Independent consultant advises City not to invest in Soccer Stadium Proposal

Based on the results of an independent consultant's review, the City of San Antonio has decided not to pursue an investment in the soccer stadium proposal, presented to the City by Gordon Hartman.

The City engaged HVS Convention, Sports, and Entertainment Consulting to conduct a review of a proposed professional soccer-stadium business plan prepared by Soccer for a Cause (SFAC). Based in Chicago, HVS Convention, Sports & Entertainment Services has performed hundreds of assignments around the world analyzing the feasibility of many facilities, including sports stadiums, and is recognized as one of the industry leaders in this field.

The conclusions of the HVS independent review are summarized as follows:

1. Business Plan Analysis:

• Using HVS operating assumptions, an average annual net operating loss of $111,020 is projected versus SFAC forecasted net income of $799,350. This is a $910,000 discrepancy in net income.

2. Market Analysis: The San Antonio market has a below average propensity to spend on sporting events and other recreational fees.

3. Event Demand and Attendance: The tremendous support for soccer in Central and South American countries is also true for Hispanic Americans; however, this has not resulted in comparatively significant support for US professional soccer teams - including those in MLS and the lower divisions.

4. HVS Summary Conclusion: The proposed 6,300-seat soccer stadium would not be able to generate sufficient revenue to cover the operating expenses of the stadium and the expenses associated with the operation of a North American Soccer League (NASL) Team. Additionally, long-term projections, which incorporate inflation, indicate a growing operating loss from operations.

"While the City's due diligence in analyzing the soccer stadium proposal has resulted in a decision not to engage in the project, the City Council is resolute in its support of Morgan's Wonderland," said Mayor Julián Castro. "The City has invested more than $7M in the STAR complex and park, and the City Council will consider further financial support for Morgan's Wonderland during the 2012 fiscal year budget process this summer."