San Diego State’s Contract Extension for SDCCU Stadium
The San Diego City Council’s Smart Growth and Land Use Committee today advanced without recommendation an agreement between the city and San Diego State University for the Aztecs to continue playing football at SDCCU Stadium.
City staff were instructed to engage in further negotiations with SDSU before the City Council considers the agreement Aug. 6. They’re also expected to provide additional details on stadium-related finances and further revenue opportunities. The proposed agreement would commence January 2019 and extend through
Under the agreement, the city would receive $1.1 million per year from SDSU as well as net parking and concession revenues, which totaled $733,485 in fiscal year 2018. SDSU would also reimburse the city for game-day expenses, as the university does under the current agreement expiring Dec. 31. The city doesn’t receive a flat rate under the current agreement. Instead, it receives a $1 ticket surcharge, which totaled $154,000 in fiscal year 2018. SDSU also currently retains net parking and concession revenues.
Increased revenue under the new agreement still wouldn’t make the stadium profitable for the city, which ran a projected deficit of $4.6 million
in fiscal year 2018 and $4.4 million in fiscal year 2019 operating the
With San Diego State’s SDCCU Stadium lease with the City set to expire after this football season, the City is offering an extension, but one that is far more costly. More than a million-dollars more.
The Chargers abandoning San Diego led to huge questions about the future of the Mission Valley Stadium and for that matter, the future of Aztecs’ football, specifically where would San Diego State play after 20-18.
Padres owner Ron Fowler offered Petco Park, but only for the 2019 season.
Now comes the city with an offer to extend, through 2020, but at a considerable hike: $1.6 million a season, which includes concessions and parking revenue, as opposed to the about $150,000 a season SDSU has been paying, based on a dollar a ticket.
City Council member Scott Sherman, who represents Mission Valley, was live on Good Morning San Diego and while the hike seems like a lot, Carlos Amezcua also asked this: “They’re going to pay a million-six, but how much does it cost the City to keep up the Stadium?
Sherman’s reply, “Eight-million a year, the utility bill alone is about 2-million.”
Sherman told our morning audience that this has been a massive subsidy for San Diego State the way the rent was structured, then added, “Now its a ‘huge’ subsidy.”
Sherman also pointed out the City charges the Holiday Bowl about $500-million dollars for just the one game, so based on that, he says SDSU ought to be paying some 3-million-dollars for a seven-game home season.