Financing Sport Facilities

1
Financing Sport Facilities

• Facility Management Design
• October 3, 2006

2
First, Some Notes

• Make sure to read Farmer, pp. 15 16.
• Some information today from Fried
• Spend some time on finance, then move into
  groups---checkpoints
• Give instructor your written update.

3
Financial Concepts

• Future direction
• Roadmap, based on past, projected performance
• Budgeting
• Use of financial statements
• Analysis

4
Revenue and Expenses

• Simply coming in and leaving
• Revenue from numerous sources
• Some revenue is unique to certain facilities
• Identify specific revenue and expenses (list)

5
Public Stadium Revenue Expenses

• Revenue Expenses
• Premium Seating Tickets Debt Service
  Salaries
• Naming rights Advertising Equipment
  Maintenance
• PSLs Parking receipts Supplies
  Janitorial
• Concession revenue Insurance Taxes
• Novelty revenue Professional expenses (legal)
• Tenant rent Govt. subsidy Utilities
• Various bonds Contractual expenses
• Ticket surcharges Capital repair replacement
• Facility rental (e.g. The Jake)
• Special events income

6
Revenue and Expenses

• Simply coming in and leaving
• Revenue from numerous sources
• Some revenue is unique to certain facilities
• Identify specific revenue and expenses (list)
• Defining certain revenues and expenses
• Benchmarking, may need to look at hotel ind.

7
Financial Analysis

• Income Statements
• Balance Sheets
• Tracking Cash

8
New Facility Financing

• Private Financing
• Collateral Financing
• Private Investors
• Corporate Bonds
• Partnerships
• Public Offerings

9
Public Financing

• Bonds
• -General obligation bonds
• -Revenue bonds
• -Tax backed bonds (Types of taxes used)
• Repayment sources

10
Miscellaneous Funding

• Grants
• User Funding

11
Terms Match-up

1. Gantt Chart
2. Programmable or usable space
3. Penthouse
4. Concrete Masonry Unit
5. Punch list
6. Program
7. Retrofit
8. HVAC
9. Split-face
10. Job meeting
11. Finishes