The University of Miami’s finance officials are examining the city of Miami’s proposals to upgrade the Orange Bowl, but it’s pretty clear that even without making an upfront contribution, UM will be on the hook for much higher annual payments. UM is continuing talks with Dolphin Stadium officials about potentially moving its football games to the stadium in Miami Gardens, a move that may look even more enticing if UM can earn more money there.

The city has offered up two scenarios – one for $171.7 million, which it says it can fully fund and a second for $199.9 million, which has a $23 million gap – both of which would require UM to pay more than it does now to play games at the OB. The argument for agreeing to stay at the 70-year-old stadium is that with improvements, fancier seating, new club seats and suites, UM will also earn more revenue.

City documents show both plans include structural repairs across the stadium, but would limit most of the improvements to the stadium's south side. And the majority of the new items and amenities, such as club seats and suites, would be for well-heeled fans. In other words, lots of fans might never get to take advantage of any of the new amenities. Both proposals call for the stadium to include 66,000 seats and 2,000 outdoor club seats and upgrades to the first 18 rows of lower bowl seating. A comparison of the two plans:

$171.7 million plan

30 suites
60-seat president’s suite
400 indoor club seats
Tower containing suites and press box will be renovated

$199.9 million plan

45 suites
100-seat president's suite
AD and visiting AD's suites
600 indoor club seats and lounge with 10,000-square foot dining room
Tower will be replaced

Sources of funding include hotel bed tax, a $50 million Miami-Dade County bond issue, and $45 million in historic tax credits, which would be federal tax credits made available to buildings of historic significance. The OB would need a historic designation.

In addition, UM, which already pays a use fee equivalent to 10 percent of gross ticket revenues per game, would be required to continue paying that use fee along with 50 percent of revenues for indoor and outdoor club seats and 75 percent of suite revenues, city documents show. The $1 per ticket surcharge would rise to $3 and the university would also need to kick in $100 a season for each of the 3,200 parking spaces the city would provide for UM – for a total of $320,000.

That’s a significant increase from what the university pays now. Records show that during the 2006 football season, UM paid $189,572 for parking, along with a $333,768 from the ticket surcharge and $992,654 for the use fee. UM does not get to keep concession revenue, nor would it under the city’s proposals.

The city estimates the school could earn an extra $3.4 million to $3.6 million a year, depending on the renovation plan.

It’s unclear how much UM could earn if it moves to Dolphin Stadium, but sources say a deal would likely include some or most of concession and parking revenues and that it could be far more lucrative for the university than its current deal at the Orange Bowl, which expires after the 2009 football season.