Wednesday, February 27, 2008

 

Nationals Stadium challenge

An interesting article in today's Washington Post discusses the challenges that the Washington Nationals face in making their new stadium a gem. Remarkably, the stadium appears to be on schedule to open in time for the home opener on March 30 and appears to have not exceeded the construction budget. There is, in fact, little doubt that the stadium will be ready to host baseball this season. Challenges remain, however, with transportation to and from the park and in ensuring that the surrounding area presents a pleasant environment for fans. Columnist Thomas Boswell writes about the industrial home of the Florida Rock and Gravel Company that is located right behind the home plate entrance and the sewage treatment plant beyond the right field stands. Boswell writes, "As for the gruesome WASA (sewage) site beyond right field, which could have been addressed long ago, it would be the Most Unsightly Thing Near Any Big League Park if Florida Rock and Gravel hadn't already retired the trophy." Another challenge will be the two unsightly parking garages beyond the outfield seats. Mark Lerner, part of the Nats' ownership group, indicates that they will spruce up those facades with a Washington Hall of Fame display and other baseball focused visuals. The view certainly won't be mistaken for that of AT&T Park in San Francisco, but the experience of the owners with the details involved in real estate development holds promise that the stadium and its surroundings will prove to be a great destination with any fan.

Friday, February 08, 2008

 

The business of stadium concessions

An interesting article recently appeared on the Fox Business website that discusses the economics of the $10 hot dog at stadiums and arenas. While one might think that the operators of concessions at stadiums must be raking in huge profits, the article states that 40-50 % of revenues goes directly to the stadium authority or the team. The story likened the situation at stadiums to those at movie theaters, where the price of admission is set to barely offset rent, movie rental fees, salaries, and other expenses, while sales of food and drink leads to real profit. The article also pointed out the trend in stadiums towards higher priced food that has better quality and the focus in new stadium design on concession areas in addition to seating areas. That latter point is driven home by Petco Park in San Diego, where the concession areas practically form an entirely different venue surrounding the seating bowl.

 

Role of public funds for stadium construction

Recent debates in the state of Washington regarding public funding for part of a proposed $300 million refurbishment of Husky Stadium on the campus of the University of Washington raises questions regarding the role of public support in building stadiums and arenas. Two of Seattle's major sports teams, the Mariners and Seahawks, play in glistening venues that were partially supported by taxes imposed in King County. The NBA's Sonics, however, have struggled to get a similar deal in hopes of building a replacement for aging Key Arena. Politicians have been adamantly opposed to such a support. In the meantime, the University of Washington will seek financial assistance in renovating Husky Stadium, renovations that will improve the structural strength of the facility and enhance the venue for viewing. Legislators have been more willing to assist here. Is it because of the loyalty of alumni making the choices for the government? Is it a nod to constituents who are typically more supportive of the Huskies than they are to the Sonics? Some legislators have argued that support of the college stadium is more of a government functions compared to the construction of an arena that serves a for-profit enterprise such as the Sonics. This argument, obviously, falls apart when considering past support for the Seahawks and Mariners. But the fact that stadiums serve the community beyond their financial benefit to the team has been the basis of decisions to support the refurbishment and construction of sporting venues across the country. The big question now...How does Washington State University feel about tax money going to UW, especially considering that they are in the midst of a $70 million renovation to Martin Stadium, home of the Cougars?! See article on WSU's response.

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