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Reply to this post you agree or disagree As a member of the city council, it would have been imperative to know projections of revenues

Reply to this post you agree or disagree

As a member of the city council, it would have been imperative to know projections of revenues for the various teams and events that will be hosted at the Seattle Kingdome after the renovations were completed. In order to calculate these projections, information about a few budgetary and economic factors are needed.

First, attendance and ticket prices are crucial factors to consider. This includes learning about how the attendance of the unrenovated stadium is affected by lack of renovations. For example, are blocks of seats unusable due to their poor condition or safety risk? Projections of how an increase in ticket sales will result in a sustainable return on the money invested for the renovation would help in creating a timeline for break-even and profit points. Next, an overview of operating costs needs to be established. This should cover the money spent on upkeep for an aging stadium and compare it to a projection for upkeep costs of a freshly renovated stadium. Third, it is important to understand where in the stadium the profits are made. The breakdown would include avenues such as ticket sales, food and drink, merchandise, advertisement, and broadcasting rights. Baye and Prince (2013) states that profits signal where resources are most highly valued by society. In the case of a stadium renovation, knowing these resources and capitalizing on them, for example by allowing more space for advertisement or concessions, would increase profitability and justify an expensive renovation project.

Therefore, even after spending almost $70 million, a stadium renovation could still become a sound investment if the financial data supports that profits will be made after a certain amount of time.

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