Wow, the marketing people in LA must either be jumping for joy or saying "whew" They get a chance to sell a championship team along with a brand new stadium. Of course some of this is slightly offset by the large ticket increase. As I said on the MLS board, I believe history will show that LA winning this game will be better for the long term viability for the league. No one is going to remember even where this championship game was played soon, but every perspective owner (Garnber says about 7 which means there MAY be one), will be going over Victoria ST's revenue numbers witha fine tooth comb. Andy
Can you imagine the demand for MLS cup tickets if LA makes it to the final again? With so few tickets available, I think it may be the first time in MLS history where tickets will be scalped at a much higher price.
Gal Tix Price Increase G tix prices are generally going up by approx. 50 percent. This year, sideline seats at the RB were $22. Next year, sideline seats at the NTC are $650 for the season (20 games = $32.50 per). Club seats are $1750 for the season -- have to talk to the managing partner, see if he'll spring for eight for ... ahem ... client entertainment.
Hmmm.....interesting. I spent a lot of time thinking about this as the match progressed and kind of went back and forth. In the end I kind of figured a NE win would be more in the interest of the league given that LA already have a new stadium to market for next year. I figured NE could use the "we're defending champs" angle more since the new stadium thing will no longer be true. But who knows. If nothing else LA's attendance next year will be very interesting to watch.
I do agree that LA next year (and in years thereafter) will make a statement to potential investors. Columbus is clearly a far more viable franchise since Crew Stadium rolled around. But it would be easy to think that wouldn't translate to a bigger city with so many other entertainment options. If LA gets what they want to charge for the tickets and still has close to full houses for their games next season, then they will be able to be a showpiece for the league in a big way.
I personally was hoping to see an average of 20,000 at the new stadium (this means the games played at the new stadium not adding in the July 4th game that will continue to be at the Rose Bowl). I findh it hard to believe that LA coud raise its season ticket base from the low thousands into the high teens, which is what I think the base would bnee to be to bang the joint out week in and week out at 27K Andy
Well, the first few games will definitely sellout because of the newness factor. So, there's an average of 27,000 for the first few games. The only way I see anything below 17,000 at the stadium next year is a weekday game. The 33,000 for the San Jose game and nearly 25,000 for a playoff game are a great sign. The Galaxy are pumping up this stadium big time. During halftime of games on KCAL 9 at the end of year they showed GM/VP Doug Hamilton giving a tour of the stadium, and there were about 5 other virtual tour commercials. The biggest questions about fans is are some of the San Fernando/San Gabriel fans not going to come to the games? If not, I think the South Bay and Orange County fans will help pick up the slack. There are 3 major freeways right near the complex, 91, the 405 parking lot, and the 110. Also, I hope people don't want to go there because of people's preconceptions about the city of Carson. Cal State Dominguez Hills is a nice campus, there's a nice mall and golf course within a mile of the stadium. Yes, it's just south of Compton, but the southern part of Compton is not bad, it's a very clean business area.
They've seen a significant number of Season Ticket deposits already this year. I'm hearing possible double the number sold this year (which would make it 8k-10k for next year) Not bad. A third of the stadium sold to season ticket holders. We'll see if there's much more of a bump the next few months.
I guess I'd been confused. I thought 27k was the 'additional capacity' and the normal capacity ws smaller than that. Maybe not. There were a whole bunch of conflicting reports when the thing was still on the drawing board. If it's 27k every week, the the Galaxy could actually increase their attendance enough to notice the difference (especially if the July 4 game is still in the Rose Bowl, which I can certainly see why it would be). With the combined effects of the stadium and the championship, I would expect that to be the case, and I would expect that in turn to make a modest impression at least upon the city of Los Angeles as well as potential investors.
Bottom line is that the Galaxy could average fewer fans but as long as they make more money the other investors will be impressed. Chances are it's not going to happen or if it does it won't be by much. On the flip side however you look at it - the Galaxy will definately make more money than last year. 1. They are charging 50% more for tickets 2. They are paying less for rent 3. They have a piece of parking 4. They have a piece of concessions 5. They have a piece of merchandising at games Finally, as 2002 MLS Cup Champs - they now can get more lucrative sponsorship deals on the local level. I wouldn't be surprised if when it's all said and done - the Galaxy are capable of showing a profit. Due to some tax scheme however - I'm sure it will benefit nobody to do so - and therefor they will break even.
Regarding future profitability, while the Galaxy won't be paying lease payments, presumably they will have the depreciation expense associated with the new stadium. Overall expenses may not go down (and may even increase depending on the useful life of the asset and cost of the stadium), but the cash flow will improve since depreciation is a paper expense and lease payments to the Rose Bowl are a cash outlay.