Economics research project Spring 2013

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Matthew Knight Arena
By: Tyler Snyder
100 points possible
Was the construction of Matthew Knight Arena a
good investment for the University of Oregon?
I strongly believe the Matthew Knight Arena was well worth
it in the long run. First of all, it employed thousands of
construction workers to become employed and have a
job in this tough economy. In addition, the new arena
drew a lot of attention from the nation. This will help
increase the demand for ticket sales and make it a lot
easier to recruit for players. The University has been
majorly enhanced by this new arena and it has started to
show as the facility has been used by not only
basketball, but other major events. Finally, there was a
huge donation by Phil Knight which will help reduce the
amount of money that the university will have to pay.
Source # 1
"Matthew Knight
Arena Facts and
Architecture." Facts
and Architecture
Design: Matthew
Knight Arena. N.p.,
n.d. Web. 19 Mar.
2013.
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50,000 cubic yards of rock
There are four loading dock
bays with room underground
to turn a 70' truck 360
degrees
1,890 employees worked on
the construction of the arena
during one of the worst
economies
There was over 800,000 man
hours put into the arena which
means that the construction
helped employ many people
during the bad economy
Source # 1
"Matthew Knight
Arena Facts and
Architecture." Facts
and Architecture
Design: Matthew
Knight Arena. N.p.,
n.d. Web. 19 Mar.
2013.
•
•
•
580,000 lbs. of precast
concrete forms the seating
bowl which means it is very
well structured
There are four times as
many toilets as in Mac Court
with over 130 women’s
toilets, 65 men’s toilets and
4 family toilets
Deep in the Woods - is what
the court looks like and it
messes with opponents to
make it a home court
advantage for Oregon
Source # 1
"Matthew Knight
Arena Facts and
Architecture." Facts
and Architecture
Design: Matthew
Knight Arena. N.p.,
n.d. Web. 19 Mar.
2013.
•
•
•
4,840 tons (over 9 million
lbs.) of reinforcing steel was
placed in the concrete
Over 200 TVs located in the
arena and over 100 of these
are located throughout the
concourses
The lower bowl of Matthew
Knight Arena is closer to the
floor and steeper than Mac
Court
Source # 1
"Matthew Knight
Arena Facts and
Architecture." Facts
and Architecture
Design: Matthew
Knight Arena. N.p.,
n.d. Web. 19 Mar.
2013.
•
•
•
Over 50 Point of Sale lines
are available to purchase
food and beverage in 20
different locations, which
makes it easier and more
comfortable for the fans
The clean span roof trusses
are over 260’ long and
provide great support
Matthew Knight Arena is
LEED(Leadership in Energy
and Environmental Design)
Gold certified, which is
recognized to green
buildings
Quote from Source #1
"Think of this Concourse area as a
transitional experience that moves the
fans into the arena and into the game,
with the Shroud Wall working as a
canvas for a continuum story that both
celebrates the heritage of Oregon
athletics and further expresses the
sense of energy, excitement and
activity emanating from the arena."
Source # 2
"Univ. of Oregon Taps
Reserves for Pricey
Basketball Arena."
The Bond Buyer 4
Oct. 2010: 28.
General OneFile.
Web. 11 Mar. 2013.
•
•
Oregon had to go
deeper into their funds
in order to cover the
interest payments on
200 million dollars of
debt
The debt includes
$1.35 million to pay
interest on $27
million borrowed to
buy the land and also
payments on debt
sold to build the
parking garage
Source # 2
"Univ. of Oregon Taps
Reserves for Pricey
Basketball Arena."
The Bond Buyer 4
Oct. 2010: 28.
General OneFile.
Web. 11 Mar. 2013.
•
•
Phil Knight had given a
generous donation of
100 million dollars for
the athletic departments
reserve fund
The annual debt of the
new arena is estimated
to be 16.3 million per
year starting in the year
2012
Source # 2
"Univ. of Oregon Taps
Reserves for Pricey
Basketball Arena."
The Bond Buyer 4
Oct. 2010: 28.
General OneFile.
Web. 11 Mar. 2013.
•
•
When it opens this
basketball season the
arena will replace
McArthur Court, a
9,087-seat venue
that was built in
1926
The arena is said to
be one of the most
expensive on-campus
college basketball
venues in the nation.
Source # 2
"Univ. of Oregon Taps
Reserves for Pricey
Basketball Arena."
The Bond Buyer 4
Oct. 2010: 28.
General OneFile.
Web. 11 Mar. 2013.
•
•
The university said it
decided to go with an alltaxable deal to give it
flexibility to raise revenue
from naming rights,
advertising, and other
sponsorship at the arena.
Rob Mullens said in a
memo that the
department would also
need to ask for an
additional $8 million from
the special fund to
complete the $227 million
arena project
Quote from Source #2
Over the next four to six years, we are
going to need to turn to the Legacy
Fund to cover the bulk of the debt
payments due each year. Our strongreliance on the Legacy Fund in the
upcoming years will reduce the
projected 30-year balance of the fund,"
Mullens said in the memo to university
president Richard Lariviere.
Source # 3
"Audit Finds Matthew
Knight Arena
Completed on Time
and on Budget."
Communications.
N.p., 10 Feb. 2011.
Web. 19 Mar. 2013.
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The arena was finished
on time and on budget
with a $5.4 million
savings over the original
$200 million
construction budget.
5.4 million dollars was
put to work and
contributed to two
practice courts, two
additional elevators, and
an acoustical dampening
system for live concerts
Source # 3
"Audit Finds Matthew
Knight Arena
Completed on Time
and on Budget."
Communications.
N.p., 10 Feb. 2011.
Web. 19 Mar. 2013.
•
•
The project contractor
(Hoffman Contractor
Company) paid
prevailing wages and
competitively bid all of
its subcontracts
Subcontracted work was
valued at $124 million
with $99.1 million being
awarded to Oregonbased companies.
Source # 3
"Audit Finds Matthew
Knight Arena
Completed on Time
and on Budget."
Communications.
N.p., 10 Feb. 2011.
Web. 19 Mar. 2013.
•
•
There will be
performances that will
feature singer Elton John,
the Original Harlem
Globetrotters, the band
Avenged Sevenfold and
the Nike Clash of
Champions tennis
exhibition in the arena
Funded through the sale of
"XI-F" bonds, which means
no taxpayer money was
used on the project
Source # 3
"Audit Finds Matthew
Knight Arena
Completed on Time
and on Budget."
Communications.
N.p., 10 Feb. 2011.
Web. 19 Mar. 2013.
•
•
The 405,000-squarefoot, 12,500 seat multipurpose facility has a
sustainable design and
construction
The construction was so
remarkable because it
was done so effectively
and precise said the
vice president of
finances at UO
Quote from Source #3
"The Matthew Knight Arena is arguable
the most complex construction project
ever undertaken on the University of
Oregon campus," said Frances Dyke,
vice president for finance and
administration at the UO."
Thesis statement
The construction of Matthew Knight Arena was
well worth the money for the University of
Oregon because it helped with national
recognition, giving people jobs,enhancing the
University and the Community, and it will
draw more crowds to produce a higher
revenue stream.
Outline of findings •
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Starting off with answering
the question about what I
learned by having facts that I
found interesting/relevant
Facts include: Background
info, what the courts used for,
the name of the arena, the
courts design, money issue in
the beginning, on time/on
budget when completed
Transition: answer to my
Central Question
My opinion of the arena and if
the arena was worth it
National Attention the arena
caused
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All of the jobs supplied during
poor economy to workers
More crowds and seating=
higher revenue stream
How it helps the University
Start to provide evidence to
support my answer
Construction facts and details
about costs
Basketball Floor information
and design
Facts about debt issues
Quotes from people who
work for the University
Conclude with final opinion
and how the university should
utilize the arena in the future
Speech (30 points)
Click on the link to Vocaroo.com.
Paste the link to your saved vocaroo recording
below.
http://vocaroo.com/i/s0IINDGbiMFw
Be sure to answer the questions posted on the
assignment web site. Edit it to be a "live" link.
Test it to verify!
Metaphoric image:
Peter Defazio Bridge
The Peter Defazio bridge connects
the paths and makes it a lot
easier to be able to cross the
Willamette River on foot.This
represents how the community
has been more connected to one
another and how the community
is a whole. Similar to the Matthew
Knight arena where the arena has
brought more attention and has
allowed an easier and more
comfortable way for the
community to be connected. Both
the Bridge, and the arena have a
very positive effect on the
community and are ready to be
used for active members of the
community. These new
improvements
will08help
in the
image source: "Peter DeFazio Bicycle Bridge." Wikipedia. Wikimedia Foundation,
04 Mar. 2013. Web.
Apr. 2013.
http://en.wikipedia.org/wiki/Peter_DeFazio_Bicycle_Bridge
future and will always be a home
MLA Works Cited Page (5 points)
"Audit Finds Matthew Knight Arena Completed on Time
and on Budget." Communications. N.p., 10 Feb. 2011.
Web. 19 Mar. 2013.
"Matthew Knight Arena Facts and Architecture." Facts and
Architecture Design: Matthew Knight Arena. N.p., n.d.
Web. 19 Mar. 2013.
"Univ. of Oregon Taps Reserves for Pricey Basketball
Arena." The Bond Buyer 4 Oct. 2010: 28. General
OneFile. Web. 11 Mar. 2013.
"Peter DeFazio Bicycle Bridge." Wikipedia.
Wikimedia Foundation, 04 Mar. 2013. Web. 08
Apr. 2013.
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