Real releases financial data

(by Amelia Nielson-Stowell desnews.com 12-11-06)

Detailed financial information from Real Salt Lake shows rosy projections for the Major League Soccer team, while Salt Lake County officials still have questions about the team's financial future.

Although the team has not made money since it began operating in 2004, documents provided Monday by the team predict that Real will start turning a net profit in 2010, two years after a proposed 136-acre soccer stadium and adjoining hotel and broadcast studio are built in Sandy.

Real released its financial information to Salt Lake County and local journalists. Part of that nearly 50-page document, called "Project Beehive," included the operating model for the team, the stadium and a future radio station.

"We make this release to demonstrate that we have absolutely nothing to hide from officials charged with protecting the taxpayers' best interests," Real chief executive officer Dean Howes wrote in a letter Monday to County Mayor Peter Corroon. "We firmly believe that this is one of the best public-private partnerships ever created for a stadium project, anywhere in America."

The team is hoping to receive $55 million from the county and Sandy for the $180 million project, but the county's $40 million hinges on an evaluation of the team finances. County officials have made it clear that they will not invest a dime of public money until they determine that it is a solid investment.

Part of the county's review process includes a report to the county's Debt Review Committee by independent consulting company Economic Research Associates (ERA). ERA has been given Real's financial information and the report is expected in mid-January.

Corroon, who saw the information briefly Monday, said numerous items caught his eye that he said will need further explanation by team officials.

"We're going to be looking at revenue projects, expenses, and we're also going to be looking at the investors, to make sure they have people that will be putting equity into the project," he said.

According to the financial documents provided by the team, any expected profits depend on a significant investment from partners, and on high attendance at games. The team expects investors to pitch in a total of $46.6 million next year and continue giving that amount until 2013.

Real, in its financial documents, assumes game attendance will increase by 21 percent in 2007, 29 percent in 2008 and continue to increase until it levels out in 2013.