Alan Hoffman Discusses the University of Texas’ Moody Center in Sports Business Journal

Alan Hoffman, partner and chair of Winston & Strawn’s Project Finance Practice, discussed the University of Texas’ Moody Center in a conversation with Sports Business Journal.

Thanks to its innovative design, the new arena can quickly transform from a basketball court to a large concert venue. Winston & Strawn represented Oak View Group in the development, construction, and financing of the Moody Center.

The venue’s financing deal is unique, according to Alan, who noted that “the Moody Center deal is set up as a 35-year services agreement in which [the developer] operates the building and doesn’t pay rent. There was a ground lease during construction that allowed [the developer] to build on UT-owned land, but that was terminated once the project was completed.”

“If you’re a lender looking at a deal like this, the first thing you want to make sure is there are enough revenues being generated at the arena to cover your debt service,” Alan said. “That is issue 1, 2, 3, 4, and 5.”

Read the full article here.