Arena: strings attached
Published Feb. 1, 2002
When Columbia business mogul Bill Laurie came forward in December to announce he was the anonymous $25 million donor behind MU's new arena project, many finally got to see the face of the man who will largely oversee its construction.
According to the contract Bill and his wife, Nancy Laurie, have with the University of Missouri system, the pair has the right to oversee and approve construction changes, the naming of various parts of the arena and the arena itself and the advertising within it.
The Lauries will also receive a private, 780 square-foot luxury suite with free catering and other services, six seats to every event held at the new arena and an additional suite for eight arena events each year.
Professor of sociology Richard Hessler said the donation and its attached contract are misplaced.
"If the Lauries really wanted to make an impact in the academic world, they would have done what Bill Gates is doing in the medical world and put a billion dollars or so into the budget," he said.
In a press conference in December, Laurie said he would likely name the arena after a family member.
According to the contract, however, if the Lauries allow MU to sell the naming rights, "proceeds received from the sale shall be used to provide academic scholarships or for such other use as may be agreed in writing by the Donors."
Chad Moller, department of intercollegiate athletics spokesman, said though the Lauries may have naming rights for the new arena, its label will ultimately be subject to UM system approval.
"Any building on campus that is named eventually has to be approved by the (UM system Board of) Curators," he said. "If the curators don't approve it, it's not going to happen."
The naming of areas in and around the arena are also subject to Laurie's approval.
Advertising is also subject to approval by the Lauries. Another clause in the contract states that "Any and all advertising in the Arena and any and all sponsorship or similar arrangements ... shall be subject to consultation ..."
Nancy Laurie is an heiress to the Wal-Mart fortune of her father, Bud Walton, and a number of companies compete with Wal-Mart's financial interests. This fact leads some to question the financial motives of the donors.
"It's all about making money," Hessler said. "I never had any doubts about that."
Others, however, are confident that the Lauries are approaching the situation with MU interests in mind.
"They've done this before so they're kind of learning from experience," said Mykael Wright, Missouri Students Association president. "They're good people" I don't think it's a big deal."
The contract also stipulates that a consultant requested by the Lauries will be hired by the university and paid up to $250,000.
The consultant will oversee the arena project on behalf of the Lauries.
The proposed arena will be constructed behind the Hearnes Center and will seat 16,000. Aside from the $25 million donated by the Lauries, $35 million will be paid for in state bonds and $15 million will be raised by the athletic department.
Moller said because the athletic department is "kind of a separate, self-sufficient entity budget-wise from the university," fundraising from the department for the arena project will not impact other programs.