The Payne Arena is a large multi-purpose arena located in Hattiesburg, Mississippi. With a capacity of over 10,000 for concerts and 8,000 for sporting events, the Payne Arena has hosted various events over the years including concerts, basketball games, ice shows, and more. But who actually owns this popular arena in the heart of Hattiesburg?
The Early History of the Payne Arena
The Payne Arena first opened its doors in 1991 after years of planning and construction. The arena was named after alumni Payne Stewart, who was a professional golfer that graduated from the University of Southern Mississippi. Funding for the construction of the arena came from both private donors and the city of Hattiesburg.
When first opened, the Payne Arena was owned jointly by the city of Hattiesburg and USM. It was managed by a board consisting of representatives from both the city and the university. This joint ownership allowed the arena to host various events, including USM basketball games, concerts, community events, and more.
Original Intended Use
The Payne Arena was originally intended to be used for large events for the city of Hattiesburg and as a new venue for athletics at the University of Southern Mississippi. Hosting USM basketball was a major purpose behind the university’s involvement in the arena. Prior to the Payne Arena’s construction, USM basketball had been played at Reed Green Coliseum, a smaller and aging venue.
The city was interested in having a modern large-scale arena that could attract major concerts, shows, and other entertainment options. With a capacity of over 10,000, the Payne Arena provided Hattiesburg with a state-of-the-art facility that could compete for major events with other cities in the region.
Early Years of Operation
During the 1990s after its opening, the Payne Arena saw frequent use by both USM athletics and outside entertainment acts. USM basketball and Lady Eagles volleyball called Payne home, along with other athletic events and community functions. Top music acts like Reba McEntire, Brooks and Dunn, and ZZ Top played concerts at the arena during this time.
This early period established the Payne Arena as a premier event venue in the area. The joint ownership between USM and the city allowed for a diverse calendar of events to be hosted. This arrangement would continue for over a decade before ownership shifted.
Transfer of Ownership to USM
In 2009, after 18 years of joint ownership, the city of Hattiesburg transferred full ownership of the Payne Arena to the University of Southern Mississippi. This transfer occurred for several reasons:
- The city was experiencing budget issues and could no longer afford its share of arena upkeep and operations.
- USM wanted full control over scheduling and arena policies.
- The university had invested in recent renovations and felt they should own the venue outright.
USM and the city came to an agreement for the university to take over complete ownership. USM began referring to the Payne Arena as “The Payne” and invested in branding and upgrades after the transfer.
Recent Upgrades and Changes
Since taking over ownership in 2009, USM has made several improvements to modernize the Payne Arena:
- 2011 – New video scoreboard added
- 2013 – Premium seating and club areas upgraded
- 2015 – New external video boards installed
- 2016 – State-of-the-art sound system added
These and other upgrades have helped keep the Payne Arena relevant and capable of attracting top entertainment. Additionally, USM moved all of its administrative athletics offices to the Payne Arena from other buildings on campus after gaining ownership.
Current Arena Usage
Today, the Payne Arena remains the home venue for USM men’s and women’s basketball as well as volleyball. It also still attracts major concerts and shows on occasion. Recent performers have included Chris Stapleton, Eric Church, and Twenty One Pilots.
University events such as commencement ceremonies, prospective student days, and job fairs are regularly held at the Payne Arena. Outside groups can also rent out all or part of the venue for events.
The city of Hattiesburg no longer utilizes the Payne for community functions now that USM has full control. However, it remains a point of pride for the city and an important economic driver for local businesses.
Financial Details of Payne Arena Ownership
As the sole owner of the Payne Arena, USM is responsible for all financial aspects of operating the venue. Here are some key details on the finances:
- The arena costs approximately $2 million annually for USM to operate.
- Basketball and volleyball provide consistent income via ticket sales and sponsorships.
- Concerts and events bring in added event revenue.
- Premium seating, concessions, parking, and merchandising also generate income.
- Recent upgrades were funded through a combination of university capital, donor gifts, and borrowed money.
While the Payne Arena requires significant financial investment from USM, it also generates revenue. USM considers it an asset that supports multiple aspects of the university’s mission.
Payne Arena Tax Status
The Payne Arena is exempt from property taxes due to its ownership by a public university. All financial activities related to the arena are managed through USM’s internal accounting processes as an auxiliary unit.
As a government-owned venue, the Payne Arena does not pay most sales or entertainment taxes. Certain taxes related to concessions and retail may still apply depending on the products or services sold.
Key Revenue Sources
Here are the top 3 revenue sources for the Payne Arena currently:
| Revenue Source | Estimated Annual Revenue |
|---|---|
| Ticket Sales | $1.2 million |
| Premium Seating | $600,000 |
| Concessions & Merchandise | $500,000 |
These conservative estimates illustrate the money generated by Golden Eagles athletics, arena events, and fan spending. Premium seating and amenities for high-dollar donors are a major revenue driver.
Future Plans and Ownership Outlook
The University of Southern Mississippi has given no indications that its ownership of the Payne Arena will change anytime soon. A few key points regarding future plans for the venue:
- USM completed a round of major upgrades in 2015 and has no large capital projects planned.
- There are hopes to increase the number of major concerts and shows booked.
- Improving the premium seating areas is a priority to maximize high-dollar donations.
- No discussions of selling naming rights have occurred, the Payne name will remain.
Barring any unforeseen circumstances, USM will continue to own and operate the Payne Arena in the years ahead. It is a strategic asset that supports multiple aspects of the university’s mission and brand.
Importance to Southern Miss Athletics
Owning the Payne Arena provides USM athletics with these key benefits:
- Control over scheduling, facilities, and revenue generation.
- Modern arena helps recruit top student-athletes.
- Increased income from premium seating and amenities.
- Home court advantage for Golden Eagles basketball programs.
Maintaining ownership of the Payne Arena will be a long-term priority for Southern Miss athletics. The venue is a major asset in supporting an elite level Division I program.
Potential Changes in Operations
Some possible changes in operating or managing the Payne Arena could include:
- Outsourcing certain operations like concessions to external companies.
- Renovating aging areas of the arena such as restrooms and common spaces.
- Adjusting booking policies to attract more concerts and public events.
- Adding more premium seating and fan amenities to increase revenue.
Evolving best practices in arena management and new opportunities to maximize revenues could lead to operational tweaks. But USM will likely maintain full control as owner.
Conclusion
In summary, the Payne Arena is currently fully owned and operated by the University of Southern Mississippi. After initial joint city-university ownership, USM took over control in 2009 and has invested in upgrades since.
The venue provides revenue opportunities through ticketing, premium seating, events, concessions, and more. It also serves a vital role for USM athletics and the university as a whole.
No ownership changes are anticipated, and USM plans to continue operating the Payne Arena for the foreseeable future. The venue is a strategic asset and will remain a priority for Southern Miss. Careful management and smart operational decisions will allow the Payne to continue serving USM and the Hattiesburg community for decades to come.
