More Baseball-Related DC Revenue
In my two prior analyses of the revenues generated by a new ballpark, I had left out a couple of sources of revenue that I did not have a complete grasp upon. Just now, I got off my duff to google those revenues, and can add a whole wad of cash to the pile.
1. Tax on Tickets
In addition to getting rent money directly from the sale of seats over a certain number, DC gets tax revenues from each seat sold. As
a part of the legislation approving the stadium, the DC Council initiated a 10% tax on the price of all tickets. Thus, a $45 Field MVP seat has $4.5 going to DC and $40.50 (roughly) going to the Nationals.
I'll make a rough estimate and suggest the weighted average tax per ticket is $2. There are a large number of seats available at $29 or more to more than balance out the number at $14 and less. It's a guess, but an educated one.
This means that, assuming again that the Nats draw 2.5 million fans per season over the course of the 30 years of the stadium, that DC will collect $5 million per year in revenues, for $150 million in total revenues. Those revenues would support a bond worth $72.7 million today.
2. Tax on Parking
DC has also levied a 12% tax on parking in RFK and new stadium lots. On a $10 parking fee, that's another $1.20. We'll assume that parking stays at $10 over the course of the 30 years (this, of course, is an absurdly conservative assumption), and that 6,000 cars park at the stadium per game to support the 30,000 fans in attendance. I have no idea whether that 6,000 figure is accurate (I haven't been able to find an estimate anywhere on the Internets), but one per 5 attendees seems conservative. That's $7,200 per game, and $582,000 per year. The total revenues over the 30 years would be $17.5 million, which would support a bond worth $8.5 million now.
3. Tax on Souvenirs
In my first post on this subject, I erroneously stated that there would be a 5.75% tax on souvenirs sold at the stadium. In fact, that tax will be 10%, according to the DC Council's final bill. Instead of $172,000 in revenues per year on $3 million in merchandise sales, it will be $300,000. The total revenue over the 30 years would be $9 million, which would support a bond worth $4.4 million today.
Add it Up
So, pulling together all the baseball related revenues from my three posts, here is what I get:
Source | Per Year $$ | Total Amount | Bond Value |
---|---|---|---|
Ticket Tax | $5.00 | $150.0 | $72.7 |
Lease (less maintenance) | $3.50 | $105.0 | $50.8 |
MLB Payment | N/A | $20.0 | $20.0 |
Non Game Day Parking | $1.33 | $40.0 | $19.4 |
Player/Staff Income Tax | $2.98 | $89.4 | $43.3 |
Tax on Concessions | $2.16 | $64.8 | $31.4 |
Tax on Merchandise | $0.30 | $9.0 | $4.4 |
Tax on Parking | $0.58 | $17.5 | $8.8 |
Increased Property Tax | $11.00 | $275.0 | $147.6 |
Total | $27.00 | $825.7 | $398.4 |
Not too shabby in terms of baseball-related revenue. The stadium produces $825.7 million in revenues for the city over the 30 years, which has a current day bond value of $398 million - roughly three-fourths of the price of the stadium.
I believe this analysis to be conservative. In fact, I think there will be a great increase in tax revenues from the bars, restaurants and other establishments around the stadium. I also think that the area around the ballpark is likely to pull in higher-income individuals who might otherwise live in lower-tax Virginia or Maryland (I am one of the them), meaning that there will be addition income tax revenues for DC. In addition, parking, ticket prices and other bases of baseball-related tax revenues are likely to rise as well, which should generate additional revenues. Altogether, I would not be surprised if the stadium finances itself with baseball-related revenues only.