Wells Fargo Arena is located on the western side of the Des Moines River in downtown Des Moines. The arena, along with Veterans Auditorium and Hy-Vee Hall will form the Iowa Events Center, the largest multipurpose facility in the state. (Mark Kegans/Associated Press)

The state’s four Division I men’s basketball programs will pay Wells Fargo Arena’s management company a combined $40,000 plus $2 per ticket sold as part of the contract to play the Big 4 Basketball Classic on Dec. 15.

The schools’ licensing agreement with Global Spectrum, which was obtained by The Gazette via state open-records law, lasts for four years and the schools own the rights to sell sponsorship for the event.  Global Spectrum will retain all proceeds from concessions and parking. The schools will earn all revenue generated from souvenirs and program sales.

The schools have agreed to equally divide revenues after expenses, according to the memo of understanding among the schools. The arena will be divided into four groupings for each fan base. The schools will not invite recruits as guests.

This year, Iowa will play Northern Iowa, and Iowa State will face Drake in the inaugural setting. Next year Iowa will play Drake, and Iowa State will meet Northern Iowa on an undetermined date.

A source said the games will take place in the afternoon, and the games will not air on the ESPN family of networks. Rick Klatt, Iowa’s associate athletics director for external affairs, said particulars have not been set but details should be released fairly soon. The second game will start within 30 minutes of the first game’s conclusion.

According to the memo of understanding, game officials will have relationships with the Big Ten, Big 12 and Missouri Valley conferences and “be in good standing with all four schools.” The host school, which is Iowa this year, will assign the game officials.

Each school will host the event during the four-year agreement.