Dilip Vishwanat - Getty Images
The CVC proposal for renovations to the Edward Jones Dome would leave the St. Louis Rams among the league's lowest earners in premium seating revenues.
On Feb. 1, the St. Louis Convention and Visitors Commission presented the St. Louis Rams with a $124 million proposal for renovations to make the Edward Jones Dome a "top tier" facility. Of all the items in the proposal, the most important might be additional premium seating which could generate more than $2.6 million in new annual revenue for the Rams.
Would that be enough?
A proposal for a downtown Los Angeles stadium prepared by AEG and the City of Los Angeles in the summer of 2011 revealed each NFL team's potential for premium seating revenue. (The San Diego Union Tribune made the report available on their web site). According to that report, the Rams rank 31st in the league for potential premium seating revenue, with a total of $21.59 million.
The LA study looked at the number of club seats and luxury suites and the average annual fee for both. By the accounting of that report, the Rams have 101 suites and 6,692 club seats. According to that report, the average annual fee for a suite at the Dome is $100,000, and the average annual fee for a club seat is $1,720.
The CVC proposal calls for the addition of 1,500 club seats and four suites. The addition of 1,500 club seats would generate $2.58 million and another $400,000 from the additional suites. It is not a net gain, since 1,800 seats would be removed to make way for the club seats.
The LA report collected their information from premium seating and ticketing reps from NFL teams.
Revenues collected from premium seating sales does not go into the revenue sharing pool.
An additional $2.62 million in premium seating revenue would not move the Rams too far up the list. It would put them slightly below the Buffalo Bills, ranked 27th, who can generate slightly more than $25 million in premium seating revenue.
Looking at some of the newer facilities in the league, the Rams would still be lagging significantly in premium seat dollars. The Colts, whose new home was built in 2008, can generate $36 million from premium seating. The two New York teams rank third and fourth on the list, each capable of generating more than $90 million. Nobody beats Jerry Jones and the Cowboys, who can generate as much as $137.9 million. Farmers Field would generate an estimated $122 million.
Obviously, other upgrades to the Dome would add to the revenue picture as well, so would fielding a winning team. Just how much additional revenue the Rams would like to see in a renovated Dome will likely factor into their counter proposal, if they opt to make one.
The team has until March 1 to accept or reject the CVC proposal, and they have until May 1 to offer their own. If the CVC rejects the Rams' proposal, the two sides would head to arbitration.
0 recs | 6 comments
I am so sick of this stadium issue .
Is there a way for a separate board to handle it? That way it keeps the Trolls and smack talk over there. Not where Rams football is actually discussed. Justa thought
Da Rookie - February 17, 2012
Well, it is a central Rams issue....
gorams77 - February 17, 2012
Interesting
The glaring thing about these type of revenue reports is they benefit those in areas that have a higher operating cost. I suspect if you had a list of the highest cost to operate their venue it would probably flip flop. Granted financial and power centers like New York and Washington DC have access to way more corporate dollars so they can obviously capitalize on this advantage. The Rams have kept their ticket prices low as they should considering the level of play. I would expect a winning team would allow them to raise the prices up to 25% across the board wich would put them somewhere near the League average.
In my mind Kronke wants what in his mind is a fair deal. I don’t think that means he expects a deal that makes the Rams as profitable as the Cowboys but he wants to feel appreciated. Given the physical constraints, I feel like the current CVC plan is an earnest attempt to make Stan feel appreciated. I suspect the real test comes when it’s time for the area to agree to pay for this… obviously I don’t believe anyone suspects the Rams to foot half the bill. This will turn into a negotiation of how much the Rams pay and if the deal will be supported by the community.
Sggladden - February 17, 2012
I just don't see (IMO) how the Ed remains a workable solution....
renovated or not. I only see the “end game” as a move to LA or a new stadium built in StL (largely funded by tax payers, owned by SK).
Stan is a business man with a new team that he just invested heavily in to own 100% while giving up his control in two other owned franchises (Nuggets and Avs – though he may still have indirect control over them). He is in a position of power seemingly with options. I just don’t see a renovated Ed as a viable option – he ain’t walking away from this with only an upgraded Ed, I know I wouldn’t.
gorams77 - February 17, 2012
So are the Minnisotta Lakers / Vikings?
The Minnesota dome is in worse shape than any. Not avalanche in dome. Move Viqueens move. You are all Packer fans anyway.
Da Rookie - February 17, 2012
RAMS NEED TO STAY HERE
Forget all the money generatined and other bullshit. LA had there chance. They have nothing right now. Maybe we can get KC to move there team there
Steven M. - February 17, 2012
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