There's no question that having own stadia is a ticket for MLS to stability. CCS and Victoria Street are living proofs. My only concern is part of what makes these stadiums profitable are one-off events such as USMNT games, NCAA Soccer Final 4s, etc. HDC has a tennis facility attached to it. As more of these stadiums open, the opportunities for such auxiliary revenue will decrease. There are only so many USMNT games to go around, only one Final 4 per year, and you can't build 8 add'l tennis centers. So, I'm afraid that the new stadiums will become inreasingly less profitable. Does anyone share my concern?
not as much as you do. there are always events that stadiums can hold. concerts, lacrosse, rugby, colleges, etc...
You have to remember that the main focus of creating a SSS is for MLS games, everything else is just gravy. A helpful dose of gravy, but stilll gravy.. I agree that there are only some many sporting events to go around for a finite number of venues, but even if what you say is true reagarding less opportunity per each SSS, which makes sense, it still wont matter. Profitbalility is profitability, and as long as the stadums can make $$$ of of MLS ticket sales, concessions, parking, etc, and continue to boost attendance, it has done its job..
aka Home Depot Center. Hey, someone ought to menion the actual sponsor every now and again. Might as well be me.
Re: Re: Decreasing Marginal Profitability of MLS Stadia thank you. we gotta make these big corporations think its worthwhile to pay our teams a big chunk of $ every year.
I really think that as MLS improves the weekly games will bring in greater revenue so that the stadia don't need to worry about one off big ticket event. Although the stadia are competing for big soccer events, I am sure each region will have pleanty of other events, like concerts, to keep the money coming in. I don't think this is a huge issue as long as MLS continues to improve attendance.
Re: Re: Decreasing Marginal Profitability of MLS Stadia Home Depot now has all my business, Lowes can go to hell
Being a city dweller (i.e., Home Depot requires a major trek to the suburbs), I finally got around to going to a Home Depot and made my first purchase there last weekend. Wouldn't have gone there but for the boost they've given to soccer. So Home Depot got a modest (evers so modest) payback on its stadium-naming investment.
Now, if Home Depot would change its name to Victoria Street, and add a line of lingerie between the drywall and the nails, they would really see their business boom.
i think that a lot of other events can be held at those stadiums... not a lot of bands can fill a 60K stadiums... while a 25K stadium is a better bet!
Re: Re: Re: Decreasing Marginal Profitability of MLS Stadia Home Depot has all my business and also Irish Spring has all my business. Whoever there for MLS...im there for them.
FYI.. the Dave Matthews Band is booked to play at Victoria St. (Home Depot Center) Not bad for a soccer stadium that's still being built. For more info, check out www.lariotsquad.net. tm
gosya ! You shouldn't realy be concerned about this , profits can be made by cutting down on expenses,as an example: Think of it as being employed by a company out of town for an medium salary. With a family of two kids and another on its way this income is not nearly enough to make a good living. After you pay for gas, car insurance, parking and tolls. Plus the 2 hours you spend on the road each way, are just draining you out. You live in a high rental apartment each month you throw money out the window, and the landlord keeps raising the rent on you, and it's on your case about the noise and who comes to visit you etc.. You are trying desperately to look for another job that would pay you more to cover your expenses and take care of your family. Job hunting seems to be one idea but the economy is tough and there are no jobs out there. . Your only option seems to be cutting down on expenses. How do you do that. Well you look for a small home near the company where you work , This will save money on gas, car insurance,car wear and will give you free time, possibly get a part time job. You buy your own home and might even be able to set up a small business to run from there part time as it may be , something you couldn't do when renting. And just think of all the things you couldn't do in a rental unit . Point is that SSS might not make so much money in itself, but when you consider that some of the teams have to pay aprox $ 1,5 million dollars a year to rent this large stadiums and do not get to keep any profits made from parking or sales inside the stadium, then you saved yourself right there a nice sum of money. Columbus Crew is the only MLS team that is profitable in MLS because they own the stadium .
You beat me to the post. There's plenty of musician's can use MLS size outdoor venues during the summer, so that source of revenue should always be available.
ancillary revenue And Anshutz's other main entertainment business is.....? Concert promotion. Seems like a pretty natural tie-in to me.
Re: Re: Decreasing Marginal Profitability of MLS Stadia Look, everything you've said makes sense. Never argued any of it. You still miss my main point. With everyting else being the same (including cost savings and such) latter stadiums will have diminishing profitablity versus earlier stadiums, as some of events cannot be replicated for every new stadium. So, it was never a debate of building a stadium vs. renting, as I fully agree that SSS is the way to go. It was more of a debate of average profitability of the first 2 stadiums vs. average profitability of 10 stadiums.
ok, now I get your question, I think ! so you saying if you are the only Mc Donalds in town would make bigger profit compared to having 10 Mc Donalds, kind of. well the SSS would be all across the country spread out, different markets, and each one would promote their own events to make a profit. Some may have horse jumping, while the other lacross or womens professional team, concerts whatever to fill in the dates and make it profitable. Some SSS may have advantages over the others based on population,support,competition,and wheather. But all in all SSS is the only hope and the right way to go.
Re: Re: Decreasing Marginal Profitability of MLS Stadia Basically the point I was going to make. The Ohio state high school football championship game will be held at Crew Stadium, not Victoria Street. If we get to the point of overlapping markets, then you might start to see some saturation and reduced revenue opportunities. While MLS Cup/All-Star game is big for us, they're just single annual events. The real bread'n'butter of week in week out promotion is what is going to pay off the construction bills. I can see the famed Dallas Cup moving to Frisco. I can't see it moving to Harrison.
Re: Re: Decreasing Marginal Profitability of MLS Stadia I hate all of these corporate names they are putting on sports venues. They could at least attempt to sound classy... Now, I totally understand the idea of getting sporsorship money from these guys just for changing a name, so don't start with that. I really don't think that market is going to last forever. It would be better to have something like: Victoria Street by Home Depot or something to that effect. CCS has major sponsors like Huntington Bank... they get big logos and their own bar type place (under construction) to help boost their name. I'd much rather seem some traditional names like Victoria Street & Hunt Park (aka CCS). I feel silly enough having to deal with dumb American monikers like "The Galaxy" and "The Rapids" (for example). Guess I'm just idealizing, but I can dream.
Re: Re: Re: Decreasing Marginal Profitability of MLS Stadia You mean something dreadful like Invesco Field at Mile High or Oriole Park at Camden Yards
Re: Re: Re: Decreasing Marginal Profitability of MLS Stadia Andy, I am sure every facility will dedicate themselves to appropiate direction and events. "AEG, the MetroStars' parent company, is guaranteeing the operation of the facility and a minimum number of events, including festivals, concerts and other sporting events, such as horse jumping, college lacrosse and high school football and field hockey. " "We hope to bring in women's professional soccer and international games, as well as high school and college matches," Sakiewicz said http://www.nj.com/news/jjournal/index.ssf?/base/news-0/1049281924251501.xml