July 14, 2009

Rutgers Alumni Commit $5 Million to Football Program for Construction of Football Recruiting Lounge and Welcome Center
New Facility Will Enhance Efforts to Recruit Student Athletes in Football, Raise Additional University Funds

NEW BRUNSWICK, N.J. – Two Rutgers alumni with long histories of significant financial support – including the CEO of one of the nation’s best-known corporations – have committed $5 million to the football program for the construction of a new facility that will enhance the university’s ability to recruit student-athletes in football and all Rutgers sports, and raise money for athletic and academic programs.

The 7,656-square-foot football recruiting lounge and welcome center will be built on the mezzanine level in the new south end zone of the expanded Rutgers Stadium. Anticipated uses of the facility, which will seat more than 300, include:

• Year-round football recruiting functions
• In-game entertaining of appropriate groups
• High end Athletics fundraising opportunities and events.
• Recruiting tours for all other sports on non-football recruiting days
• High-end fundraising for senior level university officials and the Rutgers University Foundation
• Tours for prospective students and their families.

The donors stipulated that their gifts must be used exclusively for the construction of this facility.

“We truly appreciate this terrific commitment by our donors to the Rutgers football program and the University,” said Tim Pernetti, Rutgers Director of Intercollegiate Athletics. “They share a vision of excellence with Head Coach Greg Schiano and our Athletic Department, and have made this state-of-the-art recruiting lounge and welcome center a reality.”

 “We are grateful for the support of our alumni for this important project,” said Carol P. Herring, President of the Rutgers University Foundation and vice president of development and alumni relations. “In addition to being a valuable football recruiting tool, this new facility will strengthen the university’s efforts to solicit additional financial support for both academics and athletics.”

One of the project’s donors, 1982 Rutgers graduate Greg Brown, is president and Co-chief executive officer of Motorola Inc. The new facility will be named the Brown Football Recruiting Lounge and Welcome Center.

 “The twin successes of Rutgers football in the classroom and on the field continue to be a tremendous source of pride for members of the university community, the people of New Jersey and beyond,” said Brown, who is also a member of the Rutgers University Foundation Board of Overseers. “I am proud to support and associate my family’s name with this new facility, which will symbolize Rutgers’ commitment to the continued long-term academic and athletic excellence of the football program and the University.”

The project’s other donor, also a Rutgers alumnus, has chosen to remain anonymous.

The recruiting lounge and welcome center is projected to cost $4.875 million. Construction is scheduled to begin in August.

The construction announced today is separate from the university’s ongoing $102 million stadium expansion project, which will increase the seating capacity of Rutgers Stadium to 52,454.

The stadium expansion project will be funded entirely by revenue generated by the success of the athletics program – including ticket sales for the 11,412 new seats as well as parking fees, concession sales, donations from season ticket holders, and additional contributions by donors.

The first phase of the stadium project – construction of nearly 1,000 premium club level mezzanine seats and related infrastructure – was completed on time and on budget for the 2008 football season. The second phase will add 11,412 seats, a new scoreboard and sound system, restrooms and concession stands to the stadium’s south end. The project remains on schedule to be completed in September for the season-opener.

On Tuesday, the Rutgers Board of Governors approved the construction and naming of the football recruiting lounge and welcome center.

Established in 1766, Rutgers, The State University of New Jersey, is America’s eighth oldest institution of higher learning and one of the nation’s premier public research universities. Serving more than 50,000 students on campuses in Camden, Newark and New Brunswick, Rutgers offers more than 280 bachelor’s, master’s, doctoral and professional degree programs. The university is home to 27 degree-granting schools and colleges, and more than 150 specialized centers and institutes. Rutgers is also a member of the prestigious Association of American Universities, a highly selective organization comprising the 62 leading research universities in North America.

December 12, 2008

Rutgers Board of Governors Approves New Financing Plan for Stadium Expansion

NEW BRUNSWICK, N.J. – The Board of Governors of Rutgers, The State University of New Jersey, today approved a new financing plan for the expansion of Rutgers Stadium – ensuring the project will be completed in time for the 2009 football season.

The $102 million project will increase the stadium’s seating capacity to approximately 54,000. The project will be funded entirely by revenue generated by the success of the athletics program – including ticket sales for the approximately 12,500 new seats as well as parking fees, concession sales and donations from season ticket holders.
Due to rising cost projections, the university has scaled back the scope of the project to stay within the original $102 million budget. Some portions of the project that will not generate revenue – such as new locker rooms – will be deferred to a later date.

“Rutgers football has generated tremendous excitement throughout the university community and the state of New Jersey. Coach Greg Schiano has built a program that is successful both on the field and in the classroom,” said Rutgers President Richard L. McCormick. “The university has thoroughly reviewed all options related to the construction and financing of the Rutgers Stadium expansion project. The consensus is clear – the completion of this project is the right economic decision.

 “The revenue generated by the football program will cover the cost of construction. This project will create badly needed construction jobs, contribute to the state’s economic recovery and dedicate a permanent source of new revenue for Rutgers athletics,” McCormick added. “Now it is time to complete the stadium expansion project and give thousands of additional fans the opportunity to root for the Scarlet Knights in person.”
Rutgers students will continue to have access to football tickets free of charge.

The Rutgers football program has experienced a dramatic resurgence, including four consecutive bowl appearances and 33 wins in the past four seasons. The Scarlet Knights will
compete for their third consecutive bowl victory when they face North Carolina State in the Papajohns.com Bowl in Birmingham, Ala., on Dec. 29.

The achievements of the athletics program also have contributed to:

• Record levels of academic fundraising.
• Record numbers of applications from prospective students.
• Record numbers of prospective students taking campus tours.
• The largest first-year class in three decades, with rising SAT scores among students who enroll at the university.
• A significant increase in national awareness of Rutgers and its academic programs.

In addition, the university has received deposits for more than 12,000 new season tickets for football.

The first phase of the stadium project – construction of nearly 1,000 mezzanine seats and related infrastructure – was completed on time and on budget for the 2008 football season. The second phase will add approximately 11,500 seats, restrooms and concession stands to the stadium’s south end.

The overall stadium expansion project remains on schedule to be completed by fall 2009. The total project cost remains $102 million.

The Board of Governors approved a resolution authorizing the university to borrow $102 million to finance the stadium expansion project. Under the revised financing plan, the university will issue $85 million in bonds; the remaining $17 million has been borrowed through low-interest commercial paper.

Over the past five years, outside revenue generated by the athletics program has jumped 101 percent – from $20.2 million in 2004 to a projected $40.7 million this year. This revenue comes from ticket sales, broadcast revenues, sponsorships, donations and other income.

 “The dramatic growth of this revenue in recent years demonstrates that the university’s plan to finance the stadium expansion project is both prudent and fiscally responsible,” President McCormick said.

January 29, 2008

Members of the Rutgers Community:

I am pleased to report that the Rutgers Board of Governors has approved the administration’s plan to expand Rutgers Stadium by adding nearly 14,000 seats, locker rooms, and other amenities.  The expansion, which will commence immediately, is designed to accommodate the large number of Scarlet Knights football fans now on a waiting list for tickets and, through added football revenue, to move the athletic program toward self-sufficiency.

The project will cost $102 million, with $30 million raised through private fundraising with the help of Governor Corzine and Senator Ray Lesniak and $72 million through issuance of Rutgers bonds. Debt service on the bonds will be financed entirely through the sale of the additional seats and associated new revenues.  In other words, the project will be self-supporting and will have no impact on tuition or on any other planned construction at Rutgers. 

Let me be especially firm on this point:  this project will not divert any money from academic programs, faculty and staff compensation, or student services.  Over time, in fact, additional revenue from the expanded stadium will allow us to reduce the current subsidy of athletics and invest more university funds in academics, student life, and other priorities.

At the public forum held last week, a serious concern was raised again and again by students and faculty:  with Rutgers’ budget so constrained and so many other priorities to fund, why aren’t we spending $102 million on fixing classrooms, restoring class sections, and hiring faculty instead?  The fact is that we don’t – and won’t – have this money unless we add the stadium seating to generate it.

As important as this project is, academics are and will remain by far our top priority.  This fact is reflected both in our operating budget and in our capital expenditures.  Rutgers has invested, over the past five years, approximately $700 million in the construction or renovation of classrooms, laboratories, residence halls, and campus life buildings.  This is more than 20 times greater than the amount we spent on athletic facilities in that period.

Many thanks to all those students, faculty, and staff who have contributed to the discussion of this plan. 

Sincerely,

President
Rutgers, The State University of New Jersey

Statement by Philip Furmanski, Executive Vice President for Academic Affairs
Rutgers, The State University of New Jersey
RE: Stadium Project

January 29, 2008

Rutgers is committed to excellence in all of its programs and initiatives. Maintaining a balance between academics and athletics is an integral part of this mission. A strong athletic program fosters the pride, loyalty, engagement, and enthusiasm that little else can bring to an academic institution. Strength in athletics is fully compatible with and can be collaborative with strength in academics to advance the university.

A more robust athletic program, bolstered by an expanded football stadium, can generate increased recognition and pride for Rutgers, which we can transform into greater support from individuals and from the state of New Jersey. Maintaining a financially self-sufficient athletic program would require less institutional support.

Rutgers currently has $313 million in capital projects under way or in various planning stages. These include academic buildings on all of our campuses, student and dining facilities, and new infrastructure. The process that has been used to evaluate and vet the stadium project is exactly the same as we carry out for other major projects at the university.

This project has been very carefully considered for what it contributes to our university, for its budgetary viability, and for its suitability in terms of maintaining the academic and athletic balance that we strive for at a top-tier public institution.