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April 13, 2007
By Brent Schrotenboer

Qualcomm in the red for SDSU games

Stadium operating expenses for San Diego State football games cost city taxpayers $124,869 more than the city earned in rent from the school, according to a report issued yesterday by Qualcomm Stadium Manager Erik Stover.

SDSU paid $313,493 in rent, according to its lease. But the city's operating expenses for the six games were $438,362, including an estimated $93,000 in police and fire expenses.

Coincidentally, the disclosure comes as SDSU and the city prepare to negotiate a new lease at the stadium. The Aztecs' lease expires after the 2007 season.

"What we're trying to do is show accurate accounting," said Stover, who was hired in 2005. "This just happens to be a year when their contract is up. We will obviously be talking about cost recovery."

Stover said stadium officials have not spoken with SDSU or the mayor's office regarding this deficit, nor taken a position for contract negotiations. He said he expects those internal discussions to start soon.

SDSU is one of the few college football programs in the nation not to own its own stadium and take in all revenue from it. SDSU's current lease calls for the city to receive 8 percent of total gross game revenue, with the city paying SDSU 92 percent of net concessions and parking. But the lease ensures the city gets at least $50,000 per game. If 8 percent of the total gross does not reach $50,000, the city would take the balance out of parking and concessions.

Because of poor attendance, SDSU has paid the city no more than the minimum rent for 13 of its past 17 home games. In 2004, the minimum was $40,000 a game.

Meanwhile, SDSU also is having to navigate uncertain waters in the ongoing Chargers stadium search. If the Chargers leave the Qualcomm site, as expected, the city likely wouldn't want to continue losing money on that site by keeping the stadium open for the Aztecs as a primary tenant.

The Chargers have discussed future stadium possibilities in Chula Vista, National City and Oceanside. SDSU Athletic Director Jeff Schemmel told the SDSU faculty senate Tuesday that National City and Chula Vista were "more palatable" choices.

"We would not be very happy if they went to Oceanside, because that's so far from campus," he told the senate.

If the Chargers were to leave the county altogether, Schemmel said, "We would be in serious negotiations with the city regarding Qualcomm."

The city's revenues and expenses for Chargers games last year were reported last month by The San Diego Union-Tribune. They cost the city $729,408 in stadium operating expenses, according to Stover's report.

The city also is preparing to negotiate a lease with the Poinsettia Bowl and extend the Holiday Bowl's lease through 2009. The Holiday and Poinsettia bowls brought the city positive balances of $326,000 and $103,000 respectively, Stover said.

 

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