Dr. Shirley Raines, President of the University of Memphis, released a statement Wednesday, March 12 saying, at this time, it is not affordable to build an on-campus stadium.

"On Tuesday, March 11, the Heery Group delivered its latest report, including financial assumptions, to the Athletics Subcommittee of the Board of Visitors of the University of Memphis.  The Athletics Subcommittee voted not to recommend building an on-campus stadium at this time.

After studying the report and all of the options that it presents – and it does present us with options – and after weighing the recommendations of our business and finance officer and of our advisers, many of whom lead financial institutions, I agree that this is not the time to undertake the building of a stadium on campus.  It is not affordable.

According to the Heery Report, we would not generate enough revenue to cover the debt for a $125 million project for 20 years, meaning the University would have to contribute over $15 million from other University resources.  Several of our largest corporate and individual sponsors have told us they are not interested in naming rights.  The Heery Report values those rights at an additional $2.4 million annually for the first 10 years.  So, it is prudent business practice to have a contingency in the revenue of 5-10%, or $1.4 million or more, to cover that shortfall or any other revenue shortfall, money that we would have to take from academics, operations, and employee salaries.
Finally, when you consider the uncertainty of the revenue outlined in the Heery Report, our advisers believe this would negatively affect financing rates and increase the amount of debt that the University would have to cover from other sources not identified in the Heery Report.

I have heard from hundreds of you – fans, alumni, University neighbors, students, faculty and staff, business leaders, and supporters.

• Students said they want a stadium, but they do not want an increase in student fees to help pay for it. Without increased state support for tuition, tuition and fees will continue to rise at the University.
• Our Faculty Senate supports my statement that academics should be our highest priority, and those priorities include a new science building, music building, and nursing and audiology building.  While the state is supposed to pay for classrooms, research and laboratory spaces, most require that we supply matching funds.
• We are in the process of building new residence halls. 
• Currently, we have more than $125 million in delayed maintenance of existing buildings on campus.  Governor Bredesen’s proposed 2008-2009 budget has no capital dollars for higher education anywhere in the state – zero!  So, our research and laboratory building could be delayed for yet another year.
• Our football fans are very passionate about our Tigers, as they should be, given the hard work and the success of Coach Tommy West, his staff, and our student athletes.  But, the Heery Report assumes an additional $3 million will be raised annually through a priority seating plan (seat licenses) that would be a 50% increase over the $6 million we are currently raising.
• And, with the economy slowing, our greatest corporate supporters have told us, “No.  This is not the time to undertake the debt of building a football stadium.”

Some say that I do not want a stadium.  That is not true.  We agree wholeheartedly with the conclusion that we need to get more people on campus.  For instance, the 55,000 people who came to the FedEx Institute of Technology over the last two years walked away from our campus with a new perception of the University of Memphis, or those who attended events at the Rose Theatre, or the Holiday Inn where thousands have attended meetings, banquets and dinners … through these facilities we are connecting with our community in a special way.  Having alumni and fans back on campus – the camaraderie of games, homecoming and other events – those things would all be wonderful for building alumni relations and growing a stronger relationship with future students and supporters.

I agree with those who say that the study has provided some options for future planning at the University. In summary, we will not be building an on-campus stadium at this time.  But now is the time to come together as fans of the Tigers, and make our football program as strong as it possibly can be."

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