The University of Nebraska Board of Regents' Feb. 7 meeting agenda includes an item considering approval of a contract with Aramark Sports + Entertainment for concessions services at Memorial Stadium, the Bob Devaney Sports Center, and Hibner Stadium.
Nebraska, like many universities, has traditionally operated its athletics concessions in-house, and, like many of its peers in the Big Ten, is looking to a third-party company to raise food and beverage revenues.
The proposal is for a 10-year term plus an optional 5-year extension with a capital infusion of $10M from Aramark S+E. The projected annual commission paid by Aramark S+E to the university would be $5.8M. And the company’s experience implementing alcohol sales was also a key factor in it being selected through an RFP process conducted by the school; alcohol sales (beer, wine, and hard seltzer) will debut at Memorial Stadium, Hibner Stadium, and the Bob Devaney Sports Center in the fall of 2025. If approved Friday, Aramark S+E’s deal would commence March 1, 2025.
According to the agenda, Nebraska running its F&B in-house resulted “in stagnant fan experience and a profit of athletics of between $2M and $3M.” The deal proposed by Nebraska AD Troy Dannen is projected to double that figure, even after Aramark takes its cut.
The proposed commission structure (the percentage of gross receipts that Aramark S+E pays to the university annually):
Concessions: between $0 and $8M - 42%; $8M to $10M - 45%; More than $10M - 50%.
Clubs: all-inclusive - 0%; not all-inclusive - 25%.
Suites: all-inclusive - 0%; not all-inclusive - 25%.
Catering: internal events - 0%; external events - 10%.
All subcontractor net receipts: 45%.
The $10M capital investment from Aramark S+E is paid out within the first three years of the deal and tends to go towards things like new point-of-sale systems and devices, including self-checkout technology, although the university itself invested in a new Shift4 POS system during the last year, a deal that has four years remaining on the license and subscription (a $128,400 fee per year). Forty percent of the Aramark S+E cap-ex money is due within the first 30 days of the agreement being executed, with another $3.5M installment due on or before June 1, 2025, and the remaining $2.5M paid to the university on or before March 31, 2028.
Memorial Stadium, whose capacity tops 82,000, hosts at least seven Cornhusker football games annually; Devaney Center is home to Nebraska’s powerhouse volleyball program, as well as wrestling, men’s and women’s gymnastics, indoor track and field, and swimming and diving, and has capacity for 8,300 people; and Hibner Stadium hosts roughly 13 women’s soccer matches each season and holds 2,200 people. Nebraska men’s and women’s basketball play at Pinnacle Bank Arena in downtown Lincoln, while the Cornhuskers’ baseball team plays at Haymarket Park; neither venue is owned by the university and thus not included in the contract with Aramark S+E.
Additionally, Aramark S+E will handle all purchasing of food and products, one of the major benefits that universities encounter with third-party F&B providers: their supply chains and purchasing power. Nebraska joins other Big Ten universities that have outsourced their on-campus athletics F&B service in pursuit of revenue generation and higher quality premium offerings, including Indiana (Levy), Penn State (Oak View Group), and Michigan State and USC, which have active RFPs or are about to post one.
Nebraska on-campus FY2024 financial F&B results
Concessions
Scanned Attendance; Gross Sales (2023-24 seasons)
Football 462,612; $4,027,104
Volleyball 128,436; $921,309
Soccer 6,038; $71,704
Wrestling 15,580; $98,996
Track 3,056; $19,972
Gymnastics 11,767; $66,680
Special Events (State Championships, etc.) N/A; $502,009
Premium
Scanned Attendance; Gross Sales
Football Suites 462,612; $313,972
Volleyball Suites 128,436; $51,216
Special Events (State Championships, etc.) N/A; $77,237
