The University of Texas at Austin, Oak View Group and Live Nation Entertainment have officially broken ground on the Moody Center, a new 15,000-seat, multi-purpose venue that will sit on the college campus.

The new $338m (£259m/€305m) arena will replace the 42-year-old Frank C. Erwin Jr. Center at the university campus. It will serve as the home of the university’s basketball teams and will also hosts graduations, community events and concerts.

Live Nation Entertainment will work with C3 Presents to bring top tours and premium live events to the Moody Center. The arena was given its name last month following a $130m grant from the Moody Foundation.

UT Austin and a group led by the Oak View Group announced plans last December to build the on-campus arena, with famous alumni Matthew McConaughey having been brought in as the ‘minister of culture’ for the project. The arena is slated to open in 2022.

Tim Leiweke, chief executive of Oak View Group, said: “The University of Texas is one of the most important and largest universities in the world. Our partnership with President Fenves, Athletic Director Del Conte and the entire university is a new vision and a new standard on a private-public partnership that will create a world-class venue for the Longhorns and for Austin.

“This partnership has brought together one of the most recognised universities and brands, the Longhorns, with the world’s leader in content, Live Nation, and the world’s largest developer of new arenas, OVG, with Matthew McConaughey. Those partners will create one of the greatest arenas in the world and become the heart and soul for the campus and Austin.”

The project will be privately funded will not use any university or public funding. Construction is expected to create thousands of permanent and temporary jobs.

Image: Live Nation Entertainment