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1.) What
is Stadium Capital Financing Group?
Stadium Capital Financing Group (SCFG)
helps teams and universities raise
capital without incurring debt. The firm
provides 'turnkey' services, including
financial advisory services; upfront
purchaser financing packages; sports
marketing, communication, and legal
documentation services; and tax and
accounting analysis.
SCFG has pioneered a new concept to help
sports teams, universities, and
entertainment venues raise capital via a
proprietary stadium ticket program.
“Equity Seat Rights®”, or ESR™, have the
potential to revolutionize the way
sports programs are financed. It is an
alternative to debt or taxpayer
subsidization of such projects. The ESR
concept can be adapted to professional
sports teams, universities, and other
entertainment venues.
Lou Weisbach is Chief Executive Officer
of Stadium Capital Financing Group.
Morgan Stanley Principal Investments
purchased a controlling interest in SCFG
in May of 2007. (Read
Press Release)
2.)
What is an Equity Seat Right?
ESR provides a balanced approach to
stadium financing, providing benefits
and solutions for both fans and team
owners. An ESR raises capital without
creating debt or selling equity.
With an ESR, fans will “own” their
stadium seats. Instead of buying season
tickets, fans and corporations can
voluntarily commit to owning an actual
seat for a determined period of time
(e.g., 20 years to perpetuity). The cost
of the seat is locked in at a fixed
price, and the fan never again pays a
ticket price increase for that seat and
actually builds equity. The ESR
purchaser can also choose to sell the
seat on a secondary market, or to
bequeath the seat to children or
grandchildren. For an ESR owner at a
university, a significant portion of the
ESR price may qualify as a charitable
donation.
In turn, the sports team, venue owner,
or university receives an influx of cash
that can be utilized to repay debt or to
build or renovate stadiums. In addition,
for universities, the ESR concept can
create an endowment to fund scholarships
and non-revenue sports.
ESR is an individualized program,
tailored specifically for the sports
team, university or entertainment venue
involved - there is no cookie-cutter ESR
program. Typically, a small number of
stadium seats (approximately 5-10%) are
involved in an ESR program.
3.)
How is ESR different from PSL's?
ESR should never be confused with
Personal Seat License programs, or PSL's.
It's akin to “renting” versus “buying”
your home. You're not getting the right
to buy a ticket, you're buying your seat
at a fixed price.
With PSL's, the fan is being charged for
a right that he always has had, and he
still has to purchase season tickets
each year at a yet-to-be-determined
price. ESR offers fixed pricing, full
transferability, and free tickets after
a period of time. ESR allows the fan an
opportunity to build equity and the
ability to pass seats on to children and
grandchildren.
Learn More
»
4.)
How much money can be raised by
utilizing ESR?
ESR methodology enables sports teams to
raise significant capital - of $50
million to over $500 million – without
incurring debt or diluting ownership or
governing control. Capital can be used
to repay debt, to construct or renovate
stadiums or to build an endowment for a
university.
5.)
Are there any Internal Revenue Service
issues raised by ESR?
None whatsoever.
6.)
How many seats in a stadium will be
involved in ESR transactions?
Not every seat will be involved in the
ESR concept. In fact, only a relatively
small number of seats will be utilized.
Only those fans who volunteer to make a
long-term financial commitment to the
team participate in the ESR program.
The ESR program does not have to replace
existing seating program, but can be
integrated with existing programs.
Media Contact:
Alissa Krinsky
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Email: |
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Phone: (312)
755-9004 |
