$7,000,000

That's going to be tough to make up.I'm not sure how much anybody would be willing to pay for the naming rights.(does anybody want to take a guess?) And,how big would the parking lot have to be? Say 5000 x $20 x 10 games=$1,000,000.Also,there is something else that I don't understand.Wouldn't an investor be given part ownership in the Stadium? And,just one more thing,couldn't the city offer the Tiger-cats part of the Municipal Parking take on game days?

This could be a fun post if everybody wanted to play the new game called "Own of CFL Team"
Best sense I can make of Bob Youngs 7 million is,

They loose 2 million a year now without having to pay the city any revenues from sponsorship, the cats collect revenue from what parking there is at IWS and they control concessions. At a new stadium as the reports stated the City would require part or all of these revenues. Bob figures long term that ticket sales at the Harbour location would not be better and thats a lack of growth as well. So add it up and I guess 7 million isnt that far off.

I think Bob Young is looking for a MLSE type option or something like a HECFI set up that he can control, earning all revenues and paying the City by percentage of sales. I d agree that should be the way, Id like to see all the pressure of creating revenues on the private sector and see the City be paid for the usage.

Justafan,these things that you mention are changes being made to the existing deal with the city. Seems to me that Bob will need the same deal he has now,just to stay at the $2,000,000 loss mark.

Exactly, not to mention the City wants Bob to invest some millions of dollars so lets say he borrowed 10 million to do this, well the added cost of financing those moneys has to be added in. The 7 million projection is very real if you consider these factors and the fact that growth in and around the area at Harbour front will be limited at least in the short term, being at least 10 years until the area fully develops and thats optimistic at best.

So would you invest your own money?

Man, big gamble, Bob must really love the TigerCats a lot that's for sure.

I agree on the "big gamble" statement. I think that, not only does Bob love the team, but he can see its potential as a business andI believe, if unfettered, he could realize that potential and more. The guy is a businessman and a succsessful one at that. I trust his judgment and vision more than anyone else with a stake in this issue. (an issue that is becoming a fiasco very quickly in my opinion)

Billy: It already IS a fiasco.
Good luck to the mediatior.

x2 62 We may disagree on why but it sure is

While it may be a "fiasco" in terms of the process and how it has played out thus far, we are not yet in a situation where Hamilton or Hamilton/area has to bail on the stadium altogether and give it up to Toronto proper, then it will be a full fledged fiasco any way you look at it. That could very well then be the end of the TigerCats.

I'm still very hopeful despite the facilitator having a tough job on this one.

We are very close Earl. The stadium its funding allows makes no sense for the city and even less for the Ticats at the moment

Yes, close, but the nail can still be pulled out, let's pray a bit and hope.

Here is what Bob Young said in his article about this last week:

We have calculated financial projections for the 2014 fiscal year (the first year the stadium might be completed) based on historical averages, stadium capacity, information from the Deloitte report and estimated inflationary impact. Using the allocations suggested by Deloitte and our estimate of expenses and revenues in the 2014 fiscal year, operating out of a 20,000-seat stadium in the west harbour, our franchise could lose in excess of $7 million per year. We have shared both our analysis and the conclusion that the stadium as proposed will not succeed as a venue for a CFL team.

And here is what the Spec reported the next day in explaining the $7 million figure:

The $7-million loss Young forecast "is not magic, it's pretty simple," said the Ticat owner's financial adviser, Doug Rye.
Rye laid out a balance sheet for 2014, the first year the stadium would be available.
He said Ticat expenses would be about $17 million for that season based on 4.5 per cent budget increases over the next four years.
Rye used the projected operations on a 20,000-seat stadium in a Deloitte report commissioned by the city and current practice at Ivor Wynne Stadium to arrive at a bottom line.
That 20,000 figure is the greatest number of seats the $102-million in public funds could build.
The club anticipated $6 million in gate revenues, assuming average $30 tickets and Rye said the team forecast about $1.1 million from concessions, souvenir revenue and stadium advertising.
The Canadian Football League would provide another $2 million from television rights and sponsorships.
Another $1 million would come from team-specific advertising.
That's $10.1 million, leaving a near $7-million loss.

Will someone please tell me when was the last time the Tiger-Cats had an average ticket price of $30? How far back into history did they go to come up with that "historical average"? I am not suggesting that a stadium in the west harbour will be a big money-maker for the Tiger-Cats, but based on Rye's explanation I don't believe the loss will be $7 million.

How far back. 2009 would be my guess. Hardly anyone pays full price

So let me see if I have this correct.Bob Young loses $2,000,000 a year at IWS.He figures he will lose $7,000,000 in his first year in the new stadium.So the city is taking about $5,000,000 of revenue out of his pocket.You would think that if we sold out every game last year,he probably could have made up the $2,000,000. and broke even.There isn't a lot of room for error there.Fill the seats ,and you will make money.

If so, that''s pretty outrageous for those who do.

This year's season prices include large sections of the stadium priced at $70, $55, $38 and $30, and small sections priced at $19.50, $15 and $12.50. The equivalent prices for single-game sales are $90, $70, $55, $45, $25, $22 and $20.

Based on the seat map it appears at least three-quarters of the tickets are in the group costing $30 and up for season's and $45 and up for singles. So I have a very hard time believing the historical average is $30 per ticket unless you go back a hell of a lot further than 2009, or unless the team is giving away thousands of tickets a game, in which case those who pay full price are dupes.

it also presumes no increase in ticket prices over the next 5 years and based on the 45% increase during the current ownerships tenure i am not counting on that>

If anyone is paying full price they are dupes. I guess there aren't as many of those as you believe

pw13:

      It's been said before but .....if the Caretaker is 7 million short in a stadium he can have for a relatively measly 50 million or less (depending on how much extra tax money is available), just where can he go that will make up the 7 million? 
   As far as I can see ( and as the city manager has already pointed out) no site in Hamilton can get the team that much money.

If the Caretaker builds his own stadium somewhere, his loan payments will likely mean he will have to make up a lot more that that before his is in the black.
So when Bob gives us these financial scenarios it seems to me he is writing an obituary for the team re: staying in Hamilton. :cry:

I am beginning to wonder the same thing 62. Maybe the Cats can't work in Hamilton any longer for whatever reasons. :?

As I said (or at least implied) above, I don't believe there will be a loss of $7 million. An average ticket price of $30 five years from now? If that's true, then the team will already be out of business.