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Alumni Association Home > Past Issues > 2005 > May-June 2005   Print View National President's Column: A Winning Deal 5/5/2005 Sometimes everyone wins. I believe this will be the case if the University of Minnesota succeeds in securing the $235 million it needs to build a new on-campus football stadium. As many of you may already know, the University's stadium initiative gained great yardage this spring. As a result, I'm elated to report that we're on track to bring Gopher football back to campus for fall 2008. A brief recap of recent developments: On March 24, TCF Financial Corporation announced its plans for a $35 million, 25-year sponsorship for a new on-campus stadium. What's more, House and Senate committees both approved a bill that would allow the state to finance 40 percent of the new stadium's cost if the University can raise 60 percent of the cost. In return for its investment, TCF will receive exclusive naming rights for the stadium, which will be called TCF Bank Stadium, until 2029. For its part, the state will strengthen its most valuable educational asset by restoring open-air football back in the heart of the University community. This is wonderful news for college football fans and University athletics. But the benefits of the U's plan to build an on-campus stadium extend far beyond the gridiron. A new 50,000-seat stadium will not only be home to our football Gophers, but to the world-class Minnesota Marching Band and the U's thriving intramural programs. The stadium will be the site of commencements and a grand gathering place for University students, faculty, alumni, and friends for all manner of events and celebrations. Most important, however, this new TCF stadium agreement will provide an invaluable new source of funding for the entire University, especially academics, which is the backbone of this world-class institution. The TCF agreement includes a $2 million payment on signing, $1 million a year during construction, and, once the stadium is completed, $1.43 million annually for 21 years. In addition, the TCF deal includes an array of pieces that aren't related to the stadium. In fact, according to conservative estimates, these additional financial agreements could bring in $2.5 million annually ($43 million over the life of the deal), which would be used primarily for academic needs. These other agreements include: • An agreement to extend TCF's sponsorship of the “U Card,” a multipurpose card that serves as a student ID and allows users to make campus purchases and access campus services. Under the new deal, the sponsorship will be extended up to 16 years beyond its current end date of 2013. Each year of the sponsorship, the University will receive an estimated $1.6 million for student scholarships and programs and other non-stadium uses. • An option for TCF to extend its lease for the 10 ATM machines it operates around campus, as well as a lease for a new bank site on the West Bank campus. TCF will also have the option to lease the Coffman Union space currently used by U.S. Bank, whose lease ends in 2010. Combined, these arrangements could generate roughly $443,000 annually. • An opportunity for TCF to offer a variety of non-credit card products and services-such as debit cards, gift cards, checking accounts-to alumni and supporters of University athletics. The estimated annual proceeds from these accounts could total $375,000. A new stadium, quite simply, will open up new revenue streams that will flow throughout the entire University. This is revenue that would not otherwise come to the University. But it has the potential to provide the U with much-needed infusions of income, especially when state funding for higher education in Minnesota has been steadily and substantially declining. In the end, everyone wins. Gopher fans will once again be able to revel in the incomparable excitement of enjoying fall football as it was meant to be-outdoors, on campus, surrounded by the buildings where students live, learn, discover, and create. TCF, steeped in this community, will become a valued partner with the state's greatest institution. And the University will capture a critical funding source that will help ensure its health and well-being for years to come. The goal is in sight. And soon we'll make a game-day march down University Avenue, through the gates of our marvelous new stadium and into a bright new future for the University of Minnesota.

Last modified on 5/5/2005 5:10:45 PM ©2009 by the University of Minnesota Alumni Association. The University of Minnesota Alumni Association is an equal opportunity educator and employer.

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