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Valuation of Sport Talent. Slides by Moon Song. The value of Sport Talent. General salaries Trend : Distribution of salaries is skewed toward superstars (Average >> Medium) Salaries have increased dramatically over time. Q : How can athletes be worth this much?

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slide1

Valuation of Sport Talent

Slides by

Moon Song

the value of sport talent
The value of Sport Talent
  • General salaries Trend :
    • Distribution of salaries is skewed toward superstars (Average >> Medium)
    • Salaries have increased dramatically over time
slide3
Q : How can athletes be worth this much?

Q : Why are players of different sports paid less than others?

Endorsements :

On average, endorsement earnings double the

income of male superstars.

slide4
The Marginal Revenue Product (MRP)

MRP : input’s contribution to the revenue

earned by the team owner

  • Sports Talent is just an input to the sports production process.
  • Payment to inputs are determined by inputs’ MRP
  • The product of sports talent is winning (%).
slide5
W : the level of team winning %
  • MP(w) : marginal product

( = play’s contribution to winning%)

  • MR(w) : marginal revenue generated by the player’s contribution to winning
slide6
<EX> Scully study in the Business of

Major League Baseball, 1989

Based on statistical results ;

  • One-point increase in winning percent raises about $46,276 revenue
  • a win = 6.2 winning % points
  • a win worth $286,912

If a solid slugger add 63 points (11 wins)

  • MRP is $3.2M

If a strong pitcher add 20 net wins

 MRP is $5.7M

slide7
Q : Why do NBA players make more than NFL player?

A1 : NBA player play more game than NFL players.

A2 : NBA player has either higher marginal product than NFL player.

or NBA fans are willing to pay more for added winning (demand by NBA fan is greater) or both

real world mrp insight
Real-World MRP Insight

A. Payroll imbalance across teams

Yankee’s payroll is 5.3 time larger than Twins and 2.5 times the average.

  • Top payroll teams are successful team from

large revenue market

B. Bust and Bargain

  • Players are paid their expected MRP
  • Busts and Bargains offset each other overtime, especially across an entire league
slide9
The relationship between Ticket Price and Salaries
  • Players can only earn more if
    • They become more productive ( MP(w) ↑)
    • Fans increase their willingness to pay for the game (MR(w) ↑)
  • Given MP(w) constant, MR(w) ↑ lead to increase in MRP, salary.
  • The reason players made more : some demand parameter has increased fan’s willingness to pay.
slide10
Salary vs. Ticket Price
    • Salaries move sometimes opposite, sometimes same direction as ticket prices

 Salaries do not drive ticket price up.

    • If ticket prices do not rise, where is the increase in fan’s willingness to pay that explain the increase in salaries?

 TV broadcast right fee increases in

MR(w) portion of players’ MRP

slide11
Social values : Ballplayers vs. Teachers

MRP : decreasing with w

 Demand function

slide12
Empirical Study (Scully)

“Pay and Performance in MLB”

  • If labor market in MLB more perfectly competitive, player salaries would be equal to MRP
  • The “reserve clause” restricts player bargaining to one owner
slide13
Two factors
  • Effect of player performance on team winning : production function
  • The effect of team winning on team revenue : Revenue function

Production function

Output (winning) = f (inputs)

inputs : performances

Revenue function market

Revenue = f (winning, market

characteristics)

slide14
Performance
  • Hitter : the slugging average (SA)
  • Pitcher : strike out to – walk ratio (SW)
  • Quality of managerial and on the field decision making
  • CONT = 1 if team is within five games of

the top squad in their respective

division

  • OUT = 1 if a team is twenty or more

games out of first place

slide16
Revenue = Home attention x Average ticket price

+ Revenue from broadcasting rights

SMSA : population size of standard Metropolitan

statistical area

MARGA : Intensity of fan interest

Percent win vs. attendance

NL dummy

STD = 1 if stadium was built in 1970 or later

slide18
One point PCTWIN increase revenue by $10,330
  • One point in TSA or TSW increase PCTWIN by 0.92 and 0.90, respectively.

MRP hitter = 0.92 x $10,330

= $9,504 per point TSA

MRP pitcher = 0.90 x $10,330

= $9,297 per 1/100 point

TSW

slide19
Omitted factor inputs :
  • Managerial quality
  • Player drafting and trading abilities
  • Stadium investment
  • Quality of minor league
slide20
Individual player MRP
  • Assumption : individual performance carrier with it no externalies

 Team performance is simply the linear combination of individual performance

(EX) regular 10 pitcher, 15 non-pitcher

8 starter & relief, 12 regular non-pitcher

    • Average pitcher with SW of 2

0.125 * 2 = 0.25 points

    • Average hitter with SA of 340

0.083333 * 340 = 28.3 points

slide21
Average Marginal Revenue Product
    • Average pitcher

0.25 * 100 * 9,297 = $232,425

    • Average hitter

28.3 * 9,504 = $268,963

  • Need to adjust Gross MRP by deducting
    • Team costs : non-player salaries
    • Game costs : transportation, equipment, stadium rental
    • General administration costs
    • Sales costs

 Net MRP

slide23
(EX) Miguel Tejada
  • Number of at bats in 2002 ; 662
  • Total number of team at bat (OAK) ; 5,558
  • Percentage of total ; 662/5558 = 0.11911
  • Total slugging average ; 0.508
  • % of total ; 0.508 * 0.11911 = 0.0605

His contribution to PCTWIN ;

1.48166 * 0.0605 = 0.089661

slide24
Total game during regular season

(2002) : 162

162 x 0.089661 = 14.5

(Tejada’s play was valued 14.5 wins to the A’s in 2002)

229,641 x 0.089661 x 1000

= $20,592,107

(actual salary : $3,625 mil)

slide25
Model’s weeknees ;
  • Defensive contribution
  • MVP
  • Leadership
  • at-bats vs. plate appearance

Bonds MRP (403 at bats) = $19,935K

Bonds MRP (601 plate-appearance)

= $29,730K

<198 walks>

valuation of sports franchise
Valuation of Sports Franchise
  • Forbes Estimates Jan.2005

Revenue(2003)

slide29
Revenue
  • Components :
    • Gate receipts
    • Local & National broadcasting rights
    • Licensing income
    • Other stadium-related revenue

luxury boxer, concessions stadium naming rights

* Revenue Sharing

NFL : 60:40

MLB : 80:20 (AL) or 90:10 (NL)

NBA/NHL : hometeam keeps all of the gate receipt

slide30
National broadcast revenues

 shared evenly among teams

(NFL / MLB / NBA / NHL)

  • Franchises typically demand a 30~70% premium to the figure devised by Forbes. Why?
  • Role of Intangible assets is important in sport franchise value

Player contracts, TV rights, stadium lease,

advertising agreements, concession

agreements, luxing suit agreements, season

ticket contracts, draft rights, & good will

  • Ego premium
slide31
(EX) In 1998, Dodgers sold for $311mil, $80 mil more than Forbes’ estimated market value of $236 mil.

Other relevant factors that escape Forbes’ analysis?

slide32
A Sport Franchise should technically be worth the present value of its expected future cash flow.
  • Sale Price = f ( revenue, attendance, team performance, debt/value, etc)

(Problem)

Most sports franchises are privately held.

No obligation to report historical data or

any present economic status.

slide34
(Case Ⅰ)

In 2003, Boston Celtics sold for $360M.

Forbes : 2002 value ≈ $275M

(31% premium)

Standard NBA multiple : 2.5 ~ 3

Celtics care  3.8 times

What other factors?

  • Play off
  • Stadium revenues
  • Favorable debt agreement
  • Ego factor
slide35
(Case Ⅱ)

In 2004, New Jersey Nets sold for $300M

Forbes : 2003 value $217M

What other factors?

Move from Continental Arena to a new state of art complex at the center of a 2.5 billion office, residential & shopping complex.

 increase revenue due to easier access

slide36
(Case Ⅲ)

Washington Redskins : sold at $800M in 1999.

1997 : FW $200M (grow at 32% / year)

1999 : FW $350M (estimated)

Why factors drive transaction price up?

  • Auction
  • 2 year old stadium (80,116)
  • Any other intangible reason?
  • Cash flow of team : $55mil / year before tax and debt
  • Daniel Snyder’s Dream?
slide37
<Empirical Results Ⅰ>

Forbes value = f (debt/Revenue, TRPS, Gate Receipts, Payroll)

TRPS : team relative productivity score

slide38
Value vs. Revenue

Value = f (Revenue)

slide39
<Empirical Results Ⅱ>

Revenue = f (win, age, attendance, TVs,

stadium, ticket price, payroll,

another team)

intangible assets
Intangible Assets

Assets that derive their value from the rights

and privileges granted to their owner, long-

term in nature, and lack physical substance

  • Purchased Intangibles; cost of purchase
  • Internally-created Intangibles;

Legal Fees, Registration Fees

slide42
Marketing-related;

Trademarks, Trade Names, & Internet Domain Names

  • Customer-related;

Customer Lists and Relationship

  • Artistic-related;

Copyright etc.

slide43
Contact-related;

Franchise and Licensing Agreement, Construction Permit, Broadcast Rights, and Service or Supply Contracts.

  • Technology-related;

Patent

  • Goodwill
    • Purchased ; the excess of purchase price over fair market value of identifiable net asset
    • Internally created; 0
amortization of intangible assets
Amortization of Intangible Assets

Allocation of the cost of intangible asset in a

systematic way over periods expected to

Benefit from the use of the intangible assets

  • Limited-life Intangibles
    • Methods
      • Units of Activity Method
      • Straight Line Method
slide45
Legal Life
      • Copyrights ; 70 years beyond the death of the creator
      • Patent ; 20 years
      • Trademark ; indefinite number of renewal for a periods of 10 years each and is considered to have an indefinite life
  • Indefinite-Life Intangibles
    • Goodwill, Trademarks

 not to be amortized

common types of professional sports team intangible assets
Common types of professional sports team intangible assets
  • Play contracts
  • Local cable TV, broadcast TV, and broadcast radio contracts
  • Stadium lease
  • Advertising and/or sponsorship agreements
  • Concession agreements
  • Luxury suite agreements
  • Season ticket-holder relationship
  • Coach management employment contract
  • Draft rights
  • National franchise agreement
  • Goodwill and going-concern value
sport franchise intangible asset valuation procedures
Sport Franchise Intangible Asset Valuation Procedures
  • Cost Approach Methods
  • Sales Comparison Approach
  • Income Approach Methods
cost approach method
Cost Approach Method
  • Substitution and utility
  • Replacement cost and reproduction cost
  • Cost should be adjusted for obsolescence to get value
    • Physical ; player contract
    • Functional ;
    • technological
sales comparison approach
Sales Comparison Approach
  • Efficient market and rational behavior
  • When sufficient transaction data exist, it method may be used to value stadium lease, concession agreements, and so on
income approach
Income Approach
  • Anticipation and rational expectation
  • Present value of a future economic income stream
  • Accounting income vs. economic income
valuation for sports franchise intangible assets
Valuation for Sports Franchise Intangible Assets
  • Player Contract
    • Amortized over the remaning useful lives of individual player contracts
    • Cost approach
      • Replacement cost
  • Franchise Agreement
    • Broadcast revenue sharing
    • Advertising income sharing
    • Income Aproach
slide52
Stadium Lease
    • Estimated present value of future rent savings
    • Income approach
  • Season Ticket holder Subscription
    • Income approach
    • Current/future ticket price
    • Cost of servicing the season ticket holder fan
slide53
Acquired Goodwill
  • Portion of the franchise purchase price that cannot be associated with any of the identified tangible or intangible asset
  • Residual analysis

Good will = total price

- Transferred NWC

- Transferred tangible asset

- Transferred intangible asset

slide55

<CASE>

Real Men Roundball Franchise Purchase Price Allocation as of June 30, 2002

franchise valuation
Franchise Valuation

Question 1 :

What are the drivers of the financial

valuation of sport club?

Question 2 :

How should sporting clubs be valued?

Question 3 :

What issues arise in disputes over sporting

club profitability measurement?

slide58
Question 1 :

What are the drivers of the financial

valuation of sport club?

  • League Strength and viability
    • Media rating
    • Fan avidity
    • Revenue sharing
    • Cost certainty ( Salary cap, etc)
    • Playoff Revenue
slide59
Current Club Strength
    • Current attendance / Season ticket holder support
    • Existing sponsorship portfolio
    • Current on-field success
    • Quality of playing / coaching squad
    • Quality of scouting personnel
slide60
Club Brand / Heritage Strength
    • On-field success tradition
    • Fan loyalty tradition
    • Sponsor attractiveness tradition
  • Club Stadium / Arena Strength
    • Stadium / arena strength
    • Revenue generating capacity
    • Ownership vs. tenant
    • Attractiveness of contract (sharing)
slide61
City Strength
    • Market size / demographics
    • Affinity to sports
    • Local economy health
  • Owner Attributes
    • Trophy status desire
    • Finance capacity
    • Taxation consideration
slide62
Goldman Sachs
    • Strategic position
    • Economics
    • Comparable Entity Valuations
    • Ownership issues
    • Trophy status
slide63
Question 2 :

How should sporting clubs be valued?

  • Public Equity Market
  • Acquisition Market
  • Financial statement Information

“Shareholder Funds”

Noisy indicator

  • Discounted Cash Flow (DCF)
slide64
Question 3 :

What issues arise in disputes over

sporting club profitability

measurement?

League vs. Player association

Club vs. Player (agent)

Teams vs. Cities

slide65
Dispute : “underestimate profitability”
  • Revenue inappropriately excluded
  • Revenue included, but inappropriately under attributed to sport club.
  • Revenue inappropriately back-ended to subsequent year
  • Costs inappropriately included
  • Costs inappropriately front-ended from subsequent years
slide66

Stadium Financing

Slides by

Moon Song

stadium financing
Stadium Financing
  • In 1990, average MLB ballpark was around 34 years old. Only 2 of 26 teams played in ballpark that were less than 10 years old.
  • By 2004, the average park was only 20 years old and 15 of 30 teams played in stadiums that were 10 or fewer years of age
  • Most of cases, source of financing

 public funds

slide72
Why do cities finance?

(The benefits of a franchise)

    • Sports franchises are public goods and that they have positive externalities for the community
  • City’s Revenue
    • Rental payments made by team
    • City’s share of revenue

Parking

Concessions

Luxury boxes

  • City’s Cost

Operating the facility, salaries, utility, depreciation

slide73
(Ex) : A city spends $100 mil. On a facility that becomes worthless in 30 years and faces a real interest of 3.5%. If there is no inflation what is an annual payment a year by city?
slide74
Opportunity Cost

The city could earn $10M a year from alternative and earn $5M in operating income from investment in sport facility  economic loss of $5M

Total loss = $5M + $5.4M

= $10.4M

 a subsidy to the franchise

stadium as a multiple revenue generating asset reliant stadium case
Stadium as a Multiple-Revenue - Generating Asset (Reliant Stadium case)
  • Capacity Decision
  • Personal Seat Licenses
  • Naming Rights
  • Suites
  • Season Ticket-Holders
slide76
Stadium / Arena Ownership, Operator, and

number of Anchor Tenant Relationship

slide77
A : FedEx Field : Washington Red Skins

SBC Park : San Francisco Giants

Old Traford : Manchester United

C : Louisiana Super Dome : New Orleans Saints

Owner : State of Louisiana

Operator : SMG Facility Management

slide78
D : Pepsi Center

Owner : Stan Kroenke

Operator : Stan Kroenke

Owner : Colorado Avalanche (NHL)

Denver Nuggets (NBA)

F : Staple Center

Owner : Phil Anschutz, Edward Roski Jr.

Operator : AEG

Tenants : LA Lakers, Clippers (NBA)

LA Kings (NHL)

LA Sharks (WNBA)

LA Invadors (AFL)

stadium rents
Stadium Rents :
  • Highly favorable lease agreement
    • NFL : Baltimore Ravens : no rent
    • MLB : Chicago White Sox : $1/year
    • NBA : San Antonio Spurs : $5,000/game

 less than 1% of all revenues

    • NHL : San Jose Sharks : flat($500,000/year) and 20% of all luxury suite. City also receive a portion of naming right revenue  about 5% of revenue
stadium rents80
Stadium Rents :
  • Linkage the rent to attendance guarantee
    • MLB

Cleveland Indians : Sliding Scale

  • NFL

San Diego Chargers : Chargers keep 90% of ticket revenue, City reimburses 100% of ticket not sold

slide81
(Ex) Ticket : $50

Chargers stand to gain ($27) while they gain $50 unsold ticket

Q : Does the lease give the Chargers an incentive to lose football games, while drives away fans and thereby increase revenue?

slide82
Why Government Subsidize Sports Franchise?
  • Profit maximization?
  • More complex set of costs and benefits
    • Cost
      • Congestion
      • Pollution
      • Public safety
      • Direct financial costs
    • Revenues :
      • Direct revenue
      • Spillover effects : direct impacts on local community
      • Indirect (ripple) effects
      • Common sense of identity
direct benefits
Direct Benefits

APC (Average Propensity to consume)

Net exports increases?

Indirect Costs and Benefits

 these costs and benefits are external to the profit maximization decision

  • Positive externalities

Benefits to the city which the team is not rewarded

  • Negative externalities

Congestion, Pollution, and Crime etc.

slide84
: Negative externality cause franchise

to schedule too many games

: Negative externality cause franchise

to charge their fans too little

slide85

Positive externality

  • Play less than optimal ( )
  • Need to provide incentives to play game more
  • These incentives often take the form of public funding of sport facilities
empirical results
Empirical Results
  • Baseball and football franchises had no statistically significant impact on personal income and economic growth
  • Positive effect on local economy such as amusement and recreation
  • Tax revenue increases?

ticket, concession parking : sales tax

payroll : wage tax

  • Opportunity Cost
financing facilities
Financing Facilities
  • State and local government can justify subsidizing franchise if the city or state benefits from public good aspect of the franchise or from the positive externalities it conveys upon city
  • Source of subsidy
    • Taxes
    • debt
an economic view of taxes
An economic View of Taxes
  • Internalize the externality by forcing the producer to pay
  • Subsidizing the producer solves only part of market failure (positive ex)
  • Where the government will get the money for the subsidy?

 Imposing taxes or fees based on benefit each person receives from positive externality?

slide89
General principles for determining who

should pay how much for a sports franchise

Ramsey Rule

“Sales taxes should be levied in inverse proportion to the price elasticity of demand”

 Efficient in the sense that minimizing deadweight loss

efficiency vs fairness equity
Efficiency vs. Fairness (equity)
  • Equity
    • Horizontal : fairness at a given level
    • Vertical : ability to pay tax
  • Government levies taxes in proportion to the benefits received from the expenditure  Horizontal Equity
  • User fees vs. Public taxation?

Taxes that fall on residents of the city that houses the team allow suburban to free ride...

sales tax
Sales Tax
  • Sales tax often place a burden on groups received no benefits

 violating horizontal equity

(EX 1)

Florida Marlins : $300M stadium

$4 per day sales tax on Cruises

(EX 2)

Cleveland : 15-year sin tax

Sales tax on tobacco and alcohol

Addictive : inelastic

Violation of both vertical & horizontal equity

lottery or an alternative revenue source
Lottery or an Alternative Revenue Source
  • Baltimore Orioles’ Camden Yards

 Funds from a state lottery

“voluntary purchase”

    • Only a third of the revenue go to state

 inefficient

    • Violate both vertical and horizontal equity
two superior funding examples
Two Superior Funding Examples
  • Milwaukee Brewers’ Miller Park
    • They instituted a sales tax on Milwaukee and the surrounding five-county region
    • Reduce inequities (Horizontal)

 but still same vertical inequity

 Broad Brush

Based on one’s purchases of goods or services not on one’s benefits from having the Brewers in town

two superior funding examples95
Two Superior Funding Examples
  • Seattle Mariner’s Safeco field
    • Target the funding directly at beneficiaries of the public expenditure
      • Special sales tax of 0.5% on restaurant, bars, and taverns in King county
      • A tax up to 5% on admissions to Safeco Field
      • 2% tax on rental cars
    • Violate both horizontal and vertical equities
taxes or debt
Taxes or Debt?
  • In theory, “Equivalence Theorem”
  • Institutional factors leading state and local governments to prefer debt funding to taxation

 Tax laws allow bondholders to deduct the interest paid to them by state and local bonds from their federal taxes

  • The lower tax revenues mean that tax payers elsewhere will have to pay higher taxes:
  • Debt financing allows a city to impose some of the burden of all new facility on future generations
public funding sources specific revenues
Public Funding Sources (Specific Revenues)

Car Rental Tax

  • Comerica Park
  • Minute Maid Park
  • Safeco Field

Lottery Funds/Gaming

  • Oriole Park
  • Safeco Field

City/County Sales Tax

  • Amereiquest Field
  • Bank One Ballpark
  • Coors Field
  • Great American Ballpark
  • Miller Park
  • PNC Park
  • Safeco Field

Sale of Tax Credits

  • New Brush Stadium

Ticket Tax

  • Ameriquest Field
  • New DC Ballpark
  • Safeco Field

Lodging Tax

  • Comerica Park
  • Miller Park
  • Minute Maid Park
  • New Brush Stadium
  • Tropicana Field
  • US Cellular Field

Other Taxes

  • Jacobs Field (Excise)
  • Safeco Field (F&B)
  • New DC Ballpark

(Business, Concessions,

Merchandise, Parking)

Land Contribution

  • PNC Park
  • Safeco Field
public funding sources contributions
Public Funding Sources (Contributions)

County Contributions

  • Jacobs Field (Cash)
  • Miller Park (Cash)

City Contributions

  • Ameriquest Field (Cash)
  • Jacobs Field (Grant)
  • Miller Park (Cash)
  • Petco Park (Operating Subsidy)

State Contributions

  • Citizens Bank Park

(Grant)

  • Comerica Park (Grant)
  • Great American Ballpark (Grant)
  • Jacobs Field (Grant)
  • Miller Park (Grant)
  • New Brush Stadium

(DOT Infrastructure Grant)

  • PNC Park (Grant)
  • Safeco Field (Tax Rebate)
  • Tropicana Field (Tax Rebate)
private funding sources
Private Funding Sources

Seat Licenses

  • Ameriquest Field
  • Brush Stadium
  • Safeco Field
  • SBC Park

Naming Rights

  • Bank One Ballpark
  • Coors Field
  • Great American Ballpark
  • Miller Park
  • SBC Park

Team Contributions

  • Bank One Ballpark
  • Comerica Park
  • Coors Field
  • Great American Ballpark
  • Minute Maid Park
  • PNC Park
  • Safeco Field
  • SBC Park
  • Tropicana Field
  • Turner Field

Premium Seating

  • Ameriquest Field
  • Bank One Ballpark
  • Coors Field
  • Jacobs Field
  • Oriole Park

Investment Income

  • Ameriquest Field
  • Jacobs Field

Corporate Contributions

  • Jacobs Field
  • Miller Park
  • Minute Maid Park

Concessionaire Rights

  • Ameriquest Field
  • Coors Field
  • Miller Park
  • Oriole Park

Land Contribution

  • PNC Park
  • Safeco Field
ancillary development
Ancillary Development
  • Development rights may be sold to a private developer or retained by the tenant team, who finances its funding contribution through future revenue from the development.
  • Public may justify contribution based on estimated future tax revenue generated by development.
  • Developments often include restaurants, bars, retail establishments, residential developments and office space.
  • Examples:
    • St. Louis Ballpark Village
    • Nationwide Arena
    • American Airlines Center/Victory Development
    • Glendale Arena/Westgate City Center Project
    • Proposed San Diego Chargers Stadium
proposed dc ballpark 2008 location washington dc total cost 534 8 million
Proposed DC BallPark (2008)Location : Washington DC Total Cost : $534.8 million

Private Funding :

  • Team rent ($3.5 million in Year 1, inflating thereafter)
  • Ballpark Fee on all DC businesses with revenue of at least $5.0 million per year.
  • Private contributions, as generated

Quasi-Private Funding

  • Utilities tax (Phone, natural gas, heating oil, electric)

Public Funding :

  • 10% ticket tax
  • 10% in-stadium concessions tax
  • 10% in-stadium merchandise tax
  • 12% parking tax
new brush stadium 2006
New Brush Stadium (2006)

Location : St. Louis, MO Total Cost : $388.0 million

Private Funding - $300.5 million (23%)

  • Team Bond Placement - $200.5 million
  • Team Equity - $50.0 million
  • PSL Sales - $40.0 million
  • Interest Earnings - $10.0 million

Public Funding - $87.5 million (23%)

  • County Loan - $45.0 million
  • State Tax Credits - $30.0 million
  • Dept. of Transportation – $12.5 million
petco park 2004
Petco Park (2004)

Location : San Diego, CA Total Cost : $456.8 million

Private Funding - $93.7 million (21%)

  • Team contribution - $93.7 million

Public Funding - $363.1 million (79%)

  • City Hotel./Motel Taxes - $206.0 million
  • City Operating Subside - $59.3 million
  • Centre City Dev. Corp – $74.0 million
  • San Diego PDF Fund – $21.0 million
citizens bank park 2004
Citizens Bank Park (2004)

Location : Philadelphia, PA Total Cost : $462.0 million

Private Funding - $200.5 million (43%)

  • Team contribution - $200.5 million

Public Funding - $261.5 million (57%)

  • City Bonds Issued by Philadelphia Authority for Industrial Development (PAID) and Philadelphia Indeustrial Development Corp. (PIDC) – $176.5 million
  • State Contribution - $85.0 million
sbc park 2000
SBC Park (2000)

Location : San Francisco, CA Total Cost : $290.0 million

Private Funding - $275.0 million (95%)

  • Private loan - $160.0 million
  • Charter Seat Licenses - $55.0 million
  • Sponsorship Rights - $60.0 million

Public Funding - $15 million (5%)

  • SF Redevelopment Agency TIF - $15.0 million
america airlines center 2001
America Airlines Center (2001)

Location : Dallas, TX Total Cost : $422.0 million

Private Funding - $307.0 million (73%)

  • Center Operating Company Private Placement - $197.0 million
  • Owner Equity - $65.0 million
  • COC rent payments - $45.0 million

Public Funding - $115.0 million (27%)

  • City Hotel/Motel and Rental Car Taxes - $15.0 million
  • City TIF - $23.0 million
  • City G.O. Bonds – $12.0 million
glendale arena 2003
Glendale Arena (2003)

Location : Glendale, AZ Total Cost : $207.0 million

Private Funding - $27.0 million (13%)

  • Team Ownership Investment - $27.0 million

Public Funding - $180.0 million (87%)

  • City Municipal Property Corporation Bonds - $150.0 million
  • City G.O. Bonds – $30.0 million
sprint center
Sprint Center

Location : Kansan City, MO Total Cost : $250.0 million

Private Funding - $107.0 million (43%)

  • User Fees/Contract Revenue - $47.0 million
  • AEG Contribution - $50.0 million
  • National Association of Basketball Coaches Contribution - $10.0 million

Public Funding - $143.0 million (57%)

  • Hotel and Rental Car Taxes - $123.0 million
  • Tax credit – $20.0 million