Post by TheShadow on Jul 10, 2005 8:32:53 GMT -5
www.insidebayarea.com
Decision will cost Alameda County taxpayers an additional $3 million
By Paul T. Rosynsky, STAFF WRITER
OAKLAND — Alameda County taxpayers who already have been heavily subsidizing the Raiders' return to Oakland now will have to toss in an additional $3 million — to market the resale of the team's controversial Personal Seat Licenses.
As part of a 2005-06 budget approved Friday, the Oakland-Alameda County Coliseum Authority agreed to spend that amount to help in the marketing effort for PSLs, high-priced fees fans pay for the right to buy season tickets.
The original 10-year PSLs expire after this football season, and fans will be asked to spend 75 percent of the original price to get new PSLs good for five years.
The decision to resell the PSLs after 10 years and for the authority to spend $3 million to help market the new licenses was made a decade ago as part of the deal to bring the National Football League team back to Oakland from Los Angeles.
At the time, however, it was thought sales of the original PSLs would generate more than enough money to pay for marketing the resale.
But far fewer people than expected bought the PSLs, so in addition to paying a yearly subsidy of about $22 million, city and county taxpayers will also have to pay the $3 million marketing fee.
"We have an obligation, and part of that obligation is marketing of the PSLs," said Robert Brown, an appointed member of the authority and owner of a sports marketing firm. "How we do that and how we handle that is the most important thing we do."
Should the remarketing effort fail, the yearly subsidy paid by taxpayers to keep the Coliseum complex operational could increase dramatically.
Even if it succeeds, and the Coliseum is sold out for all Raiders games the next five years, taxpayers would still be on the hook for about $100 million of debt, a past report by County Controller Pat O'Connell found.
But with just over a year left before the Raiders 2006 season begins and the new PSLs kick in, authority members still don't know how they will sell the licenses.
"When we get there, you'll be the first to know. We haven't got there yet," said Alameda County Supervisor Gail Steele, authority chairperson. "We are trying to do this as a team with the Raiders, and that is the main thing right now."
In addition to the $3 million payment, the authority budgeted $375,000 in hopes of attracting more events to the Oakland Arena.
SMG, a company that manages the Coliseum complex for the authority, asked for the additional funds to help entice promoters to use the Arena for events such as concerts, rodeos and motorbike events.
Unlike games played by the Raiders, Oakland Athletics and Golden State Warriors, all revenue earned from other events at the complex go to the authority.
The budget also includes a $7.4 million payment made by the Warriors, who a few years ago settled a legal dispute with the Coliseum authority by agreeing to pay rent.
It is the largest source of income the Authority will generate next year.