Rent at Ray Jay

[CousinRicky]

Saw a tweet from JK and followed to an article he did in 2017

https://www.tampabay.com/usf-set-to-extend-deal-with-raymond-james-stadium/2310524/

Here is part...

By Joey Knight

Published Jan. 23, 2017

Even as it studies the possibility of an on-campus football home, USF soon could be entertaining a new proposed lease agreement with Raymond James Stadium.

A draft of the agreement -- six years with a five-year option -- is part of the agenda for Tuesday's meeting of the Tampa Sports Authority's executive committee. The term includes a termination clause with a 24-month written notice.

The draft must be approved by the executive committee and the Tampa Bay Buccaneers before presentation to USF. The school's prior lease with the stadium expired after the 2016 season.

Terms of the agreement indicate USF will pay no rental fees, and only direct costs associated with its games. It must collect and pay to the TSA the same ticket surcharge as its prior lease deal: an amount equal to 8 percent of the price of the tickets sold, not to exceed $2.50 per ticket.

Direct costs for use of the lower bowl and two club lounges is estimated to be $172,000 for games with fewer than 24,000 participants, and $185,000 for games with more than 24,000 for the 2017 season. Rates for future years will be determined each July.

[CousinRicky]

 

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Joey Knight

 

@TBTimes_Bulls

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21h

 

Here's the story I did when USF was in the process of striking a new deal with RayJay. They don't lose money at home games. https://tampabay.com/usf-set-to-extend-deal-with-raymond-james-stadium/2310524/…

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The GIFing Tree

 

@jletz

· Sep 28

Replying to @TBTimes_Bulls and @USFFootball

@TBTimes_Bulls legit question, does usf lose money on nights like these since they have to pay to use the stadium? Operating costs have to cost more than ticket/food revenue.

[79 Bull]

Interesting.  If I'm reading this right, we pay the TSA/Bucs a minimum of $225,000 per game.  That's $175,000 direct costs plus $50,000 in ticket surcharge (20,000 paid tickets x $2.50).  Not meaning to start another OCS thread, but at an average of 6.5 games per year, $1.5 million minimum could pay off a good chunk of debt service over 40 years.  Disclaimer is that I am no finance expert.

[Gismo]

26 minutes ago, 79 Bull said:

Interesting.  If I'm reading this right, we pay the TSA/Bucs a minimum of $225,000 per game.  That's $175,000 direct costs plus $50,000 in ticket surcharge (20,000 paid tickets x $2.50).  Not meaning to start another OCS thread, but at an average of 6.5 games per year, $1.5 million minimum could pay off a good chunk of debt service over 40 years.  Disclaimer is that I am no finance expert.

We are renting it at cost plus 2.50 per ticket sold. 

 

Sounds like it’s hard for USF to lose money. 

[puc86]

5 minutes ago, Gismo said:

We are renting it at cost plus 2.50 per ticket sold. 

 

Sounds like it’s hard for USF to lose money. 

At $10 a piece it would take ~250,000 tickets just to pay the head coach, so there is that. 

[Gismo]

16,000 season tickets, minimum $99. 

7 games = $14.14 per game. 

 

8% = $1.13 to RJS per ticket

$14.14  * 16,000 = $226,286

-$1.13 * 16,000 = -$18,103

USF net = 226,286 - 172,000 - 18,103

USF net = + $36,183 

 

If all season tickets sold were $99, USF would make $36,183 per home game without selling any other tickets. 

Clearly that number is a floor as a lot of season tickets were sold for more than $99 and we sell tickets each home game in addition to season ticket sales. But the season tickets let’s us find the minimum USF is making per home game. 

This value becomes negative below 13,442 season ticket sales assuming $99 tickets. The real minimum season ticket sales required is obviously lower because of the tickets sold above $99. 

 

Edited September 30, 2019 by Gismo

[CousinRicky]

1 hour ago, Gismo said:

16,000 season tickets, minimum $99. 

7 games = $14.14 per game. 

 

8% = $1.13 to RJS per ticket

$14.14  * 16,000 = $226,286

-$1.13 * 16,000 = -$18,103

USF net = 226,286 - 172,000 - 18,103

USF net = + $36,183 

 

If all season tickets sold were $99, USF would make $36,183 per home game without selling any other tickets. 

Clearly that number is a floor as a lot of season tickets were sold for more than $99 and we sell tickets each home game in addition to season ticket sales. But the season tickets let’s us find the minimum USF is making per home game. 

This value becomes negative below 13,442 season ticket sales assuming $99 tickets. The real minimum season ticket sales required is obviously lower because of the tickets sold above $99. 

 

I'm not going to fact check you and assume you are correct.  But want to ask the others about those costs vs an OCS. 

[BDYZR]

"Direct costs for use of the lower bowl and two club lounges is estimated to be $172,000 for games with fewer than 24,000 participants, and $185,000 for games with more than 24,000"

Is that actual participants or announced participants? Just curious. 

[Ned A Starr RIP]

5 hours ago, 79 Bull said:

Interesting.  If I'm reading this right, we pay the TSA/Bucs a minimum of $225,000 per game.  That's $175,000 direct costs plus $50,000 in ticket surcharge (20,000 paid tickets x $2.50).  Not meaning to start another OCS thread, but at an average of 6.5 games per year, $1.5 million minimum could pay off a good chunk of debt service over 40 years.  Disclaimer is that I am no finance expert.

It’s 8% per ticket with a max of $2.50 per ticket, not $2.50 per ticket sold.  Only tickets priced at $31.25 or more would incur the full $2.50 charge.

[Bull Matrix]

And too add, USF paid attendance this season has been good. The fans are also more into it now unlike the years past. Think USF has it made right now when it comes to the stadium.