Presented by: Proposed Sports and Event Complex in Coeur d ...

As shown, a facility fee of $1.00 on every paid ticket to concerts, family shows and touring,
college and high school sports would generate an estimated $127,000 to $167,500 per year,
which would result in an NPV of $1.5 to $1.9 million over 20 years. Under Scenario B, which
excludes collegiate and high school sports from the facility fee, an estimated $72,000 to
$100,000 would be generated annually, which would have a 20-year NPV of $826,000 to $1.1
million.
Based on this analysis, a facility fee is unlikely to comprise a major source of funds for the
proposed facility, but could represent a component of the funding plan. As an alternative,
revenues captured by a facility fee could be used to cover a portion of capital repairs and/or
operating expenses associated with the facility.
Naming Rights
As discussed in the Financial Analysis, many public assembly facilities have generated
significant revenues through the sale of facility naming rights. In some cases, the revenue
generated through naming rights has been allocated toward project funding, while other facilities
use naming rights revenue to cover on-going operating expenses.
The value of naming rights agreements for event facilities in small to mid-sized markets can vary
widely, making it difficult to estimate the potential revenue that could be generated by the sale of
naming rights for the proposed Coeur d’Alene facility. However, if a naming rights partner can
be identified, the resulting revenues could reduce the need for public participation in project
funding.
Other Private Sources
In addition to a facility fee and/or naming rights, there may be opportunities to generate
additional private funding through private contributions or donations to the project. In some
communities, private fundraising initiatives have been conducted to “close the gap” in cases in
which other funding sources have been insufficient to cover construction costs. The local
corporate community and other entities and individuals in the community may recognize the
benefits that could result from the completion of the facility project and make philanthropic
contributions to the project. However, it is important to note that a sizeable private donation
toward facility funding may carry an expectation of naming rights in recognition of the private
gift. Depending on the wishes of key contributors, naming rights may become a part of a private
fundraising drive as opposed to a separate funding source.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Funding Analysis
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