Winstead PC Shareholder Jeff Nydegger authored an article titled “Sticking to the Fundamentals: Negotiating Revenue Generating Partnerships” for P3 Bulletin and Partnerships Bulletin’s inaugural Higher Education PPP Report 2021. An excerpt is below.
“In Fall of 2019, the University of Texas at Austin broke ground on the Moody Center, a landmark first-class basketball arena and entertainment venue. Located in the "live music capital of the world," the project was an ideal opportunity for a P3 with the entertainment industry. The $338m project was the culmination of an
18-month negotiation with the Oak View Group, the California-based sports venue operating and management group.
Oak View Group agreed to finance, construct and operate the arena in exchange for the right to hold events at the venue when not in use by the university. In addition to getting a new basketball arena, the university will receive a healthy share of the project’s revenues.
The Moody Center project is a tremendous success story that shows the potential for revenue-generating P3s in the higher education industry. At a time when public scrutiny of higher education spending is at an all-time high, colleges and universities across North America are increasingly looking for ways to fund projects and leverage campus assets to generate revenues. Whether it be a multi-purpose arena, a hotel and conference center, or a mixed-use campus edge project, these transactions have proven to be feasible; but they are not for the faint of heart.
And as is the case with college hoops, a university will have the greatest chance of success by sticking to the fundamentals.”
Read the full article.
Winstead’s multidisciplinary Higher Education and P3, Infrastructure & Project Finance Industry Groups provide a complete array of legal services to colleges and universities, including real estate, construction, litigation, intellectual property, and labor and employment. Winstead’s P3 attorneys represent major colleges and universities with the planning, financing and structuring of a wide variety of P3 projects ranging from arenas to utility plants. Our attorneys work closely with clients to weigh the risks and benefits of every transaction, maximizing both public and private resources to achieve optimal outcomes.
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