Tuesday, December 28, 2010

Hitt’s Failure is an Orphan

Sorry for the light posting, but I’ve been busy hanging lights and dressing up as Santa Claus.

If you haven’t seen it, you should check out this Beth Kassab article about the business of UCF basketball.

The University of Central Florida's home court is the centerpiece of the largest construction project in the school's history: a $242 million development that includes the 10,000-seat arena, retail shops, student housing and a parking garage.

The complex opened in the fall of 2007, just before the worst recession since World War II got under way.

As a result, the economy has taken its toll on the town-like social center near the school's new football stadium. High turnover and empty storefronts plague the retail space. The pull-back in consumer spending has slowed ticket sales and concession revenue for concerts and other events. And a naming-rights deal for the arena itself — projected before the start of construction to be worth $250,000 a year — never materialized.

Hitt has always aspired to be more than an administrator tasked with the orderly and efficient operation of a university. He has aspired to be an entrepreneur. But he is not. Entrepreneurs raise capital from investors not taxpayers. Entrepreneurs are able to sense the future and profit from it.