The University of Minnesota has struck a deal with the Vikings to host the team during construction of a new stadium, bringing in an estimated $3 million per NFL season for the school.
The university's Board of Regents unanimously signed off on a letter of intent governing use of the campus TCF Stadium by the Vikings on Friday, May 11. The board will have to approve an alcohol-sale arrangement at a later date.
School leaders said the agreement strikes a balance between helping the Vikings and protecting the university's interests.
"The university's mission is not to subsidize a for-profit entertainment business," said the U's General Counsel Mark Rotenberg, who helped negotiate the deal. "I believe (the Vikings') needs have been addressed, and the university is appropriately compensated for what we're providing."
The stadium project at the Metrodome site requires the Vikings to play temporarily at the University of Minnesota's TCF Bank Stadium. Early plans had the Vikings continuing to play in the Metrodome as much of the construction took place on parking lots nearby. At least one season, likely 2015, would need to be played at TCF Bank Stadium.
Under the deal, the team would pay rent of $250,000 per game, plus an estimated $50,000 from shared concession, advertising and other revenue. U President Eric Kaler said his administration has not made a final decision, but the revenue would most likely go directly to the university's Department of Athletics.
The team would also reimburse the U for all changes they require for the stadium and all nongame-day expenses and game-day operational expenses related to the franchise's use of the facility. Capital improvements, including installing heating coils under the field, are estimated at about $5.8 million.
The team expects to invest about $10 million in the U's stadium, including fixed and temporary elements. Along with the heating coals, changes include putting temporary bleachers in the western end zone plaza.
"We have a good working relationship" with the U, said Kevin Warren, vice president of legal affairs for the Vikings. He said the next step is for the team and university to draft a formal agreement.
"This is part of the Wilfs' investment in the state of Minnesota," Warren said.
The minimum amount the team would pay in rent and shared revenue is $2.5 million for the season, and it's capped at $3 million, Warren said.
The team also pays all game-day operational expenses.
The Vikings also agree to appoint a neighborhood liaison and contribute to a neighborhood mitigation fund.
Rotenberg said the Vikings would like to see beer and wine sales throughout the stadium and hard-liquor sales in premium seating areas. One board member, Regent Dean Johnson, expressed hesitation about approving hard-liquor sales anywhere on the stadium.
Although the board approved the letter of intent Friday, the university said a copy of it would not be available to the public until early next week.