Coliseum City Football Stadium Revenue Study

Presented to: City of Oakland Alameda County Oakland-Alameda County Coliseum Authority

July 15 and 16, 2013

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

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

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

Local Market Analysis

The Bay Areas Fortune 500 Companies

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Second-oldest NFL stadium without a significant renovation (since 1996s renovation); facility is generally outdated and has many physical deficiencies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

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

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

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

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

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%

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1960s 1970s 1980s 1990s 2000s 2010s

Cos

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% Public

% Private

Total Cost (millions)

Since 2010: Santa Clara, Atlanta, Minnesota, New York, Kansas City

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

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

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

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

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