UConn takes stronger partner role at CT sports venue in $10M plan. Called ‘significant opportunity.’
· Yahoo Sports
In another significant boost for downtown, the University of Connecticut will take an even stronger role at PeoplesBank Arena as $10 million in new state tax credits will extend match-ups in college basketball in Hartford until 2045 and give the university a share in profits across all events at the recently-renovated venue.
The legislation — signed into law recently as part of the 2027 budget adjustment bill — essentially makes UConn a partner in the operations of the 16,000-seat venue and requires the university to schedule at least 20 games each academic year. Those match-ups include men’s and women’s basketball and men’s ice hockey.
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“UConn athletic events are vital to downtown businesses and bring positive attention to our capital city,” Cathryn Vaulman. a spokesperson for Gov. Ned Lamont, said, in a statement to the Courant. “By providing this tax relief, we are helping ensure that games continue to be played at PeoplesBank Arena, supporting the restaurants, bars, and shops that make downtown Hartford vibrant on game days.“
The recent, $145 million renovation and upgrade to the arena —known as the Hartford Civic Center when it opened in 1975 and, more recently as the XL Center — also is aimed at reversing a money-losing history. The upgrades — the majority paid for by state taxpayers — also target significant expansion of the schedule of concerts, a mainstay of profitable, modern arenas.
Denver-based Oak View Group, the arena’s day-to-day manager, invested $20 million in the recent renovation in return for a 20-year extension of its contract. That extension now mirrors UConn’s commitment to playing games in the sports and entertainment venue, where it has taken on opponents for 50 years.
“It locks in the anchor tenant there, which is good for the arena, good for Hartford and good for UConn,” said David S. Steuber, executive director of the Capital Region Development Authority, which oversees the management of the arena.
In a statement Monday, UConn Athletics said it was encouraged by Lamont including the provision in the legislation, now law.
“PeoplesBank Arena has been home to UConn men’s and women’s basketball and men’s hockey for many years, and our programs have been a significant driver of the arena’s success,” the statement said. “This legislation represents a meaningful step forward — one that would, for the first time, allow UConn Athletics to share in the revenues generated by the arena.”
The statement said, “That is a significant opportunity for our department, and we look forward to working toward a long-term agreement that benefits our student-athletes, our programs, and the state of Connecticut.”
OVG did not have an immediate comment Monday.
UConn already had a licensing agreement at PeoplesBank Arena running through 2031 that was signed earlier this year.
The licensing agreement calls for UConn to pay licensing fees for each basketball and hockey game played at the arena plus a “facility fee” on each paid ticket. But if UConn meets attendance goals it is paid $4 for each attendee over the goal. UConn also gets a portion of ticket sales to new premium seating created in the renovation.
Under the terms of the tax credits, OVG would be responsible for covering any net losses. UConn would reap an increasing share of arena profits over the first five years. eventually reaching 50% of the first $4 million in annual net profits and 25% of profits over that.
“This gives UConn an ownership stake at one of the key venues in Hartford where it has long been playing and will now continue to play,” Steuber said.
Steuber said UConn’s vested interest in PeoplesBank Arena will pair well with Gampel Pavilion on the Storrs campus. Gampel is now in the midst of $99.4 million renovation.
“They’ll soon have two, newly-renovated facilities to choose from in terms of where they look to place teams and they will be invested in both,” Steuber said. “So they can allocate the games that they play with an eye toward maximum attendance and profitability.
The tax credits — likely $2 million a year — would be assigned to OVG to essentially offset what they will forgo in sharing profits with UConn, Steuber said.
The arena renovation, largely completed in October, focused on the lower half of arena, adding premium seating such as bunker suites, loge boxes and club amenities. The underpinnings of the state investment was selling premium seating at a higher price and attracting more concerts.
Kenneth R. Gosselin can be reached at [email protected].