What are the projected revenues from the proposed private luxury boxes, anyway?
No financial models or business plans are currently available, according to the Athletic Department. All projections associated with this proposed $250 million expenditure have been based on informal, back-of-the-envelope estimates and anecdotal evidence. According to the Ann Arbor News of January 20, 2005, prices for boxes at midfield could reach $85,000, with prices descending to $45,000 toward the end zones. Assuming all 79 proposed boxes were leased at the top price ($10,000 more than the most expensive, mid-field boxes at OSU), they could generate $6.7 million annually. That represents a return on investment of less than 3% — not even enough to cover the debt service on construction. The bottom line? The luxury boxes would lose money. To put this in perspective, based on current prices and average seat-license fees, the stadium could generate similar revenue from adding approximately 10-15 more rows of bleacher seating around the existing rim. These additional seats would more th
