O/T:Regina looking for Government Assistance with new stadium

[Wheathead]

We already pay an $8 surcharge to keep our current heap usable. I'll gladly pay $4 extra a game to sit in a new stadium.

It's also not a $450M dollar stadium. It's $278 million... Regardless, they couldn't stay at Mosaic Stadium much longer. The place is a dump by any standards, and it's 100 or so years old. If the next stadium lasts us half as long it'll be worth the investment.

 

[blueandgoldguy]

A team netting $3M/yr is in no position to pay for a $450M stadium.

If taxpayers want to foot the bill - what the hell, it's your province, go for it - but this makes no fiscal sense whatsoever.

Your right..a team netting $3M/yr is not in the position to pay $450 million for a new stadium. Good thing it's only $278 million. Riders are paying nearly half the costs. That is a larger percentage than most NFL owners will pay for their near billion dollar palaces.

 

[blueandgoldguy]

Is that revenue or profits though?

And if they've managed to save $30 million in the past decade, that's still a mile away from their overall financial obligation for this proposed project. That means, best case scenario, we're talking about four decades to break even.

People attending events at the stadium currently pay an $8 facility fee on each ticket. That will be increased to $12 per ticket. OVer the course of 30 years that should pay off the majority, if not all, of the loan the city received from the province. There is also the issue of the naming rights for the stadium and the concourses/suite levels which will also help pay off the loan.

Riders will have club seats and suites in the new stadium. Something that is sorely lacking in the current facility. Those revenue streams combined with an onsite restaurant, lounge and general increase in ticket prices should ensure the Riders continued financial success.

 

[blueandgoldguy]

It does seem like a lot of money for a stadium built for a city of roughly 210k which will only host between 10-12 football games a year.

I'm sure they'll have other events as well, but enough to justify this expenditure?

Couldn't they've been less ambitious and build one for under 200 mill at least? I think Winnipeg's is under 200 mill.

Construction inflation is 5%-10% per year. Labor market is pretty tight in Sasky as well. That would account for a good portion of the increased costs.

 

[Dado]

That's revenue. Last year's profit was $ 3.8 million.

There's a lot of money to make up, but I think Rider fans will sustain the needed ticket surcharges and price increases over 30 years.

Ballparking the numbers....

To carry the load, the team would need to net an additional $10M/season. Over 10 home games that's $1M/game. If they average 30k per game, that's about a $33 per-ticket surcharge, every seat, every game.

I don't know Saskatchewan well enough to say - does that work?

 

[Chet Manley]

Ballparking the numbers....

To carry the load, the team would need to net an additional $10M/season. Over 10 home games that's $1M/game. If they average 30k per game, that's about a $33 per-ticket surcharge, every seat, every game.

I don't know Saskatchewan well enough to say - does that work?

Apparently, Math is different here.

http://www.leaderpost.com/news/stadium+Regina+2017/6935312/story.html

We have the mayor saying this :

At a news conference prior to the announcement from Taylor Field, Fiacco said the facility fee for the 10 days of Riders games "actually pays for that facility. It pays the debt back. It also pays for the operating."


And then a 30 year cost analysis of this:

Under the 30-year plan, the total funding requirements tally up to $675 million - with $230 million for maintenance and rehabilitation of the facility, $51 million in city debt interest, $70 million for city debt principal, $74 million in provincial loan interest, $100 million in provincial loan principal, and $150 million for city interim financing.

Projected revenue sources to cover that $675 million are $300 million from property tax and related revenue, $100 million for facility fees, $81 million in interest earned, $75 million under a SaskSport agreement, $15 million in sponsorship and advertising revenue, $24 million in "cost avoidance" on Mosaic Stadium (it currently costs $800,000 annually for upkeep of the current stadium), and $80 million chalked up to "other revenue."


$100 million is being recuperated via facility fees. I'm assuming that is all events. It's hard to stomach "that the financial model has very little impact on property taxpayers" when they are paying for at least 44% of the project. At least acknowledge the people that are paying for it lol.

 

[Dado]

...$81 million in interest earned...

Interest earned on what? Where is that interest being spent on today?

 

[Chet Manley]

Interest earned on what? Where is that interest being spent on today?

Good question. No idea, but hopefully more details are to come. I just wanted to point out that the team and facility fees are not paying for a majority of this project.

I'm trying to keep a level head about it being paid for with public funds, because it is the only way it's getting built. The team is community owned, basically non-profit as far as I know.