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
New NFL Stadium & District City of Industry, CA

• 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

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 Area’s 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 NFL’s smallest facility • Unsold premium seating, and few long-term contracts • Low ticket prices • Unfavorable revenue-sharing terms due to A’s presence (F&B, sponsorships) • According to Forbes, third-lowest team valuation and one of the only teams that is not profitable

• Coliseum:
• Few ticketed events aside from Raiders and A’s (typical for a stadium) • Second-oldest NFL stadium without a significant renovation (since 1996’s renovation); facility is generally outdated and has many physical deficiencies • Well-located, particularly for certain events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 A’s 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
100% 90% 80% 70%

$1,400 $1,200 $1,000 $800 $600 $400 $200 $0 1960s 1970s 1980s 1990s 2000s 2010s % Public

60% 50% 40% 30% 20% 10% 0%

% Private

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

Total Cost (millions)

• 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

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 Levi’s 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

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