OT - Can a Sports Complex Make Money

[Goose85]

I see Jerry Jones is doing everything he can to bring events, people, and money to his football facility.

I really don't have a clue on this, but with donations of at least $200 million, could someone or some entity pay the rest and be the owners of a sports complex and make money?

Rent from MU, rent from Admirals, concerts, concession revenues, rent from various shops and resturants, hosting NCAA games, charging ticket fees, rent facility for special events, exclusive beverage deals, naming rights, sponsorships, etc.

If your investment is $250 million, is there enough revenue to make money by owning a new sports complex in Milwaukee?

[Alan Bykowski, "brewcity77"]

Good question, be very curious to hear answers from people more business savvy than myself. If nothing else, I think adding restaurants and other events will at the very least help offset operating costs. Not sure if it would be profitable but break even certainly seems like it should be possible.

[MUMac]

Interesting question. I am not sure it is feasible for an outside investor (outside of a taxing authority) to make money on the investment. Jerry Jones and other sports venues are different, as the taxing authority and the ownership groups (typically a sports team) are the ones who make money off of it. The sports team has a need for a facility, so it is an additional way to generate revenue. They need the expense of the facility, anyway, so this is a supplement of income.

Plus, it would have to be one airtight contract to lease the facilities. A risk to both parties.

I am not sure it is a workable way to make money from a private investor or private equity fund.

[MayorBeluga]

I've been contempating this since yesterday's announcement that the new owners and Herbie will both use $100M towards a new arena. Since it's extremely likely that the only taxpayer money will come from a TIF district, that means they think they can raise the additional funds and make money. Let's face it, hedge fund guys are not buying the Bucks to NOT make money.

You've gotta think they're not putting their own money up unless the arena is part of an entire entertainment district. Kansas City's new arena is a good example. The Park East corridor is an obvious location, especially since it would allow the Bradley Center footprint to be used to expand the entertainment area.

Interesting times, indeed.

[Nukem2]

I've been contempating this since yesterday's announcement that the new owners and Herbie will both use $100M towards a new arena. Since it's extremely likely that the only taxpayer money will come from a TIF district, that means they think they can raise the additional funds and make money. Let's face it, hedge fund guys are not buying the Bucks to NOT make money.

You've gotta think they're not putting their own money up unless the arena is part of an entire entertainment district. Kansas City's new arena is a good example. The Park East corridor is an obvious location, especially since it would allow the Bradley Center footprint to be used to expand the entertainment area.

Interesting times, indeed.
Yep, as I posted on another board yesterday, these hedge fund guys are, well, hedging their bets. They will end up making money one way or another. Hopefully, it will be with the Bucks staying long-term in a new state-of-the-art facility.

[Gato78]

Unfortunately, the new owners' offer to put up money ends up a mirage if the City and County do not come through. Then they can move to the city that is the highest bidder: Seattle, Vegas and Louisville are the immediate threats. I am counting on the team moving in 2017-18 because the City and County will screw this up. Look at the politics: Clarke is positioning to run against Barrett again. He will force Barrett to take a no tax position. Is Abele going to step up? Doubtful--he balanced his last two budgets by cutting retiree health benefits (that is desperate). You think he can spend money on an arena when the Courthouse is literally falling apart? See, electrical fire of more than a year ago still not repaired and the plumbing system next up for catastrophe. I am not optimistic. Only chance is the Wisconsin Center District taxing authority stepping up.

BTW tear down the Milwaukee Theater? It was just redeveloped at a huge cost. Wise spending? No. Frank Gimbel's folly. One thing about Milwaukee: that was a terrible boondoggle, yet, Frank Gimbel is still a big community leader. Milwaukee is so parochial.

[MKE_GoldenEagleFan]

I see Jerry Jones is doing everything he can to bring events, people, and money to his football facility.

I really don't have a clue on this, but with donations of at least $200 million, could someone or some entity pay the rest and be the owners of a sports complex and make money?

Rent from MU, rent from Admirals, concerts, concession revenues, rent from various shops and resturants, hosting NCAA games, charging ticket fees, rent facility for special events, exclusive beverage deals, naming rights, sponsorships, etc.

If your investment is $250 million, is there enough revenue to make money by owning a new sports complex in Milwaukee?

What Jerry Jones did was WAY different from what we are looking at, add to it Milwaukee won't ever host a final four, major boxing matches, college football games, or championship games like that. Part is location, the other is that a basketball arena won't be as large or versatile like a massive football stadium is. I think the closest thing we could hope for would be what Kansas City has with the Sprint Center and the power and lights district.

[Goose85]

What Jerry Jones did was WAY different from what we are looking at, add to it Milwaukee won't ever host a final four, major boxing matches, college football games, or championship games like that. Part is location, the other is that a basketball arena won't be as large or versatile like a massive football stadium is. I think the closest thing we could hope for would be what Kansas City has with the Sprint Center and the power and lights district.

It is different than a football venue, but then again the main tenant for Jones (cowboys) use the facility 10 times a year. The main tenants of this facility (assuming Bucks / MU / Admirals) will use the venue close to 100 times a year.