Ref. IF-5 - Nevada System of Higher Education

BOARD OF REGENTS
BRIEFING PAPER
Agenda Item Title: University of Nevada, Reno Mackay Stadium Improvement Project
Meeting Date: December 4 - 5, 2014
1. BACKGROUND & POLICY CONTEXT OF ISSUE:
The University of Nevada, Reno, proposes to substantially renovate Mackay Stadium at an estimated
project cost of $11.5 million. Construction includes new premium seats and boxes, a full-service Stadium
Club, additional public restrooms and limited renovation of the existing west and east side boxes. While
much preliminary planning has already been completed, final design work would commence upon receipt
of bond proceeds in March of 2015. Construction bidding would take place in the fall of 2015 and actual
construction would commence immediately following the 2015 football season to be ready for the 2016
season. Marketing of the new premium seats and boxes, which are the primary sources of debt service,
will take place throughout much of 2015 and 2016.
Background
The original lower bowl of Mackay Stadium, built in 1967, has not been significantly improved or updated
since initial construction. The last stadium improvements, the addition of west side skybox suites and
press box, occurred in 1996. The stadium requires significant renovation to improve safety, increase ADA
access, enhance fan amenities and offer new revenue opportunities for Intercollegiate Athletics (ICA).
Mackay Stadium currently ranks in the lower half of the Mountain West Conference football stadiums in
terms of fan seating and revenue generation.
In September of 2012, ICA commissioned a feasibility study, conducted by a national stadium marketing
firm, CSL International, to determine the northern Nevada community’s interest in supporting a major
stadium improvement project. Over 2,600 individuals responded to the survey. Additionally, CSL held a
series of fan focus groups to confirm the findings from the survey. Overall, the feasibility study found
there was significant community interest in financially supporting a stadium improvement project that
would materially improve the game day experience.
In addition to enhancing fan days, the new premium seating model will generate an increase in incremental
seating revenue that will strengthen the athletic program’s financial position to help meet the fiscal
challenges of the future. While ICA’s current plan to reduce and eliminate its accumulated operating
deficit remains rooted in guaranteed revenue through Mountain West Conference distributions, new
revenue from the stadium improvements may provide additional sources to hasten the elimination of the
deficit.
Project Scope
The major elements of the Mackay Stadium Improvement Project will include the following (Exhibit 1):
 Bleacher excavation, widening of aisles and handrails in the seven lower bowl sections
 Installation of 4,062 chair back seats
 30 new Club Level suites
 192 new Club Level seats
 Expansion of existing east side suites to include new patio seating
 Limited renovation of existing west side skyboxes
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 1 of 28



New 8,500 square foot Stadium Club (full service kitchen with year-round rental potential)
Installation of additional public restroom facilities (exact location and fixture count to be finalized
during design)
Installation of additional ADA ramps and enhanced seating
Project Cost Estimate
The estimated cost of the total project is $11.5M (Exhibit 2).
Financing Plan
The University worked with NSHE’s financial adviser (JNA Consultants, L.L.C.) and its bond/tax counsel
(Sherman & Howard, L.L.C.) to help structure the appropriate financing for this project. The proposed
financing is for a tax-exempt 15-year revenue bond, in an amount not to exceed $12.0 million (Exhibit 3),
with annual debt service payments of approximately $1,030, 000. The primary sources of repayment are
two-fold:
1. ICA has secured two $1 million cash gifts from two longtime University foundation
benefactors and Wolf Pack supporters. Payments are to be received over 6 years, beginning in
2015. These gifts will be applied to the 2016 - 2020 bond debt service payments, and represent
nearly one-half of the total bond payments for those years.
2. Ongoing incremental revenues generated from the new premium seating inventory and the
new pricing structure, (Exhibit 4) which commences in 2016.
During the initial 5 years of the project, the University projects average annual revenue of $2.6M (Exhibit
5) from revised ticket/premium seating revenue and foundation donations. The foundation donations cease
by the end of CY 2020 at which time ticket/premium seating revenue becomes the sole source for debt
retirement.
With the enhanced seating and other improvements, season ticket prices will essentially double in the
renovated sections under this proposal, but will remain below the average for the Mountain West
Conference (Exhibit 6). Projected ticket revenues also include a 3% annual price escalation. A total of
4,062 chair back seats will be available in the sections undergoing renovation. Currently, there are 4,600
season ticket holders in these sections. ICA will need to sell just over 3,000 season tickets at the higher
pricing structure to achieve its 75 percent sell-through goal. A 75 percent sell-through is estimated to
generate net revenue of $8.3M over the 15-year life of the financing. It is also very important to note that
over 15 years the project breaks even with just a 59 percent sell-through.
(Note: Ongoing discussions with Sherman & Howard L.L.C. indicate the potential for some amount of
taxable bonding with this project depending upon their final determination of the percentage of ‘private
use’ involved in the project. However, given the amount of any potential taxable financing and the current
low borrowing rates, any additional amount to debt service payments would be small. The uncertain but
potential need for such taxable bonds is included in the requested Bonding Resolution.)
Premium Seat Marketing Plan (Exhibit 7)
A project of this scope requires a tremendous amount of planning and marketing including pro-active
messaging so that current and prospective Wolf Pack fans have a solid understanding of the project and its
features and impact. A comprehensive campaign will communicate and promote the renovation project to
current, previous and potential customers in order to generate as much understanding and enthusiasm as
possible to drive sales, while also dispelling any misperceptions surrounding the project and campaign.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 2 of 28
Subject to Board of Regents’ approval at the December 2014 meeting, ICA will begin to meet extensively
with focus groups of donors, season ticketholders and key influencers to present the project in advance of
developing the final messaging. Doing so will allow ICA to refine its process and identify potential
questions and methods of messaging.
ICA will begin in earnest its overall marketing and messaging plan in early 2015, paving the way for the
ensuing sales efforts that will take place later in 2015 and throughout much of 2016.
2. SPECIFIC ACTIONS BEING RECOMMENDED OR REQUESTED:
University of Nevada, Reno President Marc A. Johnson requests approval of 1) The Mackay Stadium
Improvement Project and 2) a Bond Resolution for a tax-exempt, 15-year revenue bond, in an amount not
to exceed $12.0 million.
3. IMPETUS (WHY NOW?):



If approved now, ICA has an opportunity to enhance revenue generation through the Mackay
Stadium Improvement Project in time for the start of the 2016 football season.
Interest borrowing rates are extremely low and the University would like to take advantages of the
current interest rate environment.
In order to share in any cost savings associated with a single, larger NSHE bond issuance
(underwriting costs, issuance costs, etc.), the University would like to join with another NSHE
institution seeking project bonding and with NSHE seeking a bond refunding, all to be considered
at the December 2014 Board of Regents meeting.
4. BULLET POINTS TO SUPPORT REQUEST/RECOMMENDATION:


Responds to longstanding requests from alumni, fans and the community at large to upgrade
safety, ADA access, hospitality options and other amenities at Mackay Stadium events.
Increased revenue opportunities to help support ICA programs and operations.
5. POTENTIAL ARGUMENTS AGAINST THE REQUEST/RECOMMENDATION:
Excluding any allowance for new premium ticket sales, nearly one-half of the annual bond debt service
payments have already been secured through 2020 from Foundation gifts alone. Longer term, however, it
is impossible to know what ticket sales alone may be and any material shortfall in revenue projections
after 2020 may require the use of other institutional resources in order to make the required bond
payments.
6. ALTERNATIVE(S) TO WHAT IS BEING REQUESTED/RECOMMENDED:
The alternative would be to maintain MacKay Stadium in its status quo, sub-standard condition which
would adversely impact both the fan experience and the ability of ICA to generate a new revenue source to
help fund and grow its programs and operations in the future.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 3 of 28
7. COMPLIANCE WITH BOARD POLICY:
X Consistent With Current Board Policy: Title #4
Chapter #10
Section #25
 Amends Current Board Policy:
Title #_____ Chapter #_____ Section #_______
 Amends Current Procedures & Guidelines Manual: Chapter #_____ Section #_______
 Other:_____________________________________________________________________
X Fiscal Impact:
Yes X__
No_____
Explain: Issuance of up to $12 million in tax-exempt, 15 year revenue bonds with annual debt service
payments of approximately $1,030,000.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 4 of 28
Exhibit1
Enhanced Chair Back Seating - West Side
4
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 5 of 28
West Side Chair Back Seating (Cont.)
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 6 of 28
New Club Level Seating
5
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 7 of 28
West Side Club Boxes
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 8 of 28
New Stadium Club
6
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 9 of 28
New ADA Accessible Ramps and Seating
8
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 10 of 28
East Side Chair Back Seating
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 11 of 28
East Side Chair Back Seating (Cont.)
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 12 of 28
East Side Club Box and Patio Seating
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 13 of 28
Exhibit 2
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 14 of 28
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 15 of 28
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 16 of 28
EXHIBIT 3
Preliminary, subject to change
Nevada System of Higher Education
Universities Revenue Bonds, Series 2015A
(UNR Mackay Stadium Improvements)
Sources & Uses of Funds
Sources of Funds:
Par Amount
Original Issue Prem/(Disc)
Cash Contribution
Total Sources of Funds
$10,785,000.00
1,249,620.30
0.00
--------------$12,034,620.30
Uses of Funds:
Construction Funds
Capitalized Interest 1/
Initial Escrow Deposit
Unrestricted Escrow Cost
Restricted Escrow Cost
Net Underwriting
Insurance
Issuance Costs
Miscellaneous
Total Uses of Funds
$11,502,734.77
353,021.53
0.00
0.00
0.00
107,850.00
0.00
71,014.00
0.00
--------------$12,034,620.30
Bond Statistics
TIC
Bond Yield
Arbitrage Yield
Weighted Average Life
Underwriter's Spread
Costs as % of Par
2.78457%
2.66982%
2.86307%
9.455
1.000%
1.658%
1/ Capitalized interest through January 1, 2016.
JNA Consulting Group, LLC(INVESTMENT
AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 17 of 28
10/21/2014
Preliminary, subject to change
Nevada System of Higher Education
Universities Revenue Bonds, Series 2015A
(UNR Mackay Stadium Improvements)
Debt Service Schedule
Date
03/12/2015
07/01/2015
01/01/2016
07/01/2016
01/01/2017
07/01/2017
01/01/2018
07/01/2018
01/01/2019
07/01/2019
01/01/2020
07/01/2020
01/01/2021
07/01/2021
01/01/2022
07/01/2022
01/01/2023
07/01/2023
01/01/2024
07/01/2024
01/01/2025
07/01/2025
01/01/2026
07/01/2026
01/01/2027
07/01/2027
01/01/2028
07/01/2028
01/01/2029
07/01/2029
01/01/2030
07/01/2030
01/01/2031
07/01/2031
01/01/2032
07/01/2032
01/01/2033
07/01/2033
01/01/2034
07/01/2034
01/01/2035
07/01/2035
Principal
Rate
$585,000 4.000%
610,000 4.000%
635,000 4.000%
660,000 4.000%
685,000 4.000%
715,000 4.000%
745,000 4.000%
775,000 4.000%
805,000 4.000%
835,000 5.000%
880,000 4.000%
915,000 4.000%
950,000 4.000%
990,000 4.000%
--------------$10,785,000
JNA Consulting Group, LLC(INVESTMENT
Interest
$133,146.53
219,875.00
219,875.00
219,875.00
219,875.00
208,175.00
208,175.00
195,975.00
195,975.00
183,275.00
183,275.00
170,075.00
170,075.00
156,375.00
156,375.00
142,075.00
142,075.00
127,175.00
127,175.00
111,675.00
111,675.00
95,575.00
95,575.00
74,700.00
74,700.00
57,100.00
57,100.00
38,800.00
38,800.00
19,800.00
19,800.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
--------------$4,174,196.53
Capitalized
Interest
Semi-Annual
Debt Service
($133,146.53)
(219,875.00)
$0.00
0.00
219,875.00
219,875.00
804,875.00
208,175.00
818,175.00
195,975.00
830,975.00
183,275.00
843,275.00
170,075.00
855,075.00
156,375.00
871,375.00
142,075.00
887,075.00
127,175.00
902,175.00
111,675.00
916,675.00
95,575.00
930,575.00
74,700.00
954,700.00
57,100.00
972,100.00
38,800.00
988,800.00
19,800.00
1,009,800.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
--------------$14,606,175.00
--------------($353,021.53)
Annual
Debt Service
$0.00
219,875.00
1,024,750.00
1,026,350.00
1,026,950.00
1,026,550.00
1,025,150.00
1,027,750.00
1,029,150.00
1,029,350.00
1,028,350.00
1,026,150.00
1,029,400.00
1,029,200.00
1,027,600.00
1,029,600.00
0.00
0.00
0.00
0.00
0.00
--------------$14,606,175.00
AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 18 of 28
10/21/2014
EXHIBIT 4
UNIVERSITY OF NEVADA, RENO - MACKAY STADIUM RENOVATION
TICKET REVENUE PROJECTIONS
Section
East Side Boxes
Club Suites
Club Seats
D
C
E
B
F
J
K
Quantity
12
26
234
594
550
550
550
594
612
612
Price*
$4,000
$800
$200
$200
$200
$200
$200
$200
$200
$200
Preliminary, subject to change
Required Donation*
$25,000
$7,200
$1,000
$350
$300
$300
$200
$200
$325
$325
Total
Total Cost
$29,000
$8,000
$1,200
$550
$500
$500
$400
$400
$525
$525
100% Sell Through
Tickets Revenue
Donation Revenue Total Revenue
$48,000
$300,000
$348,000
$20,800
$187,200
$208,000
$46,800
$234,000
$280,800
$118,800
$207,900
$326,700
$110,000
$165,000
$275,000
$110,000
$165,000
$275,000
$110,000
$110,000
$220,000
$118,800
$118,800
$237,600
$122,400
$198,900
$321,300
$122,400
$198,900
$321,300
$928,000
$1,885,700
$2,813,700
*Ticket prices and required donation amounts have not been finalized. These numbers are presented for the purpose of revenue projections.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 19 of 28
EXHIBIT 5
ANNUAL CASH FLOW - MACKAY STADIUM RENOVATION
Assumption
AVERAGE Sell Through %
Sell Through
Calendar Year >
Revenue: Tickets + Seat Donation
Cord Foundation
Hart Foundation
Total Revenue
Less Current Revenue
Net Lift
Less Staffing
Less Marketing
Less Debt Repayment
Net Revenue
75%
2015
$250,000
$250,000
$250,000
$0
$0
$0
$250,000
75%
75%
2016
2017
$2,110,275 $2,173,583
$250,000
$250,000 $250,000
$2,360,275 $2,673,583
1,203,325 1,203,325
$1,156,950 $1,470,258
$0
$0
$100,000
$25,000
$219,875 $1,024,750
$837,075 $420,508
75%
2018
$2,238,791
$250,000
$250,000
$2,738,791
1,203,325
$1,535,466
$0
$10,000
$1,026,350
$499,116
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
$2,305,954 $2,375,133 $2,446,387 $2,446,387 $2,595,372 $2,673,233 $2,753,430 $2,836,033 $2,921,114 $3,008,748
$250,000 $250,000
75%
2029
$3,099,010
75%
2030
$3,191,980
$2,555,954 $2,625,133 $2,446,387 $2,446,387 $2,595,372 $2,673,233 $2,753,430 $2,836,033 $2,921,114 $3,008,748
1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325
$1,352,629 $1,421,808 $1,243,062 $1,243,062 $1,392,047 $1,469,908 $1,550,105 $1,632,708 $1,717,789 $1,805,423
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,000
$10,000
$10,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$1,026,950 $1,026,550 $1,025,150 $1,027,750 $1,029,150 $1,029,350 $1,028,350 $1,026,150 $1,029,400 $1,029,200
$315,679 $385,258 $207,912 $210,312 $357,897 $435,558 $516,755 $601,558 $683,389 $771,223
$3,099,010
1,203,325
$1,895,685
$0
$5,000
$1,027,600
$863,085
$3,191,980
1,203,325
$1,988,655
$0
$5,000
$1,029,600
$954,055
15 Year Revenue Total
Average Annual Net Rev
$8,309,381
$553,958.76
Minimum Sell-Through Percentage at Proposed Pricing Structure
Assumption
AVERAGE Sell Through %
Sell Through
Calendar Year >
Revenue: Tickets + Seat Donation
Cord Foundation
Hart Foundation
Total Revenue
Less Current Revenue
Net Lift
Less Staffing
Less Marketing
Less Debt Repayment
Net Revenue
59%
2015
$250,000
$250,000
$250,000
$0
$0
$0
$250,000
59%
59%
2016
2017
$1,660,083 $1,709,885
$250,000
$250,000 $250,000
$1,910,083 $2,209,885
1,203,325 1,203,325
$706,758 $1,006,560
$0
$0
$100,000
$25,000
$219,875 $1,024,750
$386,883 -$43,190
59%
2018
$1,761,182
$250,000
$250,000
$2,261,182
1,203,325
$1,057,857
$0
$10,000
$1,026,350
$21,507
59%
59%
59%
59%
59%
59%
59%
59%
59%
59%
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
$1,814,018 $1,868,438 $1,924,491 $1,982,226 $2,041,693 $2,102,943 $2,166,032 $2,231,013 $2,297,943 $2,366,881
$250,000 $250,000
59%
2029
$2,437,888
59%
2030
$2,511,024
$2,064,018 $2,118,438 $1,924,491 $1,982,226 $2,041,693 $2,102,943 $2,166,032 $2,231,013 $2,297,943 $2,366,881
1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325 1,203,325
$860,693 $915,113 $721,166 $778,901 $838,368 $899,618 $962,707 $1,027,688 $1,094,618 $1,163,556
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,000
$10,000
$10,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$1,026,950 $1,026,550 $1,025,150 $1,027,750 $1,029,150 $1,029,350 $1,028,350 $1,026,150 $1,029,400 $1,029,200
-$176,257 -$121,437 -$313,984 -$253,849 -$195,782 -$134,732 -$70,643
-$3,462
$60,218 $129,356
$2,437,888
1,203,325
$1,234,563
$0
$5,000
$1,027,600
$201,963
$2,511,024
1,203,325
$1,307,699
$0
$5,000
$1,029,600
$273,099
15 Year Revenue Total
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 20 of 28
$9,691
EXHIBIT 6
MOUNTAIN WEST CONFERENCE
SEASON TICKET PRICES, HIGHEST PRICE POINT
FISCAL 2015
School
Fresno St
Boise St
San Jose State
Wyoming
Utah State
Colorado St
UNIVERSITY OF NEVADA, RENO - PROPOSED
New Mexico
Hawaii
San Diego State
University of Nevada, Reno - Current
UNLV
Air Force
Conference Average (excluding UNR)
Price Point
High
High
High
High
High
High
High
High
High
High
High
High
High
Ticket Price
$ 230.00
$ 390.00
$ 210.00
$ 198.00
$ 175.00
$ 225.00
$ 200.00
$ 180.00
$ 145.00
$ 210.00
$ 170.00
$ 215.00
$ 200.00
Required Donation
$
1,230.00
$
465.00
$
500.00
$
500.00
$
500.00
$
400.00
$
350.00
$
250.00
$
230.00
$
150.00
$
125.00
$
$
-
Total Price
$ 1,460.00
$ 855.00
$ 710.00
$ 698.00
$ 675.00
$ 625.00
$ 550.00
$ 430.00
$ 375.00
$ 360.00
$ 295.00
$ 215.00
$ 200.00
$
600.00
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 21 of 28
Primary Seating Style
Chairback
Chairback
Chairback
Bench
Chairback
Chairback
Chairback
Bench
Chairback
Chairback
Bench
Bench
Temp Chairback Provided
EXHIBIT 7
MACKAY STADIUM IMPROVEMENT PROJECT
OUTREACH PLAN
Campaign Elements
Once the public communications phase begins, athletics will incorporate the following elements to be
used to communicate and promote the Renovation Project in an effort to create excitement and
ultimately drive sales.
Brochures & Direct Mail: Athletics will design a brochure piece that highlights the project and price
points and will be sent directly to both current and previous ticket purchasers. Additionally, these
brochures would be used for:


Use in sales meetings with customers
Leave behind at events, meetings, etc.
Additional direct mail pieces may be utilized as well and will be sent to additional zip codes starting with
89511 and moving down the list accordingly.
Print Advertising: A print advertisement highlighting the new seating renovations, price points and
features will be created for use in local newspapers. Depending on funding, additional local magazines
and print media may be included.
Website: Athletics will construct a website dedicated to the renovation. This website will include, at
minimum:






Animated drawings/fly-throughs of the renovated stadium
In depth looks at what the new sections/suites will look like
Video interviews with key people talking about the importance of the renovation
Pricing information
Opportunity to sign up to purchase
Pricing tool, allowing fans to see what their seats will cost
Digital & Online Advertising: Digital ads will be created for use in various online media outlets dedicated
to promoting the renovation project and driving fans to the website in order to inform them of the
project. These ads would include:
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Email
Social Media (Facebook, Twitter, Instagram)
Purchased ads on Facebook
Ads/pieces for use on the MW Network
Potential Retargeting Campaign across numerous sites
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 22 of 28
Paid Media/Broadcast Advertising: Both television and radio spots will be created highlighting the new
seating renovations and its benefits, driving fans to call or visit the website for more information.
These ads will run on 2-3 local stations, depending on available funds.
Free Media: Local media will be utilized to help create interest around this project and to help us
effectively communicate OUR message in a positive manner to the community. We will be transparent
in these efforts and will communicate via the following:
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Press Conference announcing the project
Press Release announcing the project
Group Informational Interview with the media in which we will go in-depth into how the
reseating process will work, share how we arrived at pricing, etc.
Schedule Key Personnel to do appearances on local TV and Radio throughout the campaign.
Town Hall Meetings: Athletics will conduct group meetings with current season ticketholders
(segmented by current seating section) so that we can walk them through the changes and
communicate our messages in a controlled environment, ensuring they understand the through process
and options. We want them to be able to express concerns in this environment, but must also work to
change any negative feelings to positive feelings by being transparent about our objectives and also be
communicating how we arrived at decision (through exhaustive research and fan feedback).
Key Influencers: Set meetings with groups of major influencers within the community. The purpose of
these meetings will be to inform these influencers of our messaging so that they can help communicate
the message, generate excitement and answer questions (or squash negative buzz). Groups included in
these meetings will be:
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AAUN
Business Leaders Group
Athletic Department Staff
Key Campus Constituents
Ambassadors
Chamber of Commerce
EDAWN
RSCVA
Speaking Engagements: Senior Athletic Officials will seek speaking opportunities to larger groups,
including Service Organizations (Rotary, Kiwanis, Lions) and other public gatherings.
Current Target Markets
Data collected from previous ticket sales indicate that two zip codes encompass the majority of ticket
sales and are shown below. Also shown is the next eight zip codes that have significant ticket sales. Due
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 23 of 28
to this disparity, the majority of marketing activities will be directed to these specific zip codes and
areas.
# of Tickets
Zip Code
89511
1104
89509
886
89502
469
89436
443
89523
430
89557
400
89521
374
89431
352
89503
344
89519
332
89434
259
New Markets
Other than the selected 10 zip codes, new opportunities may arise to expand to new areas that were not
previously targeted. Due to the increased price structure of the newly renovated seating sections, areas
with a higher income level may need to be targeted. Expanded targeting of the Tahoe basin and the
surrounding areas could increase ticket sales of the seats in the higher end of the pricing structure.
Alumni
Nevada has a strong Alumni base living in the area and they represent a strong market to target for
ticket sales of the newly renovated seats. Although Nevada ranks 9th in the Mountain West conference
in terms of number of living alumni, that rank is misleading. When compared to the total area
population, Nevada has one of the largest percentages of living alumni in the conference.
The Alumni in the area are best reached through the same channels that are currently being used by the
university and the athletics department. Alumni specific advertisements will be created and distributed
through these channels.
Corporate Base
The corporate base in Nevada serves as an opportunity for increased sales of the renovated seating
sections. As seen by previous ticket sales, corporations in the area typically buy multiple tickets per year
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 24 of 28
to give to employees or for owners/managers and key customers. Nevada ranks 4th in the conference
for corporate base in its respective region.
The corporate base is best first reached by creating a corporate specific advertisement highlighting the
business benefits of entertaining clients and rewarding employees with Nevada Wolf Pack tickets. This
appeal will be sent first to current sponsors through Wolf Pack Sports properties, then to previous
corporate ticket purchasers, followed by other large corporations in the area who have not previously
purchased tickets. By increasing the marketing emphasis on Reno’s corporate base, athletics can
increase its sales of multiple tickets and expand its long term customer relationships.
Additional Proven Target Markets
In addition to the newly defined demographics below, it will be important to also focus on audiences
that have previously demonstrated an interest in purchasing football and other sport tickets in the past:
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Football Season Ticketholders who may want to upgrade their seats to the newly renovated
areas.
Football Partial Plan Buyers
Football Single Game Buyers
Football Alumni
Non-Football Athletic Department Lists
All other sports ticketholders
All other sports donors
Varsity Club
Campus Lists
Campus donors (not involved in athletics)
University Faculty/Staff
Community Lists
NSHE Faculty/Staff
Community Groups (Chambers, Clubs. EDAWN, etc.)
SEAT RELOCATION
The Seat Renovation project is designed to begin a long-term effort to upgrade Mackay Stadium and
offer fans better amenities and an improved game day experience. In order to accomplish this however,
it will require the removal of approximately 4,000 seats within areas of the stadium. This is a significant
amount of attrition. We truly value our season ticketholders and will work hard to provide them with
every opportunity to renew in their current section, or, have options to upgrade or relocate. The
following process will be implemented to ensure a fair approach to seating options.
1) Season ticketholders seated in sections to be renovated will have first right to renew within
their current section. For example, a ticketholder in section C will have first right to seats in that
section prior to any other ticketholder.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 25 of 28
2) Assignment of renovated seats will be done using Wolf Pack Loyalty Points. The person with the
highest priority points in each section of the stadium will get first access to choose the seats of
his/her choice. Then, we work down the priority point list till each season ticket holder in that
section has access to seats. Or, it is sold out.
3) Once each current season ticketholder, in priority point order, gets access to seats in that
section, and there are still open seats available, people with the highest priority points in other
sections get access to that section and can choose the seats that they want.
4) If, during priority point seating in a particular section, the customer desires to move to another
section, they must wait till seating of current season ticket holders is done in that section before
they can choose seats.
Rationale:
1) It allows us an order and system to give access to certain seats.
2) It gives customers a good description of the process.
3) It allows us to give each customer the chance to keep their seats, based on priority points, so
they do not have to move to another location if they do not want to (unless demand exceeds
supply).
Requirements:
1) Need as up to date a priority point system as possible when the seating system is announced.
2) Priority points need to be organized by customer in each section of the stadium.
3) May restrict access to seats in section D.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 26 of 28
STADIUM SALES PLAN
Sales Campaign Phases and Structure
Phase 1: Club Seats and Loge Boxes (not existing inventory…no current seat holders to seat)
a. First Access - Highest priority point holders regardless of current season ticket locations.
Top 100 donors should get first access
b. Second Access - Highest priority point list that is not top 100.
c. Third Access- Next tier of donors
d. General Public
Phase 2: East Side Suites
a.
b.
c.
d.
First Access - Current suite holders will have first right to renew their current box.
Second Access – Current season ticketholders from other sections in loyalty point order.
Third Access – Non season ticketholders in loyalty point order
General Public
Phase 3
1) Sections will be sold in the following order: Section D, Sections C and E, Sections J and K, and
Sections B and F
a. First Access - Current season ticketholders in this section (in loyalty point order).
b. Second Access –Season ticketholders from other sections who were displaced (previous
section sold out before they were seated) in loyalty point order
c. Third Access – Current season ticketholders from other sections.
d. Fourth Access – Non season ticketholders in Loyalty Point Order
e. General Public
Rationale:
1) It allows us an order and system to give access to certain seats.
2) It gives customers a good description of the process.
3) It allows us to give each customer the chance to keep their seats, based on priority points, so
they do not have to move to another location if they do not want to (unless demand exceeds
supply).
Requirements:
1) Need current/accurate priority point system when the seating system is announced.
2) Priority points need to be organized by customer in each section of the stadium.
Staffing
There will be a fully dedicated sales and marketing Team consisting of seven individuals. Additionally,
the Development staff, made up of five individuals, will work closely with both the sales and marketing
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 27 of 28
team and the donor base to ensure strong communications and a smooth transition in the messaging,
seat relocation and seat sales processes.
(INVESTMENT AND FACILITIES COMMITTEE 12/04/14) Ref. IF-5, Page 28 of 28