The University of Texas System Board of Regents last Thursday unanimously voted to authorize its flagship university in Austin to arrange for a private group to construct and manage a new $338 million on-campus basketball arena.
The California-based Oak View Group will build the 10,000-seat venue and then convey it back to the university, school officials said. In return, the group will manage the venue, sell its naming rights and collect revenue from concerts and other events. Revenue from managing the stadium will allow the company to recoup its cost, officials said.
The venue is scheduled to open in 2021. The Oak View Group will reserve a specific number of dates for University of Texas at Austin basketball games and other events.
The arrangement — set to last for 35 years — means the university will get a new arena without having to spend any of its own money, school officials said. UT-Austin President Greg Fenves touted it as a first-of-its-kind deal.
"This is a very exciting day for the University of Texas," he said.
Once completed, the arena is expected to replace the university's 41-year-old Frank Erwin Center as the venue for basketball games, and outside events, like concerts, brought in by the corporation.