Originally Posted by
BDP
It's just the difference between a donation and an investment. Don't confuse or equate the private investment into the development with booster money. It functions completely differently.
Most likely, this is just a commercial development group that believes they can include an entertainment venue and receive public assistance for that. OU basketball (and other indoor sports, I assume) are simply the anchor tenant. As for whether that is a good call for the University to participate, well, that would very much hinge on the terms of the lease, imo. The university does have some leverage in that because they own the land. So, it could be simply, "okay, you can develop the land, but we want an arena to be in the mix, we'll lease it for our teams and we can get public assistance to cover it." So, the University gets their land developed, the developers get some value add through public assistance, the athletic department gets a new facility, and the investors are hoping to get a return through revenue generated from the entire development mix.
So, there is no donor / booster opportunity cost going on here and this is the group that has emerged and is interested in developing this property in this way. So, "why aren't they doing this... why aren't they doing it over there... why not on campus... etc." is irrelevant as far as anyone knows, because this is the only group that is doing this. I'm sure if the campus corner developers were interested in building an arena for OU to use, the university would answer the phone. But this is where the school has some leverage and where there's investors willing to participate.
Simply put $800 million in investment in this development does not equate to reallocation of $800 million in potential facility donation money. It's not automatically the same money and it functions completely differently.
You can say it's a bad investment, but saying that money can just be flipped to another location or turned into a straight out donation doesn't really make sense.
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