UO Athletic Department Agrees to $67 Million Deal with IMG College, OSN
EUGENE, Ore. -- (Feb. 12, 2008) -- The University of Oregon announced today a comprehensive agreement that will significantly impact the future of athletics at the state's flagship university.
In partnership with Oregon Sports Network (OSN) and IMG College, the UO has agreed to an extension and new partnership for multi-media marketing rights worth $67.14 million over the next 10 years. The multi-media rights agreement will include management of the television and radio rights and programming, advertising, licensing video boards and signage.
The contract provides $4 million upfront for capital investment in video boards and signage in the proposed basketball arena, Autzen Stadium and the new baseball park. In addition, IMG-OSN will guarantee the UO $56.22 million in cash over ten years, $2.5 million for the right to market the naming opportunity for the new baseball field, and $8.42 million for production services and infrastructure for video board and game day presentations, programs, ticket purchase and other trade.
"The partnership between OSN and IMG College provides the university with the service and existing partnerships of a long-time local partner, combined with the strength of a national and international sales and management leader," said UO Athletic Director Pat Kilkenny. "As we move forward with the proposed arena and baseball stadium facilities, as well as the enhancement of our football program to maintain self-sufficiency, marketing efforts are crucial for the revenue success we're committed to delivering."
The significant annual rights fees increases are more than double the existing contract and will help UO Athletics remain self-sufficient with a goal of becoming self-sustaining as it focuses efforts on major projects including a proposed basketball arena and new baseball park.
IMG, the world's premier sports, media and entertainment company, through its multi-media rights division represents leading collegiate properties including two conferences and 11 major universities, including Michigan, Texas, Tennessee, Kansas, Kentucky, Nebraska, Oklahoma State and the National Football Foundation and NCAA Football IMG entered the collegiate market with its acquisition of the Collegiate Licensing Company (CLC) in May 2007, which was followed by its acquisition of Host Communications, Inc. last November. IMG's licensing division represents the licensing rights for more than 200 universities, bowl games, conferences and the NCAA.
"Oregon is a truly elite university and a nationally recognized athletics program," said Tom Stultz, senior vice president and managing director, IMG College. "We know UO officials had a lot of options throughout this process, and we are thrilled that they truly understand how IMG's investment in CLC and Host positions IMG College to completely re-invent college media and sponsorship sales. The investment in new facilities makes this one of the most valuable properties in the
country."
OSN represents the UO in areas of television sales and production, radio sales and production, corporate sponsorships, arena signage, print sales and hospitality. OSN is in its 20th year of existence and is managed by Tim Roberts, who has sole ownership of the multi-media rights agreement.
"We're thrilled to be able to continue this partnership with the University of Oregon and look forward to building on our existing relationships and service. Adding the national presence of IMG places Oregon at the forefront of collegiate sports marketing and multi-media rights agreements," said Roberts. "We know IMG is committed to collegiate marketing, and we feel they bring incredible resources to this partnership that will benefit Oregon athletics."
"We are excited to work with IMG and OSN because they presented a financially-sound business and financial plan that is best suited for UO Athletics," Kilkenny added. "This agreement proves our national worth in the marketplace and our ability to derive revenue from our national successes and strength as a department. In addition, this deal represents an increase in the department's broadcasting/sponsorship revenue and will assist our efforts to construct the arena."
The UO Athletic Department received $2.15 million from broadcasting/sponsorship revenue in fiscal year 2006-07. The new IMG agreement guarantees the department will significantly increase these revenues over the next 10 years. Revenue from the OSN+IMG agreement will be available to support the department's operating expenses, including debt service.
About the University of Oregon
The University of Oregon is a world-class teaching and research institution and Oregon's flagship public university. The UO is a member of the Association of American Universities (AAU), an organization made up of 62 of the leading public and private research institutions in the United States and Canada. Membership in the AAU is by invitation only. The University of Oregon is one of only two AAU members in the Pacific Northwest.
