I know we don't need another OCS thread but....

[RSSMOOTH]

this has something to do with the funding and it's a pretty innovative idea to raise money

Sports Mortgaging!

http://online.wsj.com/article/SB10001424052748704471504574441213411789746.html

[Orlando Bull]

OK, I like it. So, if we sell 10k tickets for $30,000 each, thats 300 million. That builds a stadium.

If the average fan buys 3 seats, youre looking at $2500/yr (40 year mortgage)?? Thats not horrible, not great, but not horrible. The seats hold their value too, so, if you want, you may be able to sell each seat for 50-60k in the future.

I see the following as an issue...

1. What if you want to add seats? Can you move, what strings are attached

2. How bad does this hurt the future fund raising...if 1/4 of the seats are already paid for in 2050, can the program make enough money off of the other 3/4 of the seats to sustain the program?

3. Multiple generations later, do we have family coming still, are the seats sold, or, do we have empty seats because the original donor was the only one with passion, and their family hasn't thought to sell the tix (maybe they want to go to 1 game per year?)??

Just some thoughts.

[IncrediBULL]

Additional thoughts.

What happens when the stadium needs repairs, etc.  Special Assessments?

What about ongoing costs (think electricity, lighting, water bills, insurance, etc)

It seems that stadiums have a useful life of about 25 years.  If you have a 50 yr mortgage and it needs to be replaced with newer/better in 25 yrs, who pays for that? What happens to your 50% you still owe.

Did you know the new dalllas stadium cost $1B to build.  Raymond James is estimated at $550M to rebuild it as it currently stands.

If we did get an OCS, it would be an erector set, and we would lose all of the good stuff we have now.  I say no way, no how.

Lets embrace our wonderful, tax payer funded, NFL and Superbowl caliber stadium. 

[SRQ]

my bony old butt loves ray jay  i'm still sore from doak

[feardabull]

my bony old butt loves ray jay   i'm still sore from doak

You sat down during that game?

[Economics_Nerd82]

my bony old butt loves ray jay   i'm still sore from doak

You sat down during that game?

haha, beat me to that

[Guest]

This could be interesting but it would cause a major problem: donations.

USF uses the generous donations to help fund the operation of the program... how do you require annual contributions for the right to sit in a seat the donor already "owns" ?

[Orlando Bull]

I think the donations and on-going maintenance stuff is handled by other fans. You would only open up a certain number of seats to be bought.

What was the Minnesota Stadium cost? 400M-ish.

If 25% of the fans pay for the stadium, over the "25-year" life of the stadium, the University would make more money than they are making at Ray Jay, so that doesn't worry me so much. The other 75% of the fans pay the yearly donations.

I'm not saying it would work, but I can see how it could work under the right circumstances.

What does Ray Jay make in parking and concessions per game? 1.5-2M??? x 6-7 games per year, thats a pretty big chunk of the 33M operating budget. Say with facilities maintenance, you need to add 1M/year to that, still...

[Guest]

I think the donations and on-going maintenance stuff is handled by other fans. You would only open up a certain number of seats to be bought.

What was the Minnesota Stadium cost? 400M-ish.

If 25% of the fans pay for the stadium, over the "25-year" life of the stadium, the University would make more money than they are making at Ray Jay, so that doesn't worry me so much. The other 75% of the fans pay the yearly donations.

I'm not saying it would work, but I can see how it could work under the right circumstances.

What does Ray Jay make in parking and concessions per game? 1.5-2M??? x 6-7 games per year, thats a pretty big chunk of the 33M operating budget. Say with facilities maintenance, you need to add 1M/year to that, still...

So, do you open up good seats for sale, or hold those in reserve for annual donation and purchase?  Do people who purchase seats also get club access, or do they have to donate?

Yes, USF could bring in more revenue with an OCS than renting RayJay... but they would have a lot more expenses as well - the biggest being the debt on the stadium.

Don't forget USF could do the same thing with suites... those at Raymond James are technically "condos" - so USF could sell luxury suits as condos and get a lot more up front revenue for them than renting them would be.  (Plus they could charge a "condo association" fee for some of the maintenance)

[No_Willie_Jokes_Yet]

At $10,000 a seat I would still buy my 8 tickets BUT, that would stop my donation and I would not expect to have to BUY tickets to the games for these 8 seats. The net cost per year w/interest would only be about $700 more per year than I pay now. (Assuming 50 year payment plan at about 6.5)