Islanders Revenue Stream From New Arena
The new arena is supposed to hold 17,500 fans. But I am going to base my figures on 14,000 fans and the 41 home games no playoffs.
Avg NHL ticket regular season is $60.00 total Revenue for season is $34,440,000.00
Parking 34% of 14,000 tickets sold at $10.00. Revenue for season is $1,951,600.00
Based on NY Rangers figures $18.00 on average per ticket sold on food. Revenue for season is $10,332,000.00
Based on NY Rangers figures $5.00 on average per ticket sold on other Items. Revenue for season is $2,870,000.00
Grand total revenue generated by 41 Regular Season games is $49,593,600.00
11.5% of that is $5,703,264.00 not even 1/2 of the $14,000,000.00 lease payment the Islanders even if they make the playoffs and all of the other events during will year will never generate enough income for much more than $14,000,000.00 payment.
The sales tax generated will be $4,091,472.00 this should not be used to pay back the debt this money always went to Nassau County's General Fund. If you take away that and put it against the bond you are actually taking away money from the county.
So basicaly the only money generated to pay down the debt is $14,000,000.00 the only problem is to pay down the debt is $24,196,713.68 based on the current Tax Free 30 Municipal Bonds Rate of 4.375%.
The $58.00 property tax increase everybody is talking about is if nothing gets paid ever. With the guarenteed payment of $14,000,000.00 will take away $33.00 per property holder, so the actual property tax increase would be $15.00 per year.
Another major concern is the money generated will not go into a bond shrinking fund (this is a special way to guarentee the money will be there when the bond comes due.) The $14,000,000.00 is going into Nassau County's General Fund so the money will not be there when the bonds come through.
There is an alternative way of doing this:
1. The money generated will go into a guarenteed bond shrinking fund. This will insure the money generated will go to paying down the debt for when it is due.
2. All overages are paid by Charles Wang as they become due, not to be deducted from rents.
3. $14 Million gauranteed payment does not change.
4. The aproximate $4 Million sales tax is the money that will go into the Nassau County's General Fund.
5. All professional teams use ticket agencies to handle their ticket sales and the charges are around $10-$13 a ticket. I propose Nassau County handles the ticket sales and charges the $10 like any other agency. This will generate the county $5,740,000.00
6. The parking lot revenue should also go to the county. This is an extra $1,951,600.00.
7. The total money generated by making these changes just for regular season Islander games is now $21,691,600.00. This leaves only $2,505,113.68 a year that needs to be generated by other events at the new arena and Minor League Park. That should not be a problem.
8. Any naming rites for the new arena should also go to Nassau County.
9. Once the $24,196,713.68 is put into a GUARENTEED BOND SHRINKING FUND each year the overage then goes into Nassau County's General Fund.
10. One last stipulation both the NHL and Charles Wang must sign a contract. If the Islanders declare bankruptcy the owner of the Islanders, is personally responsible for the balance of the bond debt. If the team is sold and then moved the NHL and or the owner is responsible for the bond debt. By adding these stipulations the county no matter what gets the bond paid. Also it would force bind the NHL to Nassau County.
All parties have said the deal is not written in stone yet. With the above REASONABLE CHANGES there is no way the deal would not go through including NIFA passing it.
I am an Islanders fan since 1974. I live and die blue, orange and white. But the bond deal as has been put forth does not make any sense. There must be more money guarenteed to the county or it will not make any sense. Also the County must put the money generated in a bond shrinking fund so they will not be on hook for $725,901,410.40 when the bonds come due.