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Best idea for raising new stadium funds


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"Condo" the seats.

 

Sell all the new stadium seats (on a sliding scale) from $25,000 to $2,500 depending on location and share revenue from the seats.

 

The buyer "owns" the seat". Gives the buyer the right to that seat for the life of the lease (30 years) and is transferrable. You still have to buy your season tickets but a % is paid back to you each year as a dividend which you can keep or use towards next season's tickets. You also receive a piece of the revenue each time your seat is sold for baseball or any other event. Every time there is a rock concert, soccer match, rodeo, any event, you a) have the first right to buy tickets for your seat(s) or b) get a piece of the revenue derived from the seat.

 

Potentially you could raise upwards of $200+ million. By raising a sum like this you virtually remove the need for any debt service (remember the real cost of $325 million stadium over the term is closer to $560 million with interest paid on the bonds).

 

The Marlins would be required to pay reasonable rent, in excess of the $137 million they have guaranteed but not much more. The county kicks in their $$$, the concessions and parking and naming rights go to the team. Putting a $85- 100 million a year is now doable.

 

The team and the stadium are cash positive from day one. No debt, cash on hand. Ownership will fuel higher attendance. The right to seats to any event will fuel sales. It's a win/win.

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Someone said this on the radio. Raise taxes on alcohol & cigarettes - thats how Cleveland rasied money for the ballpark and finished paying it off in a couple of years

:mischief2

 

Not a bad idea but not sure how would the majority of S.Floridians would agree.

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Someone said this on the radio. Raise taxes on alcohol & liquor - thats how Cleveland rasied money for the ballpark and finished paying it off in a couple of years

add tobacco product while you are at it. . .

Taxes cannot be raised without a vote.

 

The chance of raising "sin" taxes in M-D are zero.

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If we have it built sans roof and get a PPS type land lease, we are only $20 million short.

 

We have $210 million. An open ballpark would probably only cost $230 million in SoFla at the most. We can get the tax break and some private funds together if we decide to get the roof later.

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If we have it built sans roof and get a PPS type land lease, we are only $20 million short.

 

We have $210 million. An open ballpark would probably only cost $230 million in SoFla at the most. We can get the tax break and some private funds together if we decide to get the roof later.

exactly

 

do a phase approach, get a roofless stadium approved by May/1 and start building. Then, work on getting phase 2 (roof) approved. Ask the architect to make a design where a roof can be added later without major revant of the structure. This all can be done by 2007.

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dammit Marlins2003 this was supposed to be for comedy only. and here you come & offer something serious. interesting though, ever been looked at before or did you just come up with it?

 

and no more sin taxes. it's unfair to us sinners.

 

getting bloody difficult to sin these days....

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i think it was in the plans for the cardinals ballpark to build the stadium in phases because of the cost.

No, because they must tear down Busch Stadium in phases in order to play the 2005 season at Bush, but the 2006 season at the new park. Space issues, not money.

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Someone said this on the radio. Raise taxes on alcohol & liquor - thats how Cleveland rasied money for the ballpark and finished paying it off in a couple of years

add tobacco product while you are at it. . . Mckeon would vote against this too bad McKeon isn't a voter in Dade County :p :hat

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Guest Moneyball

can't they build the stadium be built with the money we have now. if not the marlins should put 20 mil more in exchange the city of miami donates land for the stadium

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How about...

 

- raising the professional athletes tax? (in most cities, home and visiting pro athletes are taxed when they come to play a game. This would only be fair if it did not increase the level of contribution from local officials.)

- how do you like the sound of Bell South Field at Telmundo Ballpark in the Home Depot Sporting Complex?

- fining the Dolphins for every loss in December?

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How about...

 

- raising the professional athletes tax? (in most cities, home and visiting pro athletes are taxed when they come to play a game. This would only be fair if it did not increase the level of contribution from local officials.)

- how do you like the sound of Bell South Field at Telmundo Ballpark in the Home Depot Sporting Complex?

- fining the Dolphins for every loss in December?

One of the main reasons professional athletic talent finds playing in FLA so attractive is due to tax purposes (A 6-8 percent raise than if they played anywhere else b/c of no state tax)

 

Start taking that away and you'll start having a tougher time signing free agents in all of the sports, including baseball.

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"Condo" the seats.

 

Sell all the new stadium seats (on a sliding scale) from $25,000 to $2,500 depending on location and share revenue from the seats.

 

The buyer "owns" the seat". Gives the buyer the right to that seat for the life of the lease (30 years) and is transferrable. You still have to buy your season tickets but a % is paid back to you each year as a dividend which you can keep or use towards next season's tickets. You also receive a piece of the revenue each time your seat is sold for baseball or any other event. Every time there is a rock concert, soccer match, rodeo, any event, you a) have the first right to buy tickets for your seat(s) or b) get a piece of the revenue derived from the seat.

 

Potentially you could raise upwards of $200+ million. By raising a sum like this you virtually remove the need for any debt service (remember the real cost of $325 million stadium over the term is closer to $560 million with interest paid on the bonds).

 

The Marlins would be required to pay reasonable rent, in excess of the $137 million they have guaranteed but not much more. The county kicks in their $$$, the concessions and parking and naming rights go to the team. Putting a $85- 100 million a year is now doable.

 

The team and the stadium are cash positive from day one. No debt, cash on hand. Ownership will fuel higher attendance. The right to seats to any event will fuel sales. It's a win/win.

I think there are a lot of problems to something like this. For starters, the Marlins would lose out on revenue generated by ticket sales because the initial money generated at start up would dwindle as revenue was paid back to these seat owners. There would be, according to your plan as I understand it, too much control over revenue to these essentially 'minority' owners. It wouldnt be proportional. You would be better off selling pieces of stock in the franchise and pay out the revenue that way because it wouldnt cut into non-baseball revenue and even future revenue from games and ticket sales. Only the value of the franchise, as it increases, would be shared. The stadium is the heart of the financial life of this franchise - to negotiate that is to negotiate the financial power of the organization.

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If we have it built sans roof and get a PPS type land lease, we are only $20 million short.

 

We have $210 million. An open ballpark would probably only cost $230 million in SoFla at the most. We can get the tax break and some private funds together if we decide to get the roof later.

exactly

 

do a phase approach, get a roofless stadium approved by May/1 and start building. Then, work on getting phase 2 (roof) approved. Ask the architect to make a design where a roof can be added later without major revant of the structure. This all can be done by 2007. This is a more sensible approach, and something I have been screaming about the whole time. We need a roof, but we need a stadium more. Get the land, get the stadium, and add a roof on later (it would probably be some 3-5 years later). But you could gradually expand the stadium as more revenue was generated.

 

Also, if we built an open-air stadium at the estimated $230M (from Cape), and we already have $210M, the difference could easily be filled by issuing naming rights. At least somewhere aroun $40M could be generated and possibly more depending on the location of the stadium.

 

I think where this stadium is built is going to be the real issue here. Home Depot Field by Dolphin Mall along the turnpike? Would be quite nice...

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"Condo" the seats.

 

Sell all the new stadium seats (on a sliding scale) from $25,000 to $2,500 depending on location and share revenue from the seats.

 

The buyer "owns" the seat". Gives the buyer the right to that seat for the life of the lease (30 years) and is transferrable. You still have to buy your season tickets but a % is paid back to you each year as a dividend which you can keep or use towards next season's tickets. You also receive a piece of the revenue each time your seat is sold for baseball or any other event. Every time there is a rock concert, soccer match, rodeo, any event, you a) have the first right to buy tickets for your seat(s) or b) get a piece of the revenue derived from the seat.

 

Potentially you could raise upwards of $200+ million. By raising a sum like this you virtually remove the need for any debt service (remember the real cost of $325 million stadium over the term is closer to $560 million with interest paid on the bonds).

 

The Marlins would be required to pay reasonable rent, in excess of the $137 million they have guaranteed but not much more. The county kicks in their $$$, the concessions and parking and naming rights go to the team. Putting a $85- 100 million a year is now doable.

 

The team and the stadium are cash positive from day one. No debt, cash on hand. Ownership will fuel higher attendance. The right to seats to any event will fuel sales. It's a win/win.

I think there are a lot of problems to something like this. For starters, the Marlins would lose out on revenue generated by ticket sales because the initial money generated at start up would dwindle as revenue was paid back to these seat owners. There would be, according to your plan as I understand it, too much control over revenue to these essentially 'minority' owners. It wouldnt be proportional. You would be better off selling pieces of stock in the franchise and pay out the revenue that way because it wouldnt cut into non-baseball revenue and even future revenue from games and ticket sales. Only the value of the franchise, as it increases, would be shared. The stadium is the heart of the financial life of this franchise - to negotiate that is to negotiate the financial power of the organization.

The difference is that there would be no debt service to manage.

 

Using the home mortgage analogy, there would be no monthly payment of interest and principal, and for anyone who has bought a home, you know that for the first 10 years or so of your mortage most of what you're paying back is interest.

 

I think I calculated once that debt service on $350 million (over 30 years) would be around $19 million a year. That would disappear.

 

Lastly, revenue from seats wouldn't "dwindle". In my scenario, and let's face it just a crazy idea, the payment for the seat would not be returned, rather an annual percentage of gate (only) receipts would be, in my mind a number approaching 5.5% (enough to repay the buy-in price over the 30 years), a number the Marlins, without debt service, could easily afford. No debt, keep 94.5% of the gate plus all the parking and concession profits, plus naming rights etc., factor in all the tractor pulls and rodeos and soccer, etc., and this is a money machine.

 

What this is is a way for the Marlins to do a private funding without upsetting the economics of baseball. The stadium entity would be separate and apart from the baseball operation. The team could be sold but the seatholders would not give up their rights. The team would be cash positive from day one with no onerous debt.

 

What it really is is an extension of selling skyboxes, etc., to the masses.

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