Paul Soper, head of the theatre program, wrote President Brehm in early 1954 advocating construction of a proscenium theatre on campus, which he estimated would cost $125,000 to build. He suggested issuing bonds to be repaid as the loan for Carousel had been repaid, or solicitation of donors. In 1956 Vice President Andy Holt sought donors to make a proscenium theatre possible, contacting among others, Paul Mountcastle and the Rich’s Foundation with requests for $100,000, but both declined. Soper and others continued to press the need, and in May 1967 the Student Government Association Senate passed a proposal to utilize student activities fee money to repay bonds issued to build a new proscenium theatre on campus, and the board of trustees then approved the plan. Groundbreaking for the $2 million Clarence Brown Theatre complex was held May 17, 1968, and was attended by Clarence Brown and his wife, Marian. The complex opened in 1970 (the dedication was November 13) and housed the main auditorium, the Lab Theatre, technical shops, the box office, and staff offices. The main auditorium is a 600-seat-proscenium stage with an orchestra pit, fly loft, and trap system. The auditorium is also equipped for both 16mm- and 35mm-film projection. The Lab Theatre is a 120-seat thrust stage used for class productions, classes, and special events.
The building is named for movie director Clarence Brown, a UT alumnus who made an initial $50,000 contribution toward construction of the facility, made other gifts for its construction, and subsequently, left a multimillion-dollar bequest to the Theatre Department. No state funds were involved in funding for the theater. In addition to Brown’s gifts, student activities fees provided $1 million, and an additional $100,000 was provided by a building fund accumulated over the years by the Carousel Theater.
Jane Wyman and Claude Jarman Jr. joined the Clarence Browns for the 1970 black-tie dedication event for invited guests where the 1946 movie The Yearling was shown. Jarman and Wyman starred in the movie, which Brown directed. The first play to be produced in the theatre was Look Homeward, Angel. The board of trustees officially named the structure the Clarence Brown Theatre for the Performing Arts. Architects for the theatre were Bruce McCarty and Associates, and the cost was $2 million. The contractor for the project was Wallace E. Goodwin General Contractors of Knoxville.