Novel approach aims to finance stadiums in tough economic times
U.S. college sports teams are trying a novel approach to raise funds: the sports mortgage. To finance stadium expansions and renovations in tough economic times, several teams are selling “equity seat rights.” Under the arrangement, which seeks to “make seats into condominiums,” fans approved for financing can pay for their stadium real estate over as long as 50 years. At the University of California-Berkeley, for instance, seats range from $40,000 per seat for a 40-year term to $220,000 over a 50-year term. Like a condo, seat owners can sell at any time.