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WO2003100567A2 - Procede et systeme de financement d'un edifice - Google Patents

Procede et systeme de financement d'un edifice Download PDF

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Publication number
WO2003100567A2
WO2003100567A2 PCT/US2003/016275 US0316275W WO03100567A2 WO 2003100567 A2 WO2003100567 A2 WO 2003100567A2 US 0316275 W US0316275 W US 0316275W WO 03100567 A2 WO03100567 A2 WO 03100567A2
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WO
WIPO (PCT)
Prior art keywords
instrument
financial
redemption
consideration
sports
Prior art date
Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
Ceased
Application number
PCT/US2003/016275
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English (en)
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WO2003100567A3 (fr
Inventor
Alan R. Wahl
Michael R. Finnegan
John Chalk, Jr.
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MIKAL FINANCIAL
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MIKAL FINANCIAL
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Filing date
Publication date
Application filed by MIKAL FINANCIAL filed Critical MIKAL FINANCIAL
Priority to AU2003239587A priority Critical patent/AU2003239587A1/en
Publication of WO2003100567A2 publication Critical patent/WO2003100567A2/fr
Publication of WO2003100567A3 publication Critical patent/WO2003100567A3/fr
Anticipated expiration legal-status Critical
Ceased legal-status Critical Current

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    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00—Commerce
    • G06Q30/02—Marketing; Price estimation or determination; Fundraising

Definitions

  • the principles of the present invention generally relate to financing of an edifice, and more specifically, but not by way of limitation, to a method and system for financing a sports stadium without involving public financial support.
  • Sporting events have become increasingly popular over the last fifty years or more. Sports fans enjoy many levels of sporting events, from high school and college to the professional levels. The success of being able to attract fans to the sporting events has driven the need for owners or operators of the sporting event venues to increase the size and/or improve the appearance of the sporting event venues.
  • One example of the sporting event venue is a stadium. Such a stadium may be utilized for football, soccer, basketball, hockey, motor sport racing, etc. In order for the owners of the venues to build new stadiums, very large sums of money must be spent. A new venue building project that at one time may have cost $20 million now costs upwards of $250 million or more.
  • a few reasons for such inflation of construction costs include sports fans desiring more aesthetically pleasing environments, providing additional luxury suites, utilizing better sound equipment, providing larger and more elaborate visual displays, and purchasing real estate having higher prices, to name a few.
  • a number of financial vehicles and strategies to finance the construction of new stadiums have been utilized in the past. Such financial vehicles and strategies have included: (i) soliciting building fund donations, (ii) selling of government backed bonds, (iii) selling of personal seat licenses (PSL), and (iv) selling of season tickets, for example.
  • Each of the financial vehicles and strategies (i)-(iv) are effective for generating revenue, but have problems with their application from a marketing and political viewpoint.
  • the (i) soliciting of building fund donations is generally a request from universities for money to be donated to the building fund that may or may not be treated as a tax writeoff for the donating entity based on tax considerations.
  • the (ii) selling of bonds is generally issued for a long payout period, such as twenty or thirty years, and is typically backed by municipal bonds or funds from a city or state (i.e., a governmental entity). Alternatively, the city or state may increase sales taxes to support the bonds.
  • the (iii) selling of personal seat licenses are typically structured as a one-time sale without redemption for the right to purchase a season ticket in a specific location (e.g., seat) for a specified period of time. Additionally, it is not uncommon for a personal seat license to have a clause requiring the holder to purchase a season ticket, which potentially disenfranchises the owner of the entitlements associated with personal seat license ownership upon the season ticket not being purchased. Finally, the (iv) selling of season tickets does not guarantee or secure more than a single season in a particular seat.
  • Some financial programs have combined the different financial vehicles. For example, one financial program has incorporated a bond with a personal seat license. Again, the bond is guaranteed by a governmental entity by the sale of municipal bonds. And, because the two financial vehicles are merged, the sale of the personal seat license causes the loss of the bond for the seat holder. In other instances, the financial vehicles are separate and the bond survives the entitlements of the personal seat license.
  • An alternative to a destination location is a location that is a regional hub that has regional or local sports teams, but not necessarily one in a certain league, such as the National Football League. For example, Oklahoma City, Oklahoma currently does not have a football team in the National Football League, but has many local and regional college football teams. If a stadium were constructed to meet the desires of the National Football League in terms of revenue potential, then it would be desirable for a professional football team to be started in the stadium during an expansion period of the league.
  • One embodiment for financing an edifice includes a system and method, where the method includes selling a first instrument for consideration granting utility rights within the edifice.
  • the first instrument may be a personal seat license.
  • a second instrument associated with the personal seat license may be issued.
  • the second instrument which may be a financial redemption certificate, may be issued without additional cost to the purchaser (over and above the cost of the first instrument).
  • the second instrument may be guaranteed by a non-governmental entity for at least the consideration of the first instrument.
  • the utility rights may allow for purchasing a season ticket for a particular seat.
  • a consortium of interested entities that utilize a stadium may be formed.
  • the consortium may be that of universities, whereby the consortium may sell personal seat licenses having associated financial redemption certificates to alumni of the universities to "manufacture" a fan base for the stadium. Revenue generated from the sale of the personal seat licenses with the associated financial redemption certificates may be utilized to finance construction of the stadium. And, because the financial redemption certificates may be backed by a non-governmental entity (i.e., a tax paying entity), financial support from the local taxpaying citizens is unnecessary, thereby substantially reducing the need to have legislative involvement.
  • a non-governmental entity i.e., a tax paying entity
  • One embodiment for forming a fan base at a destination location substantially void of a local sports team for a sports stadium may include a system and method.
  • the method may include forming a consortium of universities having sports teams available to compete in the sports stadium.
  • the universities are members of the National College Athletic Association (NCAA) division I.
  • NCAA National College Athletic Association
  • Marketing of personal seat licenses and associated financial redemption certificates may be provided to alumni of the universities, where the financial redemption certificates specifying a redemption of at least full consideration for the personal seat license after a predetermined time duration.
  • a guarantee for the full consideration may be provided for by a non-governmental entity.
  • the personal seat license may be sold for the full consideration to a purchaser.
  • FIGURE 1 is an exemplary block diagram representative of interrelationships between parties associated with a university for financing a sports stadium;
  • FIGURE 2 is an exemplary block diagram representative of interrelationships between parties for financing construction or improvements and/or renovation of an edifice
  • FIGURE 3 is an exemplary block diagram representative of interrelationships between parties associated with a consortium of universities for financing a stadium in a destination location;
  • FIGURE 4 is an exemplary block diagram of a system for providing the parties of FIGURES 1-3 the ability to provide financing vehicles for stadiums and maintain information associated therewith;
  • FIGURE 5A is an exemplary personal seat license as may be utilized by the parties of FIGURES 1-3;
  • FIGURE 5B is an exemplary financial redemption certificate associated with the personal seat license of FIGURE 5 A and as may be utilized by the parties of
  • FIGURES 1-3
  • FIGURE 6 is an exemplary sports stadium identifying seats associated with the personal seat license of FIGURE 5 A as contemplated by the parties of FIGURES 1-3;
  • FIGURE 7 is an exemplary flow diagram describing a process for financing an edifice;
  • FIGURE 8 is an exemplary flow diagram describing a process for forming a fan base at a destination location.
  • One embodiment for financing construction and/or renovation of a sports stadium includes marketing at least one instrument granting utility rights for occupancy in a predetermined seat of the sports stadium.
  • the sports stadium may be owned by a university, city, or professional sports organization, for example.
  • the instrument(s) maybe sold to a purchaser for consideration. At least one of the instrument(s) may be guaranteed by a non-governmental entity for at least full redemption of the consideration after a predetermined time duration.
  • the instrument(s) may include a personal seat license, financial redemption certificate, or a combination thereof.
  • the utility rights may include an option to purchase a season ticket.
  • an issuer of the instrument(s) may receive the instrument(s) from a holder and provide the holder with a number of compensation options.
  • the issuer may compensate the holder by (i) issuing at least full redemption of the consideration; or (ii) extending utility rights for relinquishment provided by the personal seat license of the financial redemption certificate. If the owner of the sports stadium is a university or non-profit organization tax credit may be provided for relinquishment of the financial redemption certificate in lieu of the consideration or utility rights.
  • destination locations such as Las Vegas and Orlando, that are attractive to tourists, but do not have a local sports team with enough local fan support to entice a developer to construct a sports stadium.
  • One embodiment to "fabricate" a fan base at a destination location includes forming a consortium of interested entities having sports teams to travel and compete in a sports stadium in the destination location.
  • the interested entities are universities, whereby a personal seat license and an associated financial redemption certificate may be marketed to alumni and/or fans of the universities.
  • the financial redemption certificate may specify at least full consideration (e.g., face value) for the personal seat license after a predetermined time duration.
  • the consideration for the financial redemption certificate may be guaranteed by a non-governmental entity.
  • the personal seat license may be sold to purchasing alumni of the universities by an alumni association of the universities or another organization contracted by the universities to market and sell the personal seat licenses.
  • FIGURE 1 is an exemplary block diagram 100 representative of the interrelationships between parties associated with a university 105 for financing a sports stadium 108.
  • the sports stadium may be part of a sports venue that includes more than the stadium itself.
  • the sports venue may include parking lots, workout facilities, practice facilities, etc.
  • the financing may be for an edifice other than a sports stadium, such as a concert hall, museum, athletic facility, movie theater, dormitory, or classroom hall, for example.
  • the university 105 may have an alumni association 110 or other extension operating as an entity of the university that provides services and performs endowment requests to the alumni 115, for example.
  • the functions of the alumni association 110 may be performed by an independent contractor not directly associated with the university 105.
  • Financing of the sports stadium 108 may be performed by marketing and selling instrument(s).
  • the instrument(s) may be marketed and sold by the alumni association 110 and may include a personal seat license (PSL) 120 and a financial redemption certificate (FRC) 125.
  • the financial redemption certificate may be considered a contract that guarantees investment by a guarantor.
  • the personal seat license 120 is sold to a purchaser, such as alumni 115, for a purchase fee 130 and an associated financial redemption certificate 125 may be provided without additional cost to the purchasing alumni 115 of the personal seat license 120.
  • the personal seat license 120 and financial redemption certificate 125 are combined into a single instrument. It should be understood that more than the two instruments 120 and 125 may be provided and that the same or similar functionality is to be available to the purchasers of the instruments.
  • the personal seat license 120 may include a number of items, including (i) a serial number 505a indicative of the personal seat license 120, (ii) a date 510 indicative of the date that the personal seat license 120 is sold, (iii) a licensee name 515 who purchases the personal seat license 120, and (iv) terms of condition 520 for the personal seat license 120.
  • the terms of condition 520 include a number of "X" years that the licensee 515 has the first right to purchase a season ticket for a particular seat (not shown) within the sports stadium 108, and that an option for extension of the personal seat license 120 exists.
  • condition 520 may be constructed as a lease that operate to provide for occupancy rights. It should be understood that the terms of condition 520 may include other and/or different terms. Finally, signature lines 525a and 525b are included for legal execution of the personal seat license 120.
  • an exemplary financial redemption certificate 125 which may be a bearer instrument as understood in the art, may have a serial number
  • the financial redemption certificate 125 may be the date 510, purchase value 535 (e.g., "$B", which may be based on the seat in the sports stadium 108 associated with the personal seat license 120), expiration date 540 (e.g., purchase date 510 plus a predetermined number of years 540), redemption value 545 being a function of the purchase value 535 and an optional percentage 550 (e.g., "$Y x Z%").
  • Option terms 555 may additionally be included on the financial redemption certificate 125 to provide the holder of the financial redemption certificate 125 certain optional rights at the expiration date 540.
  • the option terms 555 may provide for the holder to tender the financial redemption certificate 125 for an extension of usage rights of the personal seat license 120 or, in the case of a university or non-profit organization being the owner of the sports stadium 108, for tax credit.
  • Signature lines 560a and 560b are included for legal execution by the holder 560a and 560b. Additional signature lines 560a and 560b may be included to provide space for legal transfers and/or sales of the financial redemption certificate 125.
  • the personal seat license 120 and financial redemption certificate 125 may have other and/or different information, terms, and/or conditions and be in accordance with the principles of the present invention.
  • the owner/licensee 525a of the personal seat license 120 may sell and/or transfer the financial redemption certificate 125, which is a bearer instrument, without forfeiting rights to purchasing a season ticket on a stadium seat. Conversely, the owner/licensee 525a may sell and/or transfer the personal seat license without forfeiting financial redemption entitlement provided by the financial redemption certificate 125. Additionally, the holder of the financial redemption certificate 125 may transfer the financial redemption certificate 125 to a non-profit organization or university 105, for example, before or at the expiration date 540 to receive tax credits. the owner of the stadium 108 may also wish to license his or her own club seats and/or luxury suite(s) for personal financial gain rather than for financing purposes. The owner may utilize the personal seat license 120 and redemption certificate 125, thereby retaining ownership of the seat while gaining licensing fees from the sale of the personal seat license 120.
  • a third-party program coordinator 135 may be contracted by the alumni association 110 to assist in the marketing and sales efforts of the instrument(s) 120 and 125.
  • the third-party program coordinator 135 may assist by, for example, (i) producing marketing materials to be distributed to alumni 115, (ii) produce the instrument(s) 120 and 125 to be sold, (iii) perform the actual marketing and sales efforts directly to the alumni 115, and (iv) process the information of the sales of the instrument(s) 120 and 125 Additionally, the third- party program coordinator 135 may handle processing of the instrument(s) 120 and 125 or other related activities throughout the term that the instrument(s) 120 and
  • the third-party program coordinator 135 may perform all, none, or share in the marketing and sales efforts
  • the university 105 may form a financial relationship with a guarantor financial institution 140a
  • the guarantor financial institution 140a may guarantee the consideration for the instrument(s) 120 and 125 and, as the guarantor financial institution 140a is a non-governmental entity, the university 105 may substantially avoid public scrutiny for financing the sports stadium 108 as no public money is utilized to financially guarantee the consideration for the instrument(s) 120 and 125
  • guaranteeing the instrument(s) it is meant that the bearer of the instrument(s)
  • a loan financial institution 145a such as a bank, may be willing to provide a standard loan to the university 105 to aid in financing the sports stadium 108 For example, if the university 105 raises $50 million for a $150 million sports stadium 108, the loan financial institution 145a may grant a $100 million loan with a 30-year mortgage As with the guarantor financial institution 140a, the loan financial institution 145a may alternatively form the relationship with the alumni association 110, third-party program coordinator 135, or other entity involved with financing the construction of the sports stadium 108 While the university 105 may raise the money for directly financing the stadium 108, it should be understood that the money may alternatively be used for other purposes Such purposes may include scholarships or debt relief A stadium construction contractor 150 may be contracted by the university
  • the stadium construction contractor 150 may be contracted by whatever entity is charged with financing and/or overseeing the construction of the sports stadium 108.
  • the relationship between the stadium construction contractor 150 and the university 105 may be a typical construction contract as known in the art.
  • the purchaser e.g., alumni 115
  • the financial redemption certificate 125 may return the financial redemption certificate 125 to the alumni association 110 after the predetermined time duration specified on the financial redemption certificate 125.
  • a portion of the original consideration may be applied to one or more financial instruments.
  • the financial instruments may include interest bearing (e.g., bonds, money market accounts, etc.) or non-interest bearing (e.g., stocks, commodities, derivatives, etc.) financial instruments.
  • the financial instruments may be underwritten by the quarantor financial institution 140a or other entity, including a governmental entity.
  • the alumni association 110 may provide a number of options to the holder, including: (i) issuing at least full redemption of the consideration, (ii) extending utility rights provided by the personal seat license 120 for relinquishment of the financial redemption certificate 125, or, in the case of a university or non-profit organization being an owner of the sports stadium 108, (iii) providing tax credit for relinquishment of the financial redemption certificate 125.
  • the alumni association 110 may provide the original consideration or the original consideration plus interest or other fixed or variable amount.
  • the personal seat license 120 may have a fixed duration of time providing the purchaser the ability to utilize or optionally utilize the stadium 108 by purchasing a season ticket. Alternatively, the purchaser may simply own a seat in the stadium 108 without having to purchase a season ticket.
  • the purchaser or owner of the personal seat license 120 may have the utility rights extended beyond the original duration of time. For example, the utility rights provided by the personal seat license 120 may be doubled.
  • FIGURE 2 is an exemplary block diagram 200 representative of interrelationships between parties for financing construction of an edifice 202. While a university 105 may utilize the principles of the present invention to finance the sports stadium 108, so too may an owner and/or developer 205 of an edifice 202. In one embodiment, the edifice 102 may be a concert hall.
  • the edifice 202 may be a museum, aquarium, gymnasium, office building, and/or other edifice that consumers, patrons, and/or businesses utilize.
  • the edifice 202 may be a sports stadium to be utilized by professional sports teams or franchises. Further yet, the sports stadium may be utilized to conduct non-team contests. For example, the contests may include racing (e.g., horse, automobile, or human racing), skill events (e.g., bowling, tennis, Jai-Alai), or other individual related events.
  • an entire venue may be developed that includes a primary location (e.g., theme park) and secondary structures (e.g., hotels, shops, infrastructure).
  • a predetermined time duration e.g., expiration date 540
  • an edifice 102 that is not a sports stadium 108 may utilize certificates that provide the same or similar functionality as the certificates 120 and 125. For example, in the case of a concert hall, season tickets may be offered; in the case of an office building, lease terms may be offered.
  • the utility rights being offered may vary widely, but the ability for the developer to finance the edifice 202 or venue without governmental involvement allows the developer a cost effective development effort.
  • the owner 205 or owner-to-be of the sports stadium 108 to be utilized by a professional sports team may raise capital utilizing the principles of the present invention.
  • the owner 205 may form a business relationship with a marketing/sales organization 210 to market and sell the instrument(s) 120 and 125 to potential purchasers 215. While the university has a predefined list of potential purchasers in the form of alumni 120, the marketing/sales organization 210 may target current and past season ticket holders as potential purchasers 215.
  • FIGURE 3 is an exemplary block diagram 300 representative of interrelationships between parties associated with a consortium 305 for financing a stadium 108 in a destination location or venue.
  • the consortium 305 is a university consortium 305 composed of a group of universities 105a-105n (collectively 105) interested in having their sports teams compete in a destination location, such as Las Vegas, Nevada, or Orlando, Florida.
  • One incentive for a university 105a to be part of the consortium may be to increase goodwill and enthusiasm for team support by family of players and fans of the sports team as the destination location offers fun and excitement apart from the sporting event, which can be shared to help build comradery.
  • Another motivation for the universities 105 to participate in the consortium may be financial as the principles of the present invention provide for revenue to be generated for the universities 105 by selling the personal seat licenses 120a-120n (collectively 120) with the associated financial redemption certificates 125a-125n (collectively 125). It should be understood that there are many incentives for the universities 105 to be part of the consortium and that the destination location benefits by having many "tourists" attend the sporting events.
  • the developer who may be the university consortium 310 and/or location organization 305, of the stadium 108 benefits by generating fan support to fill the stadium 108 for the sporting events conducted within the stadium 108.
  • each university 105 of the university consortium 310 may compete in the stadium 108 substantially periodically (e.g., every other, every third, or every fourth year), so that the novelty and excitement of playing in the destination location remains high for the fans and is affordable for the teams.
  • the location organization 305 is associated with the stadium construction contractor 150 and third party program coordinator 135.
  • the location organization 305 may be the organization that ultimately owns the stadium 108.
  • the location organization 305 may further be associated with a university consortium 310 that organizes the universities 105 for using the stadium 108 for their sports teams.
  • the alumni associations 110a- 11 On (collectively 110) associated with the respective universities 105 may market and sell personal seat licenses 120a- 120n (collectively 120) and financial redemption certificates 125a-125n (collectively
  • the universities 105 are associated with the loan financial institutions 145a-145n (collectively 145) and guarantor financial institutions 140a-140n (collectively 140). It should be understood that the loan 145 and guarantor 140 financial institutions may be the same institutions or that all or some of the universities 105 may utilize different financial institutions 140 and 145. As indicated, there may be different configurations for the financial institutions 140 and 145 for financing the universities 105 and affiliated associations (e.g., alumni associations 110) based on the financing structure desired by the universities 105. It should be understood that the loan and guarantor financial institutions 140 and 145 may be the same financial institution. Alternatively, the university consortium 310 may be directly associated with a financial institutions to provide financial assistance with the universities 105 of the university consortium 310.
  • FIGURE 3 may be applied to a non-university association formed as a syndicate or consortium.
  • a professional sports association may provide the same or similar financial structure and instrument s) 120 and 125 in financing the sports stadium(s) 108.
  • the professional sports association may be the National Football League, Major
  • FIGURE 4 is an exemplary block diagram 400 of a system for operating in conjunction with the exemplary block diagrams of FIGURES 1-3.
  • An owner server 405 may be coupled to a network 410 to communicate with a marketing/sales server
  • the network 410 is the Internet.
  • the owner 405 and/or marketing/sales server(s) 415 may further communicate with purchaser computing systems 420a-420n (collectively 420), such as alumni, fans, and/or patrons, who purchase the personal seat licenses 120a and associated financial redemption certificate 125a over the network 410 via a website or other interface, for example.
  • the owner server 405 may include a processor 425 coupled to a memory 430 for storing information during operation, input/output (I/O) unit 435 for communicating information internally or via the network 410, and storage device 440.
  • I/O input/output
  • a database 445 may be stored on the storage device 440 and utilized to maintain records of purchasers of the personal seat licenses 120 and holders of the financial redemption certificates 125.
  • Control devices 450a-450b (collectively 450), such as a computer mouse, and monitor 455 may be utilized to maintain and control operation of the database 445.
  • a software program 460 executed by the processor 425 may be utilized to maintain and operate the database 445.
  • the software program 460 may be a database management software program as understood in the art. Additionally, the software program 460 may be operable to interface with the marketing/sales server 415 or purchaser computing systems 420.
  • the marketing/sales server 415 may be utilized to perform marketing/sales functions to sell the personal seat licenses 120 and associated financial redemption certificates 125.
  • Multiple networked terminals 465a-465n may be utilized by marketing/sales personnel to enter orders from customers 215 (e.g., alumni 115) for the personal seat licenses 120 and financial redemption certificates 125.
  • the marketing/sales server 415 may include the same or similar structure and functionality as the owner server 405 and that the group (e.g., third-party program coordinator 135) performing marketing/sales for the owner 205 may generate and maintain the information in the database 445.
  • the purchasers 420 who purchase the personal seat licenses and financial redemption certificates from a website may communicate the purchases via data packets 470 over the network 410 to either or both of the servers 405 and 415.
  • FIGURE 6 is an exemplary edifice 600 as contemplated by the parties of FIGURES 1-3.
  • the edifice 600 may be an indoor stadium or arena (e.g., basketball court, skating rink, and football) or outdoor stadium (e.g., football field, baseball field, and race track).
  • the edifice 600 may not be a sports stadium, but rather a performance hall, such as an opera house or music hall.
  • Each of the seating areas A-C may have seats priced at different values (e.g., low end: $500, $1,000, and $1,500; high end $50,000, $60,000, and $75,000) depending on a variety of factors for purchasers of the personal seat licenses 120.
  • the factors may include the particular sports venue, sporting event, demand, stadium size, etc.
  • luxury suites having enclosures and/or a certain number of seats (e.g., twelve), or otherwise, may be offered and be priced at higher values (e.g.,
  • a natural supply and demand marketplace may be created for the personal seat licenses 120 to generate intrinsic value for the purchasers 215 thereof.
  • the holders of the financial redemption certificates 125 may have a marketplace in which to re-sell the personal seat license 120 for profit, with and/or without the financial redemption certificates 125, thereby providing additional value for the holders of the personal seat licenses 120 financial redemption certificates 125.
  • TABLES 1 A and IB are exemplary databases operable to maintain information of the personal seat licenses 120 and financial redemption certificates 125 of FIGURE 5 optionally utilizing the system 400 of FIGURE 4.
  • the PSL database is operable to maintain information for the personal seat license 500, including: PSL number, date sold, term years, licensee, licensor, associated financial redemption certificate (FRC), purchase value, and seat.
  • PSL number PSL number
  • FRC financial redemption certificate
  • purchase value purchase value
  • seat for example, as indicated by the record having PSL Number "08328PSL”, personal seat license 08328PSL was licensed or sold to Bob Smith by the University of ABC for $1,500, and has a term of fifteen years. Other terms, such as 30 years, could also be utilized.
  • the personal seat license 08328PSL has an associated financial redemption certificate 08328FRC, and the personal seat license 08328PSL provides utility rights to purchase a season ticket for seat 18, row D of section A in the stadium 600.
  • the information stored in database 445a may include additional and/or different information according to the terms of condition 520 and other related information as understood in the art.
  • the FRC database is utilized to maintain information for the financial redemption certificate 125, including: FRC number, PSL number, date issued, expiration date, value, interest rate (if applicable), option plan, holder, issuer, and transfer date.
  • FRC number FRC number
  • PSL number date issued
  • expiration date value
  • interest rate if applicable
  • option plan option plan
  • holder if applicable
  • transfer date if applicable
  • the financial redemption certificate 08328FRC was issued on January 9, 2002, with an expiration date of January 9, 2017, and has a value of $1,500.
  • An annual interest rate of 1.7% is included with the bearer instrument.
  • the issuer may elect to provide an interest rate to entice the purchaser 215 to purchase the personal seat license 120.
  • the present holder of the financial redemption certificate 125 is Bob Smith and issued by the University of ABC on January 9, 2002. It should be understood that the financial redemption certificate 125 is a bearer instrument and may be transferred in a transaction to another bearer prior to the expiration date 540. The transaction may be recorded both on the instrument (i.e., financial redemption certificate) itself, and may be recorded with the issuer (e.g., University of ABC) and stored in the database 445b. It further should be understood that information associated with the licensee, purchaser and/or current holder may additionally be maintained in the database 445 or other related databases.
  • TABLES 1 A and IB are exemplary and that data associated with the sale of personal seat licenses 120 and financial redemption certificates 125 for non-university and/or non-stadium purposes may be maintained.
  • data associated with the sale of personal seat licenses 120 and financial redemption certificates 125 for non-university and/or non-stadium purposes may be maintained.
  • information associated with a National Football League franchise e.g., "New England Patriots”
  • information associated with a casino e.g., "Trump Plaza”
  • the relevant information and terms may be different based on the particular business transactions or practices, so too is the data stored in the databases.
  • FIGURE 7 is an exemplary flow diagram 700 describing a process for financing construction or improvement of an edifice.
  • the process starts at step 702.
  • a first instrument granting utility rights may be sold for consideration to a purchaser.
  • a second instrument associated with the first instrument may be issued at step 706.
  • the second instrument may be issued to the purchaser at no additional cost.
  • the second instrument may be issued for additional consideration.
  • the second instrument is guaranteed for consideration of at least the consideration of the first instrument.
  • the first instrument may be a personal seat license 120 and the second instrument may be a financial redemption certificate 125.
  • the first instrument may be a license allowing for entry into the edifice.
  • the first instrument may grant the owner or holder the first right to purchase tickets, parking, etc. or to have priority booking, seating, time slots, etc. on an annual or other basis.
  • the license may be valid for a minimum and/or maximum duration.
  • FIGURE 8 is an exemplary flow diagram 800 describing a process for forming a fan base at a destination location.
  • the destination location may or may not have a team with a large enough local following to adequately justify financing a sports stadium.
  • the process starts at step 802.
  • a consortium of members having sports teams available to compete in the stadium 108 is formed.
  • Marketing of personal seat licenses 120 and associated financial redemption certificates 125 to potential purchasers is provided for at step 806.
  • the members are universities 105 that provide alumni information to the university consortium 310, alumni associations 110, or other marketing entity.
  • the members are professional sports teams.
  • a guarantee for redemption of consideration for the personal seat licenses 120 is provided.
  • the university consortium 310 establishes a relationship with a guarantor financial institution 140a to provide for the guarantee.
  • the individual universities 105 establish the relationship with the guarantor financial institution 140a.
  • the personal seat licenses 120 are sold to purchasers for the compensation. Revenue generated by the sales of the personal seat licenses 120 may be utilized directly or indirectly (e.g., collateral) to finance the stadium 120.
  • the process ends at step 812.

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Abstract

L'invention porte sur un système et un procédé de financement d'un édifice. Ledit procédé consiste à vendre un premier instrument pour obtenir en contrepartie des droits de service public pour le siège de l'édifice. Le premier instrument peut être une licence personnelle de siège. On peut émettre un deuxième instrument associé à la licence personnelle de siège, le deuxième instrument pouvant être un certificat financier de rachat émis sans frais pour l'acheteur et garanti par une entité non gouvernementale pour au moins la contrepartie du premier instrument. L'édifice peut être un stade situé dans une zone destinée aux sports.
PCT/US2003/016275 2002-05-21 2003-05-21 Procede et systeme de financement d'un edifice Ceased WO2003100567A2 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2003239587A AU2003239587A1 (en) 2002-05-21 2003-05-21 Method and system for financing an edifice

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US15376202A 2002-05-21 2002-05-21
US10/153,762 2002-05-21

Publications (2)

Publication Number Publication Date
WO2003100567A2 true WO2003100567A2 (fr) 2003-12-04
WO2003100567A3 WO2003100567A3 (fr) 2004-05-06

Family

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Family Applications (1)

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PCT/US2003/016275 Ceased WO2003100567A2 (fr) 2002-05-21 2003-05-21 Procede et systeme de financement d'un edifice

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Country Link
AU (1) AU2003239587A1 (fr)
WO (1) WO2003100567A2 (fr)

Cited By (8)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7536330B2 (en) 2001-09-03 2009-05-19 Michihiro Sato Fixed rate financing instrument offering a dividend or partially guaranteed by third party to issuance, method for establishing a market for the same, method for directly public-offering the same on-line
US7567931B2 (en) 2004-01-16 2009-07-28 Bgc Partners, Inc. System and method for forming a financial instrument indexed to entertainment revenue
US7698198B2 (en) 2004-01-16 2010-04-13 Bgc Partners, Inc. System and method for purchasing a financial instrument indexed to entertainment revenue
US7698199B2 (en) 2004-01-16 2010-04-13 Bgc Partners, Inc. System and method for offering a futures contract indexed to entertainment revenue
US7698184B2 (en) 2004-01-16 2010-04-13 Bgc Partners, Inc. System and method for trading a financial instrument indexed to entertainment revenue
US8103580B2 (en) 2001-09-03 2012-01-24 Michihiro Sato Issuing machine and issuing system for public-offering a financing instrument on-line
US10304292B2 (en) 2003-03-31 2019-05-28 Cantor Index, Llc System and method for betting on a participant in a group of events
US10586282B2 (en) 1996-03-25 2020-03-10 Cfph, Llc System and method for trading based on tournament-style events

Family Cites Families (2)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5680305A (en) * 1995-02-16 1997-10-21 Apgar, Iv; Mahlon System and method for evaluating real estate
US6615187B1 (en) * 2000-02-09 2003-09-02 Warren S. Ashenmil Method of securitizing and trading real estate brokerage options

Cited By (11)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US10586282B2 (en) 1996-03-25 2020-03-10 Cfph, Llc System and method for trading based on tournament-style events
US7536330B2 (en) 2001-09-03 2009-05-19 Michihiro Sato Fixed rate financing instrument offering a dividend or partially guaranteed by third party to issuance, method for establishing a market for the same, method for directly public-offering the same on-line
US8103580B2 (en) 2001-09-03 2012-01-24 Michihiro Sato Issuing machine and issuing system for public-offering a financing instrument on-line
US8615453B2 (en) 2001-09-03 2013-12-24 Michihiro Sato Fixed rate financing instrument offering a dividend or partially guaranteed by third party to issuance, method for establishing a market for the same, method for directly public-offering the same on-line
US10304292B2 (en) 2003-03-31 2019-05-28 Cantor Index, Llc System and method for betting on a participant in a group of events
US11043078B2 (en) 2003-03-31 2021-06-22 Cantor Index, Llc System and method for betting on a participant in a group of events
US7567931B2 (en) 2004-01-16 2009-07-28 Bgc Partners, Inc. System and method for forming a financial instrument indexed to entertainment revenue
US7698198B2 (en) 2004-01-16 2010-04-13 Bgc Partners, Inc. System and method for purchasing a financial instrument indexed to entertainment revenue
US7698199B2 (en) 2004-01-16 2010-04-13 Bgc Partners, Inc. System and method for offering a futures contract indexed to entertainment revenue
US7698184B2 (en) 2004-01-16 2010-04-13 Bgc Partners, Inc. System and method for trading a financial instrument indexed to entertainment revenue
US7774258B2 (en) 2004-01-16 2010-08-10 Bgc Partners, Inc. System and method for forming a financial instrument indexed to entertainment revenue

Also Published As

Publication number Publication date
WO2003100567A3 (fr) 2004-05-06
AU2003239587A8 (en) 2003-12-12
AU2003239587A1 (en) 2003-12-12

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WO2003100567A2 (fr) Procede et systeme de financement d'un edifice

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