PSLs At Giants/Jets Stadium Paying Off More Than 20% Of Stadium
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PSL Sales Contributing $360M Toward
Construction Of New Giants/Jets Stadium |
The NFL Giants and Jets through the sale of PSLs at the teams' new Meadowlands stadium are netting $360M "toward the cost" of construction, according to the N.Y. DAILY NEWS' Gary Myers, who wrote under the header, "How PSLs Have Turned Jets' & Giants' Field Of Dreams Into A Nightmare." The $360M in PSL sales, "in effect, makes the fans who pony up for the PSL" 20% owners of the stadium. Giants President & CEO John Mara: "We're asking our fans to pay 20-25% of the cost of the building. After all is said and done, the Giants are left with $500[M] in debt. That's a hefty number to pay." But SportsCorp President Marc Ganis said if the Giants and Jets "built a stadium for $1.2[B] instead of $1.7[B], they may not have needed this." Both teams cited "unforeseen spikes in construction and material costs, coupled with faltering credit markets, for the ballooned cost" of the stadium. Jets Owner Woody Johnson, referring to the Jets' decision not to issue PSLs for upper deck seats in the stadium, said, "I probably left a lot of money on the table. I know I did. I could have done more." Mara: "Our financial advisers told us we were leaving a lot of money on the table." Johnson added if current fans "don't want to pay the price, others will step up off the waiting list" to buy PSLs. Myers noted both teams will make $50M "per year from luxury boxes," compared to the $5M each brought in at Giants Stadium. The following details the avenues through which the stadium will be paid (N.Y. DAILY NEWS, 11/2).
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$300M
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Loans issued to the teams from the NFL's G-3 stadium funding program. The money is repaid from the visiting share of the club seat revenue. |
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$360M
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PSL sales |
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$750M
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Naming rights at an expected rate of $25M per year over a 30-year period |
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$290M
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Combined contribution from the Giants and Jets |
Necessary Charge: Johnson said the sale of PSLs was “absolutely necessary.” Johnson: “I know that this is a difficult thing for many people. In doing our surveys and talking to fans, we tried to come up with a plan that could accommodate them and their histories with the team and their histories with their seat as best we could. That’s why we left 27,000 seats in the top with no PSL, even at the 50-yard line.” Meanwhile, Johnson Friday gave CNBC’s Maria Bartiromo a tour of the new Meadowlands stadium, and said, "It has amenities for the fans and for the teams that the other one didn’t. Stadiums recycle themselves. … Every 30 or 40 years they become obsolete and that stadium was obsolete” (“Closing Bell,” CNBC, 10/31).
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