BRINGING ENGINEERING AND BUSINESS TOGETHER

Bringing Engineering and Business Together

Bringing Engineering and Business Together

A review of the necessary literature revealed that the creation of a new stadium has access to two types of revenue streams: design revenues and user fee/taxes. The former includes categories such as luxury suites, concession rights, club seats, advertising rights, naming rights, concession rights, etc. These are usually reserved for the holder, so that he or she competes with the main teams. The latter includes users' fee which includes taxes on parking areas, concession taxes, surcharges on players' salaries, tax increment financing, and other income streams (Vrooman 2010, pp.22-60).

However, the proposed budget of £26.6 million for the new stadium cannot be solely covered from the tax and user fee revenue streams only. There is a need to go beyond the traditional sources of revenue that are unconventional as compared to the norms.

For the purpose of covering the debt that incurred as a result of obtaining funds for the new stadium, any revenue stream could be utilized. We are considering a state-run cinema, and a state-run gym. Both of these facilities would raise around £1.9 million per penny of tax, raising an adequate amount with a 12-cent tax (Kiwirail 2013, pp.5-105).

The gym and the state-run cinema would charge a nominal fee for its users, who will have the option to subscribe to the stadium's gym. The stadium will also feature a basic cinema which would run the latest flicks during off-match times, so that the customers remain interested. The state-run cinema proposal would add an additional £16.6 million per year. The gym proposal would add another £2 million per year. That combined with the minute user fee and taxes would cover the cost of designing a new stadium. The amount that would be generated from both of these operations is still being discussed, but estimates show that a revenue stream enough to cover the costs could be generated (Anonymous n.d., p.nd.).

A state-run cinema would definitely generate enough funds to ward off the debt that would incur. However, this would take a few years. Marketing of shows and availability of snacks would ensure the amount raised and the same goes for the gym. Policies will further clarify the amount that would be raised through these two options (Kim et al. 2003, p.4).

Other non-stadium revenue streams have also been discussed, including an accumulation of funds from the forecasted surplus. The policy issues that need to be addressed include the ownership of the revenue streams, and the ability of both these revenue sources to gather adequate support so as to be approved and executed by the legislature (Bradley 2013, p.n.d.).

Hypothesis:

“The proposed revenue streams would be enough to cover the debt incurred for creating the new stadium.”

Rationale:

The reason for carrying out this research is to analyze and see how costs and tasks can be divided over a given time period. The barriers are also outlined and each task has been divided into subtasks for completion in an appropriate ...