GopherHole Column: Gopher Basketball Practice Facility: Is the Wait Almost Over?

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Gopher Basketball Practice Facility: Is the Wait Almost Over?
By J.B. Bauer

What can be expected from a new facility, and more importantly, when?

The University of Minnesota department of athletics is expected to reveal the results of its master facilities planning project in the near future. For years the school has said a basketball practice facility is a need. A facilities plan may drum up support, but history shows impressive plans and great vision often are not enough to get a facility built.

(for pictures and plenty more, click the link as well):

http://www.gopherhole.com/news_article/show/260991?referrer_id=388419

Minnesota fans have frequently heard about the need for a men’s basketball practice facility since the hiring of Tubby Smith in 2007. When Norwood Teague was hired as athletic director in 2012 he acknowledged that a new basketball practice facility was a need and not a want.

Teague’s staff and a third-party firm have been working on a master facilities plan for months, but specifics of the plan have yet to be released. Speaking to the press in late February, Teague said he expected the plan to be finalized by April and that it could carry a price tag of $80 to $125 million.

The calendar will soon turn to June. While there hasn’t yet been an unveiling of the plans it should come in the near future.

The master facilities plan will include numerous projects. While the $80 to $125 million estimate hasn’t been publicly broken down by each individual project (and could increase by the time it’s announced), a reasonable expectation for the basketball practice facility would appear to be in or near the range of $15 to $20 million.


Many Big Ten basketball programs have embarked on similar projects over the past several years. By looking at these recent examples, Minnesota fans can get a good feel for what a new practice facility would look like and the challenges that may be encountered during the process.

Recent Fundraising Efforts Sputtered
In October 2009, Gopher Athletics began planning for a new men’s and women’s basketball development center. Predesign concepts and plans were completed, as was a feasibility study. By early 2011 the University’s Golden Gopher Fund was advertising that the early phases of fundraising for a $15 million basketball development center were “well under way”.

Minnesota’s stated goal was to begin construction on the center in early 2013. The funding process was to begin with 50% of the funding coming from “leadership gifts”. From there the University would move to a “major gifts” phase before finalizing the funding campaign with a final “grassroots effort”.

All indications are that the efforts of the past few years have resulted in no major leadership gifts. With a new head men’s basketball coach in Richard Pitino and a forthcoming plan that potential donors can visualize, Minnesota hopes private funds can be raised for the project.

Much More Than a Gym
The men’s basketball team faces very real time constraints due to sharing practice space at Williams Arena with others. However, a practice facility is much more than just a floor and some baskets to shoot on.

Common amenities seen in Big Ten basketball practice facilities include the following:

Multiple courts which allow the men’s and women’s team to practice at the same time; 24-hour access

Locker rooms, often with technology such as iPads and state-of-the-art video delivery products which enable players to watch film and access team material

Players’ lounge where teammates can gather to study or unwind with video games and music

Training rooms with rehabilitation devices such as hot/cold tubs and physical therapy pools

Strength and conditioning areas with free weights, cardio machines, etc.

Coaching and staff offices, including academic support and sports medicine

Video/instruction meeting rooms

Public areas that showcase memorabilia, trophies and other historical achievements of the program

Multiple levels – if there isn’t a lot of ground space, building vertically can be a good option

Timeline
Timelines vary and can be painfully long. Construction for these projects often takes 18 to 24 months to complete, but getting to the ground breaking is the difficult part.

A master facilities plan with a basketball practice facility at the top of the priority list is nice to have, but until construction begins it often means very little. Ultimately it’s all about money. Where is it coming from and how much has been secured?

Nebraska’s Executive Associate Athletic Director Marc Boehm said that when he arrived in 2003 the school already had a basketball practice facility in its master plan. However, essentially nothing happened until the master plans were revisited in 2008. Nebraska received a lead gift of $10 million in the spring of 2009 and the $19 million Hendricks Training Complex was completed in the fall of 2011.

Ohio State has enjoyed a high level of on court success since Thad Matta became the Buckeyes’ head coach in 2004. In 2006 Ohio State recognized the need for a new facility and by 2007 fundraising for a $22 million building began. Three years later and the project had received commitments of less than $5 million.

The Buckeyes finally began construction on a scaled back project in mid-2012. When approved the estimated costs were $13.8 million. By November the estimate (and amount approved by the Board of Trustees) had risen to $19.5 million. Construction issues and delays were cited as a part of the higher costs.

Once a ground breaking date has been set and approved, you can feel good about the near term prospects of a practice facility. However, until construction has been given the OK, history says that even beautifully designed plans can sit on the shelf for many years before becoming reality.

Schools often announce a large lead gift when unveiling their facility project(s). Sometimes this energizes the fundraising base, but history also has shown that a nice start to fundraising isn’t always a great indication that a project will be completed according to the school’s desired timeline.


Funding
Minnesota might only be two years away from a practice facility if a large gift(s) is received or Norwood Teague is able to utilize some crafty political skills and financial creativity.

Many schools will describe projects as being privately funded, but the flow of funds is usually more complex. Rarely do you see an athletic department take in cash from donors and then use that cash to pay for construction.

Funding requirements tend to change when difficulties are encountered. Based on the state of Minnesota’s facilities as compared to their peers, something figures to give sooner than later.

The Gophers’ baseball team finally had the first stage of their longtime plans addressed with the rebuilding of Siebert Field in 2012. The budgeted project costs were approximately $7.1 million. This project has frequently been referred to as “fully privately funded”, but that’s quite a stretch.

Gophers Athletics said they had committed $1 million from their general operating fund. In addition, many of the private donations toward the project were in the form of pledges to make future payments.

When the University Of Minnesota Board Of Regents approved the project just days before it began, their meeting materials indicated that one source of funding was $2.9 million from grants and gifts. Nearly $4.3 million was to come from University funds.

How Will Gopher Basketball Get It Done?
Is the facilities “arms race” in college sports sustainable? Probably not. To be sure, university presidents and athletic directors have a difficult challenge to spend responsibly yet competitively.

Ideally Minnesota will be the recipient of a generous gift(s) that gets them over the halfway point toward full funding.

Sid Hartman of the Minneapolis Star Tribune wrote last week, “Apparently there is some good news about fund-raising for a Gophers basketball building for the men and women, and the total needed to get the building started is nearly reached.”

That rumor may prove to be true, but this is precisely the type of language to be wary of.

Less comfortable paths to funding the project could include increasing student fees, allocation of athletic revenues, or state and/or school contributions.

Student fees – The student services fee for the 2012-13 academic year was $368. Some of those monies could potentially be reallocated toward a basketball facility project or a temporary increase in fees could be implemented. Organizations currently receiving financial support through the student services fee like the University Quidditch League, Campus Atheists, Skeptics & Humanists (CASH) and the Lutheran Student Movement might not like this idea.

If a temporary five-year, $50 per semester fee was implemented for 40,000 students, $20 million of funding would be taken care of.

Allocation of athletic revenues – Some athletic departments have reasoned that they won’t be taking general university funds by earmarking certain athletic revenues (for example, revenue earned through conference contracts with media networks or premium seating fees) to fund a construction project. However, most athletic departments receive some level of institutional support and a construction project is ultimately going to cost the school.

This method of funding is often little more than providing an alternate explanation of current circumstances. It doesn’t require any new revenue inflow; rather it’s just a decision on paper that allocates current inflows to a specific purpose.

State and/or University contributions – While some governments and universities have given outright contributions toward an athletic department’s projects, others have provided funding via debt that must be repaid in the future. For a Gopher basketball practice facility to be built in the near term it appears likely that the athletic department would need some form of assistant from the general funds of the University or State.

$15 to $20 million is a lot of money, but relative to what the state of Minnesota gives to the University each year (well over half a billion dollars per year), it’s a drop in the bucket.

To further put the cost of a practice facility into perspective, the U’s 2012 6-year capital plan for 2013-2018 called for more than a billion dollars in capital expenditures.

(for pictures and plenty more, click the link as well):

http://www.gopherhole.com/news_article/show/260991?referrer_id=388419
 

The bold moves being made by the Teague camp are a pleasant change from the Zzzzzzzz moves of the previous administration (Tubby hire, notwithstanding). I am excited for the unveiling. I hope it is accompanied with an announcement of a huge lead donation. Without that, my confidence in the plan will be limited, but still hopeful. With it, I bet it drives short-term donations sky high.
 

This is very well done J.B. - thanks for putting it together.

I am very curious to see how the financing will evolve with this project. The U struggled to fundraise for the baseball stadium and its not as if the fundraising for the football stadium was smooth sailing. I can't imagine that corporate donors will find much value in having their names on a practice facility so we are going to have to rely heavily on a few large individual donations. I'm sure we'll repair the relationship with T Denny, but he's made it clear he has little interest in hoops, so his name and money will likely be tied to the enhancements with the football facility.

Go Gophers!!
 


Is it smart to invest these millions of dollars when we don't even know how collegiate sports will operate in the next decade?

The NCAA is going to lose the lawsuit filed against it by Ed O'Bannon and others. That will mean schools will have to pay out tons of money to athletes every year, along with the NCAA. Either the budgets will have to dramatically increase to support the athletics, or the entire system will have to change.

That fact, with the never ending arms race, and spending all this money on facilities seems like a vast waste of money. I used to support a basketball facility, but the realities are too hard to ignore.
 


Is it smart to invest these millions of dollars when we don't even know how collegiate sports will operate in the next decade?

The NCAA is going to lose the lawsuit filed against it by Ed O'Bannon and others. That will mean schools will have to pay out tons of money to athletes every year, along with the NCAA. Either the budgets will have to dramatically increase to support the athletics, or the entire system will have to change.

That fact, with the never ending arms race, and spending all this money on facilities seems like a vast waste of money. I used to support a basketball facility, but the realities are too hard to ignore.

Even right now there's a strong argument to be made that the money spent on college athletics is far too much. In the Big Ten teams have seen a boost in media revenues - and have increased spending significantly along with the increase in revenues. They'll need to slow the spending sooner than later.

At the same time that's true everywhere you look in daily life. Often it's even worse with governments, individuals, etc. Spending money that they do not have. Financially prudent? Probably not.

However, where a school - the University of Minnesota, for example - is a bit different is that they are already competing in the Big Ten. If you don't want to spend money on athletics, then close up the D-I shop. But, they're already in it and you've got the competing goals of spending responsibly, being wise with money.. and spending just to keep up with your peers.

It's tough. I appreciate your perspective Gopherguy0723 and share some of the same thoughts. In the case of the basketball practice facility, though... I see it as something that should get done in the near future (even if private funding covers only a portion of the costs). Minnesota has allowed itself to fall too far behind.
 

This reminds me a lot of the Vikings stadium debate. Was it "necessary" in the context of society and the economy in general, for the state to pledge hundreds of millions of dollars to build a shiny new stadium when the Vikings already had one to play in, and there are so many other needs in the state? Of course not. But most other NFL teams had one and the situation was putting the Vikings at a continued disadvantage financially and there were negative ramifications for the team (whether you believe they'd end up moving or not).

Put another way, the question really is, do you want YOUR team to be the one that makes the moral stand and says "this craziness stops here," knowing you're "right" but your team will suffer? Minnesota did not make the determination that a fancy new practice facility is necessary; rather, that decision was already made for them by just about every other school in the B1G.
 

This reminds me a lot of the Vikings stadium debate. Was it "necessary" in the context of society and the economy in general, for the state to pledge hundreds of millions of dollars to build a shiny new stadium when the Vikings already had one to play in, and there are so many other needs in the state? Of course not. But most other NFL teams had one and the situation was putting the Vikings at a continued disadvantage financially and there were negative ramifications for the team (whether you believe they'd end up moving or not).

Put another way, the question really is, do you want YOUR team to be the one that makes the moral stand and says "this craziness stops here," knowing you're "right" but your team will suffer? Minnesota did not make the determination that a fancy new practice facility is necessary; rather, that decision was already made for them by just about every other school in the B1G.

A couple of big differences.

The financial benefits of a BB practice facility will go to a state institution - The University of Minnesota/Athletic Dept. By all accounts the funding will all come from the University/Athletic Dept and private donors. Somewhat indirectly, but a better BB team will lead to more revenue.

The financial benefits of the Vikings stadium will go to one Zigi Wilf and one-half of the funding(half a billion dollars) will come from tax payers.

Yes there will be some economic impact to the 'community' but I would also argue that TCF Stadium may have a huge economic impact also, as college fans(think Iowa, Wisky and Nebraska) travel better than NFL fans.
 




It's absolutely preposterous to be complaining about spending $20 Million on a practice facility for a team that profits $10 Million annually. In case you hadn't heard, the U hasn't built a new basketball facility since 1928.
 




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