University Times

Fans attending Pitt home football games this season won't have to worry about turning their heads and missing a critical play, thanks to a new video replay board at Pitt Stadium.

Acting for the full Board of Trustees, the property and facilities committee on July 28 approved the purchase and installation of the L.E.D. Technology replay board for $1,055,000.

According to a background statement, the video board "will provide a tremendous opportunity to maximize the revenue potential of the Athletic Department through sponsorship, signage and promotional opportunities." Existing and future athletic department sponsorship, signage and promotion revenues will finance most of the video board's construction and operating costs, according to the project's financial summary.

Of the video board's $1,055,000 cost, $500,000 will come from advertising rights and $500,000 from credit card revenues due the University under an agreement that allows the issuing of credit cards bearing the Pitt logo.

The University also borrowed $352,000 from its Plant Fund for the project. The loan will cover the remaining $55,000 in construction and installation costs, and $165,000 in operating costs this year.

Secretary of the Board of Trustees Robert Dunkelman said some people may question borrowing $352,000 from the University's Plant Fund when only $220,000 is budgeted for use. According to Dunkelman, the additional $132,000 was borrowed to cover any shortfalls in advertising revenue during FY 1998.

"Right now the outlook is very good for the advertising rights to generate a half million dollars, but you're never sure," Dunkelman said. "If they don't, if this doesn't materialize, there is $132,000 that can be used to offset costs." According to the project's financial summary, $192,000 of the loan will be paid back in FY 1999 and $192,000 in FY 2000 for a total repayment of $384,000.

Starting in FY 1999, funding for operation of the video board will be derived solely from advertising rights. Based on a 3 percent increase to advertisers each year, those rights are projected to bring in $515,000 in FY 1999; $530,450 in FY 2000; $546,364 in FY 2001 and $562,754 in FY 2002.

Operating costs for FY 1999 are expected to be $344,625, including a $192,000 loan repayment. When subtracted from the $515,000 in revenues the video board is projected to earn next year, the University should realize a profit of $170,375.

For FY 2000, the operating cost is expected to be $347,329, including a $192,000 loan repayment. Based on a projected video board income of $530,450, the University should earn a profit of $183,121 in FY 2000.

With the loan paid off, profits from the board are expected to double in FY 2001 and FY 2002. Advertising revenues of $546,364 projected for FY 2001 should mean a profit of $388,250 after expenses of $158,114. The profit in FY 2002 is expected to reach $401,772 on income of $562,754 and operating expenses of $160,982.

–Mike Sajna