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FINANCIAL <br />ANALYSIS <br />These agreements generally assign exclusive <br />rights to sell both alcoholic and non-alcoholic <br />beverages within the facility. This analysis <br />assumes $75,000 per year for the Everett facility. <br />Advertising Income <br />Many minor league professional hockey <br />teams bring in hundreds of thousands of dollars <br />worth of advertising income (although a large <br />component of this income is represented by in - <br />kind trades of services for the team) Two <br />factors will play key roles in the ability of the <br />team and arena to be marketed. Obviously, the <br />size and strength of the corporate market in <br />Everett and its environs will be crucial, but also <br />the team's Sales and Marketing Department will <br />be a vital component as well. Since in most <br />situations, the onus is on the team to sell the <br />advertising, sponsorships, and signage, most <br />lease agreements have the majority of this <br />revenue stream going directly to the team. This <br />analysis estimates annual advertising revenues at <br />$400,000 in the cashflow. <br />Specialized Seating <br />Specialized seating has been a large <br />factor for the recent surge in development for <br />both major and minor league facilities. <br />Specialized seating can be broken down into two <br />categories, club seats (sometimes referred to as <br />box seats) and luxury suites (also known as <br />luxury boxes or sky boxes). Luxury suites are <br />generally bought by companies and are the most <br />expensive seats within an arena facility. They <br />generally include 8-16 tickets to the game, free <br />parking, a glass enclosed air-conditioned suite, <br />and waiter/waitress service. Current minor <br />league prices range from $15,000 to $30,000 <br />with the tenants signing multi -year leases Due <br />to Everett's level of corporate interest as <br />determined by the market analysis, the luxury <br />suites were estimated at $25,000 per season. <br />Typically, this revenue stream is split between <br />the facility and team ownerships. In many cases <br />the City may receive a suite itself or have the <br />team pay for the build -out of the suites. <br />Ticket Surcharge <br />An additional potential revenue source <br />is a ticket surcharge assessed on each ticket <br />purchased to one of the anchor tenant's events. <br />This revenue source is often considered <br />politically acceptable because it is assessed only <br />on those who attend games, thus, only those who <br />enjoy the use of the facility are required to <br />subsidize its use. A ticket surcharge of $1 25 is <br />assumed for the Everett facility. <br />Event Staffing Reimbursable <br />Event staffing reimbursables represent <br />revenues derived from payments from event <br />promoters to the facility for event staffing of <br />services such as security, ticket sales and <br />parking/traffic management. Event staffing <br />reimbursables for a new arena are estimated at <br />$190,000 for the moderate scenario of 143 <br />events per year. <br />Facility Maintenance Fee <br />Facility maintenance fees represent <br />revenues derived from payments from event <br />promoters to the facility for maintenance <br />services. Facility maintenance fees for a new <br />arena are estimated at $116,000 for the moderate <br />event. <br />Brailsford & Dunlavey/Ellerbe Becket <br />Page 39 <br />