Questions to Be Answered by Feasibility Studies

Is a project likely to be sensible and successful?

Is it practical?

How will it be financed?

What will be the economic impact?

Calculating Your Thoughts

What would you advise someone (in your town, city, or region) who is thinking about building a new arena?

What would you advise someone who wants to host a large sporting event?

What are the factors that should be considered?

Phases of a Feasibility Study

Phase I:

Tests whether a more in-depth analysis should be undertaken

Phase II:

Lays out specifics

Parts of a Feasibility Study

ESPE 6133

Parts and Subsections of a Feasibility Study

Market Demand

Often drives much of the feasibility study

Typically the major portion of a Phase I study

Helps determine if there is enough demand to justify the project

Research using primary and secondary data

Subsections of a Market Demand Analysis

Individual ticket demand

Corporate demand (club seats, luxury suites, sponsorships)

Event activity

Facility specs and operating estimates

Estimating Ticket Demand

Comparable analyses of demographic and lifestyle information:

Size of population



Annual revenues of other facilities

Comparison of Demographics—Oakland to NFL Market (in 2005 dollars)

Estimating Corporate Demand

Corporate depth analysis

How many Fortune 500 companies are headquartered in the area?

Will there be adequate corporate sponsorship?

Suite and seat revenue potential

Naming rights and other sponsorship revenue

Calculating Your Thoughts

What are your thoughts on luxury suites?

Are they a good source of revenue for a team?

Or should they priced so more people could afford them?

If you had the opportunity, would want to watch a game from a suite? Or do you prefer to sit in regular seats with a possible closer view of the game?

Sampling of NFL Markets—What Is the Corporate Depth?

Market Total No. of Corporations Total Franchises(inc. NBA, NHL, MLB) Corps per Team
Chicago 9,610 5 1,922
Seattle 3,590 2 1,795
Dallas 6,340 4 1,585
Washington, D.C. 6,200 4 1,550
Boston 5,540 4 1,347
New York 12,120 9 1,347
Atlanta 5,190 4 1,298
Oakland/San Francisco 6,740 6 1,123

Source: Data compiled from

Dunn & Bradstreet (2018).

Sampling of NFL Markets—How Many Suites Are Available?

Market Suites in NFL Facility Total Suites(inc. NBA, NHL, MLB) Total Corps. Corps. per Suite
New York 213 652 12,120 18.6
Boston 80 305 5,540 18.2
San Diego 113 175 2,940 16.8
Houston 185 353 5,320 15.1
Chicago 133 669 9,610 14.4
Atlanta 171 409 5,190 12.7
Oakland/San Francisco 238 585 6,740 11.5
Dallas 300 707 6,340 9.0

Source: CSL & JMI Sports (2019).

Estimating Event Activity

Competitive analysis of facilities

How might existing facilities compete with a proposed new one?

Facility usage and number of expected events

Estimate for Numbers/Types of Events for a New Football Stadium in Oakland

ESPE 6133

Facility Revenues and Expenses

Market demand analysis forms the basis for facility-revenue estimates

Example: for the Oakland Raiders

Estimating Facility Specifications

Facility size and ticket return

Other facility revenues




Estimating the Optimal Size of an Arena (in Sacramento, California)

Estimating Facility Revenue, from Market Demand Analysis in Sacramento

Results of Market Demand Analysis

End result: An estimate of future quantities sold and pricing

Tickets, luxury suites, concessions, merchandise, sponsorships, etc.

An estimate of revenues generated from each

Information is used in economic impact analysis, financing analysis, and engineering analysis

Other Elements of a Feasibility Study

Financing sources

Location (venues, security, geography, parking, access, etc.)

Construction costs (if needed)


Feasibility Studies for Recreational Facilities

More than just stadiums and arenas

Swimming pools, baseball fields, soccer complexes, etc.

Principles are similar to those for spectator-driven facilities












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