The Bee Cave Bee

Last week, the LTISD Board voted to spend $450,000 to buy outright a 40 foot Jumbotron for the Cavs Stadium based on sales of advertising by the appointed contractor.

Faced with the option of a 60% revenue share with the contractor buying the screen, or and 85% rvenue share of the District bought the screen the Distirct chose the latter, and thus assumed all the risk on future ad sales being able to pay of the capital costs.

Here is the full release:

"Following a year and a half of extensive market research and exploring various finance options, Lake Travis Independent School District trustees have approved the purchase of a $449,008 video display board to be installed at Cavalier Stadium this summer.  The unanimous vote occurred at the May 21 regular meeting of the school board.

Last November, trustees approved an agreement with Daktronics Sports Marketing for research and advertising sales in conjunction with the potential purchase of a 17 ft. tall by 30-ft. wide full-color, digital video screen.  As prescribed by the agreement, provided that Daktronics could secure a minimum of $89,500 annually in pre-sold advertising packages, trustees were to be presented with two options for which to fund the purchase of the video display.

Under the first alternative, Daktronics could install the video display board at no cost to the District.  LTISD would then retain 60 percent of advertising revenue over a 10-year term only when sales exceed the annual threshold.  A second finance option entailed that the District purchase the video display board and grant a five-year commission to Daktronics of 15 percent.  Based on current advertising commitments to date, the District will earn a minimum of $127,500 annually and is expected to recover the cost of the video display board in approximately three and a half years. 

“This isn’t about football,” said Lisa Johnson, LTISD Board Vice President.  “This is smart business.  If Daktronics pays for the video display, we will potentially lose at least $597,992 over 10 years in revenue earnings.  By paying for this ourselves, we believe it’s a sound investment which we anticipate will result in a sizable return.”

To date, advertising commitments have been contracted across three partner levels as follows: 

Anchor Level Partners
1.    Lakeway Regional Medical Center
2.    Prosperity Bank
3.    Land Rover of Austin

Founding Level Partners
1.    Lakeway A/C & Heating
2.    Nitro Swimming
3.    Rough Hollow, Ltd.
4.    Papa Murphy’s Lakeway
5.    Amber Hart Homes (Keller Williams)
 
 Premier Level Partners
1.    The Church at Lake Travis

The video board will be purchased using the District’s fund balance and will include a one-time service fee to Daktronics of $12,500.  Installation will begin in June.  The video display board is expected to be fully operational for the first varsity home football game of the season Friday, August 23.

“It’s important to note that the purchase and installation of the video display board will not have a negative impact on ticket prices, student participation fees, or on any program or service we offer our students,” said Dr. Brad Lancaster, LTISD Superintendent of Schools.  “As a matter of fact, the video display board will enhance the stadium experience by showcasing the success of our students, staff and programs during events at Cavalier Stadium.  And by using our own high school students to operate the video board, we will provide our students with hands-on, real-world experience as it pertains to radio/TV/film production, graphic/digital arts and other high-tech skills.  Ultimately, we believe that the addition of a video display board will have a positive impact on both our school and business community.”  

Lake Travis ISD’s new Director of Development and Corporate Relations will provide management and oversight of the District’s advertising program, including ad sales on the video display board.