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MLS stadium plan suffers setback in Salt Lake
USA - 08 May, 2006
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Major League Soccer (MLS) team Real Salt Lake’s plans to build a new stadium have been held up after a search for a city centre site failed.
According to Salt Lake County this week, public funding wanted for the team’s project in Sandy, Utah, will not be available. County Mayor Peter Corroon’s decision not to use US 35 million generated from a 1.25 percent hotel tax leaves the team trying to figure out where and how to build its stadium.
Real Salt Lake’s proposal to build a 20,000-seat stadium and entertainment complex in Sandy, about 15 miles south of Salt Lake City, would have featured a hotel and broadcast centre, with a cost of approximately US 145 million. The club would have picked up most of the tab, but wanted help from the Salt Lake County and the city of Sandy.
Corroon said the US 35 million that the club sought from the county would have cost
taxpayers too much in interest payments, leaving the county to pay back US 87.5 million over the life of the loan.
“It's hard to watch a major league team come into our city, take the risks and make the investments that have been made and see it all botched so badly,” said Salt Lake City mayor Rocky Anderson.
Anderson believes the stadium would be under construction by now if a state law, rescinded by the Legislature this year, had not, two years ago, prohibited redevelopment agencies from funding sports stadiums.
“I hope that there has been a wakeup call here," Anderson said.
It was also reveald that Real Salt Lake is losing millions of dollars every year. The team is not predicting its first profit - a very modest US 11,000 - until 2010. From there, however, the club predicts the profits will start rising, topping US 2.2 million by 2015, according to financial documents obtained by The Salt Lake Tribune.
The club’s operating model also projects a consistent increase in attendance for 10 consecutive seasons with near sellouts between 2010 and 2015, which goes against the trends in Major League Soccer.
According to Salt Lake County this week, public funding wanted for the team’s project in Sandy, Utah, will not be available. County Mayor Peter Corroon’s decision not to use US 35 million generated from a 1.25 percent hotel tax leaves the team trying to figure out where and how to build its stadium.
Real Salt Lake’s proposal to build a 20,000-seat stadium and entertainment complex in Sandy, about 15 miles south of Salt Lake City, would have featured a hotel and broadcast centre, with a cost of approximately US 145 million. The club would have picked up most of the tab, but wanted help from the Salt Lake County and the city of Sandy.
Corroon said the US 35 million that the club sought from the county would have cost
taxpayers too much in interest payments, leaving the county to pay back US 87.5 million over the life of the loan.
“It's hard to watch a major league team come into our city, take the risks and make the investments that have been made and see it all botched so badly,” said Salt Lake City mayor Rocky Anderson.
Anderson believes the stadium would be under construction by now if a state law, rescinded by the Legislature this year, had not, two years ago, prohibited redevelopment agencies from funding sports stadiums.
“I hope that there has been a wakeup call here," Anderson said.
It was also reveald that Real Salt Lake is losing millions of dollars every year. The team is not predicting its first profit - a very modest US 11,000 - until 2010. From there, however, the club predicts the profits will start rising, topping US 2.2 million by 2015, according to financial documents obtained by The Salt Lake Tribune.
The club’s operating model also projects a consistent increase in attendance for 10 consecutive seasons with near sellouts between 2010 and 2015, which goes against the trends in Major League Soccer.
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