Penn State 'Can't Afford' Proposed $700 Million Beaver Stadium Renovation, Trustee Says

Barry Fenchak, an alumni-elected trustee, says he will vote against the stadium plan. "I do not believe the Board should approve this project," he writes.

A general view of Penn State's Beaver Stadium. / Mark Wogenrich/AllPennState

Penn State's Board of Trustees has scheduled a public meeting Tuesday, when it will present, and likely vote on, the $700 million plan to renovate Beaver Stadium. One trustee has announced that he will vote against the proposal.

Barry Fenchak, an alumni-elected trustee, published a piece on his website Friday titled, "Why We Can't Afford the Beaver Stadium Renovation Proposed by Penn State Board of Trustee Leadership." In the post, Fenchak writes that the planned four-year, $700 million renovation of Beaver Stadium would dramatically increase Penn State Athletics' debt (to $877 million) and that Penn State has neither the revenue nor the donations to fund the project. Therefore, he writes that the board "should not approve this project."

"As currently proposed, the $700 million Beaver Stadium renovation will be, by far, the largest capital expenditure in our athletics history and one of the largest (if not the largest) athletics capital projects in the history of college athletics," Fenchak wrote on his website. "I have researched this proposal at length and done the math. We can’t afford it."

Penn State announced in February 2023 that it would renovate Beaver Stadium, the 64-year-old venue that is the nation's second-largest, rather than build new. Penn State President Neeli Bendapudi told the Board of Trustees then that renovating would be "far more economical." In a May 2023 interview, Penn State Athletic Director Patrick Kraft said that building a new stadium would cost at least $1.5 billion.

"Penn State has some of the most dedicated and loyal fans in the world and they deserve a facility that has upgraded amenities and improved circulation around the facility to enhance the fan experience," Bendapudi said in February 2023. "It is my commitment that we will do what we must to preserve one of our most iconic spaces in the most economical way possible.”

RELATED: Three former Penn State football players elected to Board of Trustees

Penn State announced further renovation details in May 2023, when it asked the board to approve a $70 million initiative to begin project design. The renovation would be budgeted at $700 million, be completed before the 2027 football season and be funded through loans, fundraising, sponsorships and new premium seating options. Kraft said the athletic department would embark on a "major philanthropic campaign" to raise more than $200 million. Bendapudi said that the Beaver Stadium renovation would not use Penn State's "overall budget, tuition dollars, student fees or the critical resources available in support of our educational and research missions."

Penn State's Board of Trustees approved the $70 million bond sale in May 2023 to begin the project's first phase, which is underway. In October, Penn State announced that it had hired Populous, a leading architectural firm, to design the Beaver Stadium renovation. Scott Radecic, a former Penn State football player and founder of Populous, said the the project would bring a "transformational renovation to Beaver Stadium."

“Populous is proud to partner with Penn State on a transformational renovation to Beaver Stadium, reimagining and innovating the fan experience of one of the most iconic venues in college football,” Radecic said in a statement. "Our team will work hand-in-hand with the University to design and bring to life the spirit and tradition of Penn State, while setting up Beaver Stadium to continue to serve fans for the years to come."

In his article, Fenchak wrote that Penn State Athletics doesn't have the revenue, "philanthropic support" or cash on hand to fund the renovation. And though Penn State Athletics self-funds its 31 varsity programs, the university backs its debt, which Fenchak reported at $250 million. That includes the $70 million Penn State trustees approved last May for the first phase of renovations. Fenchak voted against that proposal.

"One of my important duties as a trustee is to reject proposals that would place the University in unsustainable financial situations, including project proposals from the Department of Intercollegiate Athletics (ICA)," Fenchak wrote. "Unwise ICA financial decisions not only hamstring athletics operations but every dollar of debt incurred is underwritten by general tuition dollars, not by ICA. In a worst case scenario, that debt would be passed to the taxpayers of Pennsylvania."

RELATED: James Franklin pitches fans on "Retain the Roar" NIL initiative

Penn State has renovated Beaver Stadium twice since 2000. The 2001 expansion added about 12,000 seats, raising the stadium's capacity to 107,282. A 2011 renovation lowered capacity to its current 106,572 to comply with the Americans with Disabilities Act. Kraft has said that Beaver Stadium's seating capacity would remain above 100,000 after the current renovation.

"Whereas the 2001 renovation added 12,000 seats to the stadium, as far as I can tell the $700 million project will add none," Fenchak wrote. "Instead it will focus on increasing revenues with premium amenities, but my own research suggests that these projections are overly optimistic. Even if true, these highly speculative estimates would be insufficient to prevent ICA falling deeper into debt."

The Penn State Board of Trustees will meet publicly beginning at 10:30 a..m. ET on May 21. The public can watch via livestream.

Read Trustee Barry Fenchak's full comments here.

AllPennState is the place for Penn State news, opinion and perspective on the SI.com network. Publisher Mark Wogenrich has covered Penn State for more than 20 years, tracking three coaching staffs, three Big Ten titles and a catalog of great stories. Follow him on Twitter @MarkWogenrich.