In November, Lake Travis ISD trustees approved an agreement with Daktronics Sports Marketing to allow the firm to start research and advertising sales in conjunction with the potential purchase of a digital video screen.
At a May 21 meeting, trustees approved the purchase of a $449,008 display board to be installed at Cavalier Stadium this summer after hearing three different finance options presented by Daktronics.
The first option presented allowed Daktronics to install the 17-foot-tall, 30-foot-wide digital video screen at no cost to the district. This proposal would give LTISD 60 percent of advertising revenue over a 10-year plan, but only when sales passed a certain threshold.
The second option, which the district chose, required LTISD to purchase the display board outright and would give Daktronics a 15 percent commission of advertising sales for five years.
LTISD Director of Communications Marco Alvarado said that the district estimates that it will earn a minimum of $127,500 annually and would cover the cost of the video display in 3 1/2 years.
"This isn't about football," said Lisa Johnson, LTISD board of trustees vice president. "This is smart business. If Daktronics pays for the video display, we will potentially lose at least $597,992 over 10 years in revenue earnings. By paying for this ourselves, we believe it's a sound investment, which we anticipate will result in a sizable return."
The purchase of the video board will come from the LTISD fund balance and includes a one-time service fee to Daktronics of $12,500.
Installation of the board is set to begin in June and is expected to be fully operational for the first home varsity football game Aug. 23.
LTISD Superintendent Brad Lancaster said that the purchase of the video board will not have a negative impact on ticket prices, student participation fees or any other program offered for students.
Alvarado said that the money generated from the advertisement sales on the video display will be placed into its own account to be used for athletics and school-related costs such as new uniforms, field turf replacement and more.