Quote:
Originally Posted by Welkin
If Halifax was to build a new stadium and attract a CFL team, does anyone know how much a CFL team normally pays in rent to use the stadium? I am sure there are a lot of factors involved such as who gets parking fees, concessions, and etc., but I was just wondering, because I understand that in some CFL cities, (Hamilton for example), the CFL team pays $0 in stadium rental. I am sure that this is just one part of the financial analysis that HRM must be considering. The same thing for concert promoters. What does it cost to rent a 25,000 seat stadium to host a concert? Is it even viable for a concert promoter?
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I think that it will vary greatly from city to city, and will depend on the health of the CFL team. It might be better to consider what the HRM currently charges for the Metro Centre. For the Metro Centre, I remember reading that the rental for Moosehead games is the higher of a per spectator charge or a flat rate - so the more in attendance then the higher the rental charge. I posted a table from the following link for a proposed Metro Centre II - (source: page 269/314 of the pdf file
https://conventioncentreinfo.com/wp-content/uploads/2010/06/Feasibility-Study-Vol-1.pdf ). It seems as though a ticket charge of 10% would be a reasonable amount for the municipality to charge.
For CFL teams the ticket prices are in the $50 - $80 dollar range per game. So if the lease specified 10% of ticket revenue at $50 per ticket and the annual attendance averaged 225,000 spectators per year then the city would get 225,000 x $50 x 10%/100% = $1,125,000/year. It might get more from luxury suites. Then if they could get 50% of concessions and each person spent $10 on concessions then that could be another $10 x 50%/100% x 225,000 spectators/year = $1,125,000
gross (minus the expenses, so possibly another $500,000 from concessions). The municipality could likely also get part of the parking revenue. I think that it would be reasonable to expect the municipality to get about $2,000,000 per year from a CFL team - this isn't a huge amount of money so it would make sense to go with a decent but economical stadium. The city would also get money from electronic signs on the stadium (if in a highly visible location) plus naming rights. I think that a stadium with all of the seats covered would be a good concert venue but mainly for concerts of over 15,000 people so that it doesn't take business away from the Metro Centre. I read that the concerts on the Commons cost $500,000 - $1,000,000 just to set up. So I would think that a concert promoter would likely be willing to pay 5% - 10% of ticket sales plus concessions. If a stadium could attract 150,000 spectators per year to concerts at $100 per ticket then the city could potentially get another $1,500,000 (10% of ticket sales).
Potentially an economical stadium could run without a deficit (probably the best that one could hope for) - especially if the HRM could get federal funding by hosting an international sporting event (example: as one host city of the 2015 Women's FIFA Cup). I was told that the Metro Centre makes money but it probably doesn't have amortization payments. However, there is a strong possibility that even an economical stadium would run at a deficit, then it would become an issue of whether people would want it as a "better quality of life" venue.
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