New Montreal MLB Franchise & Ballpark

CSL was engaged by Ernst & Young to conduct a comprehensive, two-phased market and financial feasibility study related to the development of a new ballpark in Montreal that would serve as the home of an expansion or relocated MLB franchise.

Phase I of the analysis consisted of an in-depth naming rights and sponsorship valuation that provided an accurate and realistic snapshot of the viable sales opportunities that will be most valuable and attractive to sponsors at all levels at a new ballpark in Montreal. In this phase, CSL identified a variety of potential team and ballpark assets, including iconic landmarks, on-site signage, broadcast exposure, retail activation, merchandising, new technology, and considered a number of factors, including quantitative benefits, qualitative benefits, demographics and socioeconomic indicators, and geographic reach, that influence the value of a particular asset.

Following completion of these analyses, CSL quantified the overall revenue potential for naming rights, as well as the individual underlying assets, and provided recommended minimum and maximum annual threshold for naming rights fees and term length.

Upon completion of Phase I, CSL was retained for Phase II of the study to estimated demand in the marketplace for the project and various general and premium seat offerings, as well as to quantify the annual revenues and expenses associated with the operations of a new ballpark and MLB franchise. To this end, CSL reviewed MLB franchise and ballpark operating data, analyzed Toronto Blue Jays spring training games currently hosted in Montreal, evaluated the demographic and socioeconomic characteristics of the local market and compared them to other MLB markets, reviewed the physical, operational, and financial characteristics of recently opened MLB ballparks, completed 11 interviews with corporate decision-makers in Montreal and six (6) focus group sessions with potential ticket buyers, and conducted an online market survey that received approximately 13,900 completes to assist in determining demand in the marketplace for the project a variety of potential ticket packages.

The results of the market research were used to estimate demand for a variety of general and premium seat offerings and make building program recommendations to guide project architects throughout the design process. Demand estimates and building program recommendations were then used to develop long-term financial projections for the operations of the ballpark and franchise in Montreal.