Market Analysis and Funding Sources Subcommittee

August 9, 2012

1

Stadium Advisory Committee

Subcommittee Update

2

Received input from Fort Collins and Denver business communities through Chamber of Commerce surveys and adjusted projections as necessary

Internal review and modification of financial model to match all recent revisions to the building program

Reviewed historical data and revised model

Internal review of projections and supporting details with CSU-Fort Collins and CSU System financial experts

Presented projections to CSU Board of Governors

Updates to Assumptions

3

Revised number of priority and premium seating to match both the building program and reflect updated survey results

Scenarios based on percentage sold

Added tailgate revenue line

Added an additional expense line for NSM sponsorship share and an incremental cost to sell sponsorship

Revised Hughes Stadium existing income line

Assumptions Used in Financial Projections

CSL has developed 3 potential operating

scenarios.

Attendance has been inflated by 4 percent per year from Year 1

to Year 5.

Attendance remains constant after Year 5.

Low Base HighScenario Scenario Scenario

Average Tickets Distributed (Includes paid, comp, and students) - Year 1 29,000 35,000 42,800Average Paid Attendance - Year 1 19,000 25,000 32,800Average Standing Room-Only Ticket Price $10.00 $12.50 $15.00Average Individual Ticket Price (Based on 2012 pricing) $40.00 $48.00 $55.00Average Season Ticket Price (Based on 2012 pricing) $225 $250 $300

Priority Seat Donations: Goal l ine to 20's - 3,000 seats $150 $200 $300 20's to 40's - 3,000 seats $300 $400 $500 Between the 40's - 2,000 seats $500 $600 $700 Total - 8,000 seats -- -- --

Premium Seat Donations: Field Level Club Memberships (Between the 40's) - 500 memberships $400 $500 $600 South End Zone Club Memberships - 400 memberships $200 $300 $400 Outdoor Club Seats - 800 seats $1,500 $1,700 $1,900 Indoor Club Seats - 96 seats $1,750 $2,000 $2,250 Loge Boxes (4 seats) - 40 loge boxes $10,000 $11,500 $13,000 Club Suites (8 seats) - 10 club suites $20,000 $22,500 $25,000 Long's Peak Suites (16 seats) - 6 suites $35,000 $40,000 $45,000

% Priority / Premium Inventory Sold: % sold 75% 85% 95%

Concession Per Cap: Non-Premium Seating Patrons $6.50 $8.50 $10.50 Premium Seating Patrons $20.00 $25.00 $30.00

Merchandise Per Cap: All Patrons $1.00 $2.00 $3.00

Parking: 90% captured by University parking $10.00 $20.00 $30.00

Tailgating: Designated Tailgating Areas $75,000 $100,000 $150,000

Facility Fee: Single-Game Football Tickets $2.00 $3.50 $5.00 Single-Game Men's & Women's Basketball / Volleyball Tickets $1.00 $2.00 $3.00

Stadium Naming Rights (Cash only) $400,000 $500,000 $750,000Advertising / Sponsorship (In-facility signage, in-game promotions, other sponsorship agreements) $3,050,000 $3,550,000 $4,050,000

Other Event Revenue $100,000 $150,000 $200,000

Non-Game Day Club Rental Revenue $150,000 $250,000 $350,000

Game Day Expenses (Ushers, ticket takers, security, traffic control, medical staff, etc.) $480,000 $600,000 $900,000Other Operating Expenses (salaries & benefits, supplies, utilities, repairs & maintenance, etc.) $925,000 $1,140,000 $1,555,000NSM Share of Existing Sponsorship Revenue - (Based on 2011 revenue) $1,359,000 $1,359,000 $1,359,00010% Incremental Sponsorship Revenue Cost to Sell $75,000 $125,000 $175,000

Note: Revenues and expenses have been inflated by 3 percent per year over 30-year term.

Year 1 Operating Comparison

Low Base HighScenario Scenario Scenario

REVENUES:Standing Room-Only Tickets $60,000 $150,000 $270,000Individual Game Tickets 2,420,000 4,090,000 6,600,000Season Tickets 1,780,000 2,200,000 2,940,000Priority Seat Donations 1,876,000 2,550,000 3,610,000Premium Seat Donations 1,846,000 2,416,000 3,078,000Concessions, net 501,000 809,000 1,248,000Merchandise, net 43,000 108,000 204,000Parking, net 343,000 863,000 1,642,000Tailgating 75,000 100,000 150,000Advertising / Sponsorship 3,050,000 3,550,000 4,050,000

Stadium Naming Rights 400,000 500,000 750,000 Facil ity Development Fee - Per Single-Game Football Ticket 133,000 340,000 690,000 Facil ity Development Fee - Per Single-Game MBB, WBB, VB Ticket 55,000 110,000 166,000

Non-Game Day Club Rentals 150,000 250,000 350,000Other Events 100,000 150,000 200,000

TOTAL REVENUES $12,832,000 $18,186,000 $25,948,000

EXPENSES:Salaries and Benefits $200,000 $225,000 $300,000Supplies 15,000 25,000 35,000General Operating Services 35,000 40,000 45,000Professional Services 75,000 100,000 125,000Repairs & Maintenance 200,000 250,000 300,000Utilities 400,000 500,000 750,000Game-Day Expenses 480,000 600,000 900,0002011 NSM Share of Existing Sponsorship Revenue 1,359,000 1,359,000 1,359,00010% Incremental Sponsorship Revenue Cost to Sell 75,000 125,000 175,000

Total ExpensesTOTAL EXPENSES $2,839,000 $3,224,000 $3,989,000

INCOME FROM NEW STADIUM OPERATIONS $9,993,000 $14,962,000 $21,959,000

Less: Existing Income from Current Stadium $3,645,974 $3,645,974 $3,645,974

INCREMENTAL NET STADIUM REVENUES $6,347,000 $11,316,000 $18,313,000

New Football Stadium Projected Financial OperationsYear 1 Operating Comparison

Project Funding Sources

6

1. Private Donations

2. Corporate Naming &

Sponsorships

3. Premium/Priority Seating

Total Project Funding Sources

4. Event, Facilities

Development Fee and Other

Revenue

Financed Revenue Streams

5. Ticket Revenue

6. Misc. Revenue

(concessions, merchandise,

tailgate & parking)

University OperatingRevenue Streams

Stadium Expenses

Project Funding Sources

7

1. Private Donations

$45M-$220M

2. Corporate Naming &

Sponsorships$3.5M-$4.8M

3. Premium Seating

$3.7M-$6.7M

Total Project Funding Sources$173M-$437M

4. Event, Facilities

Development Fee and Other

Revenue$.44M-$1.4M

Financed Revenue StreamsAnnual: $7.6M-$13M

Financed: $128M-$217M

5. Ticket Revenue

$4.3M-$9.8M

6. Misc. Revenue

(concessions, merchandise,

tailgate & parking)

$.96M-$3.2M

University OperatingRevenue StreamsAnnual: $2.4M-$9M

Stadium ExpensesAnnual: $2.8M-$4M