It has nothing to do with selective memory. It has to do with the simple underlying fact that the revenues you are about to post were not adequate to keep the current stadium operating in the black, hence them needing to use the full depreciation schedule on an annual basis just to have the books remotely close to balancing. Now, with an additional billion dollars of cost there is obviously(to anyone who understands financing) a need for increased taxes or revenues to pay for that. If that revenue is not going to come by having higher ticket prices(as you contend) then they need to come from somewhere and that money should come from stadium related fees and taxes and not from general fund revenues.
Originally Posted by NodakPaul
Here is a quote from the official Vikings site:
Minnesota Vikings | Frequently Asked Questions
The remaining $498 million public contribution will be split between the City of Minneapolis and the State of Minnesota and will not include new taxes or have a negative impact on the State’s general fund. The City’s $150 million contribution will be paid by redirecting a portion of the current “Convention Center Taxes,” while the State will issue appropriation bonds for $348 million. The appropriation bonds will be repaid through the modernization of State-authorized charitable gaming that includes electronic pull-tabs and bingo.
that is pointless. the only real measure is whether the tax revenue collected meets the costs associated with it. Apparently by raiding the general fund it is clear they don't.
Vikings tickets are taxed at 16.875%, making them the highest taxed tickets in the NFL
. This includes the standard 6.875% sales tax that goes directly to the state, plus a 10% admission tax that directly funds the sports authority.
Now, compare that revenue with the expenses and get back to me on that.
The average ticket price in 2012 was ~$75. The average attendance for a regular season game in 2011 was 62,816. 2012 stats are not verified yet. source
So for 8 regular season games that is a total ticket income of $37.7 million, giving the state $2.6 million and the stadium authority an additional $3.8 million.
Add that to the total above, compare it to the expenses and get back to me.
The preseason games are included in season ticket plans, and the Vikings have around 40k season tickets sold. So we can add another $400k in sales tax and $600k for the admission tax for just the guaranteed seats.
And the obligation on the debt is supposedly in the 30 million a year range.
That brings the total annual tax revenue from ticket sales alone to just under $7.32 million ($2.949 million in sales tax and $4.369 in admissions tax).
I know that the admissions tax will continue to fund the stadium authority (the Vikings rent covers all operating costs of the stadium), but where does that other $3 million go? It goes into the general fund. It may only be a 1/7 of the total price that the state needs, but it is a start.
It should not be a start, it should be the end. Plus, do you figures include extra police and security for games, fire protection etc?
Let's look at costs vs income:
So let's look at the other taxes collected by the state...
Income Taxes on players in 2012 = $10 million
Income Taxes on coaches in 2012 = $1.5 million
Sales Tax on Concessions in 2010 (last good stat) = $0.565 million
Sales Tax on other game day services (parking, advertising, etc) in 2010 = $1.37 million
That brings us up to $16.384 million in sales and income tax that is going directly into the state's general fund (I am leaving out the $4.369 that pays for the stadium authority).
Now we are only $8 million short for the annual debt requirement by the state, and that is not even considering any of the expected increase in ticket prices with the new stadium (It is generally expected to see the average ticket price to increase to between $85 and $90). $7.3 million short
It is also not including the tax on suites, which is expected to bring in $2-3 million per year. $4.3-$5.3 million short
Nor is that including the $1.7 million that is already being generated by pull tabs (Seriously, who though that would ever raise $20 million annually!). $2.6-$3.6 million short
All of a sudden, the gap between what goes into the general fund as a direct result of the Vikings and what the state needs to pay is awfully small. How many Minnesotans watch the Vikings on TV and claim them as their their team? If only 1/4 of the states population watch the Vikings and claim them as their team, that comes down to less than $2 per year per person. Is that really too much to be spending on what is essentially a state resource?
Operating revenues were $16,347,253 for fiscal year 2011. Sources of revenue are
comprised of concessions, admission tax, rent, charges for services, advertising, parking,
and other revenues. Food and beverage concessions constitute the largest source of
revenues and represent 42.8 percent of total operating revenues. A portion of the
concessions revenues is paid to the Minnesota Vikings and a five percent management
fee is paid to the concessionaire who manages and operates the concessions.
Per Minnesota statutes a ten percent admission tax is charged on all Metrodome
admission tickets. This tax was designed as a user fee to help defray operating expenses.
Rent is based on the terms of the Use Agreements with the Minnesota Vikings and
various other users. Rent also includes the private suite rent from the Minnesota Vikings.
Charges for services include payments from the users and others for event related
expenses such as audio expense, scoreboard operator expense, cleaning supplies and
services, first aid, and field lights.
The Commission’s expenses increased by $428,326 during the year, fiscal year 2011
expenses were $24,659,873. The three largest changes in expenses were: facilities
cost credit decreased by $855,523 due to only seven regular season football games
were played at the Metrodome in 2011, depreciation expense increased by $1,458,436
due to the additional depreciation expenses associated with the new roof, and the
increase in the roof restoration project costs of $581,228 are due to the project was
completed in 2011.
At year end total operating loss was $8,310,700
Now, add on 30 Million extra per year in costs to the state for construction expenses and add Millions of dollars a year to the vikings costs associated with the construction and where is that money coming from if ticket prices are not going up and taxes are not going up?
Nope. It isn't because you only look at what they bring in and not the expenses incurred in having them here and making it a go. Any business model looks good if you only look at the revenue sheets and don't look at the expenses.
I am all for not using corporate money or cigarette money on the Vikings stadium. But if that is the case, let's set aside all of the money the Vikings pump into the general fund and use that instead. Turns out it is basically a wash.
here is what Dayton said a while ago when the Vikings were going to do PSL's. Funny how he has no problem jabbing the average joe when he needs the money huh?
Posted at 9:29 AM on November 13, 2012 by Tim Pugmire (2 Comments) Filed under: Mark Dayton, Vikings stadium
Gov. Mark Dayton has told the Minnesota Vikings that he is "greatly distressed" that the team is considering a plan to charge season ticket holders a fee that would help pay the team's share of a new $975 million stadium.
In a harsh letter to owners Zygi Wilf and Mark Wilf, Dayton stressed that the private contribution is the team's responsibility and not the responsibility of season ticket holders.
"I said this new stadium would be a 'People's Stadium,' not a 'Rich People's Stadium,'" Dayton wrote.
Dayton warned that it would better to not build a new stadium than have it betray the trust of the regular Minnesotans who supported the project. He also said he would urge the Minnesota Sports Facilities Authority against authorizing the proposed "Stadium Builder's Licenses."
"If necessary, I will go to the Legislature next January and urge the the authorization be rescinded," he added.