A highly anticipated independent audit of the University’s basketball arena project shows promising estimations about how much revenue the arena could generate.
The research, conducted by consulting firm CSL International of Texas, says the arena could earn between $9.6 million and $15.6 million of incremental revenue each year, which is $3 million more per year than the athletic department suggested in its preliminary estimations.
Even though the report “express(es) no opinion or assurances of any kind on the achievability of any projected information,” it bolsters the drum-beat toward breaking ground on the facility, which could come as early as this fall.

The report is meant to be the final word on what the University can anticipate by building the arena. Faculty, who have been critical of the financing model, are expected to weigh in at the University Senate meeting Wednesday.
The financing model calls for a $200 million loan to pay for the arena’s construction. That debt will be paid back over 40 years at $11.25 million annually. Faculty members have been wary of that model because it puts the University at its borrowing capacity with the state, and they are unsure if the athletic department could weather spells of unsuccessful athletic teams that bring in less revenue.
But thanks to a $100 million donation from Phil and Penny Knight, the athletic department says it would be fine should its football and basketball teams – which bring in the highest profits – have bad seasons. The $100 million donation established the Oregon Athletics Legacy Fund, and the department hopes to add another $50 million in donations over the next several years. That fund will be used as a financial backbone to cover operating expenses and capital improvement projects.
“Overall, the CSL report justifies that (a new arena) is something that can be done,” said athletic department spokesman Dave Williford.
Part of the viability of the funding model comes from the department’s ability to hold non-University events, such as tournaments, concerts and family shows. Last year, McArthur Court played host to 75 events, 25 of which weren’t basketball or volleyball games. Eighteen of those 25 were tournaments, according to the report.
The new arena would have to at least keep the same number of events in the arena in order to maintain high enough revenue. In total, there should be 65 to 100 events, and between 21 and 54 of those should be non-University, the report says.
But Eugene’s market is smaller, its people are older and they earn less than most other Pacific-10 Conference schools, which could make it difficult for the athletic department to secure commercial events, the report says. Nevertheless, there isn’t another major arena in the area, which “bodes well for the market potential of a new arena,” it says.
There doesn’t appear to be a greater allocation of student tickets included in the report, but that number is usually negotiated through the Athletic Department Finance Committee of the ASUO.
The report also offers a glance at ticket costs for non-students, which could fall between $15 and $200 depending on the seat’s location. For many of the seats there could be a one-time construction fee, which for the 44 courtside seats could be as high as between $50,000 and $100,000.
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