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Message: [QUOTE="Jaka, post: 495689, member: 126"] [B]Q: How confident are you that the financial model for the renovation project is sound?[/B] Our financial planning has been very conservative. From our extensive market research and detailed financial analysis, we are confident that the demand for the suites and club seats will be strong and that the project will be able to pay for itself through the new revenues that are generated. Out of the total project cost of $226 million, we plan to cover $36 million from Athletic Department reserves and issue debt for the remaining $190 million. Our annual debt service is estimated to be about $12.4 million, with annual incremental revenues conservatively estimated at $12.8 million. However, these figures do not factor in any fundraising. To the extent that we receive support from our donors, that will reduce the amount of debt and will further reduce any financial risk. [url]http://www.umich.edu/stadium/faq/[/url] [/QUOTE]