Do The Math.

Hartford Sports Group's operating budget is now available to the public.

Hartford politicians are investing $10 MILLION in taxpayer money.

Screen Shot 2018-03-24 at 10.07.12 AM.png

 

What's the deal? 

Hartford Sports Group promises to invest up to $10,000,000 in a start-up, private soccer venture.

Hartford politicians are spending up to $10,000,000 in taxpayer money to build them a home at Dillon Stadium.

 

Let's take a look at the math.

Hartford Sports Group (HSG) has promised an investment of $7.5 million to $10 million in this venture.

$5 million will be spent on an initial fee to the league.

$2.5 to $5 million remains for operating costs.

 

According to this document:

Average annual expenses are $5,401,763.40

After 5 years of operations, HSG projects total revenues of $26,613,009*.

After 5 years of operations, HSG projects total expenses of $26,508,817**.

A total profit of $104,192 after 5 years of business.

**It in unclear if the initial $5,000,000 fee is factored into this budget.

 

What can we conclude?

HSG's promised investment secures their operations for less than one year.

HSG's margin for error, to break even after 5 years on a projected $26,508,817 budget, is just 0.4%.

 

*Let's take a closer look at HSG's revenue projections.

Attendance

The average attendance for the league was 4,301 in 2017.

Hartford Sports Group projects attendance between 4,500 and 5,000 in their first year.

HSG's projections would place them 10th out of 30 teams; predicting attendance in Hartford ahead of cities like Richmond, St. Louis, Oklahoma City and Pittsburgh.

 

Ticket Sales Revenue

HSG expects ticket sales of $2,573,000 in their first year.

The team has a 16 game schedule and project an average of 4,750 fans per game.

This represents an average ticket price of $33.86 to reach their ticket sales revenue projection.

By comparison, Hartford Yard Goats tickets range from from $6 to $19 (Hartford Courant: April 12, 2017).

 

Let's break down this deal.

After 5 years,

$10,000,000 in taxpayer money,

$10,000,000 in private money,

expenses of $26,500,000,

with No Experience and a 0.4% margin for error,

we could make,

$104,192.

 

This is a bad investment.

TJ ClynchComment