CSAG releases its financing plan for a new San Diego Stadium

SAN DIEGO (KUSI) – The National University System Institute for Policy Research released an analysis of the Citizens’ Stadium Advisory Group’s report Tuesday calling it, “realistic, but risky.”

The NUSIPR analysis was broken down into three parts:

-Are the cost estimates for the new Mission Valley Stadium reasonable?

-Does the CSAG’s Financing Plan generate sufficient revenues?

-What recommendations are offered to the City and County as they move forward?

CSAG reported that the cost of a new stadium would reach an estimated $1.34 billion.

According to a press release by NUSIPR, “A market the size of San Diego’s might yield a plan where two-thirds of the stadium costs would be borne by the public. CSAG’s proposal has the private sector picking up 66 percent of the cost of the new stadium and related infrastructure.”

NUSIPR said the estimated cost of the stadium was reasonable, but conservative.

Other concerns include whether or not a $950 million dollar facility can compete with other current generation facilities in Dallas, Santa Clara and soon Minneapolis and Atlanta for some of the premier events held at such facilities and how risks are apportioned out in the plan between the public sector and the Chargers organization.

“One key risk to be managed going forward is to balance available resources against the desire to keep pace with the level of amenities offered at the most-recently opened NFL stadiums in New York, Santa Clara, Dallas, Atlanta and Minneapolis,” said the report.

Another concern associated with the estimated costs is the operations and management of a new facility.

The financial plan released by CSAG placed all revenue on the construction of the site, but failed to indicate the costs for maintaining a new facility.

According to NUSIPR, they believes that CSAG’s plan identifies $196 million in revenues above what the group believes is needed to construct the stadium.

“A challenge for the City is how to negotiate in private while still vetting provisions of the contract in public with enough time so as to avoid pitfalls,” said W. Erik Bruvold, President of NUSIPR. “Economic research does not support the argument that hosting a NFL team benefits a region’s economy. Instead, it should be looked at as an amenity. If the public decides that it finds emotional value in hosting a team, the CSAG plans seems a feasible means of realizing that goal.”

Categories: KUSI