Thread: Dome expects to lose $2M a year when Twins, U leave

http://www.startribune.com/sports/46847937.html

[size=12pt]Dome expects to lose $2M a year when Twins, U leave[/size]
With the Twins and Gophers leaving, Dome officials say the facility will lose around $2 million each year.

By AIMÉE BLANCHETTE, Star Tribune
Last update: June 4, 2009 - 8:21 AM

The people who run the Dome are looking to keep it viable -- mostly by cutting expenses.

"We're OK with a combination of reductions and the revenues we have from other events ... as long as the Vikings are still there," said Bill Lester, executive director of the commission.

But without professional football in the Dome, all the tractor pulls in the world wouldn't make up the cash flow difference, Lester said.

"Nothing pays the freight like the Vikings," he said. "You take that out and the Dome's no longer viable."

And this:

The commission also discussed what will happen when the Vikings' lease expires after the 2011 season. The commission and the Vikings are pushing for a new stadium on the Dome site.

"The Vikings aren't going to extend their use agreement in the existing facility. A reconstructed facility at the Metrodome site, they would [lease]," Lester said. "That's the overall objective."

Discuss.

=Z=

sigh

I'm surprised it's only $2M.

Since a new Vikings facility would carry the same type of venues as the metrodome (at best) I don't see how a new stadium is going to help anything as far as MSFC should be concerned about.
It's not like the Twins and Gophers are going to be playing there.

"BloodyHorns82" wrote:

Since a new Vikings facility would carry the same type of venues as the metrodome (at best) I don't see how a new stadium is going to help anything as far as MSFC should be concerned about.
It's not like the Twins and Gophers are going to be playing there.

I can see a couple things.
If the MSFC continues to own the new stadium and the Vikings lease it from them, they would reap the benefits of the expanded revenue from suites, club seats, etc. that a new stadium would bring.
I would also assume (in that case) that a new stadium would be "cheaper" to operate, using modern innovations and more efficient solutions for things like air quality, lighting, etc.

If the Vikings own it, then the MSFC is free from the burden of having to pay to keep the damn thing going all year round.

=Z=

I also think that the new stadium could be more efficient than the aging dome, so operating costs will likely be down, even if just slightly.
Add to that the fact that the Vikings will realize more profit, and the MFSC could easily charge more for the Vikings to lease it without financially killing the team.

"Zeus" wrote:

"BloodyHorns82" wrote:

Since a new Vikings facility would carry the same type of venues as the metrodome (at best) I don't see how a new stadium is going to help anything as far as MSFC should be concerned about.
It's not like the Twins and Gophers are going to be playing there.

I can see a couple things.
If the MSFC continues to own the new stadium and the Vikings lease it from them, they would reap the benefits of the expanded revenue from suites, club seats, etc. that a new stadium would bring.
I would also assume (in that case) that a new stadium would be "cheaper" to operate, using modern innovations and more efficient solutions for things like air quality, lighting, etc.

If the Vikings own it, then the MSFC is free from the burden of having to pay to keep the damn thing going all year round.

=Z=

I thought most of the revenue from suites and such went into the NFL revenue sharing program....I guess I'm still not exactly clear on where the money goes and who gets what.

"BloodyHorns82" wrote:

"Zeus" wrote:

"BloodyHorns82" wrote:

Since a new Vikings facility would carry the same type of venues as the metrodome (at best) I don't see how a new stadium is going to help anything as far as MSFC should be concerned about.
It's not like the Twins and Gophers are going to be playing there.

I can see a couple things.
If the MSFC continues to own the new stadium and the Vikings lease it from them, they would reap the benefits of the expanded revenue from suites, club seats, etc. that a new stadium would bring.
I would also assume (in that case) that a new stadium would be "cheaper" to operate, using modern innovations and more efficient solutions for things like air quality, lighting, etc.

If the Vikings own it, then the MSFC is free from the burden of having to pay to keep the gol 'darnit thing going all year round.

=Z=

I thought most of the revenue from suites and such went into the NFL revenue sharing program....I guess I'm still not exactly clear on where the money goes and who gets what.

Nope, suites and luxuray seats are 100% free of revenue sharing.
Only standard seats go into the revenue sharing pot.
That is why the Vikings want more of them.
The NFL also dictates that a certain number of standard seats be available in every stadium, to prevent someone from building a stadium of nothing but suites.

FYI, suites and luxury seats do not count toward blackouts either.

"NodakPaul" wrote:

"BloodyHorns82" wrote:

"Zeus" wrote:

"BloodyHorns82" wrote:

Since a new Vikings facility would carry the same type of venues as the metrodome (at best) I don't see how a new stadium is going to help anything as far as MSFC should be concerned about.
It's not like the Twins and Gophers are going to be playing there.

I can see a couple things.
If the MSFC continues to own the new stadium and the Vikings lease it from them, they would reap the benefits of the expanded revenue from suites, club seats, etc. that a new stadium would bring.
I would also assume (in that case) that a new stadium would be "cheaper" to operate, using modern innovations and more efficient solutions for things like air quality, lighting, etc.

If the Vikings own it, then the MSFC is free from the burden of having to pay to keep the gol 'darnit thing going all year round.

=Z=

I thought most of the revenue from suites and such went into the NFL revenue sharing program....I guess I'm still not exactly clear on where the money goes and who gets what.

Nope, suites and luxuray seats are 100% free of revenue sharing.
Only standard seats go into the revenue sharing pot.
That is why the Vikings want more of them.
The NFL also dictates that a certain number of standard seats be available in every stadium, to prevent someone from building a stadium of nothing but suites.

FYI, suites and luxury seats do not count toward blackouts either.

That makes sense...I think I knew that at one point in time.
For everything learned is another forgotten.
+1, -1
Ying/Yang.

;D

"BloodyHorns82" wrote:

Since a new Vikings facility would carry the same type of venues as the metrodome (at best) I don't see how a new stadium is going to help anything as far as MSFC should be concerned about.
It's not like the Twins and Gophers are going to be playing there.

Simple formula.

1) take a team that can't generate enough revenue in a building with no mortgage to keep it solvent
2) Add a billion dollar mortgage
3) Take the only additional revenue source for the new building(Luxury suites) and stick that money in the owners pocket where it won't be contributing to paying down the principal of the building.

4) here is your WTF moment.