How long does a typical MLS-specific stadium last?
I've heard that MLS can make money with about 15,000 fans per game if the teams play in their own stadums. I'm trying to calculate how it's possible. Does anyone know how long a soccer-specific stadium is built for?
Blue, I know there are many other factors. I will take them into consideration as well. I'm just trying to do a *rough* calculation to see if the league will make money even if the attendance don't increase and roughly how much money they will make.
I've never said the stadiums they are building are temporary. I'm simply wondering how long a stadium is expected to last. I'm sure you know that nothing is built to last forever.
- Frederick SLv 41 decade agoFavorite Answer
According to the Internal Revenue Service, the life span of a non-residential real property is 39 years if it was built after 1993. Basically, the owner of the soccer stadium has to depreciate the stadium's cost over 39 years.
Now for reality... MLS team owners have to calculate the benefits/costs of building a new stadium versus keeping an existing stadium. I think the two main factors are 1) ticket/concession revenue and 2) interest rates.
We all know teams can charge more for a ticket in a new stadium than an old stadium. The new stadium may generate additional revenue by selling more luxury boxes. More casual fans will see a MLS match because of a new stadium. This translates to more ticket sales, parking and food/drink concessions. All is good except...
Interest payments! A MLS-specific stadium can cost $80 to $150 million. Unless you're a NFL team owner, the city will not pay for the entire stadium so the MLS team has to pay the rest of the money. The team will most likely get a loan from a bank or creditor to finance the stadium. The MLS team has to pay interest on the loan. The bigger the loan, the larger the interest rate. Also the more debt the ownership has, its credit rating drops and it has to pay a higher interest rate.
I would imagine a team wants to pay down its stadium debt and build up its credit. I imagine it will take 20 years before a team even considers building a new stadium.
As for the break-even 15,000 attendance figure... I have heard something similar to that, but it's a generalization. If a team's stadium is cheaper, can sell more high-priced tickets (luxury boxes), get higher advertising and corporate sponsor dollars, and/or has less expenses (cheaper players and staff), then it could have less than 15,000 per game and still make a profit. Crew Stadium in Columbus, OH only cost $30 million so it doesn't need as much ticket revenue as the new Red Bull Stadium (estimated at $250 million) in NJ.
fyi... Interest rates have been historically low in the last 10 years. Many sports teams have built new stadiums and arenas in the U.S. to take advantage.
- BlueLv 51 decade ago
Well for one thing you can't just base it on ticket sales alone. There has to be other factors involved for them to make money from having their own stadium. I don't quite fully understand your question. Why would a team go through the trouble of building a soccer specific stadium costing millions of dolloars to build for it to only be temporary? That would just be a complete waste of time, effort, and money.
Edit: Oh ok. Well with todays construction standards I would have to say that they will last for many, many years to come. I agree with rebel.writer, too.
- Anonymous4 years ago
on the design the KC stadium looks like it will be the best that was a mock up drawing and if it still has almost to full cover for seating then it is the best of them all Red Bull coming in a close second. Of finished stadiums it would be Home Depot Center both for design and capacity.
- Anonymous1 decade ago
I don't know but they've gotta be pretty sturdy (have u seen the fans at RFK)?