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Holding pattern: After a huge financial hit, will OSU’s Athletic Village ever become a reality?
After losing $282 million in the stock market, Oklahoma State has been forced to put off further construction of its Athletic Village, which was to be built on this empty lot north of Boone Pickens Stadium. Zach Gray/For the Tulsa World
By BILL HAISTEN World Sports Writer
Published:
6/7/2009 2:36 AM
Last Modified: 6/7/2009 3:40 AM
Related story:
It's nearly complete: OSU's stadium makeover in final stages.
STILLWATER By now, when he arrives each morning at his spot in the Oklahoma State coaches' parking lot, Mike Holder expected to see a flurry of construction activity to the immediate north of Boone Pickens Stadium.
He expected to see the development of Oklahoma State's Athletic Village a collection of state-of-the-art venues that would include a $50 million indoor practice facility and a $30 million baseball stadium.
Instead, he sees 100 acres of mostly nothing.
Eleven months ago, OSU had $407 million in a facilities fund managed by T. Boone Pickens' BP Capital investment firm.
A few weeks later, because of the stock-market crisis, a lot of that money was gone.
"Things were great from Jan. 1, 2006, until July of 2008, and then we hit a slight bump in the road," Holder says. "We lost ($282 million) in three months.
"(Pickens) was within a day or two of pulling the plug (moving the money and beginning the Athletic Village projects). Before (the stock market) ever started going down, he talked about getting out of it. You can't do anything about it now, except to start over. The really bad part is that we had to cash out of our investments, so we don't have anything earning now. There's nothing making money for us right now. The economy is coming back and the market is going to come back, but, as of now, we don't have any investments. We're totally dependent on fund-raising. If anyone out there wants to build a track or a tennis stadium or a baseball stadium, call me."
OSU was left with enough money $125 million salvaged from the facilities fund, along with $63 million donated by Pickens in October, $35 million borrowed from the OSU Foundation, and $10 million in funds raised by Holder last fall to complete the Boone Pickens Stadium renovation project.
The university had spent about $50 million for the purchase and removal of all structures within the 100-acre Athletic Village site, but now lacks the money to proceed with construction of the indoor practice facility, outdoor football practice fields, baseball stadium, tennis complex, soccer-track complex and equestrian center.
Last week, Holder was asked whether the Athletic Village would ever become a reality.
"I'm personally committed to getting it done, but I'm not personally able to do it right now," Holder replied. "It will take a lot of people making a lot of money to get it done. It's a pretty expensive endeavor.
"A year ago, it wasn't a matter of if we were going to build, but when. It's just a bigger mountain to climb because you don't have the money. We're a lot further along than we were five years ago. How can anyone be discouraged about that? It would be nice to look over there and see that Sherman Smith Athletic Training Facility about halfway finished. I'd like that a lot better."
Pickens, whose donations were significantly responsible for the $283 million stadium renovation, predicted that the Village would be complete "within the next 10 years."
"We've just got to make some money," he said during a telephone interview. "But I do think it's going to happen."
"I can't say, 'OK, the market is going to be back in two years or three years.' I just don't know," Pickens continued. "Look at my age. I'm 81. I certainly expect to get it done in my lifetime."
Cowboy football coach Mike Gundy expressed confidence in the fundraising abilities of Holder and Pickens.
"You've got people in charge who will make sure that the Athletic Village happens," Gundy said. "You've got Mr. Pickens, and his track record says that he'll turn it around. He never stays down very long. I just spent two days with him. He's as rambunctious as he's ever been. We've got a (university) president, Burns Hargis, who understands what's going on. And we've got Mike Holder. If he has to use his own hands if he has to go over there and do it himself with a shovel it will get done. He will not leave that job until that project is done."
"Ultimately," Gundy added, "Mike Holder is responsible for all of this the stadium and the Village. Don't kid yourself Mr. Pickens would not be involved if it weren't for coach Holder."
As of August, when Baylor is scheduled to finish construction of its new indoor facility, Oklahoma State will have the Big 12's only football program without an indoor practice facility.
Because Tulsa oilman Sherman Smith donated $20 million for OSU's indoor facility, Holder remains committed to the building of what could be the grandest such facility in college athletics a 151,000-square-foot structure that would serve several sports. It would be by far the Big 12's largest indoor facility. Kansas State's is measured at 94,000 square feet.
Several Big 12 schools have relatively modest and inexpensive practice facilities but, Gundy says, OSU will not settle for anything less than what was originally planned.
"Coach Holder is aware that we need it. That's no secret," Gundy said. "And it's not just for football. Other sports would use it more than we would. But we do need it for bowl practice. When you practice 10 or 12 days in December, getting ready for a bowl game, it can be bitter cold. In the spring time, you have lightning.
"Coach Holder and I are on the same page. As soon as we can build an indoor facility, we need to get to it. There's an obligation to Sherman Smith's family. The goal is to do things in a reasonable amount of time, but with a reasonable amount of debt."
Big 12 facilities
As of August, when Baylor completes its new facility, OSU’s football program will be the only one in the Big 12 without an indoor practice facility. A look at the Big 12 indoor facilities: baylor: The 72,700- square-foot Allison Indoor Practice Facility has a price tag of $11 million.
Colorado:
A $3 million bubble (sustained by air pressure) contains a full field, along with space along the sidelines and beyond the end zones.
Iowa state:
At a cost of $9.6 million, the Steve and Debbie Bergstrom Indoor Training Facility opened in 2004. The facility also accommodates the softball and soccer programs.
Kansas:
The Anschutz Pavilion was built in 1984 and was outfitted with a new turf in 1999.
Kansas state:
Believed to be the largest such facility in college football, the Wildcats’ 94,000-square-foot indoor practice venue was built for $2.2 million in 1993.
Missouri:
A $12 million structure, the Daniel J. Devine Indoor Practice Facility was completed in 1998 and contains a 90-yard field.
Nebraska:
The 81,200- square-foot Hawks Championship Center contains a field identical to Nebraska’s Memorial Stadium playing surface.
Oklahoma:
At a cost of $10.3 million, the Sooners’ Everest Training Center was completed in 2002. It includes a full-sized playing field, simulated stadium lighting and a scoreboard with play clocks.
Texas:
Known simply as “The Bubble,” the Longhorn facility was completed in 2002 at a cost of $4 million.
Texas A&M:
The Aggies’ 75,636-square-foot facility was built in 2007. The cost was $12 million.
Texas Tech:
The Red Raiders share a “bubble” facility with Tech’s indoor track and field team. For football, a 60-yard turf field is used.
ATHLETIC VILLAGE TIMELINE
November 2005:
Oklahoma State University announces a plan to purchase property north of Hall of Fame Avenue in Stillwater. According to a university press release, the land eventually will become the site of “a state-of-the-art athletic village.” Ultimately, OSU spends about $50 million for the purchase and removal of all structures within the area (27 owner-occupied homes, 190 single-family rental units, 50 multi-family rental units and three commercial buildings).
January 2006:
T. Boone Pickens donates $165 million to Oklahoma State. It is the largest gift ever presented to the athletic department of any American university.
January 2007:
OSU receives a $20 million gift from Tulsa oilman Sherman Smith, a 1948 Oklahoma State graduate. The money will help fund a $50 million indoor practice facility to be used by the Cowboy football, baseball, softball, soccer and track-and-field programs. The 151,000- square-foot indoor practice facility will bear Smith’s name and be located immediately north of Boone Pickens Stadium.
January 2007:
Athletic director Mike Holder reports that through its first year of existence, OSU’s athletic facilities fund – money to be applied toward the construction of the Athletic Village facilities – has generated about $50 million. From a starting point of $202 million in January 2006, the OSU fund – managed by Pickens’ BP Capital – grew by 25.87 percent. By the end of December 2006, the fund total stood at about $252 million.
July 2007:
A judge rules that OSU could use eminent domain to acquire land for its Athletic Village. The decision clears the way for OSU to remove one remaining rental property from the 80-acre tract.
October 2007:
Holder tells the Tulsa World that the athletics fund is worth “around $300 million. … We’ve grown about $100 million in less than two years.
July 2008:
Holder reports that the athletics fund has rolled to a total of $407 million.
September 2008:
OSU spokesman Gary Shutt issues a statement indicating that the athletic department’s investment in BP Capital “has experienced a tough third quarter.
October 2008:
During a press conference, OSU announces that Pickens has presented an additional $63 million gift to the athletic department – and Holder acknowledges that the stock-market crisis has had a terrible effect on the facilities fund. Holder reports a loss of $282 million (from $407 million to $125 million), and that the remaining money had been moved from the BP Capital hedge fund.
June 2009:
Pickens tells the Tulsa World that the Athletic Village facilities eventually will be built. “I can’t say ‘OK, the market is going to be back in two years or three years.’ I just don’t know,” he said. “But I do think it will be within the next 10 years. Look at my age. I’m 81. It may seem harsh to put it in those terms, but that’s the way it is. I certainly expect to get it done in my lifetime.
THE PLANS, THE COSTS
A look at the proposed facilities that would comprise Oklahoma State’s athletic Village (including the estimated cost for each):
$6 million
Outdoor football practice fields
$50 million
Sherman Smith Multipurpose Indoor Practice Facility
$30 million
Baseball stadium
$4 million
Equestrian center
$30 million
Soccer and track complex
$15 million
Tennis complex
Bill Haisten 581-8397
bill.haisten@tulsaworld.com
By BILL HAISTEN World Sports Writer
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oldnorthroad
, (6/7/2009 6:09:24 AM)
The practice facility needs to get finished. OSU could have built a more than adequate facility with less than the 20 million donated by Sherman Smith. Instead, they should have broke ground on one for a fraction of the cost. Just could have left proper room for improvements and additions over the years. Things being how they are now, OSU is at an obvious disadvantage. Only school in the Big 12 without an indoor facility. Putting the players on buses and driving them to the likes of Ponca City High for workouts.
The ball was dropped... big time.
Report Comment
2curious
, Tulsa, OK 74104 (6/7/2009 7:57:25 AM)
Holder might have some revenue streams if he'd open up the ticket booth to day-of-game sale. Instead...he lets 12,000 endzone seats go unsold every weekend. Of course he gave away most of those seats to the Frats during Bedlam last year.
I'm just sayin'...
Report Comment
WilliamTheArtist
, (6/7/2009 9:54:20 AM)
More money needs to be spent at the OSU Tulsa campus. It would make the college far more competitive and allow for better synergies per dollar spent. 1. Imagine how much more attractive it would be for students to go to a vibrant campus right next to a great arts district, club district, arena, more things to see and do. 2. And very importantly think of the synergies the college and its research facilities could have being right next to major businesses and corporations, each helping the other. 3. More students could have more opportunity for work if they needed to. 4. Older, non traditional students, who already have careers and possibly families, going for higher degrees, could still work and live within short distance of the college. 5. Think of how much more vibrant our downtown areas would be with a large student population. 6. Think of the greater opportunities for student artists to sell their work in a larger city, or tech students and their start up companies to get going in a larger city versus out in the middle of no where. There are all kinds of synergies which would help OSU be more attractive, and the city and its businesses. But,,, we still keep encouraging more money being spent at OSU in Stillwater.
Have you ever noticed how most of those "best places to live" "best places to start a business" "highest income places" etc. etc. are college towns or are cities with large universities in them? Yet Stillwater is terribly dead and its "main street" area is, well, lame to put it bluntly. Its not an attractive, vibrant place to live, start a business, etc. In essence, we as a state are not seeing the benefits that a large university could have because we are putting our money in the wrong place. Location, location, location.
Every dollar put into OSU Tulsa would get you easily twice the benefit it would get you at OSU Stillwater. Not saying dont spend money and continue to grow the Stillwater Campus. But please, please, please, put a little into the Tulsa Campus. The whole of OSU would be the better having 2, unique and great campuses. Sports wise even, I would love to see OSU Tulsa become the "Soccer" campus to OSU Stillwaters "Football".
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Eric, OKC
, Oklahoma City (6/7/2009 11:13:42 AM)
So many idiot with so many stupid opinions. It will be built in the near future.
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Richard in Norman
, Norman (6/7/2009 11:22:15 AM)
When foundation money that was intended for academics was used for athletics OSU and state officials in Oklahoma would be wise to review the Oklahoma State University Mission statement to see if they are living up to the stated mission.
In the mean while the OSU marketing department screamed hey look at us and look what we are going to be someday, the University put the cart before the horse and got too greedy for its own good.
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webjockey
, Oklahoma City (6/7/2009 11:43:32 AM)
To echo 2curious' comment, OSU thumbed their nose at $1 million in ticket sales for the OU game alone last year: 10,000 empty (or unpaid for) seats @ $100.00 each (price charged to Sooner fans lucky enough to get tickets out of OU's 5,000 seat allotment).
Now they're whining about not having enough money, hmmmm.....
Report Comment
tulsaGuy
, (6/7/2009 12:02:45 PM)
Dear righton, et. al.,
Humility is to make a right estimate of one's self. ~Charles Haddon Spurgeon
Report Comment
YeahThatWouldBeGreat
, (6/7/2009 3:30:58 PM)
And you guys have a business college? What exactly do you teach there? sheesh!
Report Comment
snoop
, (6/7/2009 4:29:39 PM)
Greed and stupidity would describe OSU's investment policy. Depending one one investment and one industry was insane. The money Boone gave last was only to meet their margin call from the bank. Holder next time let smarter minds invest the $$$$, maybe something would be left
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ForWhatIt'sWorth
, (6/8/2009 8:27:22 AM)
Obviously all of you that are so quick to criticize are far more intelligent than BP and the rest of the individuals making investment decisions for OSU. I'm assuming you've got the same kind of money to throw around, if not more, since they're all such idiots.
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MexiMike
, Tulsa (6/8/2009 9:02:38 AM)
2curious, the ONLY game you couldn't walk up and buy tickets on gameday last year was the OU game. Every single other game had single game tickets available.
Get your facts straight.
Webjockey, in my opinion the monetary loss was absolutely worth it if it meant keeping classless fans like you out.
Snoop, I don't think a person with your grammar (or lack thereof) should ever criticize anybody else's intelligence.
Same boring OU comments from all the same boring OU fans...give it a rest.
Report Comment
Lance-a-lot
, Tulsa (6/8/2009 10:27:24 AM)
Waaaaaah! I lost $282 million in the stock market. I only have $125 million left. Boone, give us another check please!
Report Comment
Matt in BA
, Broken Arrow (6/8/2009 11:50:09 AM)
for the money they spent on the existing homes and apartments, they do have a nice pile of dirt now.
Report Comment
OutPickMyNose
, (6/8/2009 1:08:44 PM)
As an OSU graduate and owner of a property that was part of the "Athletic Village" ED removal, I can tell you that it is very disturbing to see this unfold.
After being forced out, and thankfully finding a wonderful new place to live in Stillwater I have come to expect this "village" to be built.
Holder has done a terrible job with just about everything besides hiring Travis Ford. If not for Boone, Holder would still be the golf coach at OSU. He has a terrible attitude and is not the type of person that Oklahoma State graduates tend to relate to.
I will always support OSU, but I will never be a big fan of Holder. He knows he lost all of that money, and all he can say is "If anyone wants to give money to build a stadium, call me." Weak.
And before anyone decides to attack me, I have been around Holder many times and my opinion of him is not a biased one. I do give people the benefit of the doubt.
Report Comment
Arbythree
, Tulsa (6/8/2009 4:25:00 PM)
Good comments OutPick.
Report Comment
tulsaGuy
, (6/9/2009 5:15:33 AM)
Here is OSU's mission statement:
Oklahoma State University is a multi-campus public land grant educational system that improves the lives of people in Oklahoma, the nation, and the world through integrated, high-quality teaching, research, and outreach. The instructional mission includes undergraduate, graduate, technical, extension, and continuing education informed by scholarship and research. The research, scholarship, and creative activities promote human and economic development through the expansion of knowledge and its application.
Report Comment
MexiMike
, Tulsa (6/9/2009 10:36:14 AM)
Outpick, although I did not live or have property where the future athletic village will be, I do understand your beef.
Holder gambled and it backfired. I can't say that I didn't support his decision then, because I did, but unfortunately, hindsight is 20/20. All I can say now is I hope this plan gets back on track quickly because the longer it stays on the shelf the more the outcry will increase.
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