NFL Stadium Finance Study, JMI Sports

8/3/2019 NFL Stadium Finance Study, JMI Sports

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Historical NFL Stadium. FundingPrepared for Ramsey County


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Stadium Funding

2


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Private Stadium ContributionsNew York

Kansas CityDallas

IndianapolisArizona

PhiladelphiaChicago

SeattleNew England

HoustonGreen BayDetroit

PittsburghDenver

CincinnatiTennesseeCleveland $88

Tampa BayBaltimoreWashington DC

CarolinaSt. Louis

40

$875

Contribution Amounts(Unadjusted for inflation)

Median $126Mean $221

$1,600

$800 $1,000 $1,200 $1,400 $1,600 $1,8003


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New YorkKansas CityDallas

IndianapolisArizona

PhiladelphiaChicago

SeattleNew England

HoustonGreen BayDetroit

PittsburghDenver

CincinnatiTennesseeCleveland

Tampa BayBaltimore

Washington DCCarolinaSt. Louis

Jacksonville

Public Stadium Contributions

$620

$425

$212$180$200

$257

Contribution Amounts(Unadjusted for inflation)

Median $213Mean $225

$600 $800 $1,8001,000 $1,200 $1,400 $1,600


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New YorkKansas City

DallasIndianapolis

ArizonaPhiladelphia

ChicagoSeattle

New EnglandHouston

Green BayDetroit

PittsburghDenver

CincinnatiTennesseeCleveland

Tampa BayBaltimore

Washington DCCarolinaSt. Louis

JacksonvilleAtlanta

Stadium State/City

Contribution Percentages

Contribution PercentagesMedian 34% Private66% PublicMean 31 % Private69% Public

10% 20% 30% 40% 60% 70%0% 80% 90% 100%

Private Contributions Public Contributions


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Public Contribution DetailsI

I Year !State/C ity Stadium I Opened Public Cont rib ut io n Revenue Sou rcesKansas City fA.rrowhead Stadium 2010 Public Contribution $250, Missouri taxpayers approved a 3/8 cent

i sates tax that is expected to raise $212.5 million for the Sports! Complex with another $37.5 million coming from the State ofI iMissouri.INew York INew Meadowlands I 2010 iStadium i !Built on public land with no additional public contributions.IDallas Cowboys Stadium I 2009 II I

Indianapolis ILucas Oil Stadium 2008 Cost estimated to be 715.4 to 719.6; Public Funds raised jointly byI ~he State of Indiana and the City of Indianapolis. Marion County hasi Iraised taxes for food and beverage sales, auto rental taxes,! [nnkeeper's taxes and admission taxes for its share of the costs.i iMeanwhile, a small increase in food and beverage taxes in sixisurroundinq counties and the sale of Colts license plates completes

~he total; Naming Rights 121 Mover 20 years Taxes: Marion CountyIhotel tax increase from 6% to 9%; Car rental taxes increase from 2% to14%;food & beverage tax from 1% t o 2%. Neighboring suburbs food &

I Ibeverage tax would increase from 0% to 1%.IArizona University of Phoenix! 2006 IPublic contribution -- $261.4 million; $236 million in sports authorityStadlurn I Irevenue bonds; annual debt service backed primarily by a 1 % hotel-I ! motel tax increase and a $3.50 car rental surcharge; $15.4 millionI I ~rom City; $10 million from Fiesta BowlIChicago Soldier Field

I

2003 [PubliC Contribution includes $65 million trom state and $325 fromII ,Illinois Sports Facility Authority revenue bonds; annual debt service

backed by 2% hotel tax


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Public Contribution DetailsStadium Public Contribution Revenue Sources

ICcontr Ion -- rm Ion; rru on ayne ountyium bonds; annual debt service backed by a 1 % increase in hotelto 15%and a 2%increase in rental car tax to 8%; $20 million from

ayne County from the sale of surplus land $50 million from Wayneounty which includes $30 million from Detroit's Downtown

lopment Authority and $20 million from a Tigers fund; $15illion from the City of Detroit; The above amounts represent somelIocations between the stadium pro ects for the Lions and the Tigers

ICco on -- rru Ion; rn t Ion In usnty Sports Authority bonds; annual debt service backed by

otel/rnotel tax, car rental tax, and mixed beverage tax; $31 millionm Houston/Harris County Sports Authority for financing costs; $26illion from Harris County for chilled water plant

c co on -- m on; m genebligation bonds; annual. debt service backed by extension until 20202%King County hotel-motel tax, 10%facilities admission tax, 10%rking tax, State lottery revenues, and State sales tax credit; $27illion in deferred State sales taxes relating to sales tax ononstruction costs; $24 million in State sales tax credits and Stateottery revenues accumulated before needed to service debt on bonds

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Public Contribution DetailsSIX

State/C ity Stadium Public Contribution Revenue Sources

c contr on -- m on; m on am nounty revenue bonds; annual debt service backed by a 0.5% salesncrease to 6%; $30 million from State; $13.5 million from. onstruction fund investment income; $25 million from the sale ofLs; Team also contributed naming rights at Cinergy Field, and paysnnual rent and a 25-cent ticket surcharge;

c contr on -- m on; m n cert cates 0rticipation (similar to bonds) issued by City of Cleveland; annual

ebt service backed by City 8%parking tax, 2%admission tax, hotel, and car rental tax, and County "sin tax" extension on alcohol and

garettes; $6 million from City utilities department; $3 million fromgional Transit Authority; $33 million from State appropriation; $32illion from unspecified City sources


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Public Contribution DetailsState/Cityampa Bay James

ington or

1998

1997

earOpened Public Contribution Revenue Sources

Ban 0 America 1996Stadium

IGeorgia Dome 1992


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Sources~ Data was obtained from a Horrow Sports Ventures analysistit led, "Rep res entat ive Stad ium Pub Iic I Privat ePa rt nership s".(Horrow Analysis).~ This study was sourced from the following website:http://www.sandiego.gov / chargersissues / pdf / horrow. pdf~ Data for stadiums that were developed after the HarrowAnalysis was completed was compiled from stadium &stadium authority websites as well as published news stories.~ Searches were completed to identify information that conflictswith the Horrow Analysis.

o In some cases differences were identified likely resulting fromdifferences in allocation between multiple stadiums or stadiums &infrastructure (Horrow's Heinz field data is an example).

o As a test of reasonableness, data from an analysis completed by JMI isincluded in the following slide. JMI prepared this analysis for Oakland.
http://www.sandiego.gov/http://www.sandiego.gov/


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Sources~ The following websites were identified, however, data fromthese websites was not relied upon in this analysis:

o http://football.ballparks.como http://www.stadiumsofprofootball.como http://www.nflvenueinfo.com
http://football.ballparks.com/http://www.stadiumsofprofootball.com/http://www.nflvenueinfo.com/http://www.nflvenueinfo.com/http://www.stadiumsofprofootball.com/http://football.ballparks.com/


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Sau rces Cant.~ About Horrow Sports Ventures, from horrowsports.com

o From its inception, Horrow Sports Ventures has been a leading facility developmentadvisor to teams, leagues, universities, government agencies, and not-for-profitorganizations.o Shortly before the millennium, Rick Horrow realized that he was spending asignificant portion of his time doing media interviews to explain facilities financing,

public-private partnerships, and infrastructure project implementation to the generalpublic. What's more, he realized he enjoyed it.What followed was a carefully orchestrated buildup of Horrow's media portfolio,comprising regular weekly television and radio segments, his own national radioshow, "FOX MoneyBall: The Cost of Winning," and partnerships with such onlinemedia sources as foxsports.com and BusinessWeek to provide weekly brandedcolumns.Today, Horrow Sports Ventures clients consider Horrow's high media profile of equalvalue to his sports facilities expertise, and work with him regularly to develop contentthat presents their message while providing greater knowledge to fans eager to digdeeper into the business behind their favorite sports.

\~


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Sou rces Cant.~ About JM I Sports, from jm isports.com

o JMI Sports LLC is a private real estate development firm that provides leadership andmanagement services to professional sports teams, universities and municipalitiesseeking to build or renovate major sports facilities and/or surrounding projects. JMISports was founded in 2006 upon the PETCOPark experience. Five members of ourteam played an instrumental role in the development of this Major League ballparkand the master planning of the surrounding area. This required skillful managementof unprecedented political, legal, financial, entitlement, planning, design andconstruction challenges. The result is a ballpark of unparalleled beauty, character andquality that serves the needs of the team, fans and community alike, within a thrivingBallpark District that is one of the most successful urban redevelopment projectscatalyzed by a sports facility. JMI Sports has valuable lessons learned from thisextraordinarily complex project, in addition to many others, that can readily beapplied to any team or any town


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Stadium Funding UMI Data)JMI PrivateContribution JMI PublicContribution

Documents

NFL Stadium Finance Study, JMI Sports