Tic Toc has it right. They committed to a financing package for the renovation based on projected additional income. Somewhere along the line they either discovered they cut it too thin or didn't get it right. I believe the increases were planned correctly but the timing and method/manner is not winning them any friends. I believe to some extent they want existing ticket holders to give up their seats. Its easier to start fresh at a higher rate than to convince an existing ticket holder to pay more. If OU were smart they would have built in an index matrix for the cost of construction. In general, the cost of building materials is down in some cases by as much as 40%. My company has call off contracts with Chevron and Shell that is fixed pricing based on 2010 numbers which were renewed 2012 and 2014. Rather than renewing in 2016 they will ask for rebids to get the prices down. They have figured out that we are adding an increasing amount to our bottom line every year.
Good news: Construction and material costs are down, fortunately the West side will reap those benefits more so than the South endzone project. Sure, benefits will be reaped, but the West will see the most over the next 18 months evaluation.
Good news: OU has a new South endzone that is the best future concept to inject revenue into the program and lifestyle into the fan base. The visitors section should be moved to section 22 in the highest widget far from that brand new South endzone masterpiece and the future brand new West press box area masterpiece to be constructed at such time feasible. Programs have been adjusting their visitor seats in this direction across college football for the last few years. OU had no reason for it because of their current infrastructure. They do now. It was an obvious decision and the right decision.
Good news: Joe C and Boren have a mindset of gameday fan experience, so these accommodations will continue throughout the stadium going forward to ensure revenue continues to inject into the program and the future fan experience continues to evolve in the right direction.
Bad news: Well, for some. Some fans want someone else to inject revenue into the program, but they want to be at the forefront to complain about the Championships. Sorry, you are the hurdle, so participate in the revenue injection projects or get out of the way. You aren't leading this program into the future for the right reasons or wrong reasons, but someone else should be allowed to do so, if you can't. University presidents, ADs, HCs, and Assistant coaches get fired for not leading these programs into their futures, so some fans will just get fired as well in the process. OU is creating supply and demand via uptick in fan experience.
Note: OU isn't looking to recoup construction costs, they are looking to inject increased revenue from a NFL concept - future college football business model. OU is simply looking to increase revenue and fan experience not capacity, which was visionary.
Oil glut: Some didn't believe me 10 months ago here, when I posted the true impact of this oil glut and the potential for $30 oil. Well, they do now. There's still production sitting on the sidelines due to sanctions and turmoil in certain countries that will return to the markets shortly, so this oil glut will require higher production cost locations to be shutdown. At the end of the day, the cost structure from material and bloated payrolls will be reduced by 35% to 40% as I suggested months ago to correctly adjust that cost structure, so oil at $55 to $60 will be as profitable as oil at $85 to $90. It's easier to rebid and rehire those laid off at a reduced 35% payroll structure, than ask employees, suppliers and service companies to restructure their deals. It's better to sharpen pencils with new bids, then ask for shaving hairs on current contracts. One's at arms length, while the other's at face value. Oil & gas is responding to supply and demand via downtick in the price of oil.
