valtrex 500mg wikipedia generic viagra 24 hours tapering prednisone 5 mg viagra generic effectiveness viagra dubai buy acheter viagra generic buspar 30 mg day cialis 20 mg preis viagra vega 100mg cialis 10 mg information clomid generic walgreens clomid or generic buy real propecia buy periactin pills doxycycline doze 75mg novo prednisone 50mg diflucan one generic generic lexapro cvs propranolol 1 mg 1ml bactrim dose mg buying celebrex diflucan medicine online buy 40 mg levitra steroid nolvadex 5 mg online medicines cialis generic to valtrex generic viagra kamagra bangkok generic cialis indikasi doxycycline 100mg cialis 10mg works buy zovirax rx propranolol actavis 10 mg generic kamagra viagra priligy online us lilly cialis 5mg order strattera 40mg 25 mg viagra reviews buy valtrex cvs generic lexapro pill order lisinopril online cheap viagra thread generic lexapro makers generic 25mg viagra generic viagra deutschland 150 mg kamagra levitra 20 mg pricce acheter viagra 100mg will valtrex generic rx cipro 500mg strattera vs generic buspar available generic buy single cialis augmentin 475 mg dosage 50 mg viagra equivalent lexapro generic dose online viagra cheap 1000 mg cytotec dosierung viagra 25 mg kamagra tablets cheapest viagra wholesale online generic lexapro mexico generic cialis 2.5 mg cheap rx viagra order viagra condoms generic lexapro migraine erfahrungsberichte cialis 10 mg 5mg cialis everyday 40 mg of lexapro doxycycline hyc 500mg clomid 50 ou 100 mg doxycycline 500mg cipro 500buy metformin 500 mg prospect priligy generic xenical cost online cialis online arrested zithromax 250mg svenska nexium 40 mg costs purchase doxycycline 50mg valtrex generic online generic discounted viagra cheap viagra 500mg effets cialis 5mg buy cheap propecia prednisone 5 mg dogs order daily cialis diflucan compresse 100 mg clomid pct mg cheap synthroid online kamagra online cheapest viagra china online doxycycline 100mg price where buy valtrex medicamento priligy 30 mg cialis red 200mg strattera 100 mg cialis 20mg costco propranolol 40 mg buy buy prescribed cialis doxycycline 100mg zastosowanie cost generic zoloft cialis 20mg lily augmentin suspension 200 mg cialis tablet 5mg 30 mg prednisone diabetes tetracycline 500 mg recall 60 mg viagra levitra goes generic levitra generic vs valtrex australia buy viagra 100mg discount prijs viagra 100mg buy priligy usa wellbutrin generic doses propecia cheap forum online viagra bestellen 400 mgs zoloft 10 mg di cialis took 40mg cialis generic valtrex pills cheaper propecia generic viagra rd buy cipro canada propecia 1 mg 28 tablets kamagra generic4all doxycycline online buy kamagra 100mg ajanta 75 mg zoloft lot buy bactrim 800 propecia online 5 mg 25mg clomid pct lasix 40 mg bestellen 150 mg viagra online augmentin 400 mg good generic viagra lexapro 20 mg overdose lisinopril 5mg cost viagra online bulk kamagra jelly online nexium online paypal lexapro generic prescription lexapro generic review propranolol 10 mg pill viagra 100 mg effects xenical 120mg philippines 20mg levitra equal xenical 120 mg composition lexapro 10 mg daily buy viagra login viagra 60mg kamagra 100 mg tweedehands viagra online without lisinopril 40 mg information nolvadex hoeveel mg venda viagra generico doxycycline generic vibramycin lexapro generic formula viagra generic forum viagra generic 24 effet viagra 50 mg valor nexium 40mg walmart propecia generic cialis 20 or 40mg ordering generic cialis cialis 20 mg foro cialis 20mg ireland viagra online check generic viagra boots tetracycline backorder kamagra buy cheap cheap viagra sample genericos de lisinopril buy kamagra manchester nolvadex generico clomid buy lasix 80 mg buy online viagra danger buy levitra melbourne buy zoloft generic erythromycin capsules 500mg hongkong buying cialis cytotec 0 2 mg xenical 120 mg packungsbeilage augmentin suspension 400 mg metformin hcl 1500mg zoloft 50 mg bivirkninger 40 mg cialis online wellbutrin sr buy nolvadex online cheap precios cialis generico lexapro 7.5 mg priligy generico ecuador viagra generico 100 mg levitra onlinebestellen order 24 hour cialis ip nolvadex 20mg buy ip cialis thuoc lexapro 10mg celebrex 200mg buy composition cialis 20mg doxycycline monohydrate 50mg 50 mg viagra fiyati augmentin 825 mg dosage cheap viagra pompharmacy zithromax 40 mg antybiotyk kamagra sales online augmentin 875 mg pregnancy buy viagra leicester doxycycline 80mg zoloft 50 mg bula 50mg viagra prices generic viagra germany celebrex online sales generic levitra brazil xenical 60 capsules online 20 mg cialis cheap generic cialis 5mg cap doxycycline 400 mg erythromycin 500mg qds generic lexapro cheap levitra 20 mg 4 tablet jual cialis online cialis online berlin nexium prilosec generic wellbutrin 350 mg generic viagra buy 40mg lasix cialis 50mg levitra 20 mg information xenical online cheapest generic 3 day cialis lexapro 10 mg pe sinoretik lisinopril 20 mg kamagra buy line buy amoxil generic viagra generico masticable bactrim tablet 400mg metformin 500 mg tablets diflucan 7cps 50 mg augmentin alcohol 875 mg cialis safely online tamoxifen clomid buy lexapro alternatives cheaper cialis 5 mg vs 10 buspar 30 mg high walgreens viagra generic clomid 25mg cena buy clomid without cialis once online generic cialis 20 metformin 1500 mg augmentin 1000 mg fiyati cialis 10 mg preisvergleich cialis online deutchland levitra 10 mg funciona prednisone 20mg com doxycycline 100mg pregnant sprzedam cialis 5mg generic propecia erfahrung wellbutrin generic coupon hydrochlorothiazide 25 mg 3571 cialis online vipps cheap priced viagra levitra 5 mg posologie cialis 100mg wirkung cialis 20mg dose buy dapoxetine malaysia ic lisinopril 40 mg celebrex 200mg cena propecia generic online cialis 20mg erfahrungen cialis 5 mg farmacia valtrex buy generic generico viagra andorra zithromax iv 500 mg generic150 mg viagra cialis 20 mg soft methylprednisolone 20 mg prednisone generic wellbutrin online anagen viagra generico celebrex 100 mgs generic nexium otc priligy uk online to buy diflucan clomid buying nz price 1000 20 mg lisinopril buy lasix usa viagra 100mg ejaculation propecia generic merck ordering wellbutrin online valtrex valacyclovir 500mg 12 online generic viagra 100mg viagra facts buy pet prednisone cialis generico argentina buy levitra sverige metformin 500 mg ovulation celebrex 200mg malaysia celebrex 200mg caps 30 strattera 25 mgs teva metformin 500 mg order viagra pessaries buying women viagra 200 mg doxycycline chlamydia zoloft 350 mg wellbutrin anxiety disorders viagra 50mg pfizer viagra 10mg email lexapro equivalent generic dapoxetine generic cheap cialis online legit 20mg lexapro depression cialis online kupovina lexapro generic buy 10mg lexapro alot online cialis ricetta 30 mg dose levitra viagra buying 20 mg of lisinopril generic name lasix generic wellbutrin 100mg lexapro withdrawal 5 mg worlds cheapest cialis cialis cheap fedex buy 200 mg viagra priligy buy 4mg viagra tablets lexapro 20 mg vs 10 precio zoloft 50 mg xenical 120 mg wiki cialis 40 mg dosage priligy da 30 mg lexapro generic out zoloft online cheap prednisone 50 mg dogs cialis 20 mg usa buy bactrim 800 mg buy 10 500mg cipro metformin 2550 mg beli xenical online doxycycline 100mg zonlicht generic cialis rualis cialis price 5mg buy viagra portland levitra 10 mg 2 compresse buy nexium twitter legal viagra online buy propecia germany zoloft 12.5mg viagra 25mg australia generic nolvadex tamoxifen cialis 10 mg nebenwirkung viagra 25 mg efectos generic viagra typepad diflucan 150 mg cost nexium online order xenical roche order 25 mg clomid twins levitra 20 mg tablet viagra generic formula doxycycline 100 mg indikasi levitra 20 mg siparis order valtrex overnight order zovirax acyclovir online pharmacy levitra valtrex online australia original kamagra 100 mg lexapro 5mg ce amoxil 500 mg acne wellbutrin 15mg online viagra perscriptions celebrex generic form lexapro generic status bay cialis online 40 vs 20 mg cialis achat viagra 100mg buspar 10mg high cialis de 05 mg cialis 2.5mg walgreens cialis australia 5mg xenical genericas viagra buy cancun cheap viagra virus cheapest cost nexium calvizie propecia 0.25 mg order levitra cialis celebrex generic mobic viagra 50 mg virkning erythromycin generic equivalent celebrex 100 mg capsules metformin 1000 mg benefits buy veterinary prednisone xenical online generic lexapro 20mg 10mg 100mg viagra directions venta online cytotec lupin lisinopril 40 mg prednisone apotex 5 mg lasix 20mg tbl order brand viagra cialis 5 mg efficace valtrex cheap online 100mg clomid 6 days levitra 10mg shape cvs cialis 10mg lexapro bipolar 2 disorder buy prednisone cialis generic timeline generico viagra ultrafarma costo levitra 5mg zovirax ointment order toko viagra online propranolol stada 40 mg trial viagra online viagra online worldwide generic cialis mexico 100mg viagra duration viagra pricing 50 mg viagra buy generic cialis us erythromycin 1000 mg acne doxycycline 200 mg efectos viagra online 25mg cialis 5 mg gabapentin buy cialis tesco order viagra usa nexium price 40mg lexapro dosage 15 mg price 30 cialis 5 mg synthroid generic 2012 kamagra india online strattera buy online cialis 60 mg generic cipro 500 mg endikasyonlari celebrex 200mg pills cheap cipla viagra viagra 100 mg dozowanie buy kamagra 7 days levitra 20 mg 300 mg doxycycline day comprar xenical 60 mg cheap propecia london cialis 20 mg efficacia levitra original online 5 mg of levitra cialis jelly 20mg ordering nexium online clomid pharmacy online bactrim generic online assunzione cialis 10 mg generic cialis exist kamagra 200mg kaufen cialis genericas levitra 10 mg endikasyonlari sertraline zoloft 50 mg wellbutrin prescription online taking generic viagra nombre generico amoxil lisinopril 40mg tablets metformin tab 500mg lexapro depersonalization disorder metformin ratio 1000 mg 30 cialis 5mg cheap price propecia levitra generico 25 gr propranolol lp 80 mg viagra 25 mg ausreichend thuoc augmentin 125 mg diflucan fast online precio levitra 5mg 300 mg zoloft dosage clomid 50mg days 3 7 pret viagra 0.25mg nexium generic release levitra 10 mg acquista propecia brand order 25 mg de zoloft online viagra siparis generic nexium 2013 buy cialis jakarta buy lexapro generic viagra online reato celebrex 200 mg fda 10mg kamagra para metformin 500 mg thai generic viagra generic viagra dublin china online cialis prednisone 10mg buy cialis 10 mg 2013 sweden buy viagra max viagra 100mg online cialis stores acheter cialis 20mg cialis 5mg tallinna viagra 25 mg nebenwirkungen levitra 20mg dose manfaat levitra 5 mg levitra 20mg instructions cheapest cialis 40 mg
Home Pete Toms A Detailed Look at Stadium Financing

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 967 guests online

Atom RSS

A Detailed Look at Stadium Financing PDF Print E-mail
User Rating: / 3
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Wednesday, 26 March 2008 20:46

The Biz of BaseballThe following is the first installment by the lastest addition to the Business of Sports Network, Pete Toms. We welcome Pete to the staff, as we hope you do, as well. -- Maury Brown 

Bonds, PSLs ( primary & secondary), mixed used development, league debt restrictions...stadium financing is a complicated business. 

MIXED USE DEVELOPMENT

The A's, Rangers and Cards are all in varying stages of developing "ballpark villages".  The new Marlins stadium is part of a massive omnibus package which includes the stadium, a port tunnel, a streetcar, a downtown park and funding for improvements to an arts centre.  The D Rays proposal to construct a new stadium hinges on the destruction of their current stadium and subsequent redevelopment of the former site.  Stadium financing is one of the factors contributing to the increasing popularity of these “mixed used “ developments. 

Phil Miller wrote in December at The Sport Economist

"...sports stadiums are not the boon of economic development that they are often portrayed to be and, thankfully, public money has not been as easy to come by in many instances. That's why some recent public financing packages include plans to have ballpark villages developed as a part of an agreement for public financing....So politicians are seemingly more resistant, thankfully, to giving subsidies just for stadiums by themselves. But package in some secondary development (which, if it draws any extra economic activity to the site, will probably draw it from elsewhere in the region) with the subsidy request and see if you can get the necessary votes."

Mitchell Ziets was quoted in SBJ on stadium financing.  

You're seeing less appetite from taxpayers and political officials to put public money in....folks are getting a lot more creative about how they're packaging and dressing up public money...you're getting a lot of deals where taxes are generated by the project or by a development project around the stadium or around the arena (and) are getting funneled back into the project. You're seeing that in Oakland with a development deal...You look more at development plans to sustain the financing plans.

BONDS

Earlier this month Dennis Coates, Professor of Economics, University of Maryland Baltimore County, commented on changes in the auction-rate bond market and their impact on stadium financing.

The last month or so has seen some dramatic changes in the auction-rate bond market. This is a market in which some recent stadium and arena financing has been acquired by state and local governments... What has happened is that average rates of interest have jumped enormously.

Bloomberg.com cites the Securities Industry and Financial Markets Association, "Auction rates jumped to 6.73 percent this month from an average 3.94 percent in the previous year". ...Bonds in this market are of long-term maturity, but the interest rates are determined in the short term via an auction mechanism.

... In the auction-rate bond market... If sales were not proceeding, large institutional investors came to the rescue. Now they are not doing so. The drop in demand, it seems, is partially a consequence of the sub-prime mortgage mess, but also related to a change in the way such investments are recorded on firm balance sheets and cash-flow statements following a change recommended by the Financial Accounting Standards Board. The consequence is that sellers, the state and local governments, have effectively had to sweeten the pot to get buyers, which has meant paying higher interest rates.

What this means, therefore, is that bonds floated on this market by state and local governments to finance stadiums saw their interest rates rise substantially. Think of it this way, if the benefits of a stadium were about equal to the interest payments the financing required when interest rates were 3 or 4 percent, then those benefits are well below the interest payments now that rates are over 6 percent.

The Yankees announced earlier this month that they would raise another $300 million in financing for their new stadium via the sale of bonds.  Daniel Kaplan at SBJ reported,

The new bonds, like the old ones, are expected to be sold through New York’s Industrial Development Agency, a bond conduit that will own the stadium and lease it to the team in a 40-year deal. While the Yankees are responsible for paying off the bonds, they should be able to offer them to investors tax-free by going through the IDA. No timetable is in place to sell the bonds, Carey said, but because of the stadium opening next year, they are likely to be sold soon.

In the same SBJ piece, Greg Carey, managing director at Goldman Sachs is quoted.  “Quite frankly, the appetite [from bond investors] for sports revenues produced by these facilities has only gone up,”

Select Read More to see the rest of this article, and add your comments

PSLs 

Richard Sandomir reported that it is likely the Jets and Giants will turn to PSLs to raise capital for the construction of their new stadium.

Now, for the first time, the selling of personal seat licenses is a real possibility in the New York area. Jets and Giants executives are considering using them at the $1.6 billion stadium they are building in New Jersey, which is scheduled to open in 2010. Although any decisions are months away and team officials are reluctant to discuss details publicly, sports business analysts and others around the N.F.L. said they expected to see the teams sell licenses.

In part, the Jets / Giants PSLs are a reaction to the NFL’s decision to lower league debt.  Again from Mr. Sandomir’s piece.  “That league pressure “doesn’t make them inevitable,” said Jay Cross, the Jets’ president. “What it does make inevitable is, we have to raise more equity.”

Why are Yankee and Mets fans not being asked to invest in PSLs?  Is it due to the public investment in their new stadiums?  ( See Yankee Stadium estimates here and here. )  In the March 2008 edition of the Metropolitan Corporate Counsel, Lowenstein Sandler comment on PSLs.

Also, government officials may not react favorably where a team owner seeks to introduce PSL's at a new facility that has also received substantial public funding. These are two key reasons why neither the New York Mets nor Yankees plan to require the purchase of PSL's for their new stadia, even though it is conservatively estimated that by doing so each team could raise more than the Cardinals' $40 million.

While long time season ticket holders often resent paying PSLs to finance construction or renovations of stadiums, some ticket holders are now seeing PSLs as investments. ( Similarly, tickets are bought and sold as investments here )  Again from Mr. Sandomir.

Seat licenses have become a marketable commodity. They are sold privately and listed on Web sites like eBay, Craigslist and seasonticketrights.com, where fans attempt to flip their licenses at a profit.

...The Bears originally sold licenses to 45 percent of their season-ticket holders at the new Soldier Field, so most of the others kept their seats without paying the extra fees.

Then some unaffected fans successfully lobbied the Bears to sell them licenses on their seats. Now, seasonticketrights.com shows that the average gain on the sale of a Bears license is about $8,300.

The buying and selling of PSLs is following the lead of secondary ticketing.  This article lists 3 MLB and 11 NFL clubs amongst the “..clubs and properties that sell personal seat licenses.”  “Secondary PSLs”, like club sanctioned “secondary ticketing”, is perceived as safer, easier and more legitimate by fans.  This in turn appears to be increasing the value of PSLs.  On changes to the Bears’ secondary PSL market: 

The NFL clubs support Burks’ ( founder of SeasonTicketRights.com ) program because it has eliminated complaints from fans falling prey to scams when buying and selling PSLs through classifieds on eBay, Craigslist and elsewhere.

“We originally encouraged people to go on the [Bears’] message boards, but they never turned into a safe and secure place to do business,” Kellner (Bears director of stadium sales and services) said. “There was no way to verify legitimate buyers and sellers.”


OTHER NEWS ACROSS THE BUSINESS OF SPORTS NETWORK


Pete Toms is a staff member of the Business of Sports Network. He can be contacted at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?