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November 27, 2014

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MLS:

Developers behind Major League Soccer proposal estimate $1.2 annual profit

Image

Cordish Cos.

Artist’s rendering of proposed stadium.

A downtown stadium for Major League Soccer would generate $23.9 million in revenue per year and a profit of $1.2 million, according to a financial analysis released today by the project’s developer.

The estimate includes $10.5 million in ticket sales, based on an average attendance of 18,000 people per game. The MLS average attendance for Major League Soccer was 18,523 fans per game, according to ESPN.

Another $8.3 million would come from naming rights and sponsorship, $3.7 million would come from concessions and merchandise sales, and $1.4 million would come from parking fees and other special events, according to the analysis released by Findlay Sports & Entertainment.

The analysis anticipates a total operating cost of $22.7 million, including stadium rent, marketing, team employees and other business expenses.

Findlay Sports & Entertainment is partnering with Baltimore based Cordish Cos. to develop the stadium and recruit a professional soccer franchise to Las Vegas.

Drawing 18,000 fans per game will be critical to making the finances needed to build the stadium pencil out. The city is considering a plan to issue $115 million in bonds to cover the majority of the stadium’s $200 million construction cost.

The bonds would be paid off with $4 million to $5 million in rent and payments from the developer and a $3 million contribution from the city each year. If stadium attendance lags and the developer doesn’t bring in enough money to make its payments, taxpayers could be left on the hook to make up the difference.

This is a developing story and this post will be updated this afternoon. Sports editor Ray Brewer contributed to this story.

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