Business plan della costruzione di uno stadio nel Bronx

1. 1
EM 636-108
Capital Expenditure Report (CER)
New York City Football Club Stadium
Team: The Gladiators
Under the Guidance of:
Thomas Brodowski
Team Members:
Bipin Loi
Varun Trehan
Marco Carletti
Srujana Manigonda
Kunjan Trivedi
Vineet Singh

2. 2
Contents
Purpose Statement: ..................................................Error! Bookmark notdefined.
Executive Summary:................................................Error! Bookmark notdefined.
Existing Situation……....………………….………………………………...……….3.
Problem Faced………...…………………….…………………………..…..………..4.
Problem Solving………..………………….…………………………………………4.
Market Analysis…..……………………….………………………………...……….5.
Stadium Design: ......................................................Error! Bookmark notdefined.
Work Breakdown Structure ......................................Error! Bookmark notdefined.
GANTT chart: .........................................................Error! Bookmark notdefined.
Project Budget Estimation:.......................................Error! Bookmark notdefined.
Capital Budgeting: ...................................................Error! Bookmark notdefined.
Source of Funds:......................................................Error! Bookmark notdefined.
Payback Period:.......................................................Error! Bookmark notdefined.
Return of Investment:...............................................Error! Bookmark notdefined.
SWOT Analysis……………………………….…………………………………….26.
Risks and
Mitigation:…………………..…………………………….…………….Error!
Bookmark notdefined.

3. 3
Purpose Statement
The purposeof this Capital Expenditure Request(CER) is to request funding approval
in the amount of $229,312,655 for the construction of first Soccer Stadium at Bronx,
New York and the details of the project are described within this document.
Executive Summary
The United States dominates when it comes to having the largest stadiums in the world.
The country's massive popularity of American soccer and baseball backed by the
lucrativeness of the sports has seen many teams construct colossal stadiums for their
home teams. Europe, which is the home of soccerhas a considerable number of large
stadiums that play host to soccer matches. However, and in a unique twist, North
Korea plays host to the world's largest stadium which can host up to 150,000 people.
New York city FC is one of most popular soccer team in United States, so this is
proposalto make onehome ground for NYCFC, the very first soccerstadiumdedicated
to a big team that is New York City Football Club.
New York City FC Stadium is a proposed soccer-specific stadium to be built in The
Bronx, New York City, United States for the expansion franchise New York City
FC of Major League Soccer. The team currently plays its home games at Yankee
Stadium. The main attraction of the stadium is the architectural design it is one of the
biggest stadiums in United States. Stadium is of 400,000 square foot area and it has
capacity to host up to 25000 people. It also includes features like different cuisine and
culture Restaurants, Apparel shops, Parking facility, VIP lounges, Multiple scoreboard
screens.
Existing situation:
Building a new soccer-basedstadium is an option that needs to be explored for several
reasons. First and main reason is New York City FC plays its all home matches at
Yankee stadium, which is mainly popular for its base ball matches. Many times, dates
and schedule conflicts for matches.
Second team has to pay big revenue to play matches at the Yankee stadium, so this is
ultimate and best solution to overcome the problem and give NYCFC its own home
ground to play.

4. 4
Problemfaced?
The primary goal of this report is to address four fundamental questions regarding the
feasibility of first soccerstadium:
1) What is an appropriate size and type of stadium for the team?
2) What will it costto constructand operate stadium?
3) What is the revenue potential for stadium?
4) How can the NYCFC use a stadium to enhance the local, and statewide
communities?
Problem solving
To solve all this problem, we come up with five themes:
1) provide an enjoyable game-day experience for fans;
2) satisfy the programmatic and operation requirements of the users;
3) design for long-term sustainability and optimal life cycle cost;
4) plan for future flexibility, including potential entertainment and other
complementary uses; and
5) generate maximum revenue for the stadium.

5. 5
Market Analysis
Currently there is no soccer-specific stadium in New York city, United States. The
soccerteam currently plays its home games at other different stadiums. The area where
we are planning to build soccerstadium is Bronx, NY. The city has total population of
1.46M. The state New York has total population of 8.53M with highest percentage of
population in the 25 to 65 age brackets. The median household income is $50,71, and
the largest number of household with income over $50,000 per year. The analysis also
cited number of positive demographic indicators for the area considered to be Soccer
Stadium.
As of 2006, over 24 million Americans play soccer. There are 4.2 million players (2.5
million male and 1.7 million female) registered with U.S. Soccer. As of 2012, thirty
percent of American households contain someone playing soccer, afigure second only
to baseball.
American soccer has the advantage with the national population size and national GDP.
Attendance at professionalsports aregeneral indicators that affect participation include
ticket prices, travel costs, population, income, team quality, player quality, game
conditions, competition from other sports or television.
Population by Age in New York Percent
Persons under 5 years 5.90%
Persons under 18 years 21.20%
Persons 65 years and over 15.40%
Persons between 18 to 65 57.50%

6. 6
Age of Householder Average income
of Household-
United States
Average income of
Household -New
York
under 25 30524 40714
25 to 44 62815 71777
45 to 64 69822 62111
over 65 years 42113 34631
Population by Age in New York
Persons under 5 years Persons under 18 years
Persons 65 years and over Persons between 18 to 65
0
10000
20000
30000
40000
50000
60000
70000
80000
under 25 25 to 44 45 to 64 over 65 years
NYC Median Household Incomeby Age
United States New York

7. 7
Rank Sport Estimated Fans
In million
Regional
Popularity
1 Soccer / Association Football 3500 Europe, Africa,
Asia, America.
2 Cricket 2500 Asia,
Australia, UK.
3 Field Hockey 2000 Europe, Africa,
Asia,
Australia.
4 Tennis 1000 Europe, Asia,
America.
5 Volleyball 900 Europe,
Australia,
Asia, America.
6 Table Tennis 850 Europe, Africa,
Asia, America.
7 Baseball 500 America,
Japan.
8 Golf 450 Europe, Asia,
America,
Canada.
9 Basketball 400 America.
Top 10 sports around the world
Soccer / Association Football Cricket
Field Hockey Tennis
Volleyball Table Tennis
Baseball Golf
Basketball

8. 8
The table showing the total MLS(Major League Soccer) attendance in 2017 at New York
Team Team Name Average Total Weeks
1 Atlanta United FC 48,200 8,19,404 17
2 Seattle Sounders 43,666 7,42,314 17
3 Toronto FC 27,647 4,70,005 17
4 Orlando City SC 25,028 4,25,477 17
5 NYC FC 22,643 3,84,929 17
6 LA Galaxy 22,246 3,78,182 17
7 Vancouver Whitecaps 21,416 3,64,073 17
8 New York Red Bulls 21,175 3,59,977 17
9 Portland Timbers 21,144 3,59,448 17
10 Minnesota United 20,538 3,49,138 17
11 Montreal Impact 20,046 3,40,783 17
12 San Jose Earthquakes 19,875 3,37,873 17
13 Sporting KC 19,537 3,32,121 17
14 NE Revolution 19,367 3,29,233 17
15 Real Salt Lake 18,781 3,19,284 17
16 DC United 17,904 3,04,369 17
17 Houston Dynamo 17,500 2,97,507 17
18 Chicago Fire 17,383 2,95,511 17
19 Philadelphia Union 16,812 2,85,797 17
20 Columbus Crew 15,439 2,62,469 17
21 Colorado Rapids 15,322 2,60,476 17
22 FC Dallas 15,122 2,57,077 17
TOTALS 22,106 82,67,534 374

9. 9
0
10,000
20,000
30,000
40,000
50,000
60,000
AtlantaUnitedFC
SeattleSounders
TorontoFC
OrlandoCitySC
NYCFC
LAGalaxy
VancouverWhitecaps
NewYorkRedBulls
PortlandTimbers
MinnesotaUnited
MontrealImpact
SanJoseEarthquakes
SportingKC
NERevolution
RealSaltLake
DCUnited
HoustonDynamo
ChicagoFire
PhiladelphiaUnion
ColumbusCrew
ColoradoRapids
FCDallas
MLS average Attendance in 2017 at New York

10. 10
Stadium Design

11. 11
Sectional Views

12. 12
Detailed features and facilities of NYCFC stadium:
 Structure- The total campus would spread across 400,000 sq. ft. An open-air
stadium with a traditional collegiate “look and feel.” The field would be an all-
weather, next generation artificial playing surface comparable to the Gophers’
existing indoor practice field.
 General Seating-25,000 seats in a mix of chair-back seats and benches. The
stadium would be designed to accommodate future incremental seating
expansion to 40,000.
 Premium Amenities-39 suites, 750 loge seats, 300 indoor club seats, 1,250
outdoorclub seats, and a 30,000 square-foot indoor club. Loge seats an outdoor,
rail-enclosed, small group seating area a popularamenity in other sports markets,
would be a unique, appealing amenity here because they do not exist in any of
the major local sportvenues. An additional and more detailed market analysis is
recommended to verify these assumptions.
 Team Facilities-Home and visitor game-day locker and training rooms would
be included.
 Media-Provisions for print media and radio and television broadcast would be
included. The facility would also include loading docks, truck staging, and
camera platforms.
 Concessions and Merchandise-Provisions for concessions, catering, and sale
of NYC FC apparel and revenue generated by renting it to other teams.

13. 13
This stadium plan would concentrate all the building’s programmatic spaces (e.g.,
locker rooms, media facilities, suites) and year-round functions (e.g., concessionaire,
facilities management) into a five-story structure that forms the west side of the
stadium. The west side of the stadium would be operated year-round. The concourse
spaceunder the end zones and east side of the stadium would not be climate controlled
and could be “closed-down” when the stadium is not in use.

14. 14
Work Breakdown Structure

15. 15
Gantt Chart

16. 16
Project Budget Estimation

17. 17
 As you can see here that almost three fourth of the total budget is taken by
building and site work. It means that these are the two core phases of the entire
project which take up most of the time and resources out of the total allocated.
 The least amount is taken by permits which very close to 0%
 Planning takes 12% of the total costbut it is not usually part of the development
plan as it finishes even before the project starts.
 Finishing is the last phase of the project and generally doesn’ttake that much of
the total cost.
Finishing
15%
Building
39%
Planning
12%
Permits
0%
Siterwork
34%
Cost Breakdown
Finishing Building Planning Permits Siterwork

18. 18
Capital Budgeting
Source of Funds
Since the club is operational for around 5 years and they have grown a great deal. So a
club as big as NYC FC has revenue generated for5 years, they canafford an investment
of $50 million. No single source of funds will be sufficient to fund a new football
stadium. In the event that New York City FC-identified revenue sources cannot fund
the entire project, the New York City FC should not preclude discussions with other
public officials on additional financing mechanisms. On that basis, the New York City
FC’s focusduringthe feasibility stage has been to assess theability to fund a significant
share of the overall project cost within the following broad categories:
Private Contributions—a substantial amount of private fundraising will be required
to support the project. The New York City FC is assessing the gift potential and
working with Intercollegiate Athletics on plans for a multifaceted fundraising
campaign. Such a campaign would be likely to have several components, including the
cultivation and solicitation of leadership and major gifts; programs for the purchase of
ongoing rights for various forms of preferred and general seating; and wide-ranging
opportunities for large numbers of New York City FC alumni, NYC football fans to
contribute to the realization ofreturning NYC football to campus. Opportunities would
exist to recognize those who make contributions in appropriate ways including the
naming of various areas of the stadium and grounds. Realization of the potential for
private support would be enhanced by the development of a viable funding plan,
including any confirmed public or private participation.

19. 19
Stadium Subsidy - A stadium subsidy is a type of government subsidy given to
professionalsports franchises to help finance the construction or renovation of a sports
venue. Stadium subsidies can come in the form of tax-free municipal bonds, cash
payments, long-term tax exemptions, infrastructure improvements, and operating cost
subsidies. Funding for stadium subsidies can come from all levels of government and
remains controversial among legislators and citizens
Sponsors contribution—financial support from sponsors for some portion of a new
stadium may be a viable option. New York City FC has a strong sponsor list starting
from Etihad Airways, Ford, Adidas, Heineken, Nissan and AT&T. Discussions with
sponsors regarding a contribution would include, at a minimum, the following two
concepts:1) any contribution from sponsors should be structured to be consistent with
the actual opening of the stadium in order to avoid an unfair burden on those sponsors
who are enrolled at the New York City FC prior to the stadium opening, and 2) any
proposal for a fan contribution must translate into a specific and tangible benefit to
sponsor in exchange for the financial contribution.

20. 20
Payback Period
The length of time required to recover the cost of an investment. The payback period
of a given investment or project is an important determinant of whether to undertake
the position or project, as longer payback periods are typically not desirable for
investment positions. In capital budgeting refers to the period required for the return
on an investment to "repay" the sum of the original investment. Forexample, a $1000
investment, which returned $500 per year, would have a two-year paybackperiod. The
time value of money is not considered. Payback period intuitively measures how long
something takes to "pay for itself." All else being equal, shorter payback periods are
preferable to longer paybackperiods. Paybackperiod is widely used becauseofits ease
of use despite the recognized limitations described below.
Payback period as a tool of analysis is often used because it is easy to apply and easy
to understand formostindividuals, regardless of academic training orfield ofendeavor.
When used carefully or to compare similar investments, it can be quite useful. As a
stand-alone tool to compare an investment to "doing nothing," payback period has no
explicit criteria for decision- making (except, perhaps, that the payback period should
be less than infinity).
The payback period is considered a method of analysis with serious limitations and
qualifications for its use because it does not account for the time value of money, risk,
financing or other important considerations, such as the opportunity cost. Whilst the
time value of money can be rectified by applying a weighted average cost of capital
discount, it is generally agreed that this toolfor investment decisions should not beused
in isolation.
Payback period is the time required for a firm to recover its original investment.
Payback period= original investment/ annual cashflow= 229.664M/ 36.9M=
6.2 years. So, it needs a little over 6 years to pay back the initial investment
of this project.

21. 21
-2E+08
-1.5E+08
-1E+08
-50000000
0
50000000
100000000
150000000
Break Even Point

22. 22
Return on Investment
In the analysis on the return on investment, the revenues taken exclusively for the
sports management of the football team that owns the stadium are excluded from the
considerations. These revenue sources are:
• Sponsorships, which may vary according to duration and amount (fixed or
variable linked to sports results)
• TV and image rights
• Capital gains on the sale of soccerplayer
Our sourceof income comes from:
 Tickets sold for games
 Season tickets
 Parking
 Rentals of shops and restaurants located within the structure
 Rent for use of the stadium at another soccerteam
To determine the above profit items, the following assumptions were made:
o The costs ofa ticket for a match have been estimated on the prices charged by
other United States Major League soccerteams in the last 2 years.
o In our considerations, an average costfor tickets and subscriptions has been
assessed, without considering price differences by sector.
o The number of viewers for each event was calculated based on the average
viewers for each Major League Soccerevent in the last 2 years.

23. 23
The table below shows all the items responsible for the profit generated by the
investment:
All Business
/ Type of
Tickets
# of Store / #
Person per
month
# of Person
per year
$ per Ticket
Sales per
month
Revenue
Restaurants 5 $10.000 $120.000
Shops 5 $11.000 $132.000
Stadium
renting cost
$9.000.000
Ticket for
match
24000 240000 65 $1.560.000 $18.720.000
Season
Ticket for
match
8000 35 $1.120.000 $13.440.000
Parking $42.000
TOTAL REVENUE $2.701.000 $41.454.000
Maintenance (-) $850.000
Utility (-) $550.000
Security (-) $60.000 $800.000
Gross Salary (-) $240.000 $560.000
Insurance (-) $1.700.000
TOTAL COST $4.460.000
PROFIT $36.994.000
The net profit for the first year will be $ 36.994.000. This accounts for the total
operating revenue minus the total operating expenses.
The pie chart shows in percentage the impact that each sourceof income has in
creating profit for the stadium.

24. 24
The chart shows that the main sources of income are three (Ticket for match, Season
Ticket for match and Stadium renting cost) while the rest contribute minimally to the
creation of profit.
0.29%
0.32%
21.71%
45.16%
32.42%
0.10%
Revenue Percentage
Resturants Shops
Stadium renting cost Ticket for match
Season Ticket for match Parking

25. 25
Return on Investment (ROI) measures the amount of return on an investment, relative
to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is
divided by the costofthe investment. The result is expressed as a percentage or a ratio.
It is a very popular metric because of its versatility and simplicity.
The formula used to calculate the ROI is listed below:
The Return on Investment is:
ROI = 36,994,000 / 229,312,655 = 16,13 %

26. 26
SWOT ANALYSIS
SWOT analysis is a process that identifies an organization's strengths, weaknesses,
opportunities and threats. Using environmental data to evaluate the position of a
company, a SWOT analysis determines what assists the firm in accomplishing its
objectives, and what obstacles must be overcome or minimized to achieve desired
results: where the organization is today, and where it may be positioned in the future.
STRENGHTS
• Family fun environment
• Great Customer Service
• Low Prices for a great quality of
Soccer
• Open every day of the week
• More modern than other stadiums
WEAKNESSES
• Little safeArea
• Noise levels and lack of relaxation in
the area near stadium when events
take place
• Viewers arenot sheltered from
weather events
OPPORTUNITIES
• Possibility of future enlargements
of the stadium
• Capitalize on attendance
• Offer affordablesponsorship
packages compared to others
THREATS
• Ligue – wide strike
• Drop in people's interestin soccer
• Highly dependent on team
performance

27. 27
RISK MITIGATION PLAN
A risk management is an important part of decision-making process in a construction
area. Risk can affect productivity, performance, quality, and budget of a construction
project. Thus, we believe that having a good risk management plan is the best way to
seek to identify and reduce all types of losses either completely or to an acceptable
level at the lowest possible cost.
The following is the strategic map for the project’s risk and mitigation management.
Type Risk Mitigation
Environmental Risk Natural calamities Weather
changes
Add contingency days into the
schedule
People Risk Union strike
Objection of neighborhood
Add contingency days into the
schedule
Explain people the safety and
benefits of the project.
Legal Risk Changes to regulations or
legislation that may impact
project.
Parties don’t adhere to
contractual responsibilities.
Having anexperienced lawyer
who will keep the team
updated with all the rules and
regulations.
Financial Risk Risk of bankruptcy of main or
sub-contractors, or of
client/host.
Changes in energy prices.
Making sure that there is an
escalation clause in the
contractor ‘s agreement
Unanticipated Adverse ground
conditions
Additional construction time
and cost
Conduct thorough soil
investigation
Interruption to supply (Power
supply, material)
Delay in planned schedule and
increase in cost
Diversify supplier location in
order to mitigate the risk.