BERKELEY - The diversified approach to generating revenue in support of the financing plan for new Intercollegiate Athletics facilities continues to meet expectations through the second quarter for the 2014 fiscal year.
Overall, all sources of revenue generated approximately $2.74 million from July 1 through Dec. 31, 2013, a 20.5 percent increase compared to the same time period during the 2013 fiscal year. Included in the figure for the first time were rental income from long-term lease agreements and philanthropy and partnership revenue.
While net sales for the Endowment Seating Plan remained relatively flat for the first six months of the fiscal year, other portions of the plan showed significant growth. In particular, money collected from premium groups, corporate bundles and perk tickets (non-pledge premium seat revenue) was almost $550,000, or about 2 1/2 times what its total for the first two quarters of FY13.
Intercollegiate Athletics also began earning rental revenue from leasing contracts for space at California Memorial Stadium through agreements with the Haas School of Business for its Innovation Lab and for a Recreational Sports fitness facility. The amount, a combined $66,540 for tenant rentals and event marketing, is certain to grow as the leases take full effect over the course of the year, new tenants are brought on board, and more events are held at the stadium and in the club spaces. The UC Berkeley Visitor Center, which serves more than 150,000 people per year, will soon call the stadium home, and the Richard and Rhoda Goldman School of Public Policy will locate its development and public affairs staff and its executive education program on the facility’s fourth floor. Discussions are ongoing with other potential occupants.
In December, the University and Kabam, Inc., announced a 15-year partnership for the field naming rights to the stadium. Valued at $18 million, it is the largest field-naming right agreement in college athletics and will include a first-year payment of $1 million later this fiscal year.
Through the end of the second quarter, total pledge seats sold stood at 1,844, or 64 seats higher than the start of the fiscal year on July 1. ESP revenue for the first two quarters of FY14 stood at $2.1 million. As has been the case in past years, the majority of ESP revenue will be collected during the third and fourth quarters as payments are due in April.
More importantly, with $60,644,755 million in cash received through Dec. 31, 2013, the balance for the Fund Functioning as an Endowment (FFE) is projected to continue to be above the base-case scenario at the end of the fiscal year in June. Last year, the FFE was more than $2 million over the base case, which represents a mid-point in terms of the return on the FFE and other assumptions.
The next financial plan report will be published after the close of the fiscal year on June 30, 2014, and will include both investment earnings and operational support, which will be finalized once precise numbers are reconciled.