Analysis of Stadium Group's Report: Realistic But With Risks
Daily Business Report-May 20, 2015
SAN DIEGO METRO MAGAZINE
Tuesday, May 19, 2015
The institute identified in its report a number of areas of concern which city and county negotiators may wish to revise as the plan moves forward. Chief among them, it said, was a gap between the revenues that are to be raised and maintenance and operations costs at the new facility. “NUSIPR believes that Citizens Stadium Advisory Group’s plan identifies $196 million in revenues above what the group believes is needed to construct the stadium. However, the annual net operating loss, absent capital expense, of the existing stadium are estimated at $10.9 million. Without extraordinary cost savings at the new facility and/or ability to book in additional events that generate extraordinary levels of net operating surpluses, the CSAG plan would require up to an additional $130 million in net present value revenues to meet O&M responsibilities,” the report said.