The University of Memphis Athletic Department announced Tuesday The University has sold 31 of 36 skyboxes at Liberty Bowl Memorial Stadium for Tiger football games.
The skyboxes were sold to local businessmen as part of a joint campaign conducted by FedEx officials, along with Redbirds co-founder Dean Jernigan and The University.
“This was a tremendous step for University of Memphis athletics,” said U of M Athletic Director R.C. Johnson.
The University had previously kept only ticket revenue generated at football games while the city kept funds from the skyboxes. Under the new deal, all proceeds from the skyboxes go to the Athletic Department.
The skyboxes range in price from $12,000 to $18,000 per year and are sold in three-year commitments.
The deal between the city and The University is an attempt to ease fears expressed by University officials and community leaders that the NBA Grizzlies’ move to Memphis could leave The University with a loss of revenue.
According to associate athletic director for advancement Kevin Grothe, The University will pay a “licensing fee” to the city and keep all other proceeds from the boxes. The licensing fee will decrease every year for the next five years, but exact numbers have not yet been determined.
Grothe also said The University is still trying to negotiate an improved lease agreement with The Pyramid, calling it “a work in progress.”
