.

..
c
U)
GJ

..
ia

(I

GJ

..
~
U
111i~~ill

I-

UJ

..
.:cuIi
lU

-I
II

"

i- ,.
LL "2
o c(
0
:z 0= (J
c( 0 ~

-i :z .9

:c !3
C)-a.
W i- c:

wW g

:::d3 a

- LL.~
o LL

0: :z Cl

ii 05

ui
11ui

-~

It

c(
(U

ui

It

U'

(U

..
~U
11-

Ii

ai

E
ro

II \!
..
ai
~.. 0.
"C

2 ~
-i II

u. ..
Z~
u
ai i=
E ai

.. ..

ro bJ
\! ro
ai ai
0.
~
ai ..

u ro

~ ai

"C );
C LI
ai =-

~ ~
ai

't
o

Vl

ai
ra

\!
c
o

II
ro

..

ai
Vl

..
::
b.

ai

..

~
0.
"C

..II

Vl

i=

.iuai

ai

~I
ai

); ai
LI
~
..

~
LI
oo

I.
o
o
N

oo~
N
o00o
N

en
ooN

E bJ =:: .5 ''5

jg Vl ro
Vl
U

:a ~ g

E .. ~
:: :i '5

:a =- a:

..

ra
Vl

ro

ai

ien .i
o
c
o ro
NO:

rl N M ~ ~ in en 00 ~ ~ LI ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

en ~ ~ rl M ~ ~ in rl M 00 LI N 0 00

~~~~:;~~:i~~~~~gg~

M LI

LI LI

LI "

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ ~ ~~ ~ g ~ ~ ~ ~ ~ ~ N M
" co
en
in
~
N
en
N
0
in
LI
~
N
M
~
~
in
in
en
0
N
M
in
in
M
LI
in
rl
rl
M
LI
0
in
in
'~ ro
~ ~~ in~ ~~~
in ~~~inrlinMin~inininro
I.\
00
~~
in in
in ~
in ~inro
in ~
in ~
in M
LI rl
LI ~LIin
LI
in in
LI in~ininMI.

NinoenoLl~ooo~~~inen~oLl
LI
in 00 LI N MOO ~ rl LI in M en rl in rl
~ LI

~ LI ~ ~ M rl en M NOON en en M in ~~
~' 00' M' N' ~' M' en' 00' 0' ~ M' rl' N' ~'
\I' ~
ro
~~
~
in in in in in LI ~ LI LI in in in in in
\I \I
00ro
~~
~ ~ro~rl~inininro~
~ ~ in
in ~~ inro
in~in

en in 0 en N rl ~ 0 M en en M 00 rl 00 ~ rl LI ~ en ~ en ~ 0 M ~ LI in en 00 ~ 0 00 00
rl rl N in rl N ~ rl rl ~ en M ~ rl ~ 00 en 0 M I. 0 rl 00 ~ in en rl N 00 rl 00 rl M ~
in
i. M LI NON ~ ~ en M MOen ~ ~ en LI in N LI LI 00 00 0 in ~ in 00 0 rl en " "
r- \
ro
in~ro~
~ inro

I.
00 ro
~ ~~~~i.~~ro
~M
~ in in
in
in ~
~ in
in ~in~inro
in ~ini. ~
in M
in LI
LI ~in~inM
in inin~ \I

~ ~ LI 00 N 00 0 N ~ ~ rl 00 ~ 0 ~ 00 M ~ 00 00 0 0 ~ en ~ in N ~ 00 in 00 M LI co
LI
M
~
M
rl
N
00
en
00
in
en
0
LI
~
00
00
M
~
in
en
inen
0 ~~ in
00
rl 000rlinN00
M
Ninin~MOO
Ni.LIinNen~ ~00M0en
~ LI
00 N
in "LI Cl
ro
ro
in
M
inin~~M
MLI~LIi.~LI
\I I.
00
~ ~~~~inin~~~
~ in
in ~
~~
inin~ ~~inrlin
i.~inroin~inin~inrlin LI
i.i.
in
in ~ ~~

in in M M LI rl 0 M ~ rl 00 M ~ LI 0 N ~ ~ 0 ~ i. M M rl 0 N m 0 rl ~ 0 M LI Cl
N
M
LI
~
0
M
MOen
00
N
N
rl
rl
~
N
i.
rl
in
~
M
LI
N
in
~
M
rl
~
LI
00
en
in
00
in
\I LI
~
LI
~
00
~
~
~
in
~
in
0
~
M
in
0
in
rl
M
rl
in
rl
0
N
~
LI
rl
~
N
00
LI
rl
LI
\I' \I
~
ro ro
rl i.roin~in~inroin~ininMinM
00
~ ~~~Min~in~in~~ininin~~ i. ro
in ~~ in
in
LI
in~LI~LIroinrlinrlin I.

QJ

ro

ro

QJ
QJ

15

llo

II II

'C .l Q)

~ ~

QJ QJ

o~__~

II

QJ

QJ

~ ~

~~~

II

ro

ro

c:

'g E ~ 2 32 'e

~~~~~~~~~~c: 3:.. ~ ~~8

II ~

b. QJ
c: en

,,' \I
~
\I

..VI

'"

.e

..

-'Q)
u
+:
-i
"Z

~o

a.
'"
U

'"

+:
'

VI
Q)

VI

o
"tQ)

en
aa
ro
QJ

..'"
~ g ~ &' U

-i +- .S: C

LI N"
en
00 rl

M co
M ~ N ~ rl LI M 00 00 LI in LI ~ 00 ~ ~ in rl ~ 0 en LI M M en 0 ~ en ~ in 00 rl ~
0
~~~~~
~~~~~
~~~~m
~~~
~~~~
~~~
~~~:;
~~
ON
LI' \I'
~ ro~ M
~
~~
~ ~~ in
roLIrl ~~ in~ ~rl in
LI
~ ~Min~inin I.
I.
00
~ ~Min~ini.~~ ininin~~
~ in
in ~i. ~
in ro
in in
i. in

MM
00M
inN
LIMN0LI~ ~N~rlLI
en rl
~ rl00rl i.M0~in00NrlLILIenLI0 N
~M
N~
rl
MLI
~ 00
rl in
0 00
inm
rl rl
00~N~ in
in LI
i. LI
LI
M
M
M
~
~
~
M
M
rl
0
N
N
in
~
M
en
0
en
M
N
in
i.
~
rl
m
N
0
en
~
N rl
~
~ ~~ m~ M
in
in
m in
00in~in~in~ in~ in~ in~ in
~ in
~ in
~ in
~ in
~ in
M in
N in
N in
in
~ ~
00
~ ~ ~N ~~~~~ ~ ~
in LI m
~ in in rl 00 N ~ MOON in N LI M en N en N ~ rl en 0 00 LI in LI 00 LI N NOM

rl rl rl N rl rl rl N rl rl rl N rl N rl N rl N rl N N N rl rl N rl N rl N rl rl N

en ~ ~ 0 en ~ 00 0 en en en 0 ~ 0 en 0 en 0 in 0 0 0 en en 0 en 0 en 0 00 in 0
en en en 0 en en en 0 en en en 0 en 0 en 0 en 0 en 0 0 0 en en 0 en 0 en 0 en en 0

II
c:

:5
.~ +-

-" -"

;: ;:

~ ~ ~ ~ ~ ~
QJ QJ
Z Z g ~ ~ ~

bJ ro

CI C

~ 2

ro ._
.. "C
CI CI

ro
u
:e

ro ro II
II
~
..
"C II
II
QJ
II
..
~
~
II
~~'~"5~
II
~~
6'-r ~ o
~
3
~ ~c:b. ~::roCQ)
:5 ~ ~
U
0: c: II o
~ :e.5
U.. a.u ~.pa.vi~~~g~ DroQJo
c:
i. -c a: co -, :. "' .!! ~ :: 8
\!
~
~

i'ro
o
~
;:
a.
;:
o
..o
~
~
~
('
~
05
j

"8
~
-i,Q0~ c:
'J a:
~~~l~i~
~~
a.
61to~
II
b.
o
c: o a "-0(/._ a: ~ ~ .5 i\ ~ ~ B : B .9l ~ u
.i: 1 ~ b.
C ':;
c
o e c u.
ro

:e
II

3:

rl N M ~ LI in ~ 00 en ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

t: -"

c~~

~c :J

c.. ~
w~
fa!z

::W'
~ c

uu.

:.~
a.~~

(/
II(/

II~
fa

c(
(/

CL

II
fa
U)

ii

CL

~
U
II-

I-

..
In
Ql

-t
I1

:2

..
i.
Z

..;,

'0
I1

a.
I1

..Uo
~
;,

.Q
I1

Ql

Ql

..

\!

"a.

vi
..In

-'Ql
u
=

..

I1
Ql

);
II

.(

~ ~I
Ql

~ ~
~

Ql

~i

.\,

'*'****
O' 00 (' -. m
~
~
en M

en en

c ai

~
~
00 in

al al
en en

~
~
-- VI

c cn
en en

\D --

~ ~

rl OOMN~~~N
rlo~~~m~OOrlmaMN
m~q~m~OO~OrlN I I
rlrlrlrlrl
rlrlrlNrlNNN NNNNNNrlMmm

~ ~rlqinNin~
~~~~~~* ~M~oinrlrla~inmm~
~*~~~~~~~~~~~ ~rl~~~Nm~NmW
~~~~~~~~~~~
~
~ ~mm~NNa
d~mNdininoooooo~oo
00000000
aOO'oaaininininmmm
rl rl rl rl rl
rl rl rl rl rl rl rl rlainininmmmmmoooo
rl ~~~~M~~in~mm

tR~*tR*tR*?R UMMt.OLO
**''*'*'*'*
OOM'r"'riMOOr-

~ M rl n

tRtR~~~tR*tR
~
~~~~~~~~~oomMoomoo~oo
~~~~~~~~~~~~~
~~~ r-inNoor'mrJo
f't'inNmql"q
d
rlOOa
a mmm~NNd
moooooo
mommaininmmm
enrl
acna
.. ..
rl
rlrlrlrlnM
rl rl m
M O'inOO"oininco
~
~~~*~** **~tRtR
lD COq-QlDUio;o:
Ln!'o;OI.

Ql 0

ui :c

In
+'

'"

In

In

~ ~ ~

13
-t
OJ VI 0

c.. G

(1 Ql .. Ql
0 a. f- 5 ~ z
6 ~ ~ VI

t9~g

.l ~ ~Vl

V) c ro c

In

,- Ql

In

~ OJ
~ ~:i t!
U

:U'

~'~~~'~~

~zoo~ :2~ );z a:..E~p~32

~ti~~~~8

,- )-

~ Q) ~ ~ ~ l: ~ ~ .S Vl
..
E~6V)~~
ci ~ ~ :e~~~8 ..
0. ~
Ql
r;fo~ a:B'~-g~ -o0-"
V)cau-i'~"O
..o ~~f;.~,Q~~

~ : i

In
" -"
In w Q) V)

:;In

In t;

m oaw~NmNN
o
OQ)WOOOOO OrlMm~NWMrloa~~D
inDoinino~oomo~o mN~woa~oaNN~~
mmoa~mmin~omm

.: a

(1 -0"- C Ct ro
~
~ ~ "%Ql
C C : +i. ;, I1 C :2 ~ ~ E E
c c := c ~ ~ ~ .l :: 2 ~'g ~ ~

a~ In Qlt;
.g V) -t;
.. bJ Ql
'"
I1 C in In -E ~
-In
l' In
I1 (1

(;
0
;,
(1 (1
C ~ ~ 32 -..
o C
u UJ
o u .p ..
u
co i=
.Q
U ~ co c ;; In
0
); ~ & o f- .! t 'g ~ :. Q)
0. (1 OJ C
o

rl NM~~W~oa in~~~~~~~~~~~~ ~~~~~~~~~~~

ro

~ .S
1; ~~ ID
~In ~ -e
C :J ,~ );
I1 0

o
U

a oininooom
mmmmmmmmomm
N
NrlrlNNNrlmDominomoomomo
rlNNrlrlNrlNNrlNrlN
rlrlrlrlrlrlrlrlNrlrl

~ -~
N

o a\

0' en

ui en
en en

~
~
,. M

~ Ql

..I1 '_"

OJ I1

Ql C

,. r-"
\D \D

~ qmoarlqrl~ N~~MMqoa~rl~rl~~ rlin~inN~N~MM~ 0'VI N,.

~
N~Woarloa~
inNO~rlOMNNrlrlrlm
oamqmmwoow~oa
N
NOQ)MqN~
NminminOMMmmrlN~
qrl~m~oinqcrqM
~
N~~inin~
~~mN~~~00 M
w
w~wwininw ~~w~wm~~moo~
~~ininoain~~w~ininin ~~~~~inw~inww

rl rl rl rl rl rl rl rl rl rl

~ rlOMOOOMrl oo~oaooW~NrlOOON~oa ~~rlrloaOW~rlNoa

d
ddmmminmininoooo~~
~~~Mdin~m~~~
N ~MNNrlrlrl
0000000 ooinmmminmmmmmm
mininmmoaoaoa~~~

~ ~~~~~~~ ~*~~**~~~**~* ***~*~~~***

o oooooocr
ooooooQ)Q)Q)inQ)OO'
rl
rlrlrlrlrlrl
rlrlrlrlrlrl rl rlOOOO'minmminoamm

~~~~~~* ~~~~~~~~~~~~~
~~~~~~~~~~~
a~
N~OMOOWOrlONON~~mrlinMM~NMM
MMM~rlinmrl~~O
d ~OOMOOmrl~
MNM~rlNin MddMdmmmmmd~

ai d
MMNN~oooooommmmmmin
~~~~mmoomm~m
0'0
00000000
oinommomommin
..
rlrlrlrlrlrlrlrlrlrlrlrlrlrl
rl N~~~~~~~d
rl rl rl

'*
'*'*'*'*'*'*'* '*'**'**'*'***'*'*'*'*
,*,*'$tRtR,**,**~,*
r- rlMlDLnrlUio:
NinrlNOrlNMo:ocnNM
OOmLnN~OON~~~~

cicrcnoomoolDin rlOONi'rlN
or'ooo:cr
mridciri OO'inO'O'O"mm
oO)omO'o macrinco
ad mmo:rlNo:d
moooooo enoaoo
M
! ~I rl rlMMrlt'rl MMMM
Ql
OJ

I1

IIn ~I

i ~I

~I
E OJ ;,
:s c .1:

=- '' ~
ct ~ 0.
t: V) a

E .. .!
:: m '5
' )- tt
,

VI

E
I1

~
in -"
o
c
o I1

N IX

00100

l. tJ 1O 1O

N" i. tJ.. crl

0: .. 0 lO
.. tJ tJ ~

bbb'

2o

-0

QJ

el
.~

t t t,~

to to to to

.2
.e

tf

'"
'"
QJ

to ro ro to
a. a. a. a.

"

B B, (j lj

i: 0i: 0c c0
o

~ ~ el ~

"0 '0 -0 '"

to ro to to
.0.0...0

- -'

c. u

~ ~ ~ e '~
l: ~~
ro ro to ro
00 ,. r. ,.

9999

C. -0
'" QJ

QJ N

tJ II Lt i. fl i=
o
a a
a 0
0 0
0 o u.
N
N
N
N
E E E E QJ Z
M
c gJ
0

.:~Io .:~I0 .:~I0 ..~I0

tiQJ QJti Q)ti QJti

c c c c

,. ::

19 !9 .i B

Q. Q. Q, OJ
a. a. a. a.

t g. Z

g .c
~
N
C. 0. 0. 0.

:
~
' c~ ..
"' ' ..
c c~ c
'" '" '" '" QJ '" u.
:i :i
o u
a ~ u .
e ~ u

o 0 o 0

3a:~ Zfjo Z0~ a,:ie

t: ~
c~o

c-'e.
w
c: ::

~ C ~
C) : 0.
W Z
-' W 'i

5913

(. LL

LL ,52

iizc:
o

U)
11U)

-~

c:

Ul

ct

..
~..Cl
:2

-i
Z

bI
Cl

E
ct

I.

..
Cl
c.
'"

\I0

..Ul

Cl

~y
i=
Cl
ti

ct
..
Cl

ct

~..

U)
Cl
:;

OJ

\Ii

(/

OJ

..
~
U

11-

I-

00
0
0Mo~

00
0

(j

o~
l'

0
0
0
0

00

00
0

o~
~

00
0

o~
LI

(j
0
0
N

00
0
0

l'
0
0
N

~
0
0
N

Lt
0
0N

.,

(J

b.
(J

..

ro

~
ro

E
::
-0

+Ul

z(J

(J

b.
(J

ro
..

..

:;
0:

zu.
+
5

..0
..

U.

\.
(j
(j
(J

cu

Vl

..::
Vl

::

ro

-0
Vl
Vl

+-

(J

"'
::

uC

b.

(J

:;

..

.~
J:

ro

(J

ro

-0

::

..

..ro
U.

t; -i
5

00
0

Cl

Cl

U
..

zu.

o~

o:

(J
+-

o ::
Z Ul0

ti~
c: Cl 5l

zc~o
'"

Cl .. Ew
c: ::
C) : C-

w z
..w.
~ 9 ~

o u.

i: LL .5!

a.zci
05

Ticket Sales Analysis

5-Year Average Ticket Price (Including Club Premium) - NFL Markets

$160.00
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
2005

-+NFL High
Note:

New stadiumaverage includes

Source: NFL

PRIVILEGED AND
CONFIDENTIAL DRAFT
For Discussion Purposes Only

2006
NFL Low

2007
.. NFL Average

stadiums built since 1996.

2008

2009

New Stadium Average

Ticket Sales Analysis

5-Year Average Ticket Price (Excluding Club Premium) - Nfl Markets
$120.00

$100.00

$80.00

$60.00

$40.00
2005

-+NFL High

2007

2006
NFL Low

.. NFL Average

Note:New stadium average includes stadiums built since 1996.

Source: NFL

PRIVILEGED AND
CONFIDENTIAL DRAFT
For Discussion Purposes Only

2008

. 2009

New Stadium Average

W
11W

-)m

C
CC
CU

m
U)

CU

..
~
U
II_

I-

QJ

..II

ni

.i..
~
-i
u.
Z
E
::
;

..QJ

Q.
QJ

..ni

V'

..::

QJ

bJ

..ni
QJ

~
..

ni
QJ

i.

)0i

i ._

II

lu -

ii

Lt a Lt a Lt a

a a
a a
a a
a a
a a
a
a a a a a a

a a a a a
OLtOLtO

Lt -. -. rr rr N N .- .- Vl Vl
Vl Vl Vl Vl Vl Vl Vl Vl Vl

\)

a "-

QJ

cr coti

:s

..

.~
:i
-i

-i0
-i
LL
Z

-i
LL
Z

Q)

co
"-

ti

Q)

Q)

:s

U)

4-

co

E
::
-0

a Q)
N
~

00
aaN

l"
aa
N

U)
aa

Lt
aaN

LL

u:
O'

O'
.-

i:

Q)

ii

::

.:

.n

::

vi

co

-0
Q)

+vi
vi

-0
::
i:
-U

QJ

ti
co

;:

Q)

"-

co

::
-0
co

4vi
:s
Q)

Z
Q)

4-

z0

..

LL

Z
Q)

ti~
~ ci ~

ci ~ 0
::

ci .. e.
w~
::

u
"U)

-i w';

W Z

Cl : 0-

s; e

ii LL .!!

U LL

05

D. Z ci

1-

.-

..
GJ

(/

..

VI

QJ

..
~L.
fa

U.

-I

:: ~

1_:

Ii

a.

~,

i,.
LL "2
o ~O
~ 0 ~

O-ie-o
W c: ::

C) - 0.
W
i- c
-i
Z.Q

W W lZ
;:
9

Uu.

~
ii 05

Private Seat License Analysis

NFL Stadium Seat license Programs

Stadium

Dallas Cowboys

Cowboys Stadium

New York Giants

New York Jets

New Meadowlands Stadium

New Meadowlands Stadium

Carolina Panthers
Oakland Raiders
St. louis Rams
Baltimore Ravens
Tennessee Titans

Bank of America Stadium

Oakland-Alameda Coliseum

Edward Jones Dome

M&T Bank Stadium
LP Field

Philadelphia Eagles

Lincoln Financial Field

Chicago Bears

Soldier Field

Houston Texans

Reliant Stadium
Heinz Field
Browns Stadium
Paul Brown Stadium

Pittsburgh Steelers
Cleveland

Browns

Cincinnati Bengals
Seattle Sea

hawks

Average

PRIVILEGED AND
CONFIDENTIAL DRAFT
For Discussion Purposes Only

Qwest Field

Seat license

Seat license

of Capacity

Price Range

Revenue Goal

Opened

Stadium
Capacity

2009
2010
2010
1996
1996
1995
1998
1999
2003
2003
2002
2001
1999
2000
2002

80,000
82,500
82,500
71,215
63,026
65,419
68,447
68,402
67,502
61,500
67,120
64,128
69,405
64,521
64,897

56,314
75,261
47,804
62,400
45,000
57,800
65,700
61,500
29,000
27,500
45,420
49,533
49,733
42,000
8,356

70%
91%
58%
88%
71%
88%
96%
90%
43%
45%
68%
77%
72%
65%
13%

$2,000 - $150,000
$1,000 - $20,000
$2,500 - $30,000
$600 - $5,400
$250 - $4,000
$250 - $3,000
$250 - $3,000
$250 - $4,500
$1,500 - $3,145
$900 - $10,000
$600 - $4,200
$250 - $2,700
$300 - $2,350
$300 - $1,500
$2,000 -$3,000

$650,000,000
$400,046,000
$325,879,000
$195,000,000
$84,000,000
$74,000,000
$72,300,000
$71,000,000
$60,000,000
$55,000,000
$50,000,000
$45,221,000
$35,000,000
:$25,000,000
$20,500,000

2002

69,400

48,200

69%

$860 -$16,500

$144,196,000

Year

Team

Total

licenses
as Percent

Number of
Seat
licenses

U)
1U)

i-~
m
c

c
o

ro

VI
.:

g-

ro

uo
~'ti.
:a

cc
"C

b.
.5

ro

OJ

uo

U)

C
OJ

cVI

-l
u.
Z

V)

CI

CI
u

U
::..
ro

11-

-J

ii

OJ

U)
OJ

ii
m

I-::i.
D.

c :: .. -

&!

"C ro..~
:: c
c 3:
o
~

E e: (!

uo
o CI b. CI

8 Rl.5
..,
i. ~ .~
;.
, "" !! VI ..
e: e:

f b ~
.~ ro .:

.- ~ Q.
i. ::

o e:
i- "C
ro CI

~ IE

oa.

t;

.2
1i

CI

ro

i-

'* '* '* '* '* '* '* '* '* '* '*'~ '*

N N .. .. -r

.. .- U" o: U" t" lY 01 U" q Ul C 'l

00 00 lD N en en 00 I" I" .. a 0

LlLIOOoiLlooool"lDoiC i.

00 m .- .- lD en a lD a N oi co 00
.. oi oi LI en LI m lD oi oi .- -- 'l

00

-V

IJ

IJ

m" oi" 1"" LI" N" .-" .-" oi" N" m" .." oi"

.- .1.
1. 1. 1. 1. 1. V) 1. V) 1. 1. -V
m
a en a .- LI o: m o: LI a lD
.- a lD a a en a LI LI NoolD
en
a a .- .. LI I" oi" .-" .- N en
1. N" N" .-" .-" 1. 1. N .- m" .-" m"
1.
.1. 1. 1.
1.
1. 1. 1. 1.

.- m mOON a en N en lD LI en

NN N..NN .-N.-....N

a a a en a a en a en en en a
a a a en a a en a en en en a

(/
i-

uQ)
11

e.
..
11

Q)

..'-

--

:2
V'

i:

In

0-

~
Q)

i-

-a
i:
Ii

11

Q)

Q)

..Q)
"l
i:

V'

Q)

~
ci
ro

vi
E

ci
JLl

e.
..

ro

cu'"
u

V'

Q)

In
ro

i:

i=

Q)

..u

Vl
.i..ti
ii
..

co

Q)

ro

Q)

i:

ti

ro

co

::

E
::
-0
co

OJ

-0 co-0

b) E

E E b)

:::: :: VI

Q (/:;

b)

.~ :
i- (/ =
OJ CI co

co 0 ::E

'-"l

co-oE-g~

'g l9 :: t) e

32 co V) = C co -0

-o,CI_ ~ -E b; 3: -0

u. co 0 C u. 'l~

!O (/ VI

~ ~ (/

u. i- C co +- i- ~ +- 32 o"E o
N 0 C co OJ (/ ,9: l!..
.~ -0 U ~ .!: :: ;: OJ u. -E :s 3:
~a :~~~ ~~~ u3 Uo
VI
iOJ

OJ

Qj
u
'::
o

V'

0-

::

11

Q)

..'co

b C (/ co
ct:
3:3:~
~(/~
W;:roC
o co i=~
1: E 0
cocoxOJ : ..

co .!! U

OJ (/

c V) VI

OJ

b
ro

::
e:

to

b) ~
co co ..
.. OJ ,- 0: OJ co
.. OJ I- :p -0 ff a. 0: 3:
o
b. co

i- 0

c. i- C co
OJooc
-oE+-c

ii u .~ '' ~ '0

:: b.
.. co

~OJ:
:: (/
OJ ~ C ,~
o .9 ~
;: co c i- co . co
UV':
.-t .. .. co 0 c ~OJOJ
a. U a. co :c 0 U V' I-

li ~
o c( 0
zO: (/

c( 0 gi

o -i ~
w
c( ~

C) : a.
W Z

:: ~f~
;:-~

o is

g:~i5

o LL

llI

c
I-l'
..

UJ

LL

CD

E ..
I_ ~L.
ta
E :E
ii
C1
I.
De

-,

u. -e

i- ,.
c~o
~ c ~o
c.. 1:

W c:
.n
- ii::

WW~
~ 9 ~

W
i- c
.. Z.9

o LL

~ i5
0.05

Premium Seating Analysis

NFL Stadium Premium Seating Overview

Private Suites

Total

Revenue
Rank

Franchise

Facilty

Dallas Cowboys

Cowboys Stadium

2
3

Los Angeles

Proposed

New York Giants

New Meadowlands Stadium (Giants)

New York Jets

New Meadowlands Stadium (Jets)

Washington Redskins
Tampa Bay Buccanneers
Houston Texans

FedEx Field

New England Patriots

Gilette Stadium

Miami Dolphins
Philadelphia Eagles
Chicago Bears

Sun Life Stadium

6
7

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

33

Raymond James Stadium

Reliant Stadium

Lincoln Financial Field

Soldier Field

Carolina Panthers

Bank of America Stadium

Baltimore Ravens

M& T Bank Stadium

Indianapolis Colts

Lucas Oil Stadium

INVESCO Field at Mile High

Denver Broncos

Jacksonville Jaguars
Tennessee Titans

Jacksonville Municipal Stadium

LP Field

Pittsburgh Steelers

Heinz Field

Atlanta Falcons

Georgia Dome
Qwest Field

Seattle Seahawks

San Diego Chargers

Cincinnati Bengals
Cleveland Browns
Green Bay Packers

New Orleans Saints

Qualcomm Stadium
Paul Brown Stadium
Cleveland Browns Stadium
Lambeau Field
Louisiana Superdome

Arizona Cardinals

University of Phoenix Stadium

Buffalo Bils
Kansas City Chiefs
Detroit Lions
St. Louis Rams
Oakland Raiders

Ralph Wilson Stadium

San Francisco 4gers

Minnesota Vikings

Arrowhead Stadium
Ford Field

Edward Jones Dome

Oakland-Alameda County Coliseum

Candlestick Park
Hubert H. Humphrey Metrodome

Average (excluding Los Angeles

#of

Average *
Annual
Fee

Su ites

2009
2016
2010
2010
1997
1998
2002
2002
1987
2003
1924/2003
1996
1998
2008
2001
1995
1999
2001
1992
2002
1967/1997
2000
1999
1957/2003
1975
2006
1973/1999
1972/2010
2002
1995
1966/1995
1971
1982

300
200
213
213
208
197
185
80
195
171
133
157
122
140
115
89
171
129
171
112
113
132
145
166
137
108
132
111
127
101
143
95
99

$300,000
$275,000
$494,000
$494,000
$151,000
$105,000
$156,000
$188,000
$97,000
$143,000
$151,000
$92,000
$138,000
$127,000
$123,000
$110,000
$78,000
$99,000
$122,000
$105,000
$110,000
$116,000
$81,000
$79,000
$80,000
$99,000
$82,000
$123,000
$96,000
$100,000
$70,000
$110,000
$68,000

$90,000,000
$55,000,000
$52,611,000
$52,611,000
$31,480,000
$20,705,000
$28,804,000
$15,000,000
$18,833,000
$24,445,000
$20,142,000
$14,404,000
$16,887,000
$17,848,000
$14,178,000
$9,782,000
$13,282,000

147

$140,219

$19,687,469

(1) The Steelers have.a total of 129 suites, but 15 are non-revenue generating. Suite revenue potential reflect only the revenue-generating suites.
Note: Suitesforthe Giants and Jets are sold together. Potential annual suite revenue has been split evenly between both franchises.
Source:

NFL ticket manifest and premium seating representatives at NFL teams.

PRIVILEGED AND
CONFIDENTIAL DRAFT
For Discussion Purposes Only

Potential *
Annual
Revenue

Year
Built

* Rounded to thenearest 'QOO.

Club Seats

II

$11,311,000 (1)

$17,980,000
$11,729,000
$12,430,000
$lS,247,000
$11,703,000
$13,038,000
$10,960,000
$10,733,000
$10,800,000
$13,653,000
$12,133,000
$10,083,000
$9,995,000
$10,450,000
$6,742,000

Total

Seats

Average
Annual
Fee

14,102
15,000
9,236
10,041
17,263
12,053
8,464
6,460
10,470
8,447
8,376
11,223
8,108
7,264
7,749
11,692
11,682
8,100
6,180
7,826
7,668
7,793
8,345
6,089
8,593
7,356
8,831
7,715
7,312
6,692
5,552

$3,400
$4,500
$4,760
$3,840
$3,350
$2,750
$2,700
$5,000
$2,640
$2,340
$2,801
$2,110
$2,420
$2,510
$2,790
$1,970
$1,590
$2,300
$1,874
$2,180
$2,120
$1,680
$1,970
$2,368
$1,880
$2,101
$1,650
$1,400
$1,509
$1,720
$1,400

# of Club

Total *

Annual
Revenue

Potential
Premium
Seating
Revenue
$137,947,000
$122,500,000
$96,587,000
$91,150,000
$89,370,000
$53,825,000
$51,598,000
$47,327,000
$46,474,000
$44,236,000
$43,607,000
$38,131,000
$36,496,000
$36,101,000
$35,834,000
$32,786,000
$31,864,000
$29,921,000
$29,564,000
$28,763,000
$28,690,000
$28,310,000
$28,124,000
$27,457,000
$27,082,000
$26,191,000
$25,335,000
$24,447,000
, $23,166,000
$21,590,000
$17,770,000
$10,450,000
$7,831,000

$40,563,000

Potential *

n/a

n/a

242

$4,500

$47,947,000
$67,500,000
$43,976,000
$38,539,000
$57,890,000
$33,120,000
$22,794,000
$32,327,000
$27,641,000
$19,791,000
$23,465,000
$23,727,000
$19,609,000
$18,253,000
$21,656,000
$23,004,000
$18,582,000
$18,610,000
$11,584,000
$17,034,000
'$16,260,000
$13,063,000
$16,421,000
$14,419,000
$16,122,000
$lS,458,000
$14,535,000
$10,794,000
$11,033,000
$11,507,000
$7,775,000
n/a
$1,089,000

8,610

$2,504

$21,549,194

Premium Seating Analysis

Total Potential Market Suite and Club Seat Revenue - NFL Markets

Rank Market
1

New York

New Orleans

Dallas/Ft. Worth

Tampa

Charlotte

Buffalo

Indianapolis

Pittburgh

Boston

10

Cleveland

11

Nashvile

12

Washington D.C.

13

Philadelphia

14

Denver

15

Jacksonville

16

Phoenix

17

Miami

18

5t. Louis

19

Baltimore

20

21

Houston
Cincinnati

22

Los Angeles/Anaheim

23

Atlanta

24

San Diego

25

Minneapolis/St. Paul

26

Chicago

Club Seat

Total
Potential

Revenue

PS Revenue

$488,308,000
42,832,360
83,038,640

$660,293,000
59,280,360

Potential

Potential
Suite
Revenue
$171,985,000
16,448,000
137,380,000
34,817,000

28,254,000
16,344,000
28,751,000
29,882,000
54,860,000

49,986,000
22,122,000
75,712,000
56,282,000
37,461,000
9,790,000
41,516,000
39,459,000
28,816,000
24,531,000
58,905,000
20,408,000
134,8S0,000
49,148,000
19,505,000

51,149,900
41,172,020
21,847,650
32,703,840
40,804,025
99,637,100
32,517,150
22,196,020

54,491,200

6,340

34,800

2,530

34,000
32,900

2,110
1,180
2,030
2,490

32,400

30,300

5,540

28,400
27,900

3,050

27,100

1,650

26,900

6,200

26,100
24,700

5,110
3,200
1,340

24,400

3,450
3,740

24,200
23,800
23,400

2,830

22,800

2,650

22,300
21,300

5,320

5,190

21,200
20,300
19,900

2,940

19,800

3,820

17,000

2,230
1S,34O

36,513,520

161,308,640

9,610

16,800

27,196,000
22,145,000

23,668,752
35,901,540

50,864,752
58,046,540
73,830,724
99,046,080

3,050
3,590

16,700

4,970
6,740

14,900

32,736,500

2,250

14,500

$110,100,000

4,300

$25,400

Milwaukee/Green Bay

29

Seattle
Detroit

30

5.F,fOakland

51,440,000
45,499,000

Kansas City

14,983,000

22,390,724
53,547,080
17,753,500

$47,232;000

$62,868,000

(2) Includes Areas with four or more franchises (highlighted in yellow)

For Discussion Purposes Only

$54,500
52,900

74,080,640

(1) Includes corporate headquarters with at least 25 employees and $5 million in sales; and branches with at least 25 employees

PRIVILEGED AND
CONFIDENTIAL DRAFT

1,120

28,503,000
87,228,000

28

fAverage

38,191,650
61,454,840
70,686,025
154,497,100
82,503,150

Premium
Seating
Revenue Per
Corporation

65,016,520

27

31

12,120

69,426,020

26,928,870
176,120,880
54,314,400
38,736,960

40,616,150
22,682,480
40,505,300
47,899,960
35,733,600
34,441,360

& Branches (1)

220,418,640
85,966,900

44,318,020
161,926,000
126,435,120
78,077,150
32,472,480
82,021,300
87,358,960
64,549,600
58,972,360
113,396,200
47,336,870
310,970,880
103,462,400
58,241,960

86,214,000
70,153,120

Total
Corporations

Source; Dun & BradstreetALSD; NFl,.MlB, NBA and NHLteam representatives.

16,200
14,700

U)
11U)

-~
n:

ci
C\
C

ii

11-

n:

cu

ui
E
:I
lIE
cu
L.

D.

..'"II

-tel

..
i.
II

Z
''o

'"

..'"~
"-

..'"

':;
Vl

~
o

..'"
e-

uo

II

C '"
o
..
~ 00 ~ NOOn M ~ ~ 00 ~ ~ m m ~ ~ ~ ~ m rl ~ ~ ~ rl a q 00 q 00 00 ~ '" 0M
~ Vl
o
.. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m in m m in ~ ~ ~ w ~ ~ ~.. rl

'' ':;

e- '"
uo "-

rlNO~~rlqmqN

moaOOOODoaaOOOOOOOODO 0000000000

.. rl

~ ~ m
'"

'" '" a a o; (" i. ta 1. l"

N inI. U"
q I"
'" If M 1. CJ I. l"

LI
rl

OJ
Vl
.Q

el

.!
o
OJ
.E
~
c: el

m Nen
a If a a a
a
a a t2 ~ N
I"
rl m
rl rl 1.

q- a
'"

~~~~OO(;O
rl

~~~~~~~5~~~~l88~~~~~~ ~ ~~~~~~~~~
~Nm~~w~ooin~~~~~~~~~~~~ ~~~~~~~~~~

~ -B ~ is t! ~ ~ :q ~ ~ ,S ~ '5 ,13 ~ :g ,g ~ i ~ Q; 12 -f ' ~ ':; E ~

** * * * * * * * *

c':; ~O Rho..p.. roc. c.Q)~ -g ~~in

L ~ ~
i.
~
el
Vl
m ~ ~.~ c:
~
~:
~..
~
c:

j" 51

o arim
00 0 00LIen
a a ainl.rl
0 N 00 q a~NON
N I. 00 rl
~
cnI.NOO~

~ rl rl rl rl rl rl

~aoooaaOOONl.qalf~Nal.l.a
aOOU"NONNNOO
~
am en O'l.rl 1.001. N~ I.cno;
l"OO~ 00

N rl rl rl or

I" '"rl '"rl

o
rl
rl

o rlNrlmom
~00en00mmNN000
00aNm00
inm~ ~rl m
~m
N
o
00 rlrirl
in
mq
rl ~
N ~~ rl
~ 00
a ~0in~Ninrl~0 a~~en
NrlN
riM rlrl in~NrlNrlrlrlrlrlrlrlrlriMrlrlrlrlrlrl

NW~o~ooqqmrl
~ ~rl ~~ ~m~rlmm~ ~
ff ~
~ ~ ff~~'"~.~
8 NNm~mqmNrlN
~
rl ~rl ~~ ~m~ ~~ ~~1I
,~~,~

OJ
Qj

Vl
OJ

OJ

OJ
;,
o
a.

1I ..
~ro ~
0
~ ''

.. .i
~ t;

' ~ vi
i ~'2
~ E ~
el c: E
.0 ~ 8

~ ~g
:; 1~rn:3~
ro ~
~ -5 ~
~ OJ a
c ~ 15

.s E

' g ~

~ 0. :
1I c: OJ

c .~ Q)

~ bj.
ro 1 to
Vl OJ
..
OJ
Vl 0

o .~ 0

g; E c-

EOJ-g
OJ
a. ~

a. E U

t; ~ g.

~ .. i

~-cZ"QJ

-0 co G
~ g.'a' ~

2~~-g

~ .~ g ~

' .C ~

~ 1
~:rT
t:'5~

cu al cu

bJ

'" U

\n ..

,.

'"
bJ
r:
OJ

.u

OJ
..
(!
'"

Z u

.. E
i. 0

" el
.! Q.

' oS
:: ..
U (!

da~:;

.s25

~ ~ u ~
.g~Jj~

V) ~-g:

~o~Qj

-:l e..E: E

Z~~~

:i +- VI OJ

J~.:sli

~2 ~aJID

.. el

(g ~

ci i

l
C II

'

bJ

..o

Vl

c:

ci

Vi

q- ..
ni
'"

.. '"

q vi M m N ~ q N rl ~ ~ en Nom ~ m ~ ~ rl ~ M rl m 0 ~ ~ ~ m ~ N 00 '"
q- ..
m m ~ ~ N rl 00 N N ~ 00 marl ~ 0 rl ~ N m a ~ ~ ~ rl rl '" ~"
e- M~ ~Mrl ~~ in
~
rl in ~ M w in ~ m ~ M M ~ m m ~ M~ \.rl

i- 8

e II
..
o '52

~I

i- Vl

Vl

II ~I
..'"
':;

~I

~I

..
'"

-tel

~i

I: z.

c~~

~ c g

fiH

o -i :5
wS

::W'

;; 9 B

(. u.

g:~5
05

Premium Seating Analysis

Corporate Club Seat Penetrations - NFL Markets

Club

Rank
1

2
3

Market
Los Angeles

* Boston

Minneapolis

Seats (1)

Total
Corps.

MLB

NFL

1,700
1,068

2,S89

S,947

15,000

25,236

15,335

1,068

688

6,460

12,120

1.1

352

2,800

3,400

242

9,284
6,794

5,190

0.76

7,312
8,376
6,180

9,351

0.53

15,180

8,464

16,140

4,970
1,340
2,250
2,940

8,447
5,552

15,638

5,110

0.33

20,799

6,740

19,277

39,645

3,590

0.32
0.09

* Detroit

1,000

1,039

* Chicago

3,000

3,000

5,443

* Atlanta

1,800

1,800

5,400

* Houston

2,900

4,776
3,571

19,819

* Philadelphia

1,810

1,810

* Oakland/San Francisco/San Jose

2,726

3,300

10

* New York

2,860

6,508

9,221
11,000

250

4,150

6,089

10,489

3,050

5,059

7,826

12,885

15,335

6,340

Green Bay/Milwaukee

Seattle

13

* Dallas

2,025

2,025

5,500

14,102

14

* Washington D.C.

2,200

2,200

1,999

17,263

23,652
23,662

6,200

0.07
0.15
0.18

0.29
1.19
0.27
0.26

29

Jacksonville

11,692

11,692

5,320

30

Buffalo

2,500

8,831

1,180

31

New Orleans

3,320

8,593

11,331
11,913

1,120

15,116

4,330

0.29

19,317

5,160

0.27

St. Louis

1,200

3,707

2,830

2,228

400

14,384

3,450

17

Cleveland

2,400

4,400
2,063

6,692
7,356

11,599

Phoenix

8,345

12,808

3,050

18

Baltimore

3,800

8,108

11,908

9,610

2,575

7,715

10,290

2,650

2,648

9,912

2,030

San Diego

6,760

14,428

5,540

22

Cincinnati

3,380

7,264
7,668
7,793

11,173

2,230

23

Denver

1,900

1,900

4,526

7,749

16,075

3,200

24

Pittburgh

2,200

2,975

25

Charlotte

2,300

8,100
11,223

13,275
13,523

2,490
2,110

26

Miami

1,800

10,209

10,470

24,779

3,740

27

Tampa Bay

2,300
3,222

3,000

12,053

18,275

2,530

28

Nashville

1,100

11,682

12,782

1,650

19

Kansas City

20

Indianapolis

21

(1) Includes NBA, NHL, MLB and NFL facilities

(2) Includes corporate headquarters with at least 25 employees and $5 milion in annual sales and branches with at least 25 employees

*Comparable markets are defined as having a corporate inventory of more than 4,000 companies

For Discussion Purposes Only

0.61

0.24
0.24
0.24
0.81
0.26
0.20
0.38
0.20
0.20
0.19
0.16
0.15
0.14
0.13
0.46
0.10
0.09

15

16

Average -- NFL
Comparable
Markets
(excluding Los Angeles)
IAverage
(excluding
Los Angeles)

PRIVILEGED AND
CONFIDENTIAL DRAFT

Club Seat

NHL

11

(2)

NBA

12

Corporations
Per

Total

Club Seats

Source: Claritas, team premium seating representatives, industry periodicals

Premium Seating Analysis

High Income Household Club Seat Penetra.tions - NFL Markets

---

Club Seats

Rank

NBA NHL MLB

Market

High Income

Seats (1)

High Income

Households

Households (2)

Per Club Seat

13

San Diego

14
15

Phoenix
Charlotte

2,228
2,300

400
0

16

Pittsburgh
Seattle

2,200

2,975

5,059

8,100
7,826

13,275

17

12,885

323,613
129,858
150,491
348,459

18

Cleveland

2,400

2,063

8,345

12,808

141,545

19

1,100

11,682

12,782

109,445

3,320

8,S93

11,913

76,449

3,800

8,108

11,908

284,763

22

Nashvile
New Orleans
Baltimore
Jacksonville

11,692

11,692

98,941

50.4
46.0
16.5
34.0
21.6
40.6
42.6
10.0
28.3
14.5
35.8
29.3
20.1
22.5
9.6
11.3
27.0
11.1
8.6
6.4
23.9
8.5

23

St. Louis

1,200

3,707

6,692.

11,599

207,328

17.9

2.4

Buffalo

2.,500

8,831

11,331

69,2.59

6.1

2.5

Cincinnati

7,793

11,173

163,311

14.6

26

Green Bay/Milwaukee

2.50

3,380
4,150

6,089

10,489

168,646

16.1

2.7

Kansas City

2,575

7,715

10,2.90

152,962

14.9

7,264

9,912

132,582

1,039

9,351

337,326
541,352

13.4
36.1

" New York

2,200

" Dallas

2,025

2,025

"Oakland/San Francisco/San Jose

2,726

3,300

" Chicago

3,000

3,000

3,222

" Houston

2,900

10

1,900

1,900

11

Denver
" Philadelphia

1,810

1,810

12

" Atlanta

1,800

1,800

20

15,180

44,716

7,668

14,428

289,845

7,356
11,223

14;384
13,523

2,300

2,200

21

15,638

6,180

39,645
2.5,2.36

"Miami

16,140
16,075

19,277

15,000

"Washington DC

Tampa Bay

8,464

11,000

7,749
8,447

6,508

2.,589

Los Angeles

1,997,162
1,160,422
409,233
803,433
511,836
844,796
843,302
181,838
457,248
232,919
559,081

2,860

1,700
1,800

2.

10,470

24,779

17,263

23,662

14,102

23,652
20,799

S,552

8,376

19,819

12,053

18,275

28

Indianapolis

29

Detro it

2,648
1,000

30

" Boston

1,068

1,068

688

7,312
6,460

352

2,800

3,400

242

31

Minneapolis

Average -- NFL
Comparable
Markets
(excluding Los Angeles)
I~verage
(excluding
Los Angeles)

(1) Includes NBA, NHL, MLB and NFL facilties

(2) Includes households with annual household income greater than $100,000

" Comparable markets are defined as having more than 400,000 high income households

For Discussion Purposes Only

Total

Club

5,947
10,209
1,999
5,500
9,221
5,443
3,000
4,776
4,526
3,571
5,400
6,760
4,400

PRIVILEGED AND
CONFIDENTIAL DRAFT

NFL

Total

Source: Claritas, team premium seating representatives, industry periodicals

9,284
6,794

58.3

322,928

47.5

15,116

377,822

25.0

20,860

741,216

35.5

Attachment E
Proposed Plan of

Finance

For New Hall

Prepared by the Public Resources
Advisory Group (PRAG)
and

KNN Public Finance

\,

Attachment E
Proposed Plan of Finance
For New Hall
Prepared by the Public Resources
Advisory Group (PRAG)
and

KN Public Finance

PROPOSED PLAN OF FINANCE FOR NEW HALL

The $234 milion projected cost for New Hall and related improvements
two types of

would be financed through issuance of

bonds. The City, acting through

the Los Angeles Convention and Exhibition Center Authority, would issue
approximately $195.0 milion in Lease Revenue Bonds. The Lea~,e Revenue Bonds
would be repaid by the City using new General Fund revenues generated as a direct
result of the Event Center project as described below that otherwise would not have
been received. The City would also establish a Community Facilities District
covering th~ LA Live and Staples Arena properties to issue approximately $80.3

milion in Special Tax Bonds. The Special Tax Bonds would be repaid through an
incremental property tax levied on the property owners or lessors of the parcels as
liabilty for repayment of the
Special Tax Bonds.
described below. The City would have no financial

The proceeds from the two bond issues would be used to pay New Hall

construction costs, interest on the bonds during a portion of the construction period,
and the costs of issuing the bonds. It is preferred to issue both types of bonds on a
tax-exempt basis to the greatest extent possible.

$195,000,000

Special Tax
Bonds
$80,300,000

$275,300,000

$160,400,000
33,000,000
1.600.000
$195,000,000

$73,600,000
6,000,000
700.000
$80,300,000

$234,000,000
39,000,000
2.300.000
$275,300,000

5.78%
2046

6.41%
2046

6.17%
2046

Lease Revenue
Bonds
Par Amount
Uses:
New Hall Construction
Interest During Construction
Costs of Issuance

Total

Current Borrowing Cost

Final Maturity

Total

This plan of finance refers solely to the public improvements related to New
Hall. The Event Center wil be 100% privately financed by AEG. The City wil have
no responsibilties or liabilties related to the financing of

the Event Center.

Los Angeles Convention and Exhibition Center Authority

Lease Revenue Bonds

The Lease Revenue Bonds would be repaid through a portion of the revenues
received by the City directly generated by the Event Center project. The City would
appropriate these revenues to the payments on the New Hall. AEG wil guarantee,

through a Gap Funding Agreement, that the new revenues identified below wil be
sufficient to fully pay all required payments on the Lease Revenue Bonds. If the sum
of these specific revenues is insufficient in any year, AEG wil be required to make a
payment to the City equal to any shortfall.

The revenues that would be used for this purpose are:

. Ground Rent on Event Center site. AEG would receive a 55-year ground

lease from the City for its use of the Event Center site. The annual rent is

proposed to be $6.5 milion starting in Fiscal Year 2016-17. The rent

the annual
rent in full at the beginning of each year. The City wil be undertaking an

would escalate annually at a rate of 1.75%. AEG would pay

appraisal of the Event Center site to confirm the fair rental value.
. Possessory Interest Tax on Event Center and new Parking Structures.

AEG must pay property taxes on the privately owned structures on City

leased land, such as the Event Center and new parking structures.
Because the City wil continue to own the land on which the Event Center
and new parking structures are constructed, the property tax payments

are referred to as Possessory Interest Taxes. Although the Possessory

Interest Taxes wil be paid to LA County, the City's share of

property taxes

for these properties represents 32.7%ofthe basic 1% property tax.

Possessory Interest Taxes on the Event Center and new parking

structures are expected to total approximately $4.0 milion in Fiscal Year

2016-17. The taxable value is assumed to increase at 2% per year.

. City Parking Tax. Attendance at Event Center events is expected to

generate approximately $715,000 in City parking taxes in Fiscal Year

2016-17 from the parking lots located on site and owned either by AEG or
the City. This does not include parking taxes generated at other privately

owned lots in the area.

. Sales Tax on Construction Materials. AEG wil be required to designate

the City as the point of sale for construction materials. To the extent that.
AEG can demonstrate that the City has actually been allocated
incremental sales tax receipts on materials purchased by AEG and its

contractors during construction, these revenues would be credited

towards the City's Lease Payments. It is estimated that the City wil .
receive approximately $5.5 milion in sales tax receipts from the
this wil be used to make debt
service payments.
construction expenditures and a portion of

The Lease Revenue Bonds are proposed to be issued as additional bonds

under the existing lease agreement between the City and the Los Angeles

bonds would have a final maturity

of 2046, which is 30 years following the expected completion of the Event Center in

Convention and Exhibition Center Authority. The

Fiscal Year 2015-16.

The City's practice is to fund a debt service reserve fund to provide a source

of funding for debt service payments if there is a problem. The parties wil attempt
to issue the Lease Revenue Bonds with the most cost-effective way of funding the
2

debt service reserve fund requirement. Ifbond proceeds or other financial

instrument are not used to fund the debt service reserve fund, AEG agreed to
provide a letter of credit to satisfy this requirement.
Debt service payments on the Lease Revenue Bonds wil be structured so

annual payments. The

that the revenues identified above are sufficient to make the

debt service is expected to increase by approximately 1.85% a year, reflecting the

estimated increase in the identified revenues. AEG wil guarantee the suffciency of
these revenues through the Gap Funding Agreement and wil provide a letter of
credit in the amount of $5 milion as long as the L~ase Revenue Bonds are
outstanding as part of the guaranty. AEG wil also pay the ground rent due on the

Event Center site at the start of each fiscal year. The ground rent payment is
expected to be approximately 50% of the annual debt service due each year. The
letter of credit would provide a source of funding if the parking tax receipts or
Possessory Interest Tax receipts to be received during the Fiscal Year were less than

the amount required to pay debt service.

The following table provides a projection of the specific revenues that would
be used by the City to pay the debt service due on the lease revenue bonds.

NEW GENERAL FUND REVENUES

TO BE APPROPRIATED TO PAY DEBT SERVICE ON LEASE REVENUE BONDS

Fiscal

Event
CenterGr

Year

oundRent

Event
CenterPo
ss.
Int.Tax

Projected
Parking
Poss.
Int.Tax

Building

Series -,

CenterPa

Material

ARevenu

rkingTax

Sales Tax

es

Event

2012-13

Projected
Series
ADebt
Service

capitalized

2013-14

1,044,458

188,843

1,233,301

capitalized

2014-15

2,122,586

377,685

2,500,271

capitalized

2015-16

3,045,892

385,239

3,885,299

IcGap~/Ex

cess

7,316,430 11,017,171

32,831

2016-17

6,500,000

3,597,000

392,943

715,500

11,205,443

11,202,171

3,272

2017-18

6,613,750

3,668,940

400,802

729,810

11,413,302

11,407,435

5,867

2018-19

6,729,491

3,742,319

408,818

744,406

11,625,034 11,620,743

4,291

759,294

11,840,711 11,835,159

5,552

774,480

12,060,407 12,058,781

1,626

789,970

12,284,197 12,279,714

4,483

805,769

12,512,159

12,507,514

4,645

821,885

12,744,369 12,740,138

4,231

12,980,909 12,975,534

5,375

2019-20
2020-21

2021-22
2022-23

2023-24

6,847,257

6,967,084
7,089,008
7,213,065

7,339,294

3,817,165

3,893,508
3,971,379
4,050,806

4,131,822

416,995

425,335

433,841
442,518

451,369

2024-25

7,467,732

4,214,459

460,396

838,322

2025-26

7,598,417

4,298,748

469,604

855,089

13,221,857 13,216,759

5,098

2026-27

7,731,389

4,384,723

478,996

872,191

13,467,299 13,461,607

5,692

2027-28

7,866,688

4,472,417

488,576

889,634

13,717,316 13,712,540

4,776

2028-29

8,004,356

4,561,866

498,347

907,427

13,971,996 13,966,280

5,716

2029-30

8,144,432

4,653,103

508,314

925,576

14,231,425

14,228,496

2,929

2030-31 .

8,286,959

4,746,165

518,481

944,087

- 14,495,692

14,491,053

4,639

2031-32

8,431,981

4,841,088

528,850

962,969

14,764,889 14,759,713

5,176

2032-33

8,579,541

4,937,910

539,427

982,228

15,039,106 15,037,233

1,873

2033-34

8,729,683

5,036,668

550,216 1,001,873

15,318,440 15,316,060

2,380

561,220 1,021,910

15,602,984 15,598,231

4,753

572,444 1,042,348

15,892,838

15,891,714

1,124

583,893 1,063,195

16,188,100 16,181,669

6,431

595,571 1,084,459

16,488,872 16,482,596

6,276

16,795,257 16,792,535

2,722

2034-35

2035-36
2036-37
2037-38

8,882,452
9,037,895

9,196,058

9,356,989

5,137,402
5,240,150
5,344,953

5,451,852

2038-39

9,520,737

5,560,889

607,483 1,106,148

2039-40

9,687,349

5,672,107

619,632 1,128,271

17,107,360 17,102,337

5,023

2040-41

9,856,878

5,785,549

632,025 1,150,837

17,425,289 17,419,085

6,204

2041-42

10,029,373

5,901,260

644,665 1,173,854

17,749,152 17,744,283

4,869

2042-43

10,204,888

6,019,285

657,559 1,197,331

18,079,062 18,074,140

4,922

2043-44

10,383,473

6,139,671

670,710 1,221,277

18,415,131 18,409,867

5,264

6,262,464

10,565,184

2044-45

2045-46

6,387,713

10,750,075

684,124 1,245,703

- 18,757,475

18,752,383

5,092

697,807 1,270,617

- 19,106,211

19,102,315

3896

Community Facilties District

Special Tax Bonds

-,

was enacted in 1982 and provides

a method for local governments to fund public infrastructure and certain services.
The Act provides that cities may form "community facilties districts" (CFDs), special
financing entities through which a local government can levy special taxes and issue
bonds authorized by two-thirds vote of the qualified voters of such a district. If
there are less than 12 registered voters in a proposed district, then the property
owners vote. Mello-Roos bond proceeds can be used to finance the construction,
expansion, rehabiltation or acquisition of any real or other tangible property with
The Mello-Roos Community Facilties Act

an estimated useful

life of five years or more, which wil be constructed, owned or

operated by a public entity. Mello-Roos bonds are payable solely from special taxes
levied on property within the CFD. The City is not obligated to pay the Mello-Roos
bonds from any funds of the City.

The New Hall and related improvements to be undertaken by AEG on behalf

project that is eligible using Mello-Roos bonds. AEG,

ofthe City constitute the type of

as representative of the owners of

LA Live and the Staples Arena, wil request that

the City establish a Communities Facilty District to be comprised of certain LA Live

Parcels and the Staples Arena. The special tax payments are expected to start in
Fiscal Year 2014-15 in the amount of $3.0 milion and rise to approximately $15.8
milion in Fiscal Year 2045-46. A major increase in the special tax wil occur in
Fiscal Year 2024-25, when the current admissions fee on the Staples Center expires.
To enhance the market reception of the special tax bonds, AEG may need to enact a
contingent special tax on the Event Center.
The following table provides a projection of the special tax payments and the
debt service on the special tax bonds that wil be the responsibilty of AEG and
related entities.

Potential Revisions to Plan of Finance

The plan offinance for New Hall described above is based on financial
market conditions and other reasonable assumptions as of JulY 2011. The parties

agree that the final plan of finance may require revisions based on financial market
conditions at the time the New Hall is ready to be financed, which is currently
anticipated in the Spring of 2012. Such revisions could entail the dedication of

additional direct project revenues to repayment of the Lease Revenue Bonds, higher
special tax payments for the Special Tax Bonds, the issuance of a portion of the
financing on a taxable basis, issuance of bonds to fund a debt service reserve fund
and other changes. Any changes wil be subject to the approval of the City Council
prior to the issuance of any bonds for New HalL.

TAX PAYMENTS ON SPECIAL TAX BONDS

Fiscal

Year
2012-13

ProjectedSerie
\,

LA Live

Staples

Staples

Projected

Special
Tax

Add'l Special

Special
Tax

Series B

sB

Revenues

Debt Service
capitalized

Tax

2013-14

c:Gap)lExce
ss

capitalized

3,000,000

3,000,000

2,996,633

3,367

3,090,000

3,090,000

3,086,633

3,367

3,182JOO

3,182,700

3,178,951

3,749

2017-18

3,278,181

3,278,181

3,277,772

409

2018-19

3,376,526

3,376,526

3,372,303

4,223

2019-20

3,477,822

3,477,822

3,476,898

924

2020-21

3,582,157

3,582,157

3,580,217

1,940

2021-22

3,689,622

3,689,622

3,686,673

2,949

2022-23

3,800,310

3,800,310

3,795,790

4,520

2023-24

3,914,320 .

3,914,320

3,911,814

2,506

2024-25

4,031,749

1,000,000

3,930,000

8,961,749

8,958,030

3,719

2025-26

4,152,702

1,000,000

4,047,900

9,200,602

9,197,906

2,696

2026-27

4,277,283

1,000,000

4,169,337

9,446,620

9,442,990

3,630

2027-28

4,405,601

1,000,000

4,294,417

9,700,018

9,699,015

1,003

2028-29

4,537,769

1,000,000

4,423,250

9,961,019

9,956,536

4,483

2029-30

4,673,902

1,000,000

4,555,947

10,229,849

10,226,808

3,041

2030-31

4,814,119

1,000,000

4,692,626

10,506,745

10,505,100

1,645

2031-32

4,958,543

1,000,000

4,833,404

10,791,947

10,790,000

1,947

2032-33

5,107,299

1,000,000

4,978,406

11,085,706

11,085,000

706

2033-34

5,260,518

1,000,000

5,127,759

11,388,277

11,385,000

3,277

2034-35

5,418,334

1,000,000

5,281,591

11,699,925

11,695,000

4,925

2035-36

5,580,884

1,000,000

5,440,039

12,020,923

12,020,000

923

2036-37

5,748,310

1,000,000

5,603,240

12,351,551

12,350,000

1,551

2037-38

5,920,760

1,000,000

5,771,337

12,692,097

12,690,000

2,097

2038-39

6,098,382

1,000,000

5,944,478

13,042,860

13,040,000

2,860

2039-40

6,281,334

1,000,000

6,122,812

13,404,146

13,400,000

4,146

2040-41

6,469,774

1,000,000

6,306,496

13,776,270

13,775,000

1,270

2041-42

6,663,867

1,000,000

6,495,691

14,159,558

14,155,000

4,558

2042-43

6,863,783

1,000,000

6,690,562

14,554,345

14,550,000

4,345

2043-44

7,069,697

1,000,000

6,891,279

14,960,975

14,960,000

975

2044-45

7,281,787

1,000,000

7,098,017

15,379,805

15,375,000

4,805

2014-15

2015-16
2016-17

2045-46

7,500,241

1,000,000

7,310,958 15,811,199 15,810,000

\,

1,199

Attachment F
City Negotiation Principles
for Event Center Project
Prepared by the Chief

Legislative Analyst

City Negotiation Principles for Event Center Project

Outcome

Principle
1. The City's existing General Fund base wil be
fully protected.

la. The City's existing and future General Fund

base wil be fully protected.

2. There shall be no public money for the NFL

Event Center.

- 73% ofthe funding for New Hall bonds would

come from private sources;
the funding for New Hall bonds would
- 23% of
come from net new City revenues

- Guarantees would provide funding to cover any

shortfall in funding
- Identified revenues and the guarantee fully
cover required bond payments for the entire term
of the bonds
No existing public funding is provided to the
event center.

2a. There shall be no public money for the NFL

Event Center, or the downtown event center, and
public money and will not be used to subsidize or
incent the stadium and event center, or otherwise
make infrastructure improvements that the City
would not ordinarily make.
3. There must be substantial private funding to
support any bonds issued to construct Pico

funding for New Hall would be provided

from private sources, including a fair market

HalL.

lease payment for use of the propert and a

73% of

special tax supported by Project area signage

4. Any tax revenues used to support bonds issued

to construct Pico Hall shall be from
demonstrated net new tax revenues generated by
the development and shall not come
from existing General Fund revenues.
5. The amount of demonstrated net new tax
revenues to the City used to support bonds
issued to construct Pico Hall shall be no more
the net new General Fund tax
than 50% of
revenues accruing to the City from the
development.

23 % of the bonds would be financed by net new

revenues generated by the Project, including

possessory interest tax which is currently not
collected on the site and parking tax for new
events created by the Event Center
ApproximateIy 49% of net new revenues
generated by the Project would be allocated to
fund the New Hall bonds

Outcome

Principle
6. AEG shall fully guarantee, in a form
satisfactory to the City, the debt service on the
bonds used to construct the New Hall in the event
that the revenues generated through numbers
3 and 5 above are insufficient to fully support the
bonds.

6a. AEG shall fully guarantee, in a form of a

guarantee or letter of credit, or otherwise that the
developer wil satisfy its obligations to fund any
shortfall to the extent that the revenues generated
through numbers 3 and 5 above are insufficient to
fully support the bonds.
7. The City shall retain fee ownership of

the

propert on which the NFL stadium wil be

built. The propert wil be ground leased for a

period not to exceed 55 years and the City
shall receive fair compensation for the value of
the ground lease.
8. AEG will work cooperatively with LACC and
LA INC with regard to Convention Center
fullest extent
bookings to mitigate, to the
possible, any disruption of service at the LACe.
The New Hall wil be substantially completed
the West Hall.
prior to the demolition of
The West Hall shall not be taken out of service
the New Hall
prior to the opening of
without the City's prior consent and such consent

The guarantee structure provides security for the

the Project to cover any
revenue shortfall and ensure complete funding
coverage for all bonds. \,
various phases of

The guarantee includes several elements,

including a Letter of Credit, a special tax, a
completion guarantee, assignment of all
agreemnts related to Event Center operations;
and propert improvements.

The City retains fee ownership of

the propert,

the least would not exceed 55 years, and the

ground lease payment wil be a fair market value
payment with an annual escalation.

LACC, LA Inc., and AEG would create a MacroBooking Committee to ensure long-term
coordination of events and programs throughout
the campus, including the Convention Center,
Staples, Farmers Field, and LA Live.
Timing of

the closure of

upon completion of

West Hall would be

the New Hall or as approved

by the City.

wil be given only if scheduled events

can be otherwise accommodated.

9. AEG shall complete an Environmental Impact

Report (EIR) which shall fully analyze the
impacts of the proposed development.

AEG shall complete EIR that fully analyzes the

the proposed Project.
impacts of

AEG shall complete an Environmental Impact

Report (EIR) which shall fully analyze the
impacts of the proposed development, and AEG
shall not seek or receive legislative protection
from litigation regarding the adequacy of the EIR.

10. AEG wil implement a public benefits

program.

AEG has agreed to develop and implement a

public benefits package

Outcome

Principle
1 1. AEG will provide assurances to the
satisfaction of the City that teams that re
contracted to play in the NFL stadium are
committed to the stadium for a period sufficient
to ensure that the City's investment in Pico Hall is
protected.

12. The NFL stadium must include a roof and be

designed in such a fashion as to provide
viable additional event and exhibit space for the
LACC, so that the total available event
space at the LACC shall exceed one million
square feet. AEG and the City wil negotiate
the terms though which the City shall have access
to the stadium for event and exhibit
space.

New Principle: Due to the City's ownership of

the propert on which the stadium is built, the

City should receive a fair portion of the naming

rights.

AEG has agreed that no documents wil be

executed to implement this Project until an NFL
team lease has been executed.
\,

The proposed Event Center shall have a roof. The

Maci;o-Booking Committee shall coordinate City

the Event Center for convention events.

The Event Center pricing policy for convention
events wil be consistent with City policy.

use of

Independent analysis indicates that such an action

would render the Project not financially feasible.

The extremely low IR of 6.7% earned by AEG

indicates that it is not possible to allocate any
additional Event Center revenue to the City.