| QUALCOMM STADIUM CASH FLOWS | |||||||||||
| LITIGATION | CONTRACT UNTIL 2020 | PROPOSED | |||||||||
| Scenario A | Scenario B | Scenario C | |||||||||
| Rent ('04 - '06) | $ | 20,230,997 | $ | 20,230,997 | $ | 6,000,000 | |||||
| Rent ('07 - '08) | $ | - | $ | - | $ | 4,000,000 | |||||
| Rent (last 13 yrs) | $ | - | $ | 122,206,032 | $ | - | |||||
| Ticket Guarantee | $ | (75,000,000) | $ | (21,662,861) | $ | - | |||||
| Ongoing maintenance | $ | (9,272,700) | $ | (65,284,763) | $ | (15,927,407) | |||||
| Deferred maintenance | $ | - | $ | (50,000,000) | $ | - | |||||
| Operation Qualcomm | $ | (12,363,600) | $ | (87,046,351) | $ | (21,236,543) | |||||
| City Bond Payments | $ | (138,506,908) | $ | (138,506,908) | $ | (28,856,383) | |||||
| Litigation Costs | $ | (8,000,000) | $ | (4,000,000) | $ | - | |||||
| Other | $ | $ | $ | ||||||||
| Total | $ | (222,912,211) | $ | (224,063,854) | $ | (56,020,333) | |||||
| Remember- this is a "proposed" 'solution as it assumes the 'Chargers payoff the Bonds if they exit at end of 2008 season | |||||||||||
1.) "Q" operating expenses estimated at $4,000,000 in 2004
2.) Stadium was rennovated in 1997. According to the task force, the stadium currently has $50,000 in deferred maintenance equating to approximately $6,250,000/year (over 8 years). The above assumes a very conservative estimate of $3,000,000 per year increasing at a 3% CPI rate each year thereafter.
3.) The $122,000,000 in rents (last 13 years) is to satisfy the critics. A more realistic estimate is closer to $90,000,000. It should be noted that the rental stream also assumes a 3% annual increase for CPI. This could aslo be reduced dramatically if the team doesn't perform well.
4.) Litigation costs in scenario "B" are $1,000,000 for each remaining trigger option.
5.) An annual CPI rate of 3.0% was applied on future revenue and expenses.
6.) The analsis assumes $0 maintenance costs and $0
7.) 2004 rents were based on the average of the prior 4 years increasing annually thereafter by 3% (for CPI)