At Kustra’s urging, BSU releases stadium naming-rights figures

From the Idaho Statesman

BY CHADD CRIPE AND BRIAN MURPHY

Boise State will receive $9,081,250 from the Albertsons Stadium naming-right deal, 72.65 percent of the total package, according to documents obtained by the Idaho Statesman on Wednesday afternoon.

Albertsons will pay $12.5 million over the next 15 years for the naming rights to Bronco Stadium. Learfield, which holds the athletic department’s marketing rights, will receive the rest. The split is slightly worse than the 75-25 split that was originally described when the contract was announced.

Boise State had withheld details of the Albertsons deal — even from the State Board of Education, which was to consider the dollar-less contract Thursday in Idaho Falls.

Boise State President Bob Kustra called the Idaho Statesman on Wednesday morning, however, pledging to release the redacted information at Thursday’s State Board meeting and expressed disappointment that the information was withheld. The information was withheld at the request of Learfield, not Albertsons. But the school, after conversations with Learfield, opted to release the financial details.

The yearly payments from Albertsons to Bronco Sports Properties are as follows (with Boise State’s expected gross payment in parentheses):

July 1, 2014: $675,000 ($465,909)
July 1, 2015: $675,000 ($472,159)
July 1, 2016: $725,000 ($509,659)
July 1, 2017: $725,000 ($515,909)
July 1, 2018: $775,000 ($553,409)
July 1, 2019: $775,000 ($559,659)
July 1, 2020: $825,000 ($597,159)
July 1, 2021: $825,000 ($597,159)
July 1, 2022: $875,000 ($634,659)
July 1, 2023: $875,000 ($634,659)
July 1, 2024: $925,000 ($672,159)
July 1, 2025: $925,000 ($693,750)
July 1, 2026: $950,000 ($712,500)
July 1, 2027: $975,000 ($731,250)
July 1, 2028: $975,000 ($731,250)
Total: $12.5 million ($9,081,250)

Learfield paid Boise State naming rights guarantee fees for the last three academic years. Those amounts totaled $775,000. That total will be deducted from the payments to Boise State over an 11-year period.

The money will flow as follows for 2014-15:

Step 1: $275,000 (2014-15 naming rights guarantee fee) + $70,454 (1/11 of the $775,000 to be repaid) + $75,000 (the annual return for Learfield) = the total deduction of $420,454 from the annual naming rights fee paid by Albertsons.

Step 2: $675,000 (naming rights payment) – $420,454 (total deduction from Step 1) = $254,546

Step 3: 75 percent of $254,546 = $190,909 (university’s share) and 25 percent of $254,546 = $63,637 (Learfield’s share).

Under that calculation, Boise State would net $465,909. That matches Boise State’s projection.

“There are things that Learfield gives us that I don’t think people think about,” Kustra said at the May 21 announcement for Albertsons Stadium. “But I always would like to minimize the amount that you have to hand over to somebody who really wasn’t as directly involved in this as Mark Coyle was and as I was, but that’s the nature of these relationships.

“Over the years, Learfield has served this university well when it comes to the connections we’ve made. They’re able to reach out and find relationships for us that we can’t.”

The home of Boise State football previously was called Bronco Stadiu.

From the Idaho Statesman

Not an IDOG member yet?