Monday, August 4, 2008

A financial analysis of the new Stadium by Crain's NY Business (and an NYY Stadium Insider mention)

Crain's New York Business ran an interesting piece today about the financial ramifications of the new Yankee Stadium.

I found this part especially intriguing:

For example, in the prospectus for the $942 million of tax-exempt debt raised in 2006, the Yankees said, "Projected 2009 revenues at the new stadium are expected to be $253.2 million based on an assumed attendance of 3.4 million people."

Pitch is low

As rich as those estimates may sound, they are quite conservative. The projection assumes that only 42,000 people will attend each home game next year—about 20% below this year's average to date.

Its no wonder that the Yankees have little concern over their $200MM in payroll expenditures year in and year out. The new Stadium is going to be a goldmine. I guess this is fairly obvious, but the actual numbers are mind-blowing, especially considering the Yankees modest attendance expectations. I am pretty sure EVERY game next year is going to be sold out.

I would also like to point out that Aaron Elstein interviewed me for this piece and included some information about this blog and also a quote at the end of the article:

Many season ticket holders are worried about being priced out of the new stadium. Ross Sheingold, who runs the blog NYYStadium, says the cost of his season tickets, located high in the upper deck directly behind home plate, was increased by a painful 47% this year. He sold his tickets this year at face value and may have to cancel his plan if prices rise any higher.

"I have no illusions that prices will remain the same for too long, even if they are the same next year," Mr. Sheingold says. "However, I have been dreaming of a new stadium for so long that I have to have season tickets if the opportunity presents itself."

The mainstream media and blogs working together to get more information out to the public. Buzz Bissinger would be proud.

Talk about it in the NYYSI Forums!
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