Penn State gets approval of $70 million expenditure to begin initial stage of Beaver Stadium renovation

The proposed Beaver Stadium renovation project cleared its initial hurdle Thursday when the Penn State Board of Trustees Committee on Finance, Business and Capital Planning approved an expenditure of $70 million to pay for priority maintenance projects, winterizing and architectural and design development.

The entire board is scheduled to vote on the project Friday. Construction is expected to begin in January 2025, after the conclusion of the 2024 football season.

Total cost for the project is estimated at about $700 million and is expected to be completed in four years. School officials said it will be financed and paid for entirely by the Penn State Intercollegiate Athletics department. Further, they said no tuition dollars or educational budget funds will be used toward renovations.

“After years of studies and careful analysis, I’m happy that these much-needed renovations to Beaver Stadium are about to get underway,” Penn State president Neeli Bendapudi said in a statement. “I am committed to continuing to grow our Intercollegiate Athletics program and to keeping Penn State competitive on the national stage.

“We have one of only a handful of self-sustaining intercollegiate athletics departments in the country, which means that this project can move forward, distinctly, without using the University’s overall budget, tuition dollars, student fees or the critical resources available in support of our educational and research missions.”

Upon announcing in February Penn State’s intention to renovate Beaver Stadium, Bendapudi said renovating is far more economical than building a new stadium. Beaver Stadium has a current backlog of more than $200 million of deferred maintenance, officials said.

The first stage of the renovation is expected to be completed over the next 12 months. Initial construction will focus on improving safety and security, crowd traffic control and addressing field lighting performance. Winterization work — the insulation of pipes and other upgrades — also will be completed to allow the building to be occupied when temperatures are below freezing. That would give Penn State the ability to serve as host of a College Football Playoff game and other potential events in the winter months, officials said.

“The additional revenue generated throughout the renovated stadium will not only offset the costs, but also enhance our overall athletics budget in the future,” athletic director Patrick Kraft said in a statement. “In addition to stadium-generated revenue, we will embark on a major philanthropic campaign with a goal of raising more than $200 million to support the stadium renovation and other athletic department priorities.

“Further, we expect to see significant revenue in sponsorships and third-party contracts, all of which enables Penn State athletics to remain self-sustaining.”

The preliminary plan for the full project involves a complete reconstruction of the west side of the 106,572-capacity stadium, maintaining traditional bowl-style seating while adding anticipated club and loge seats and executive and founder’s suites. Additional anticipated renovations include ongoing code upgrades, accessibility improvements and upgraded fan amenities. These involve improved circulation to ease spectator congestion throughout the stadium, improved restrooms, upgraded concessions, Wi-Fi and cellular upgrades and additional seating options, officials said.

The initial $70 million expenditure will be funded through a bond sale planned for June and to be repaid entirely by Intercollegiate Athletics. The entire project will be paid for through fundraising, concessions, naming opportunities, sponsorships and ticket sales, including new premium seating options to be added during renovation.

“When the renovation is complete, the return on investment will be significant, bringing in additional financial resources to Intercollegiate Athletics,” said Sara Thorndike, Penn State senior vice president for Finance and Business.