UC Berkley uses groundbreaking approach to renovate stadium, build for the future

The Regents at the University of California recently approved the financing plan for the reconstruction of Memorial Stadium. The funds, which will be used to renovate and improve the west side of the stadium, will come completely from private donations being raised by the athletics department.

While this approach by itself may seem ordinary, Cal’s approach is truly groundbreaking as the department will fund the project through the Endowment Seating Program (ESP). In this model, the university is asking for donors to “purchase” a seat for an annual fee that can be paid through various payment options. There are four different price level and points as well as four different options. This chart provides an excellent comparison of the seats and the benefits associated with that level.

The ESP, which also has its own website, only affects 3,000 seats in the stadium. Yet these seats will generate enough revenue to not only renovate the stadium, but leave additional funds to create an endowment, one the school is publicizing could eventually reach $1 billion. This would ensure the athletics department a steady stream of income for the foreseeable future.

To date, the program has been received well, with 2,000 seats already being sold. These seats, depending on giving level, are held by the donor for a predetermined amount of time (ranging from 50 to 40 years). The seats can be resold or transferred under the donors discretion after payments and the letter of intent has been signed.

The donation for the seat also covers all amenities and the price of season tickets. Participants will be able to lock in the price of their seat for the duration of their endowment, making the seats a fixed yearly payment.

This approach allows donors the ability to choose their seats, not be subject to reseating, and to “own” their seats in the stadium. While this program may not be for all development operations, it highlights a school using a creative approach to fundraising and leveraging their current success to plan for the future.