UAB, UA Board of Trustees Agree to Lease Terms for New Downtown Stadium

UAB, UA Board of Trustees Agree to Lease Terms for New Downtown Stadium

On 05, Jul, 2018

The city of Birmingham has agreed to build a new stadium to the tune of $174 million as a part of a $300 million expansion to the BJCC.

Now, the terms have been revealed for what UAB will pay as a tenant.

In order to use the stadium, UAB will pay $25,000 per home football game – ranging from six to 10 games per season – for the next 20 years. The school will also pay $15,000 for a postseason game hosted at the stadium and $10,000 each season for the spring practice game. Rates will be renegotiated after 10 years.

In addition, UAB will contribute $350,000 in marketing for the stadium.

The Blazers currently pay $15,000 per home game to lease Legion Field.

The new stadium has not yet been named, and construction will not begin until later in 2018. The schedule for completion has the stadium being finished sometime in 2021, ideally before the start of the 2021 football season.

The agreement was approved by the University of Alabama System Board of Trustees and is between UAB and the BJCC Authority, which is overseeing the new stadium project as well as the larger expansion.

The $25,000 per home game is a great deal when viewed in comparison to other deals around the country. The University of South Florida, for example, pays around $145,000 per home game each year to the Tampa Sports Authority for use of Raymond James Stadium, a 65,000-seat venue that’s home to the Tampa Bay Buccaneers.

UAB’s new stadium shines light on the way financing works for large civic projects. A combination of private funds, loans, public funds, naming rights and sponsorships, and leases – all from a variety of partners and sources – will help pay for the stadium and the expansion. For taxpayers, the hope is that the public funds contributed by the city of Birmingham will be an investment due to stimulating the economy via more visitors to the area.

This is particularly true if the stadium is used for other purposes, such as concerts, that draw additional visitors to the Birmingham metro area.

It’ll be interesting to see how the new stadium takes shape, and what impact it’ll have on the Birmingham metro economy in the future.

Alabama CCIM is the state chapter of CCIM, which provides resources for both commercial real estate agents and owners who need professional real estate help. Learn more about why a CCIM designation is recommended for agents and owners alike.

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