The Sacramento city council last night unanimously approved Republic F.C.‘s stadium term sheet, which proposes building a new $180 million MLS stadium almost entirely with private money, once MLS deigns to give Sacramento a franchise.
Republic owner Kevin Nagle says he and his investment partners can pay for two-thirds of the $180 million construction budget with “equity” (I assume he means cash, unless he’s really going to give the stadium contractors shares in the team) and borrow the rest. Add in an expected $100 million expansion fee, and that’s $280 million Nagle and his partners will need to earn back before turning any kind of profit — so figure close to $20 million a year in revenues needed in order to make this a reasonable investment. How does that compare to other MLS franchises?
|Value ($M)||Revenue ($M)||Operating Income ($M)1|
|Sporting Kansas City||165||29||4|
|New England Revolution||158||25||7|
|San Jose Earthquakes||146||13||-1|
|New York Red Bulls||144||22||-9|
|Real Salt Lake||108||17||1|
|FORBES estimates; revenue and operating income is for 2014 season
1 Earnings before interest, taxes, depreciation and amortization
Yeah, I have no idea how this is going to work out either, unless it’s a roll of the dice on MLS franchises making a whole lot more money in the future. Or rich people just think it’s fun to own soccer teams. Which, sure, so long as they’re spending their own money, it’s no skin off taxpayers’ noses.
Meanwhile, here are pretty pictures to look at. It sure does look fun, no? I don’t know about $280 million worth of fun, but then, I have no way of knowing what $280 million worth of fun looks like, so maybe I’m not the one to judge.