San Antonio has made an enticing proposition to potential Major League Soccer (MLS) franchise owners, a deal designed to draw top-tier professional soccer to the city. The city’s offer provides a financial package that is hard to ignore, offering significant benefits that aim to lower operational costs and boost revenue potential for any prospective team.
The city’s willingness to heavily invest in a new team raises several questions about its goals and future vision for sports in the region. Let’s break down the details of this offer and why it’s such a favorable arrangement for anyone considering owning an MLS team in San Antonio.
[ez-toc]
Rent-Free Use of the Alamodome for Five Years
One of the most attractive aspects of San Antonio’s offer is the rent-free use of the Alamodome for 20 home games each year for at least the next five years. For prospective MLS owners, this is a significant cost-saving measure. Renting the Alamodome typically costs anywhere from $35,000 to $200,000 per game, with an average tenant paying $119,000. Over a year, this rent-free arrangement would save a team anywhere from $700,000 to $4 million in venue costs.
Stadium rental costs are often one of the largest expenses for sports teams, and by offering the use of the Alamodome rent-free, San Antonio is making it much easier for a new MLS franchise to achieve profitability early on. This kind of arrangement also signals the city’s dedication to providing a home for a professional soccer team, helping ensure the team’s success while keeping overhead costs low.
A Revenue Retention Agreement Like No Other
San Antonio isn’t just offering free use of the Alamodome; the city is also allowing the prospective MLS franchise to keep all revenue from ticket sales, suite rentals, temporary field signage, concessions, and merchandise sales. This is a massive opportunity for any potential owner, as it gives them full control over key revenue streams that typically contribute to a team’s financial success.
The deal also allows the team to retain 95% of advertising sales revenue, as well as 70% to 80% of what it earns from the sale of naming rights for the Alamodome. These two provisions alone represent a huge revenue boost, as advertising and naming rights are often significant sources of income for sports teams. A well-negotiated stadium naming deal could bring in millions of dollars annually, which would only further solidify the franchise’s financial footing.
In a typical arrangement, teams often have to share a portion of these revenues with the stadium or venue owners. However, San Antonio’s offer prioritizes the team, making it clear that the city is serious about supporting the financial success of an MLS franchise in the long term.
Sharing Rents from Other Events
The benefits don’t end with home game revenue. San Antonio has also offered to give the MLS team 50% of rent collected for other events hosted at the Alamodome, with a few exceptions, such as conventions, already booked events, and NCAA or Olympic events.
This is a unique arrangement, as many stadium agreements don’t include revenue-sharing from outside events. This additional income stream could provide a steady revenue flow even when the team is not playing at the Alamodome, further boosting the franchise’s financial stability.
San Antonio’s Financial Commitment to Marketing and Infrastructure
San Antonio is taking a proactive role in ensuring the success of an MLS franchise by offering to contribute $75,000 toward a $100,000 campaign to sell 5,000 season tickets. This aligns with MLS’s mandate that any new team in San Antonio must sell 5,000 season tickets before a franchise is awarded. The city’s involvement in ticket sales shows that it is willing to invest not only in infrastructure but also in ensuring the team has a robust fan base from the start.
Additionally, San Antonio is committing over $2.7 million in stadium improvements. This includes $1.115 million for artificial turf, $1.050 million to finish 14 luxury boxes, $426,000 to refurbish team offices (which are also rent-free), and $150,000 for new drapery. Yes, even drapery.
These upgrades aren’t just cosmetic; they are intended to provide the facilities and environment needed to attract and retain fans and corporate sponsors. The luxury boxes, in particular, are a key element in boosting revenue, as these premium seats are often sold to corporations or wealthy patrons at a high price.
What Does San Antonio Expect in Return?
Given the city’s substantial investment in the stadium and infrastructure, one may wonder what San Antonio expects to gain from bringing an MLS team to the city. The answer likely lies in the economic impact and visibility that a professional sports team brings to a city.
San Antonio has seen success with other sports franchises, including the San Antonio Spurs in the NBA. The Spurs have helped turn the city into a major sports hub, drawing fans from all over Texas and beyond. A successful MLS team could do the same for soccer, creating jobs, boosting tourism, and providing another major draw for visitors to the city.
There is also the potential for additional events to be held at the Alamodome, thanks to the improved facilities. Concerts, other sporting events, and international soccer matches could all benefit from the upgrades, generating even more revenue for the city.
Challenges and Opportunities
While the financial incentives and infrastructure upgrades make San Antonio’s offer extremely appealing, there are still challenges to overcome. The city will need to build a solid fan base for the MLS team, as professional soccer is not yet as popular in the U.S. as sports like football or basketball. Additionally, competition from other professional sports teams in Texas, including the Houston Dynamo and FC Dallas in MLS, could make it difficult to draw fans from outside the immediate area.
However, with the city’s investment in marketing and season ticket sales, these challenges are certainly surmountable. By targeting local soccer fans and building a strong community around the team, San Antonio could establish itself as a soccer city in the years to come.
Conclusion
San Antonio’s offer to a prospective MLS franchise owner is a comprehensive package designed to attract professional soccer to the city. With rent-free use of the Alamodome, generous revenue-sharing agreements, and millions of dollars in infrastructure improvements, the city is doing everything it can to make owning a team as financially viable as possible.
The benefits for both the team and the city are clear: a successful MLS franchise could boost the local economy, enhance the city’s reputation as a sports destination, and provide fans with a new team to rally behind. With San Antonio offering such a lucrative deal, it may only be a matter of time before soccer finds a permanent home in the Alamo City.
For anyone interested in owning an MLS team, the opportunity to capitalize on this offer should not be overlooked.
