Qualcomm Stadium

Qualcomm Stadium has a seating capacity of about 70,500 and a remaining obligation of about $52 million on the 1997 Renovation Bonds.

Regular net rent received by the City from the Chargers after deducting the ADA payments and rent credits, is less than $1 million per season.

The City’s direct operating losses on Qualcomm Stadium after crediting net rents paid by the Chargers, and excluding efforts by the City to mitigate the shortfall with other events, are at least $17.1 million for 2010

The City partially reduces the deficit with other events and subsidizes the balance with City Transient Occupancy Tax (TOT) revenues of $11.8 million in 2010.14 10 San Diego Business Journal, “Critical Part of Chargers’ Financing Deal Out of Play”, February 1, 2010. Union-Tribune, Sign On San Diego, April 20, 2010. Econ Journal Watch, Volume 5, Number 3, September 2008, -315, Sports Economist Robert A. Baade, PhD, Economist D. Coates, PhD, Charles A. Santo, PhD. Evolution Media Capital, NFL Stadium Financing Background, January 2010 (Presentation to Centre City Development Corporation). City of San Diego, FY 2010 Annual Budget. 4

The Tampa Bay Buccaneers pay the Tampa Sports Authority fixed rent of $3.5 million per season, a minimum of $3.5 million on account of premiums from the sale of Club Seats and a ticket surcharge of $2.50 per ticket, all with no rent credits, for a total of at least $8.1 million.

San Diego taxpayers oppose the use of public monies for the construction of a new Charger stadium.

The Chargers are proposing to invest about $200 million to build a 62,000 seat stadium at a cost of $800 million, with the balance of about $600 million to come from tax increment bonds to be paid from property, sales and Transient Occupancy Taxes.

The $800 million estimate may be significantly increased by the addition of a retractable roof.

The $52 million balance due on the 1997 stadium Renovation Bonds must be dealt with if a new Chargers stadium is built.

There is almost no evidence that professional sports franchises and facilities have a positive impact on real per capita income or employment, and may have a negative affect.

If public financing is the source of funding for a new Charger stadium, the City should demand a lease with terms that will protect the City such as a long-term lease with fixed rents and no credits, no risk of cost overruns, and City use of the stadium for other public events.