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Here's the cautionary tale: Rochester, NY

City sponsored and bonded soccer that was sold with the same arguments as this, and FAILED. Sponsors made a lot of money and left the city holding the bag and an empty stadium in a tough neighborhood.

Problem is that the financials are based on best expectations and negate the risk cost of achiving revenue levels needed to break even. 

Point is that if break even is 10,000 average, you need to plan for and market for 15,000 to 20,000 to assure breakeven. Breakeven is a lousy measure - use net present value with pesimistic timing instead.

Soccor and other amusments need to be a byproduct of prosperity; they cannot drive prosperity!

The only jobs "created" are for the owners of the club! The rest are temporary (construction) or part time (Vendors, Custodial).

To be forewarned is to be Fore-armed!

R. Eckel - resident of Rochester working in Portland

(Eckel is pronounced like Heckel and Jeckel without the "H" or "J")

posted 4 years, 2 months ago
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