Coliseum City Football Stadium Revenue Study

Presented to: City of Oakland Alameda County Oakland-Alameda County Coliseum Authority July 15 and 16, 2013

AECOM Economics and Front Row Marketing Services

AECOM Economics Sports facilities planning practice Local presence and experience Experience in the planning of ancillary real estate in sports- and entertainment-based districts
New NFL Stadium & District City of Industry, CA

Front Row Marketing Services Values and sells premium seating, naming rights, sponsorships, and other assets and properties Sister/parent companies include operator of NFL stadiums, entertainment districts, F&B services

Qualcomm Stadium

San Diego, CA

Presentation Outline/Scope of Work

Local Market Analysis NFL and Stadium Conditions Input from the Raiders & New Stadium Market Demand and Operations Ancillary Development Stadium Financing Analysis Preliminary Conclusions and Timing for Completion

Local Market Analysis

Raiders market goes well beyond Oakland/Alameda County Significant wealth in the broader metro area Strong corporate presence, but primarily to the south of Alameda County Significant competition from other local teams and universities, particularly with new 49ers stadium in Santa Clara and general presence of a second NFL team in the Bay Area

Local Market Analysis

The Bay Areas Fortune 500 Companies

NFL and Stadium Conditions

Raiders Demand and Operations:
Towards the bottom of the NFL in attendance and attendance as a percent of stadium capacity; reduced capacity this fall will make the Coliseum the NFLs smallest facility Unsold premium seating, and few long-term contracts Low ticket prices Unfavorable revenue-sharing terms due to As presence (F&B, sponsorships) According to Forbes, third-lowest team valuation and one of the only teams that is not profitable

O.co Coliseum:
Few ticketed events aside from Raiders and As (typical for a stadium) Second-oldest NFL stadium without a significant renovation (since 1996s renovation); facility is generally outdated and has many physical deficiencies Well-located, particularly for certain events

Input from the Raiders

The team commissioned a study that included telephone and online surveys, as well as other market research Preliminary conclusions shared with us:
Little corporate support in the market PSL program could potentially generate approximately $100 million Anticipated demand could justify approximately:
50,000 seats 85 to 95 suites 6,000 club seats 400 to 600 loge seats Generally consistent with our preliminary conclusions

New Stadium Market Demand and Operations [in progress]

Relatively low levels of corporate support Limited number of non-Raiders events (open-air and domed scenarios) Stadium Operations: Revenues total ~$60M+/- per year before sharing Expenses ~$15M to $20M+/- per year before sharing Coordination with Raiders and other consultants for final estimates of facility costs and offerings/capacities

New Stadium Market Demand and Operations [in progress]

Stadium Costs:
Construction and related costs (Santa Clara $1.3B, Indianapolis $720M, Atlanta $1.0B, Minnesota $975M, New York $1.6B) Infrastructure (TBD) Coliseum debt

Potential Funding Sources:

Raiders PSL NFL G-4 loan Stadium revenues Ancillary development Public funds

Raiders/league and stadium revenues are not expected to be sufficient to cover all development costs

Ancillary Development [in progress]

Analysis of three development scenarios (different from Coliseum City study):
1. Only Raiders on site at new stadium (incl. Oracle Arena with no tenant) 2. Raiders and Warriors on site 3. Raiders, Warriors, and As on site

Analysis of potential land uses, market needs, on-site demand generation, and operations of comparable developments Focus on RDE (retail, dining, and entertainment), hotel, residential, and office uses Potential supportable development in first scenario: 40,000 60,000 SF of RDE
150 250 hotel rooms; 400 700 residential units; 35,000 70,000 SF of office

Stadium Financing Analysis [in progress]

Cost and share of funding for current and planned NFL stadiums, and changes over time
100% 90% 80% 70%
Funding

$1,400 $1,200 $1,000 $800 $600 $400 $200 $0 1960s 1970s 1980s 1990s 2000s 2010s % Public
Cost

60% 50% 40% 30% 20% 10% 0%

% Private

Since 2010: Santa Clara, Atlanta, Minnesota, New York, Kansas City

Total Cost (millions)

Common public sources used: tourist-based taxes (hotel, car rental), other taxes (sales, admissions, parking, F&B, on-site taxes), tax increment, land contribution, infrastructure, and others

Stadium Financing Analysis [in progress]

Case studies of other facilities funding sources and amounts
NFL: Santa Clara, Indianapolis, Kansas City, Atlanta, Minnesota Others in California: Petco Park (San Diego), New Sacramento Arena

To come: Analysis of potential funding sources and amounts in Oakland and Alameda County

Preliminary Conclusions
Opportunities
Potential improvement of on-field product can increase demand Willingness of Raiders to stay in Oakland and be a partner Raiders partial contribution towards funding; appetite for PSL program was greater than anticipated Location of Coliseum site central, public transportation Potential opportunities for public funding

Open-air stadium expected to be more financially viable than a domed facility Oracle Arena not expected to be negatively affected by either stadium scenario

Preliminary Conclusions
Threats
Local/regional competition from Levis Stadium Difficult environment for stadium funding Raiders limited capacity to contribute Lack of readily available public funding local or state Current lack of relatively strong corporate demand for Raiders products (i.e. premium seating and sponsorships) Limited ability to drive on-site development and resulting revenues Outstanding Coliseum debt

Timing for Study Completion

New Stadium Market Demand and Operations ~late July Ancillary Development ~early August Stadium Financing Analysis ~late July/early August Final Report ~late August Final Presentations/Meetings September

Q&A / Discussion