Wow, $7 to 11.5 million a year from stadium tours alone

[yimyammer]

Per the live chat at ESPN:

http://espn.go.com/dallas/chat/_/id/28604/cowboys-jerry-jones
Jerry Jones

"We are tinkering and we do have some things that we want to do. We have some exciting plans for the rest of the year that will address our tradition and our legacy. Our Hall of Fame and ways to present that in 3-D and 4-D type of presentation. Our non-event tours, we're having as much as 2,000-3,000 people come through a day. We really want to use the center board to make a tour of this stadium very unique. There is a lot that we can do and we are just scratching the surface of what we can do with the boards and enhance the fans experience of being here. We want that to be a part of their experience as good as you can imagine."

The tickets for the tour cost $15.00

At 2000 people per day, that = $30,000 per day, assuming they hold tours on 250 days per year, that equals $7,500,000 per year in tour revenue alone

@ 3000 people per day x $15 x 250 days = $11.500,000 per year in tour revenue alone

I think its safe to assume some people buy shirts and other stuff at the Pro shop while on a tour. Let say it increases the average amount spent per person who tours the stadium to $50 per person, here are the increased annual revenues from the tours and what was purchased by tour attendees:

2000 people @ $50 x 250 days = $25,000,000 * 65% (reduced for cost of merchandise & labor) = $16,250,000

3000 people @ $50 x 250 days = $37,500,000* 65% (reduced for cost of merchandise & labor) = $24,375,000

Annual interest on $1,000,000,000 @4% = $40,000,000

He can almost cover his annual interest nut off the tour revenue alone

Can you say cash cow?

 

[cowboyjoe]

Per the live chat at ESPN:

http://espn.go.com/dallas/chat/_/id/28604/cowboys-jerry-jones
Jerry Jones

"We are tinkering and we do have some things that we want to do. We have some exciting plans for the rest of the year that will address our tradition and our legacy. Our Hall of Fame and ways to present that in 3-D and 4-D type of presentation. Our non-event tours, we're having as much as 2,000-3,000 people come through a day. We really want to use the center board to make a tour of this stadium very unique. There is a lot that we can do and we are just scratching the surface of what we can do with the boards and enhance the fans experience of being here. We want that to be a part of their experience as good as you can imagine."

The tickets for the tour cost $15.00

At 2000 people per day, that = $30,000 per day, assuming they hold tours on 250 days per year, that equals $7,500,000 per year in tour revenue alone

@ 3000 people per day x $15 x 250 days = $11.500,000 per year in tour revenue alone

I think its safe to assume some people buy shirts and other stuff at the Pro shop while on a tour. Let say it increases the average amount spent per person who tours the stadium to $50 per person, here are the increased annual revenues from the tours and what was purchased by tour attendees:

2000 people @ $50 x 250 days = $25,000,000 * 65% (reduced for cost of merchandise & labor) = $16,250,000

3000 people @ $50 x 250 days = $37,500,000* 65% (reduced for cost of merchandise & labor) = $24,375,000

Annual interest on $1,000,000,000 @4% = $40,000,000

He can almost cover his annual interest nut off the tour revenue alone

Can you say cash cow?

yeah but jerry jones has to keep paying on that 250 to 300 something note they borrowed from the bank

he has to pay on that note each month, and its not chicken feed that monthly note

 

[BALCO]

You also have to factor in operating cost per day to keep the stadium running. I can't even imagine what the electric bill would be per day, plus personnel who run the place.

 

[cowboyjoe]

You also have to factor in operating cost per day to keep the stadium running. I can't even imagine what the electric bill would be per day, plus personnel who run the place.

true, its pretty high too, but thats who jerry jones is, he is a person that knows how to make money

i just wished sometimes he would stay out of the coaching aspect of football

 

[Duane]

I think everyone should take the stadium tour. Even my fiance who doesn't like football was impressed.

The only part of the tour that I didn't like was when they tried to sell me on the Dallas Cowboys Fan Club as a money saver. The intern that presented clearly didn't have a firm grasp on mathematics and/or finance. Because he started spouting out how we could save $100 a year (or something like that) if we spent $20 a month on merchandise. The membership cost $20 a year and gets you a 15% discount. This nets to only a $16 in savings after membership costs.

 

[yimyammer]

yeah but jerry jones has to keep paying on that 250 to 300 something note they borrowed from the bank

he has to pay on that note each month, and its not chicken feed that monthly note

I used an assumption of a $1,000,000,000 (one billion) note at 4%. Under this assumption, the revenues from the tours cover 40 to 60% of the interest cost before ticket sales, concessions, programs and additional revenue from merchandise purchased during the game.

I think the $1 billion dollar note is probably over stated because he received a ton of cash from all the seat licenses he sold. If he averaged $5,000 per seat license x 80,000 seats, that would be $400,000,000 he can reduce from the cost of the stadium ($1,200,000,000) which leaves a balance due of $800,000,000. Of the balance due, $325,000,000 is held by the city of Arlington at what I imagine is a pretty low rate, but I'm not sure.

If you do the math on what Jerry was asking for upfront costs on all seat licenses and if Jerry actually sold all of those licenses at the prices he was asking, then he could have funded the entire project from these sales alone leaving him with no debt.

 

[cowboyjoe]

I used an assumption of a $1,000,000,000 (one billion) note at 4%. Under this assumption, the revenues from the tours cover 40 to 60% of the interest cost before ticket sales, concessions, programs and additional revenue from merchandise purchased during the game.

I think the $1 billion dollar note is probably over stated because he received a ton of cash from all the seat licenses he sold. If he averaged $5,000 per seat license x 80,000 seats, that would be $400,000,000 he can reduce from the cost of the stadium ($1,200,000,000) which leaves a balance due of $800,000,000. Of the balance due, $325,000,000 is held by the city of Arlington at what I imagine is a pretty low rate, but I'm not sure.

If you do the math on what Jerry was asking for upfront costs on all seat licenses and if Jerry actually sold all of those licenses at the prices he was asking, then he could have funded the entire project from these sales alone leaving him with no debt.

does that mean that he recoups all of the money he has spent on the stadium?

i think thats what jerry wants to do, have that money back and doubled before he spends again

get aload of this, with what jerry said;
Ryan Casper (Green Bay, WI)

What do you think the most stressful part of owning a football team especially when the team struggles? Is find the right coaching staff? Or making sure you have the right football players together on a team?
Jerry Jones

I've never felt like I own the Cowboys. I know how to feel about owning things, car, house, piece of land, but I never felt I own the Cowboys. That would be like saying you own Notre Dame or University of Texas. The fans own the team. What I do feel strong about is doing everything I can to make a better franchise or a better team. The expectations that I put on myself are almost certain to disappoint. But that's the game. It's 90% disappointing, but it's the other time that makes you love football. For instance, I wanted to do everything I could to do to give our Cowboys fans a great stadium. I can't believe taht I was involved in making a decision like this. But this last year and half to two years has been a lot of worry in the economy. You know it, I know it. Having $30-$40 million a month in payroll and having workers out here. It goes back to the game and the one we're playing tonight. You wake up with your throat tight.
how does that figure into your figured costs?

 

[Maikeru-sama]

I think the 2K-3K crowd per day will go down significantly over the next couple of years.

 

[cowboyjoe]

I think the 2K-3K crowd per day will go down significantly over the next couple of years.

most likely if they lose to panthers tonight, and some other home games

 

[Hypnotoad]

These numbers assume interest in stadium will remain constant over time. This is highly unlikely. At first people are more interested. That interest will eventually decrease.

 

[yimyammer]

I think the 2K-3K crowd per day will go down significantly over the next couple of years.

I totally agree, but if he manages his money right, he should have most or all us his debt paid off by the time the tour attendance drops significantly. Then he would still be adding a nice junk to the bottom line without expending significant costs on labor and resources. I can see stopping by the stadium being a mandatory stop for those visiting this area for 6 flags, etc. What else is there to see in Dallas (I live here by the way)?

As natural gas is often a by product of drilling for oil, the tours are like a by product to having a stadium. High margin low cost income.

Sweet gig if you can get it

 

[Q_the_man]

I think the 2K-3K crowd per day will go down significantly over the next couple of years.

try next couple of months......

 

[yimyammer]

does that mean that he recoups all of the money he has spent on the stadium?

i think thats what jerry wants to do, have that money back and doubled before he spends again

get aload of this, with what jerry said;
Ryan Casper (Green Bay, WI)

What do you think the most stressful part of owning a football team especially when the team struggles? Is find the right coaching staff? Or making sure you have the right football players together on a team?
Jerry Jones

I've never felt like I own the Cowboys. I know how to feel about owning things, car, house, piece of land, but I never felt I own the Cowboys. That would be like saying you own Notre Dame or University of Texas. The fans own the team. What I do feel strong about is doing everything I can to make a better franchise or a better team. The expectations that I put on myself are almost certain to disappoint. But that's the game. It's 90% disappointing, but it's the other time that makes you love football. For instance, I wanted to do everything I could to do to give our Cowboys fans a great stadium. I can't believe taht I was involved in making a decision like this. But this last year and half to two years has been a lot of worry in the economy. You know it, I know it. Having $30-$40 million a month in payroll and having workers out here. It goes back to the game and the one we're playing tonight. You wake up with your throat tight.
how does that figure into your figured costs?

I doubt Jerry consistently has $30 to $40 million per month. He’s prone to hyperbole and is probably rolling in negative cash flows related to the stadium that are funded by debt. Most likely, these are not recurring everyday expenses and more likely to be capitalized costs of the stadium.

$160,000,000 Ticket Revenue: Assuming Jerry can average $200 per seat for 10 games with an average attendance of $80,000 per game, he would gross $16,000,000 per game or $160,000,000 for the Season (playoffs excluded)

$20,000,000 Tour Revenue (includes merchandise purchase by attendees) $20,000,000 (I split the difference between the high and the low figures)

$77,000,000 TV revenue (If this link is correct - http://www.profootball-fans.com/football-articles/nfl-money-machine_091708.html )

$257,000,000 Total Revenue (Without Advertising Revenue?? Corporate Sponsorship??)

***Estimated Revenue for 2007 was $269,000,000 in 2007 per Forbes http://www.forbes.com/lists/2008/30/sportsmoney_nfl08_NFL-Team-Valuations_Income.html)***


$12,000,000 Coaching Salaries ($3 mill for Mr. Greenjeans/$3 mil for Redhead, double this for the rest of the staff--??)

$127,000,000 Player Salaries (The 2009 Salary Cap per http://moondogsports.com/2009/02/27/2009-nfl-salary-cap-status/ )

$24,000,000 Admin Costs (accounting, receptionists, etc - $2,000,000 per month-Total guess??)

$50,000,000 Debt Service ($1,000,000,000 @ 5%)

$213,000,000 Approx Expenses (82.8% of Revenues)-à[88.6% of revenues per Forbes in 2007]

$44,000,000 Est. Net income

I think the revenues are highly understated and the expenses are possibly overstated

 

[big dog cowboy]

true, its pretty high too, but thats who jerry jones is, he is a person that knows how to make money

i just wished sometimes he would stay out of the coaching aspect of football