oakland raiders new stadium feasibility study
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Coliseum City Football Stadium Revenue Study
Presented to: City of Oakland Alameda County Oakland-Alameda County Coliseum Authority
July 15 and 16, 2013
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AECOM Economics and Front Row Marketing Services AECOM Economics
Sports facilities planning practice
Local presence and experience
Experience in the planning of ancillary real estate in sports- and entertainment-based districts
Front Row Marketing Services
Values and sells premium seating, naming rights, sponsorships, and other assets and properties
Sister/parent companies include operator of NFL stadiums, entertainment districts, F&B services
Qualcomm Stadium San Diego, CA
New NFL Stadium & District City of Industry, CA
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Presentation Outline/Scope of Work
Local Market Analysis
NFL and Stadium Conditions
Input from the Raiders & New Stadium Market Demand and
Operations
Ancillary Development
Stadium Financing Analysis
Preliminary Conclusions and Timing for Completion
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Local Market Analysis
Raiders market goes well beyond Oakland/Alameda County
Significant wealth in the broader metro area
Strong corporate presence, but primarily to the south of Alameda County
Significant competition from other local teams and universities, particularly with new 49ers stadium in Santa Clara and general presence of a second NFL team in the Bay Area
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Local Market Analysis
The Bay Areas Fortune 500 Companies
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NFL and Stadium Conditions
Raiders Demand and Operations: Towards the bottom of the NFL in attendance and attendance as a percent of
stadium capacity; reduced capacity this fall will make the Coliseum the NFLs smallest facility
Unsold premium seating, and few long-term contracts
Low ticket prices
Unfavorable revenue-sharing terms due to As presence (F&B, sponsorships)
According to Forbes, third-lowest team valuation and one of the only teams that is not profitable
O.co Coliseum: Few ticketed events aside from Raiders and As (typical for a stadium)
Second-oldest NFL stadium without a significant renovation (since 1996s renovation); facility is generally outdated and has many physical deficiencies
Well-located, particularly for certain events
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Input from the Raiders The team commissioned a study that included telephone and online
surveys, as well as other market research
Preliminary conclusions shared with us: Little corporate support in the market
PSL program could potentially generate approximately $100 million
Anticipated demand could justify approximately:
50,000 seats
85 to 95 suites
6,000 club seats
400 to 600 loge seats
Generally consistent with our preliminary conclusions
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New Stadium Market Demand and Operations [in progress] Relatively low levels of corporate support
Limited number of non-Raiders events (open-air and domed scenarios)
Stadium Operations:
Revenues total ~$60M+/- per year before sharing
Expenses ~$15M to $20M+/- per year before sharing
Coordination with Raiders and other consultants for final estimates of facility costs and offerings/capacities
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New Stadium Market Demand and Operations [in progress] Stadium Costs:
Construction and related costs (Santa Clara $1.3B, Indianapolis $720M, Atlanta $1.0B, Minnesota $975M, New York $1.6B)
Infrastructure (TBD)
Coliseum debt
Potential Funding Sources: Raiders PSL
NFL G-4 loan
Stadium revenues
Ancillary development
Public funds
Raiders/league and stadium revenues are not expected to be sufficient to cover all development costs
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Ancillary Development [in progress]
Analysis of three development scenarios (different from Coliseum City study):
1. Only Raiders on site at new stadium (incl. Oracle Arena with no tenant)
2. Raiders and Warriors on site
3. Raiders, Warriors, and As on site
Analysis of potential land uses, market needs, on-site demand generation, and operations of comparable developments
Focus on RDE (retail, dining, and entertainment), hotel, residential, and office uses
Potential supportable development in first scenario:
40,000 60,000 SF of RDE 150 250 hotel rooms; 400 700 residential units; 35,000 70,000 SF of
office
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Stadium Financing Analysis [in progress]
Cost and share of funding for current and planned NFL stadiums, and changes over time
Common public sources used: tourist-based taxes (hotel, car rental), other taxes (sales, admissions, parking, F&B, on-site taxes), tax increment, land contribution, infrastructure, and others
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1960s 1970s 1980s 1990s 2000s 2010s
Cos
t
Fund
ing
% Public
% Private
Total Cost (millions)
Since 2010: Santa Clara, Atlanta, Minnesota, New York, Kansas City
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Stadium Financing Analysis [in progress]
Case studies of other facilities funding sources and amounts NFL: Santa Clara, Indianapolis, Kansas City, Atlanta, Minnesota
Others in California: Petco Park (San Diego), New Sacramento Arena
To come: Analysis of potential funding sources and amounts in Oakland and Alameda County
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Preliminary Conclusions
Opportunities Potential improvement of on-field product can increase demand
Willingness of Raiders to stay in Oakland and be a partner
Raiders partial contribution towards funding; appetite for PSL program was greater than anticipated
Location of Coliseum site central, public transportation
Potential opportunities for public funding
Open-air stadium expected to be more financially viable than a domed facility
Oracle Arena not expected to be negatively affected by either stadium scenario
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Preliminary Conclusions
Threats Local/regional competition from Levis Stadium
Difficult environment for stadium funding
Raiders limited capacity to contribute
Lack of readily available public funding local or state
Current lack of relatively strong corporate demand for Raiders products (i.e. premium seating and sponsorships)
Limited ability to drive on-site development and resulting revenues
Outstanding Coliseum debt
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Timing for Study Completion
New Stadium Market Demand and Operations ~late July
Ancillary Development ~early August
Stadium Financing Analysis ~late July/early August
Final Report ~late August
Final Presentations/Meetings September
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Q&A / Discussion
Slide Number 1AECOM Economics and Front Row Marketing ServicesPresentation Outline/Scope of WorkLocal Market AnalysisLocal Market AnalysisNFL and Stadium ConditionsInput from the RaidersNew Stadium Market Demand and Operations [in progress]New Stadium Market Demand and Operations [in progress]Ancillary Development [in progress]Stadium Financing Analysis [in progress]Stadium Financing Analysis [in progress]Preliminary ConclusionsPreliminary ConclusionsTiming for Study CompletionQ&A / Discussion
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