The University of New Mexico's Board of Regents unanimously approved a multi-media rights contract to replace the $4.4 million Learfield IMG deal. Athletics Director Eddie Nuñez estimated the new contract with Outfront Media will be worth around $2.9 million.
The media rights deal, one of the Athletics Department's biggest cash cows, comes as UNM sports attempts to climb out of $4.4 million hole collected primarily under former Athletics Director Paul Krebs. Krebs is indicted on embezzlement charges.
"Guaranteed contracts are not what they used to be. What the University of New Mexico had years ago was actually a really good agreement. But those opportunities have actually changed," Nuñez told the Board of Regents on Feb. 17.
The biggest difference between the two contracts, according to Deputy Director David Williams, is the revenue-sharing contract with Outfront compared to the guaranteed-amount contract with Learfield.
According to the contract, UNM will collect 85% of revenue generated after expenses. Outfront will collect the remaining 15%. The contract was penned to last ten years, with an optional two years if UNM and Outfront agree to it.
Outfront will also pay UNM $750,000 in what UNM Regent Rob Schwartz called a no-interest loan during a recent regents committee meeting. UNM will pay back $75,000 every year to Outfront over ten years. Nunez said the money was to cover lost revenue during the contract negotiations.
The approval of the contract was a long time coming.
Nuñez said back in August 2019 that the Outfront contract would be ready for regent approval in October. Nuñez said bridge contracts with Outfront were signed to cover the six-month interim after the Learfield agreement ended.
Two new changes for UNM sports birthed from the Outfront contract are an app and a traveling trailer.
The app would allow fans to participate in crowd events, like light shows, while sharing users' data to advertisers, according to Athletics Department officials.
"(The app) was one of the first things that Outfront wanted to do. They've had success with it at other institutions similar to ours," Williams told the Daily Lobo.
Williams said the app, similar to the one used by the NFL's Kansas City Chiefs, would provide the department with additional revenue.
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Another part of the contract is a mobile trailer with food, drinks and a radio personality towed by a sponsoring car dealership, according to Williams. He hopes to have the trailer in tow for the Mountain West basketball tournament in March.
Justin Garcia is the Editor-in-Chief of the Daily Lobo. He can be contacted at editorinchief@dailylobo.com or on Twitter @Just516garc
