Additional Ranger game goers lured by A/C would be valued @NEGATIVE $500 per seat per game over 37 years

People-Heart-Shape.jpg

link to 1,000 person heart story

Look at this (bad deal) in simplistic terms of just ticket sales….

Anytime you do an upgrade to your business, you expect the payoff to…well pay off…but in the Rangers’ owners case, the CITY would be REMOVING half to 80% of the upgrade costs OUT of the Rangers’ owners pocket books and into our laps…NO WONDER they want this.

And after the bonds are paid off, the $2M annual rent the Rangers pay the city (possibly going down to $1M rent?) will go towards maintenance and not our budget….hmmn!

WFAA reported of the newly built A/C stadium in Miami Florida that the average additional attendance was only 1,000 more game goers. That is an additional 2 million people over the next 37 years over a billion dollar deal which equates to a $500 liability per seat per game!*

The average number of Rangers home game attendees over the last 21 years is 33,000 people. Attendance would pick up a whopping 3% ….tisk

Screen shot 2016-08-10 at 12.40.16 PM

link to chart

(just) T I C K E T   S A L E S   A N A LY S I S

1,000 extra seats sold per game that the A/C attracts:

So if the average ticket is say $25 a ticket times 1,000 extra tickets sold times an average of 54 home games per season = $1.4 million per year ($1,350,000) x 37 years of commitment has an overall additional revenue created of about $50 million in ticket sales for the Rangers owners…. it would take 740 years to pay off that billion dollar debt WITHOUT counting interest for the bonds! 

$50 million over 37 years is only 5% of one billion dollars (in misguided investment) just to bring in an additional 1,000 people per game.

—————frowney face here——–OK now lets take ALL ticket sales (and not count any expenses or concessions income) and look at the annual ticket sales revenues to see if we can get that 740 year pay back on bad investment thang down————————

ALL seats sold per game with current stadium:

Ave ticket price of $25 times 33,000 seats times 54 home games =$45 million per year the Rangers owners make in ticket sales. AAh thats better now…so at $45M per year it would take 22 years (not counting ANY expenses, salaries, RENT to the city, utility bills, being offset with concessions etc.) to pay off a billion dollar investment.

In 22 years we will have another “old” stadium and the city could have possibly LOTS of bond debt (INCLUDING INTEREST) risk!

I’ve come to think with this ticket sales analysis that the Rangers don’t think they can make more money with a new A/C stadium…they just want us to incur most of the costs for an upgrade!

 

vote no to future parking lot

 

*1,000 additional people per game times 54 games per year for 37 years is 2 million people in total. Divide one billion dollars by 2 million people = one thousand seats would have a $500 per person seat ticket liability per game over the next 37 years to justify the A/C upgrade.

————–update————–

This is by Warren Norred about the operational expenses…..

“In the (well-named) Master Agreement, the utility costs are mentioned specifically as part of the Operations and Maintenance Costs (capitalized because it is a defined term). The Agreement obviously gives a lot of direction about the flow of money. First, the Rangers pay an initial amount, up to $50M, to get the project going. Arlington then sells a bunch of bonds, which is limited to $500M, and is used to pay for construction.

To pay for the debt service payments, the sales/hotel/car rental taxes are collected into an account, and that account pays for the bond payments. When the bond payments are current, excess funds collected go into a Reimbursement Account, and that account can pay the Operations and Maintenance Costs, i.e., the electricity for the a/c.

Summarizing into one sentence – once the city has collected what it needs to pay on the bond service, the extra money can be used to pay the utilities, along with all other maintenance costs.

We can make this a “real answer” – it tends to reveal to me that a major reason for doing this deal for the Rangers is the non-trivial costs of getting someone else to pay the bills, because they are paying all this now. Over time, this is a good number I suspect”.

update 9/14/16

screen-shot-2016-09-14-at-9-49-38-pmscreen-shot-2016-09-14-at-9-52-53-pmscreen-shot-2016-09-14-at-10-03-05-pmHere is the link to the US taxpayer article

screen-shot-2016-09-14-at-10-13-01-pm

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About Kim Triolo Feil

Since TX Statute 253.005 forbids drilling in heavily settled municipalities, I unsuccessfully ran for City Council Seat to try to enforce this. Since Urban Drilling, our drinking water has almost tripled for TTHM's. Before moving to Arlington in 1990, I lived in Norco’s “cancer alley”, a refinery town. It was only after Urban Drilling in Arlington did I start having health effects. After our drill site was established closest to my home, the chronic nosebleeds started. I know there are more canaries here in Arlington having reactions to our industrialized airshed (we have 55-60 padsites of gas wells). Come forward and report to me those having health issues especially if you live to the north/northwest of a drill site so I can map your health effects on this blog. My youtube account is KimFeilGood. FAIR USE NOTICE: THIS SITE MAY CONTAIN COPYRIGHTED MATERIAL THE USE OF WHICH HAS NOT ALWAYS BEEN SPECIFICALLY AUTHORIZED BY THE COPYRIGHT OWNER. MATERIAL FROM DIVERSE AND SOMETIMES TEMPORARY SOURCES IS BEING MADE AVAILABLE IN A PERMANENT UNIFIED MANNER, AS PART OF AN EFFORT TO ADVANCE UNDERSTANDING OF THE SOCIAL JUSTICE ISSUES ASSOCIATED WITH EMINENT DOMAIN AND THE PRIVATIZATION OF PUBLIC INFRASTRUCTURE (AMONG OTHER THINGS). IT IS BELIEVED THAT THIS IS A 'FAIR USE' OF THE INFORMATION AS ALLOWED UNDER SECTION 107 OF THE US COPYRIGHT LAW. IN ACCORDANCE WITH TITLE 17 USC SECTION 107, THE SITE IS MAINTAINED WITHOUT PROFIT FOR THOSE WHO ACCESS IT FOR RESEARCH AND EDUCATIONAL PURPOSES. FOR MORE INFORMATION, SEE: HTTP://WWW.LAW.CORNELL.EDU/ TO USE MATERIAL REPRODUCED ON THIS SITE FOR PURPOSES THAT GO BEYOND 'FAIR USE', PERMISSION IS REQUIRED FROM THE COPYRIGHT OWNER INDICATED WITH A NAME AND INTERNET LINK AT THE END OF EACH ITEM. (NOTE: THE TEXT OF THIS NOTICE WAS ALSO LIFTED FROM CORRIDORNEWS.BLOGSPOT.COM)
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