What Happens with RAC Reno with Hobbs Gone?
- Thread starter Zak57
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I am a RAC guy till the end but I’ve heard 3 different folks talk about growing interest in a new arena. All speculation but given the pending change in leadership we all need to make sure we are heard and beat the drums for a RAC revitalization (like IU’s Assembly Hall project). The new regime will need to know…
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During the Court Club zoom meeting on Monday night, Pisarri said we can expect to hear news regarding RAC renovation in a few weeks.
I was told by an RU insider that the plans to renovate the RAC have been tabled while they go back to the drawing board because the price tag of renovation came back too high.
Yeah now that that $100MM is going towards the Helix and not JMA/football facility I’m really curious to hear what the new plan is. A ton of money to make up through private donors
I never knew the 100m state funding was reallocated to the helix. When did that come out ? I guess it makes sense now why the RAC and practice facility have seemingly been stuck on the starting block
Became obvious - at least to me - earlier this year. In the "Quick facilities update" thread in the first week of July, I wrote the following explanation. I originally expressed skepticism back in a January 1, 2023 post.
Federal and state budget documents show:
1) The $1.9 trillion American Rescue Plan Act of 2021 contained a Coronavirus State and Local Fiscal Recovery Fund (SLFRF). This fund granted $6.2 billion to New Jersey. To be clear, this amount went to the New Jersey state government. Local governments received additional grants.
2) As part of New Jersey's fiscal year 2023 Appropriations Act, Rutgers University was awarded $300 million for "capital needs." This $300 million came from the SLFRF. The state budget did not detail how the $300 million would be allocated.
3) The US Treasury department issued a final rule stating eligible and ineligible uses for the funds. Using funds for sports facilities is an ineligible use. The rule became effective on April 1, 2022.
4) On June 29, 2022, nj.com reported $100 million of the $300 million capital needs amount would be earmarked to help fund a new Rutgers football practice facility and renovation to the RAC basketball arena. However, the reporters did not mention the fact that spending the money on sports facilities is not allowed by federal rules.
5) In the spring of 2024, the New Jersey Office of Legislative Services asked New Jersey's universities, including Rutgers, questions about their fiscal year 2025 budget planning. Rutgers was asked to provide a status update for the $300 million of capital spending awarded by the SLFRF. Rutgers detailed how the $300 million would be spent: $260 million for the Helix in New Brunswick, $25 million for a faculty office building in Camden, and $15 million for science classrooms in Newark. The football practice facility and RAC renovation are not receiving funding.
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They need to scrap the students on the sideline idea
One of, if not the, worst idea I've seen in awhile here
Literally zero upside and a ton of downside
Love Hobbs, but that was as tone deaf as it gets
One of, if not the, worst idea I've seen in awhile here
Literally zero upside and a ton of downside
Love Hobbs, but that was as tone deaf as it gets
Don’t think that’s an option, unless we want to lose the Jersey Mike’s deal.
Wouldn’t be surprised if there’s a push for a new arena. This may be the easier path to funding, and it would get the Central Jersey pols a slice of the action.
Hope that’s not how it plays out.
Jersey Mike's is unlikely to exercise its right to cancel the naming rights agreement if Rutgers fails to achieve facilities commitments.
This deal is too favorable to JM. If JM cancels the Rutgers deal, the company is unlikely to find a comparable naming rights and real estate opportunity. Anyway, the deal provides less than 1% of athletic department revenue, money that Rutgers should be able to more than make up with a new, market-rate naming rights deal.
Part of the JM namings rights deal transferred development rights of the plaza in front of the arena from Rutgers to Jersey Mike's. This is the most logical location for a new basketball arena. JM is unlikely to abandon these development rights because the existing arena has not been renovated.
Rutgers would be foolish to embark on a 9-figure renovation or new arena project just to preserve a bad deal that provides it less than 1% of athletic department revenue, especially when the revenue would most likely be replaced by a new naming rights agreement.
This deal is too favorable to JM. If JM cancels the Rutgers deal, the company is unlikely to find a comparable naming rights and real estate opportunity. Anyway, the deal provides less than 1% of athletic department revenue, money that Rutgers should be able to more than make up with a new, market-rate naming rights deal.
Part of the JM namings rights deal transferred development rights of the plaza in front of the arena from Rutgers to Jersey Mike's. This is the most logical location for a new basketball arena. JM is unlikely to abandon these development rights because the existing arena has not been renovated.
Rutgers would be foolish to embark on a 9-figure renovation or new arena project just to preserve a bad deal that provides it less than 1% of athletic department revenue, especially when the revenue would most likely be replaced by a new naming rights agreement.
I guess it would be a little bit of a bad look for the administration if JM bailed, but like you said, financially, it is not a big deal. JM is paying $28M over 20 years, so $1.4M a year. It would not make sense to spend tens of millions to just save $1.4M a year.
Mike you are very knowledgeable and always have great takes; What do you thing about naming Pisarri new AD would that be a huge letdown as it seems he really knows his stuff and seems to be doing a great job as interim AD
Pisarri is doing as well as possible in the interim. He knows he's the interim AD. He has a bright future, but now is not the time for him (or for Rutgers) to take the big step up.
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Hobbs tone death? No way. Lol! ;-)
The guy who totally changed #118 because he wanted his own personal seats and made it an airport bar with the best of them?
#118 REMEMBERS!
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If they want to build a new arena don't even bother. The fanbase would burn the decision makers at the stake.
My guess is it might be scraped. LetJersey Mike's walk. We are better than when we first signed that deal, we will find someone else.
My guess is it might be scraped. LetJersey Mike's walk. We are better than when we first signed that deal, we will find someone else.
Not sure I agree. Need more seats. Think most recognize the need for more revenue and more revenue streams. Cant just squeeze the high rollers since they’ll also be needed for football.
It’s seriously one of the dumber ideas I’ve heard. Let’s give up revenue and piss off long time supporters in the same time.
I really liked the original pernetti expansion concept …gets us up to 10000
And gets the ammenties up without making the RAC about wine and cheese
And gets the ammenties up without making the RAC about wine and cheese
Looks good at Duke, Michigan, etc. but not needed here
Hobbs was going to do it, he turned a deaf ear to those who were starting to protest
Incredibly bad idea
You don't just move a few rows of fans, you then push up all season ticket holders behind them
All sideline fans would be affected
I always thought that the full section of students, along with the band, was a loud solid block of noise, probably more than a few rows of students around the sideline
It was beyond shortsighted, and bordered not only on misinformed, but arrogant in multiple different ways
I also liked Tim Pernetti’s plan that just called for an expansion to 10,000 or possibly as much as 12,000 or so as I think was considered.
There is clearly a demand for additional tickets for at least half the home games. Getting capacity to 10K is probably the sweet spot; they could even hold a certain number back for single game ticket sales and add a small premium to them. I would push to go back in that direction and keep the students as a wall of sound from the baseline.
They could build a rotunda at the entrance. Dont mess with the footprint.
Who cares about Pernetti's plan. He was fired more than ten years ago.
The fact is a renovation, expansion, or new arena will not happen for years maybe decades.
The Rutgers athletics department doesn't have any money and can't bring in donations.
Lol you’re such a weirdo. A renovation will get done whether you like it or not.
So what? Let them terminate. You don't think we could exceed that deal on the open market now? They would be doing us a favor. I keep hearing this argument come up and ask the same question everytime. No one has yet to successfully answer it.
Why exactly? Assuming Rutgers inked a new deal for more money (most likely outcome given the rising costs of sponsorship rights over time), we would be better off financially. It would be a bad decision by JM's. The existing RAC is already priced into their deal. I foresee no path where they look to exit the deal early
Serious question: when has not having money ever stopped Rutgers Athletic Department from spending more?
In post #9, I described what I could find.
Every political figure in the country was attempting to claim Covid relief money to fund pet projects, including sports facilities.
Then, US Treasury issued 437 pages of rules that, based on my reading, banned federal Covid relief money from being spent on sport facilities.
Next, nj.com led with this headline: "Rutgers sports scores big in proposed N.J. budget, will get $100M for arena, practice facility." This report stated $50 million was earmarked to the Helix and $100 million to Rutgers football and basketball facilities.
Fast forward two years, and the actual figures are $260 million to the Helix and nothing to Rutgers sports facilities.
Chris Paladino 1, Pat Hobbs 0.
No evidence Chris stole the money though. Did he maneuver it to downtown New Brunswick real estate development that complied with Treasury rules - perhaps.
Disclosure: Years ago, Chris helped me out on an academic assignment I did on New Brunswick area real estate. He spent a lot of time talking with me and sharing data when he didn't have to do it.
Recently, the university has been reluctant to finance sports facilities with debt.
The athletic department can't raise enough in donations to justify borrowing money to fund the football practice building and RAC renovation.
In the past, when the donations did not arrive, Rutgers just borrowed all the money. The football stadium was built entirely with borrowed money. So was the expansion.
Today, major Rutgers sports facilities spending requires donations. Here is what Greg's contract says about the proposed new football operations center and adjoining multi-sport indoor practice facility.
"Upon reaching a private funding commitment level of at least fifty percent (50%) of the total projected cost, the University agrees that it shall initiate the Board of Governors Finance and Facilities Committee approvals’ process, included in which shall be the athletics department’s proposed strategy to fund the debt service on any remaining cost applicable to the afore-mentioned project."