
$1,108,500 $1,121,500 $1,134,500 $1,147,500 $1,160,500 $1,173,500 $1,186,500 $1,199,500
$1,883,600 $1,975,575 $2,051,450 $2,131,225 $2,214,900 $2,302,475 $2,462,750 $2,524,325
 2027 2028 2029

$871,100 $904,050 $937,000

$397,800 $430,625 $464,750
$162,000 $163,000 $164,000
$24,800 $25,200 $25,600
$990,000 $990,000 $990,000
$234,000 $234,000 $234,000
$0 $0 $0
$0 $0 $0
$600,000 $600,000 $600,000
$520,000 $530,000 $540,000
$3,799,700 $3,876,875 $3,955,350

$620,000 $630,000 $640,000

$136,000 $139,000 $142,000
$0 $0 $0
$6,500 $6,500 $6,500
$450,000 $450,000 $450,000
$1,212,500 $1,225,500 $1,238,500
$2,587,200 $2,651,375 $2,716,850
CALCULATIONS 2014 2015 2016 2017
Construction Bond Payment in a Year N/A $4,972,187.81 $4,972,187.81 $4,972,187.81
Number of Assistant Basketball Coaches N/A 1 1 1
Cost of Assistant Basketball Coaches N/A $100,000 $103,000 $106,000
Other Added Basketball Program Cost N/A $0 $0 $0
Potential Change in Basketball Wins N/A 0 0 0
Expected Number of Basketball Wins 13 13 13 13
Increase in Season Tickets Sold N/A 50 50 50
Number of Basketball Season Tickets Sold 500 550 600 650
Cost of Season Basketball Ticket $200 $204 $208 $212
Season Ticket Revenue N/A $224,400 $249,600 $275,600
Added Student Fee N/A 10 10 10
Student Fee Revenue N/A $150,000 $151,000 $152,000
WalkUp Basketball Tickets Sold 650 700 750 800
Cost of WalkUp Ticket $15 $16 $17 $18
WalkUp Ticket Revenue N/A $291,200 $331,500 $374,400
Luxury Boxes Rented N/A 2 2 2
Luxury Box Revenue N/A $20,000 $20,400 $20,800
Luxury Box Expense N/A $6,500 $6,500 $6,500
College Basketball Concession Income N/A $97,500 $114,075 $131,950
Volleyball and Gymnastics Concession Incom N/A $7,800.00 $8,450.00 $9,100.00
Pro Basketball concession Income N/A $30,000.00 $32,500.00 $35,000.00
Women's Football Concession Income N/A $0 $0 $0
Concert Revenue N/A $990,000 $990,000 $990,000
Concert Organizer Fee N/A $450,000 $450,000 $450,000
Advertising Revenue N/A $234,000 $234,000 $234,000
 2018 2019 2020 2021 2022 2023
$4,972,187.81 $4,972,187.81 $4,972,187.81 $4,972,187.81 $4,972,187.81 $4,972,187.81
1 1 1 1 1 1
$109,000 $112,000 $115,000 $118,000 $121,000 $124,000
$0 $0 $0 $0 $0 $0
0 0 0 0 0 0
13 13 13 13 13 13
50 50 50 50 50 50
700 750 800 850 900 950
$216 $220 $224 $228 $233 $238
$302,400 $330,000 $358,400 $387,600 $419,400 $452,200
10 10 10 10 10 10
$153,000 $154,000 $155,000 $156,000 $157,000 $158,000
850 900 950 1000 1050 1100
$19 $20 $21 $22 $23 $24
$419,900 $468,000 $518,700 $572,000 $627,900 $686,400
2 2 2 2 2 2
$21,200 $21,600 $22,000 $22,400 $22,800 $23,200
$6,500 $6,500 $6,500 $6,500 $6,500 $6,500
$151,125 $171,600 $193,375 $216,450 $240,825 $266,500
$9,750.00 $10,400.00 $11,050.00 $11,700.00 $12,350.00 $13,000.00
$37,500.00 $40,000.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0 $0
$990,000 $990,000 $990,000 $990,000 $990,000 $990,000
$450,000 $450,000 $450,000 $450,000 $450,000 $450,000
$234,000 $234,000 $234,000 $234,000 $234,000 $234,000
 2024 2025 2026 2027 2028 2029
$4,972,187.81 $4,972,187.81 $4,972,187.81 $4,972,187.81 $4,972,187.81 $4,972,187.81
1 1 1 1 1 1
$127,000 $130,000 $133,000 $136,000 $139,000 $142,000
$0 $0 $0 $0 $0 $0
0 0 0 0 0 0
13 13 13 13 13 13
50 50 50 50 50 50
1000 1050 1100 1150 1200 1250
$243 $248 $253 $258 $263 $268
$486,000 $520,800 $556,600 $593,400 $631,200 $670,000
10 10 10 10 10 10
$159,000 $160,000 $161,000 $162,000 $163,000 $164,000
1150 1200 1250 1300 1350 1400
$25 $25 $25 $25 $25 $25
$747,500 $780,000 $812,500 $845,000 $877,500 $910,000
2 2 2 2 2 2
$23,600 $24,000 $24,400 $24,800 $25,200 $25,600
$6,500 $6,500 $6,500 $6,500 $6,500 $6,500
$293,475 $321,750 $351,325 $382,200 $414,375 $447,850
$13,650.00 $14,300.00 $14,950.00 $15,600.00 $16,250.00 $16,900.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0 $0 $0 $0 $0 $0
$990,000 $990,000 $990,000 $990,000 $990,000 $990,000
$450,000 $450,000 $450,000 $450,000 $450,000 $450,000
$234,000 $234,000 $234,000 $234,000 $234,000 $234,000