Comparing the sponsorships

Than Tibbetts

In 2003, South Dakota banker T. Denny Sanford offered $35 million to the University to start fund raising for an on-campus stadium, the same amount now pledged by TCF. Sanford’s deal fell through, because the University wouldn’t agree to his terms.

The deal’s fallout led to more than five months of negotiations before the University announced its deal with TCF.

Here is a breakdown between the two stadium pledges.

THE DEAL:
SANFORD
Sanford offered $35 million.

TCF
TCF offered $35 million

When:
SANFORD
Sanford announced his deal with University President Bob Bruininks at a press conference Sept. 5, 2003, the first day of the fall semester.

TCF
The University and TCF corporate officials announced their deal on March 24.

What’s in a name:
SANFORD
Sanford wanted the stadium named after him.

TCF
If it’s built, TCF Bank Stadium will be the name of the stadium.

Dollar sense:
SANFORD
Sanford’s pledge would have been withheld until 18 months after the stadium’s completion. University officials balked at this condition because it would have required the University to pay the money up front. Sanford later offered $5 million up front as the University rejected his initial terms.

TCF
TCF paid $2 million when the deal was signed. The company will then pay $1 million a year through three years of construction and approximately $1.43 million a year for the remaining 21 years of the contract.

Time frames:
SANFORD
Sanford stipulated that “Sanford Stadium,” or whatever he chose as the name, would remain as the name of the stadium forever.

TCF
TCF’s agreement with the University lasts 25 years, through the year 2030. The University could then opt to find another naming sponsorship.

Bonus:
SANFORD
Although Sanford was unable to come to terms with the University, the excitement surrounding the announcement led Bruininks to make an exception to a moratorium on fundraising for athletics facilities issued by former University President Mark Yudof in April 2002.

TCF
TCF agreed to extend its sponsorship of student UCards. Officials estimate this deal will give the University more money annually – $1.6 million – for student scholarships and “nonstadium” purposes than the stadium naming deal – a little more than $1.4 million a year. TCF also has the option to offer a suite of banking-related products to University alumni and athletics supporters and to extend its ATM lease on campus. Richard Pfutzenreuter, the University’s chief financial officer, estimates that these additional deals will add up to $43 million.