Tuesday October 2, 8:00 am ET
Revolutionary Stadium Financing Concept Comes to Brazil and Portugal
Expansion to Bring Revolutionary Stadium Financing Concept to UK, Europe
Stadium Capital Financing Group, a majority-owned entity of Morgan Stanley Principal Investments, announced today it is opening a London office. The expansion will bring to the United Kingdom, and to the rest of Europe, Stadium Capital's proprietary methodology in financing major sporting and entertainment facilities, known as "Equity Seat Right(R)", or ESR(TM).
"ESR has the potential to revolutionize the way stadiums are financed, and to be an alternative to taxpayer subsidization of such entities," said Lou Weisbach, CEO of Stadium Capital. "The ESR methodology enables sports teams to raise significant capital -- of 50 million pounds Sterling to over 500 million pounds Sterling -- without incurring debt or diluting ownership or governing control. Capital can be used, for example, to repay debt, build or renovate stadiums, or buy out limited partners."
The ESR program can be implemented in conjunction with other existing seating packages; it provides fans with long-term protection from escalating season ticket prices, while guaranteeing long-term access to premium tickets.
"The United Kingdom, and Europe as a whole, present a tremendous opportunity for Equity Seat Rights, especially given the extraordinary traditional fan support for sport throughout the region," stated Weisbach.
The new London office will be headed by Laith Al-Janabi, who brings more than 20 years of investment banking experience. Al-Janabi joins Stadium Capital from Morgan Stanley Europe's Fixed Income Group in London.
"I am excited to join Stadium Capital Financing Group and to play a role in helping bring Equity Seat Rights to Europe. ESR will empower team owners to create a seismic shift in a franchise's revenue performance," said Al-Janabi.
While Stadium Capital has centered its initial focus on U.S.-based projects, the firm currently is in discussions with various European football clubs. In addition, Stadium Capital recently announced a strategic partnership with Lusoarenas S.A., a Portuguese development company, to bring Equity Seat Rights to stadiums in Portugal and Brazil.
"Stadium Capital's proprietary program fulfills a market need for alternative stadium financing without issuing debt. It's exciting for Morgan Stanley to have this proprietary market transforming technique on an exclusive basis," said Don Cornwell, Executive Director of Morgan Stanley's Investment Banking Division.
About Stadium Capital Financing Group
Stadium Capital Financing Group ("SCFG"), based in Chicago, Illinois, provides 'turnkey' services, including financial advisory services; upfront purchaser financing packages; sports marketing, communication, and legal documentation services; and tax and accounting analysis. Morgan Stanley Principal Investments purchased a controlling interest in Stadium Capital in May, 2007. For more information, please visit http://www.seatrights.com.
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