AZSTA 2008 Fiscal Year Annual Report

Fiscal Year 2008 Annual Report


Owner and Operator of the Phone (623) 433-7500
Arizona Sports & Tourism Authority
Fax (623) 433-7510
University of Phoenix Stadium
Website
1 Cardinals Drive
www.az-sta.com
Glendale, AZ 85305

Formed as a result of voter approval of Prop. 302 in Nov. 2000, AZSTA is dedicated to enhancing Maricopa County’s economy and the
community’s quality of life through the development of professional and amateur sports facilities, the attraction of entertainment,
sporting, and business events, and through tourism promotion.

sions, and the largest football card show.
In this issue:
The National Football League (NFL) produced the
• Stadium Events: A Year in Review
17th Annual NFL Experience during the two weeks leading up
• Cactus League
to the Super Bowl. It was built by Home Depot and was lo-
- AZSTA Makes Significant Impact on Cactus League
cated, on-site adjacent to the University of Phoenix Stadium
• Youth and Amateur Sports
in the West parking lot.
- AZSTA Awards $2.25 Million to Youth & Amateur
Opening weekend, January 26 and 27, brought in
Sports
28,585 guests. The NFL Experience was also open January
- Quick Grants
31-February 2 to the public and was open game-day exclu-
- Sports and Recreation Mapping System
sively for Super Bowl ticket holders.
• New Additions to AZSTA Staff
Proceeds from the gate were donated to the NFL’s
• Fiscal Year 2008 Financial Review
charitable efforts in Arizona, the Youth Education Town (YET)
Center.

Stadium Events: A Year in Review

The University of Phoenix Stadium was very busy
throughout fiscal year 2008. With its highly successful
inaugural year, many events were excited to come back in
addition to a number of first-time events. Overall 132 events
were held at the Stadium with a total of 1,306,405 visitors.

The NFL Experience was open to the public leading up to the game, but
was only open to Super Bowl ticket holders on the day of the game.

Super Bowl XLII

Super Bowl XLII was held
at the University of Phoenix Sta-
dium on February 3, 2008 and
featured the National Football Con-
ference (NFC) champion New York
Super Bowl XLII Giants and the American Football
Conference (AFC) champion New
February 3, 2008
Attendance: 71,101 England Patriots.
The game kicked off at
4:32 p.m., Arizona time. This was the first time a Super Bowl
NFL Experience
was played on a retractable natural-grass field surface and
was the second Super Bowl played in a retractable-roof sta-
The NFL Experience has been known to be the most
dium. Because there was rain in the forecast for the game,
exciting continuous event surrounding the Super Bowl. The
the NFL made the decision to close the roof for the entire
pro football’s interactive theme park offered games, displays,
day’s activities.
entertainment attractions, kids’ clinics, free autograph ses-


Super Bowls of all
time. Frank Su-
povitz, Senior Vice
President of NFL
Events, said, “The
success of any Su-
per Bowl is entirely
dependent upon
close, cooperative,
and collaborative
partnerships with
the facilities and
experts required to
host America’s pre-
The FOX-network telecast began at 9 a.m. Arizona mier annual sports
event. Between the
time, on game day, leading up to nine hours of game-related
coverage prior to the kick-off. Willie Nelson performed at a NFL Experience, the
NFL Tailgate Party,
NFL-sponsored pre-game tailgate party, singing a duet with
Sara Evans as part of FOX’s pre-game show. Ryan Seacrest and the Game itself,
University of Phoenix
served as emcee for the FOX pre-game show, with Alicia Keys
as the primary performer. Jordin Sparks, a native of Glendale Stadium and Global
Spectrum were
and daughter of former New York Giants cornerback Phillippi The NFL’s, “Who Wants it More”
slogan turned into the “We
Sparks, performed the National Anthem. Tom Petty and the world-class partners
Wanted it More” slogan for the
in staging the best
Heartbreakers was the half-time entertainment which kicked Giants as Eli Manning became
off their 2008 world tour. Super Bowl in mem- the game’s MVP.
ory.”

Super Bowl Economic Impact

A study released by the Arizona Super Bowl Host
Committee estimated that Super Bowl XLII generated an
economic impact of $500.6 million for the state.
The survey
revealed visitors stayed
in Arizona for an aver-
age of 3.9 nights and
spent an average of
$617 each day on ho-
The stage was set for Tom Petty and The Heartbreakers during
tels, food, alcohol,
half-
half-time.
transportation, recrea-
tion, shopping, and
In one of the most significant upsets in Super Bowl
history, the 71,101 in attendance witnessed Eli Manning se- other categories.
Arizona State
cure the victory with a 13-yard touchdown pass to receiver
Plaxico Burress with 35-seconds remaining. This gave the Gi- University’s W.P. Carey
School of Business
ants a 17-14 victory over the Patriots at the Stadium. The Gi-
ants became the first NFC wild card team to ever win a Super completed the eco-
nomic-impact report
Bowl.
With an average of 97.5 million viewers in the United based on surveys of
more than 1,500 visi-
States and a total of 148.3 million viewers worldwide. Super
Bowl XLII was the most-watched Super Bowl of all time, accord- tors who came to the
Valley to attend the
ing to Nielson Media Research. It was also the second most-
watched television program of all time in the United States. game or take part in
the festivities.
Everyone involved with producing Super Bowl XLII
were pleased it was one of the most successful, well-planned


Home and Garden Show
AZSTA contributed $406,833 in game day expenses
3-
August 3-5, 2007
for the game. AZSTA also contributed the sales tax recapture
Attendance: 39,700
associated with game day tickets, which totaled $2,394,920.
All told, AZSTA provided an overall contribution of
$2,801,753 in monetary terms to help secure Super Bowl
XLII.

Copa PanAmericana Soccer Tournament
16-
July 16-22, 2007
Attendance: 7,623

Pro Entertainment, an Argentina-based sports mar-
keting company, in conjunction with DIRECTV, and Global
Spectrum, held the first Copa PanAmericana soccer tourna-
ment at the University of Phoenix Stadium, July 16-22, 2007.
Arizona’s largest home show was held at the
University of Phoenix Stadium August 3-5, 2007. Over 700
companies showcased everything for interior design,
remodeling, building, and landscaping. Nearly 40,000
people visited the Stadium during the three-day event. The
show included not only the exhibits, displays and vendors
but also seminars, demonstrations, contests, workshops,
and more.

Monster Truck
September 8, 2007
Attendance: 12,290

The University of Phoenix Stadium roared Septem-
ber 8, 2007 with the country’s most competitive trucks, the
More than 7,600 attendees watched Cruz Azul of Monster Truck
Mexico upset Boca Juniors of Argentina 3-1 to win the tourna- Thunder Drags.
ment. The Mexican-squad, cheered on by most of the crowd, Nearly 12,300
rallied from an early 1-0 deficit to win the $250,000 first watched the top ten
prize and silver trophy. Monster Trucks,
The Stadium was a beautiful backdrop for the five- including the
million Latin American viewers who watched the games on original monster
DIRECTV. truck, Big Foot, and
its inventor, Bob
Chandler.

Set up for the event took three days. The field level
was covered in layers of dirt and hay for the course.


AIA State Football Championships 4A & 5A
Division 1 and 2
7-
December 7-8, 2007
Attendance: 29,572
Phoenix Bridal Show
October 21, 2007
Attendance: 1,484
Scottsdale Notre
Dame Head
Coach Scot
Bemis carried off
the field by his
players after
winning the
Arizona State 5A
Division 2 Title.

Models
Centennial
prepare for the
players celebrate
Bridal
after winning the
Fashion Show
Arizona State 5A
Division 2 Title.

Cycle World International Motorcycle Show
October 26-28, 2007
26-
Attendance: 11,215 Brophy players
hold up the Ari-
zona State 5A
Division 1
Championship
Trophy after
defeating Desert
Vista 34-21.
34-

Saguaro player Jake Dunnbee
suffered a major head injury in
long boarding accident and was
out most of the season. He has
been a major inspiration to the
team.


37th Annual Fiesta Bowl
January 2, 2008
Attendance: 70,016

The 37th Annual
Tostitos Fiesta Bowl was Oasis Gift Show
held January 2, 2008 at 14-
February 14-16, 2008
the University of Phoenix Wholesale only trade show
Stadium. The West Virginia Attendance: 3,236
Mountaineers and the
Oklahoma Sooners brought
70,016 fans (the 23rd sell-
out in the past 24 Tostitos
Fiesta Bowl games) for the
kickoff at 6 p.m.

The Big East Conference
Vendors displayed beautiful Native American art.
Champion West Virginia's re-
nowned speed and big-play of-
fense stunned Big 12 Conference
titlist Oklahoma with six touch-
downs, including three scores of
57 yards or longer and none
shorter than 17 yards in its 48-28
victory.

SYSCO Food Show
February 20, 2008
Attendance: 2,000

Demonstrations in food preparation were numerous as well as
the attendees’ opportunity to sample everything.
Extravaganza seating for the Fiesta Bowl added 7,830 additional seats for
the game.


Radiant Church Easter Service
March 23, 2008
Attendance: 6,000

All types of food
were available for
Guests of all ages
sampling.
joined in Easter worship
at the Stadium.

Women’s Expo
19-
April 19-20, 2008
Attendance: 13,000

all-
Guests were able to sample all-
types of products, food and
7-
March 7-9, 2008
beverages, were offered
Attendance: 16,000
discount beauty treatments,
and were even able to
live-
participate in the live-hair show.

Guests lined up to
meet and get
autographs
from members of
Phoenix’s
Channel 3’s
media
personalities.

The Splash Dogs Water Jumping competition was held outside just
south of the Stadium.


Electric Flight Expo Tolleson Union and Peoria Unified High School
25-
April 25-27, 2008 District Graduations
Attendance: 4,000 21-
May 21-23, 2008
Attendance: 49,667

Ironwood High School graduates take their seats.

The stadium
provided an
open space indoors to
fly aircraft..

Centennial High School graduates celebrate their big day.

Kenny Chesney’s Poets and Pirates Tour
May 31, 2008
Attendance: 40,100

Country music superstar Kenny Chesney hosted his
“Poets and Pirates Tour” at the University of Phoenix Sta-
dium on May 31. More than 40,000 fans headed into the
Stadium that was cooled to 77 degrees, to hear country mu-
sic artists Chesney, Keith Urban, Gary Allan and classic
rocker Sammy Hagar.

Vendors displayed merchandise at the world’s largest indoor
electric flight competition and trade show.


The Sta- With an opportunity to add an additional team to
dium’s parking the Cactus League the AZSTA Board approved a revised Cac-
lots filled steadily tus League funding plan in April 2008. This new plan pro-
as they opened at vided assistance to the City of Goodyear in bringing the Cin-
11 a.m., more cinnati Reds to Goodyear in 2010. The new funding plan
than four hours provided for up to $20 million of the estimated $30.0 mil-
before show time. lion in costs for the Reds’ facility. The plan also boosted the
The show began at overall funding to a maximum of two-thirds funding for the
3:30 p.m., with overall project now that is a two-team complex, increasing
fans eagerly mak- the Authority’s pledge of support from $37.4 million to
ing their way in $57.4 million.
from the 100- Just one month after the groundbreaking in Good-
degree tempera- year the AZSTA Board approved funding for the Glendale
tures outside. facility. The approved plans were restated in April 2008, as
part of the revised funding plan. The agreement approved
by the AZSTA Board in April 2008 provides for a maximum of
At a press conference held
prior to the show, Chesney ex- $60 million for a two-team facility, which will be the new
spring training home for the Los Angeles Dodgers and the
pressed his excitement in being
able to play at the NFL stadium Chicago White Sox.
that was home to Super Bowl XLII.
“We did six NFL Stadiums last year The growth of the Cactus League since AZSTA’s existence:
and had a blast,” Chesney said.
Maricopa County Spring
“You get into a whole other kind of
rhythm, and it’s just the best vibe.”
Training
This was the tour’s fifth
stadium stop. They were sched-
uled to perform in a total of 34 cit-
Year 2000 - 7 Teams
ies during their tour schedule.

Chesney’s press
conference was held on the
main stage.

Cactus League
AZSTA Makes Significant
Year 2009 - 12 Teams
Year 2002 - 9 Teams
Impact on Cactus League
Fiscal year 2008 was an
unprecedented year for AZSTA’s in-
fluence in the Cactus League.
AZSTA approved funding for two new
facilities in Glendale and Goodyear.
Starting in 2010 a total of 13 teams
will be in the Cactus League rotation Year 2010 - 13 Teams
in Maricopa County.
The City of Goodyear and the Cleveland Indians
broke ground for the Goodyear Ballpark and Recreational
Sports Complex in September 2007. The Cleveland Indians’
will house their Spring Training operation and player develop-
ment facility in Goodyear beginning Summer 2008.


“What we, the Authority staff, liked about this grant
Youth and Amateur Sports
was the simplicity of their request and the return for a very,
small investment,” Chuck Foley, AZSTA CFO and Treasurer
AZSTA Awards $2.25 Million to Youth & Amateur said. “We have previously provided funding for youth and
Sports Projects amateur sports and physical recreation projects that have
benefited the disabled community and this project seemed
to be yet another great example of how the Authority could
The AZSTA Board approved $2.25 million in grants
continue to help make a difference.”
for youth and amateur sports projects throughout Maricopa
County on October, 23, 2007.
Every two years, AZSTA awards Youth and Amateur
Sports (YAS) Biennial Grants, throughout Maricopa County
that will service a variety of sporting and physical activity
needs. This year’s qualified parties applied for the YAS Bien-
nial Grant in June 2007. There were 17 recipients of the to-
tal $2.25 million for the Biennial Grants. The 17 recipients
include the following projects; multi-purpose fields, lighting
systems, gymnasiums, aquatics, motorsports, play areas, and
physical fitness centers for those physically challenged. Of
those who applied, 68% received funding, and 85% of the
requested funding was met.
Since the inaugural year of the YAS Biennial Grant
program in 2001, 47 projects have been funded. Of the to-
tal, 27 projects, or 58%, are in locations below the median
household income, and 69% of project funding is for projects
in neighborhoods with above-average minority populations. Students are taught how to prepare healthy meals for
The Biennial Grant program runs on a two-year cycle themselves and their families in the kitchen that is also
and funds the development and improvement of youth and located at the Center.
amateur sports facilities, recreational facilities and other
community facilities. In Spring 2009, information will be-
come available for the fiscal year 2010 Biennial Grant appli-
The Phoenix Zoo
cation process.

The Arizona Zoological Society-Phoenix Zoo was
Here are a few of the 2008 Biennial Grant Recipients:
awarded a grant for the construction of a nature-discovery
play area. The structure features plants and water struc-
One Step Beyond
tures that were built to help educate kids in an active and
healthy way. The play zone allows for creative play, nature
One Step Beyond’s Dance Studio and Program, lo-
discovery, exploration, and physical exercise for all partici-
cated in Peoria, impacts the lives of young adults and chil-
pants.
dren with disabilities. This impact was strengthened with the
aide of the AZSTA grant. A new dance and physical fitness
studio were developed where students can now participate in
weekly dance classes and daily physical fitness activities, as
well as person-
alized exercise
regimens to
encourage
weight man-
agement,
physical fitness
and stamina.


Fountain Hills Desert Vista Park Project

The Town of Fountain Hills was awarded their grant
to help constuct the 12-acre Desert Vista Neighborhood
Park Project.
The development of Desert Vista Neighborhood
life-
The cave features many life-like geological formations kids can learn Park allows for programs and events to be held year-round.
from through sight and touch.
The Fountain Hills Soccer and Fountain Hills Pop Warner
Football and Cheerleading Clubs, are just two of the many
organizations that will greatly benefit from the park.
Bryan Hughes, Recreation Supervisor and Project
Brunson Lee Elementary School
Manager, said the park will provide valuable recreational
opportunities for all residents of Fountain Hills. “The com-
The Brunson Lee Elementary School in the Balsz
School District No. 31, received funding for the construction pletion of the improvements to the Desert Vista Park go a
long way in increasing the number of lighted athletic fields
of a new athletic track, also known as project, “Walk-it-Out”.
available for our youth sports organizations in town, particu-
larly the Fountain Hills Soccer Club,” Hughes said. “It was
important to build a facility that will meet the Town’s future
needs. The project grant from AZSTA helped make that a
reality and we are excited to see the park completed this
Fall.”

one-
The rubberized track is one-sixth of a mile and has six lanes.

AZSTA’s contribution allowed for the rubberized track
surface that has now provided a safe environment for the
550 elementary students, visiting students, educators, and
members of the community. Arizona Karting Association
Louis Laffitte, former Brunson Lee Principal, was a
driving force for the program. “The track now provides a safe The Arizona Karting Association (AKA) installed new
light poles, which provided improved lighting for safer eve-
place that welcomes a positive environment from the com-
munity,” Laffitte said. “Students and the community are now ning racing and were able to upgrade the quality of the race-
track with the grant.
offered structured programming. We are very grateful for the
AZSTA grant and are looking forward to seeing the ongoing Located in the Northwest Valley, the one-fifth mile
track offers classes and competitions for ages five through
positive changes in the community this will give us.”
18. AKA members stated the lighting upgrades to the race
track and pit areas have provided for greater safety and in-
terest with the track now being made available in the eve-
nings.


“AZSTA has illnesses. PVCP stated that after the renovation the field
provided an improve- now retains moisture longer due to the improved soil, which
ment where we, by reduces the overall water usage and air pollution.
ourselves, would have “We want to thank the Authority again for being so
taken 10 years to generous in supporting us with the field renovation and in-
achieve,” Fred Hintz, stallation of a new batting cage,” Susan Paetz, Development
President of AKA said. Support for PVCP said. “The students and parents are very
“Because of our cli- excited about the improved field. We look forward to shar-
mate, night racing is a ing it with many youth organizations in the coming years.”
necessity in Phoenix.
For our members who were unable to afford generators for
lighting and struggled with flashlights to perform work on Quick Grants
their karts; this improvement, is by their account, ‘like a gift
from heaven.’” During fiscal year 2008, AZSTA awarded $31,613
in Quick Grants to 16 Maricopa County youth sport pro-
grams. The funding helped a variety of each program’s
needs including; a baseball pitching machine, uniforms,
field renovations, and various sporting equipment.

The one-fifth mile track now offers lighting for the safety of the participants.
one-

Paradise Valley Christian Preparatory

The Paradise Valley Christian Preparatory (PVCP) was
able to renovate their multi-use ball field and build perma- Players from the Fountain Hills Soccer club will benefit from AZSTA’s
nent batting cages for use by more than 1,300 youth with the quick grant program with new soccer equipment.
help of the grant.
The Quick Grant program accepts funding applica-
tions on a year-round basis for smaller projects and pro-
grams that request a maximum of $2,500. AZSTA sets
aside 5% of its annual Youth & Amateur Sports funding and
awards the grants on a first-come, first-serve basis.

The Chandler Youth
Baseball League
received $800 to
assist in the pur-
chase of a new
pitching machine
More than 1,300 youth will utilize the field and the batting cage year-round.
year-
7-
for the 7-8 year old
(Pinto) division.
PVCP stated the renovation of the ball field was nec-
essary to fulfill two environmental concerns to the community
at large; water conservation from the damaged soil and air
pollution from blowing dust, which drives respiratory


Sports and Recreation Mapping System

Setting a new precedent
for online mapping, a new Geo-
graphic Information System (GIS)
site geared towards kids and
adults alike launched in 2008,
thanks to the support of over
$60,000 in additional funding
from AZSTA. The interactive
website, www.spacestoplay.org,
identifies most of the public
sports and recreation facilities
throughout Maricopa County.
The Mesa Association of Sports for the Disabled (MASD) received
Users interested in finding the
$2,000 to assist in the purchase of equipment,
benefiting the Adaptive Kayaking program. nearest baseball field for exam-
ple, with just a few clicks, can
find an aerial map, which displays the facility while another
Grants are based on a completed Quick Grant pro-
gram funding application, which includes a project budget window showcases respective amenities and contact infor-
mation.
template, the stated need to serve youth and amateur sports,
the demonstration of financial need, and the benefit to the “This innovative use of modern technology makes
finding a space to play fun for people of all ages,” Shawna
local community.
Bradlich, Executive Director of the Maricopa Council on
Youth Sports and Physical Activity (MCYSPA) said. “Equally
important, this web-site helps promote services offered by
our local parks and recreation and other community provid-
ers.”
Over 300 kids a
The original launch of the GIS in 2005 was tailored
year from Tempe’s
YMCA youth sports to the needs of researchers, grant-makers and policy-
program will
makers. The data was presented with census information,
benefit
which provided an objective view of our physical activity out-
from AZSTA’s
lets as they relate to demographics. With advancements in
quick grant
program. mapping technology and the desire to make this information
suitable for everyone, a new version of the GIS was created.
In 2003, AZSTA as owner, placed the sport facility
mapping project in the hands of MCYSPA to manage the
project. “AZSTA strives to improve the recreational opportu-
nities for Maricopa County residents by providing great ac-
cess to opportunities for youth and amateur sports, particu-
larly in underserved areas,” Ted Ferris, former AZSTA Presi-
dent and CEO said. “Identifying community gaps in facilities
helps direct available resources to maximize community
benefit.
An advisory committee was formed in 2003 to as-
sist AZSTA in making recommendations on grants to support
youth and amateur sports. Since then, the group has
evolved to become what is known today as MCYSPA, a com-
pletely separate entity. The relationship with AZSTA is now
that of partner and grantee, with a mission to address child-
hood obesity, physical inactivity, and poor nutrition.
MCYSPA, in turn, has partnered with a variety of non-profit
agencies, educational institutions, foundations, and health
care organizations to assist in this mission.
With the assistance of AZSTA’s quick grant program, The Westside
Multigenerational Center updated exercise equipment for public use. “MCYSPA is viewed nationally as a best-practice
model of community coalition building,” Bradlich said. “”It is
hoped that every project of MYCSPA can be replicated and


expanded to serve other communities. With obesity preven-
tion as a goal of MCYSPA, it is important to first identify envi-
ronmental factors. The GIS is a great tool to streamline exist-
ing resources and identify the populations served.”

New Additions to AZSTA Staff
Jennifer Copeland joined AZSTA as
the Communications Coordinator
on August 1, 2007. Copeland re-
ceived her bachelors in Communi-
cations and Public Relations from
Washington State University. She
served as an Account Executive
with the Phoenix Suns during 2006-
2007. Based on her years of public
and community relations experi-
ence, she was very excited to be-
come part of such a unique organi-
zation and has enjoyed working for
AZSTA for over a year now.
Approved by:

Tom Sadler joined AZSTA as the
President/CEO during June 2008
after heading up Global Entertain-
ment Inc.’s (Phoenix, AZ) Manage-
ment and Marketing Divisions as
Tom Sadler
President for nearly three
AZSTA President/CEO
years. Prior to that Tom worked in
intercollegiate athletics administra-
tion for 23 years, starting at Ari-
zona State University, where he
finished his tenure as Assistant Prepared by:
Athletic Director for Stadium Man-
agement. After his 20 years at Jennifer Copeland
ASU, Tom became the Associate AZSTA Communications Coordinator
Athletic Director for Administration
at the University of Hawaii, where he worked for two and a
half years. Tom holds a Bachelors in Psychology from Aqui-
nas College in Grand Rapids Michigan and a Masters in Pub- Note: This monthly report is required by Arizona Revised Statutes
lic Administration from ASU. Section 5-814. A. which states that…. “Within three weeks after the
end of each calendar month the authority shall prepare a report
signed by the executive director of the authority and transmit the
report to the governor, the legislature, as provided by section 41-
1178, and the joint legislative budget committee. The report shall
include a progress report of the activities of the authority during
the previous month.”
***All AZSTA monthly reports are available at www.az-sta.com


AZSTA Arizona SportsandT ourismAuthority
Fiscal Year 2008 Financial Information S tatutory Flowof Funds
Fiscal year 2008 presented a number of eco-
nomic challenges for the Authority as well as the State of
Arizona and the nation as a whole. We began the year
Sources of Funds
with the expectation that our core revenues, the tourism
revenues, would continue to demonstrate growth as they
TourismR ue C
even learing A ntccou FacilityR evenu C
e learing Account (a)
had during the prior four fiscal years. However, our tour-
1. 1%H BedT
otel ax 1. N Incom T - Pledged
FL e ax
ism revenues finished the fiscal year a combined
2. 3.25%C R
ar ental Surcharge 2. Sales T R
ax ecapture
$1.14M, 4.5%, below our forecast. 3. Facility E R
vent evenues (A 2006)
ug
The bright spot in our fiscal year 2008 revenues
were the sales tax recapture revenues which finished
U of Funds
ses
$739.9k, 13.2%, ahead of our forecast.
The following chart outlines the actual vs. budg- 1st P riority=Senior B D Service(b)
ond ebt
eted performance of our primary revenue categories 1. $224.53 m in principal plus interest
illion
(final m aturity in2031)
(HBT = Hotel Bed Tax; CRS = Car Rental Surcharge; NFL
2. $53.05 m S illion eries 2005Abonds (final
= NFL income tax; STR = Sales Tax Recapture; FUF/FB =
m aturity in2036)
Facility Use Fees/Food & Beverage commissions):

The Authority did meet all of its statutory obligations dur- 2nd Priority=TourismFund
ing fiscal year 2008. 1. T of $265.8 m over 30years for
otal illion
M aricopaC ounty tourismmarketingand
prom (throughM 2031)
otion ay
FYTD June 2008 Revenues
($ M )
$20.0

$15.0
3rd Priority=C actus Leagu G e eneral Fun d
$10.0
1. T of $205m over 30years
otal illion
2. First priority is $32.0m subordinate
illion
$5.0 bond debt service(final m aturity in2016)
3. Secondpriority is the $3.2 m bond illion
$- reserve fund(est. to be fundedby June
HBT CRS NFL STR FUF/FB Other 2008)
4. T priority is fundingrenovationpro-
hird
$15.09 8.99 4.12 6.35 0.97 1.22
A ctual jects for cities of Scottsdale andT pe em
on50:50 basis fromavailable funds
$15.70 9.52 4.12 5.61 1.49 1.69
B udget

4th Priority= Y outh &A ateur S
m ports
1. T of $73.5 m over 30years based
otal illion
on$1.0m inyear one grow at
illion ing
$100k per year thereafter
Statutory Flow of Funds
The next column contains a diagram that details
5th Priority= AZ TAO
S peratingB get
ud
the Authority’s related sources of funds and their priority
in the distribution of these funds based on our statutory
responsibilities.
eserves - T A
he uthority is requiredto fund
R
three reserves: Y &A ateur Sports, O
outh m p-
FY2008 Audited Financial Statements eratingandC apital Repair andR eplacem ent
($25M in2001value)
M
Pages 15-17 contain the Authority’s audited
financial statements for the fiscal year ended June 30, Fo otes
otn
(a) T Facility R Ais usedfor debt serv requirem on senior and subordinate bonds. A rem
he C ice ents ny ainingfunds go to theoperations account.
2008. (b) A sources of rev
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ice e


Arizona Sports and Tourism Authority
Statements of Net Assets - Consolidated

June 30
2008 2007
Assets
Current assets:
Cash and cash equivalents - restricted $ 28,811,945 $ 29,138,559
Accounts Receivable 846,224 1,708,254
Hotel bed tax and car rental surcharge receivables 3,334,924 3,377,514
Sales tax recapture receivables 1,571,980 1,382,518
Other assets 36,035 35,523
Total current assets 34,601,108 35,642,368
Noncurrent assets:
Capital assets non-depreciable 2,773,165 2,773,165
Capital assets depreciable, net 454,870,558 470,187,599
Deferred bond issue costs, net 8,855,828 10,163,454
Investment in stadium operations 0 -
Total noncurrent assets 466,499,551 483,124,219
Total assets $ 501,100,658 $ 518,766,586
Liabilities
Current liabilities:
Accounts payable $ 1,511,631 $ 2,031,087
Accrued expenses 1,663,350 2,801,663
Due to/from Global Spectrum - -
Current portion of payable to City of Avondale 370,071 338,671
YAS grant award payable 2,012,106 688,695
Bond principal payable 1,135,000 1,000,000
Bond interest payable 6,161,082 6,186,966
Deferred revenue, current 691,700 672,822
Current portion of capital lease obligation 5,251 4,997
Total current liabilities 13,550,191 13,724,902
Noncurrent liabilities:
Payable to City of Avondale 1,394,830 1,764,901
Payable to City of Tempe 13,077,586 12,782,610
Payable to City of Scottsdale 18,205,418 18,955,570
Payable to City of Goodyear 37,375,000 37,375,000
Payable to City of Glendale 60,000,000 53,800,000
Deferred revenue, noncurrent 590,277 1,000,000
Payable to Arizona Cardinals 6,879,873 6,551,406
Long-term portion of capital lease obligation - 5,251
Bonds payable 311,913,969 313,398,235
Total noncurrent liabilities 449,436,953 445,632,973
Total liabilities 462,987,144 459,357,875
Net assets
Invested in capital assets, net of related debt 63,106 88,701
Restricted (1,500,109) 954,857
Unrestricted surplus/(deficit) 39,550,517 58,365,154
Total net assets 38,113,514 59,408,712
Total liabilities and net assets $ 501,100,658 $ 518,766,586


Statements of Revenues, Expenses and Changes in Net Assets - Consolidated

Year Ended June 30
2008 2007
Operating revenues
Stadium operating revenues $ 13,595,643 $ 19,282,865
Total operating revenues 13,595,643 19,282,865
Operating expenses
Stadium Management Operations 22,671,004 27,835,683
Legal 255,057 208,676
Consulting 15,548 188,852
Payroll 610,638 585,487
Professional fees 40,500 196,250
Marketing and promotion 19,262 72,102
Bank management and service fees 72,536 62,247
Insurance 98,682 89,841
Travel 10,718 14,887
Meetings 1,456 3,117
Office 20,995 20,044
Communications 13,055 14,018
Depreciation 15,567,041 15,485,151
Bad debt expense 485,028 -
Amortization of deferred bond issue costs 1,830,075 192,500
Remarketing and liquidity fees 313,933 140,809
Total operating expenses 42,025,527 45,109,666
Operating loss (28,429,884) (25,826,801)
Nonoperating revenues (expenses)
Arizona tourism distribution (5,405,054) (5,147,670)
Cactus League facility expense (6,200,000) (91,175,000)
Youth and Amateur Sports Grant Awards (2,063,915) (40,572)
Hotel bed tax 15,042,646 15,244,876
Rental car tax 10,324,270 10,245,857
NFL Income tax 4,121,340 5,148,528
Sales tax recapture 6,447,123 6,521,224
Glendale marketing funds - 300,000
Interest income 964,871 1,022,274
Interest expense (15,875,626) (15,898,231)
Swap receipt income 81,670 171,828
Swap payment expense (302,639) (25,535)
Other expense - -
Total nonoperating revenues (expenses) 7,134,687 (73,632,422)
Net income before contributions (21,295,197) (99,459,223)
Capital contributions - 1,587,181
Increase/(Decrease) in net assets (21,295,197) (97,872,042)
Net assets, beginning of year, as previously reported 59,408,712 157,280,754
Prior period adjustment (Note 2) - -
Net assets, end of year $ 38,113,514 $ 59,408,712


Statements of Cash Flows - Consolidated

Year Ended June 30
2008 2007
Cash flows from operating activities
Cash received from operations $ 13,149,464 $ 19,282,865
Payments to suppliers (25,239,560) (31,863,426)
Payments to employees (610,638) (585,487)
Net cash used in operating activities (12,700,734) (13,166,048)

Cash flows from noncapital financing activities
Payments for Arizona Office of Tourism (5,405,054) (5,147,670)
Payments for Youth and Amateur Sports - City of Avondale (338,671) (307,870)
Payments for Youth and Amateur Sports (740,504) (2,049,849)
Receipts from hotel bed tax 15,090,745 15,215,901
Receipts from rental car tax 10,318,761 10,374,228
Receipts from NFL Income tax 4,121,340 5,148,528
Receipts from sales tax recapture 6,257,662 7,808,954
Payment for Cactus League (455,176) 61,013
Glendale marketing funds - 300,000
Interest payments (15,573,043) (15,713,602)
Net cash provided by noncapital financing activities 13,276,060 15,689,633

Cash flows from capital and related financing activities
Capital contributions 91,786 40,950,527
Payments for senior and subordinate bond principal (1,000,000) (830,000)
Payments on capital leases (4,997) (7,498)
Proceeds from senior bonds - -
Proceeds from advance refunding 53,050,000 90,000,000
Defeased senior bonds (53,050,000) (87,420,000)
Swap receipt income 81,670 171,828
Swap payment expense (302,639) (25,535)
Acquisition and construction of capital assets (640,845) (50,255,113)
Net cash used in capital and related financing activities (1,775,025) (7,415,791)
Cash flows from investing activities
Interest received 873,085 1,022,274
Net cash provided by investing activities 873,085 1,022,274
Net increase (decrease) in cash and cash equivalents (326,614) (3,869,932)
Cash and cash equivalents at beginning of year 29,138,559 33,008,491
Cash and cash equivalents at end of year $ 28,811,945 $ 29,138,559

Reconciliation of operating loss to net cash used in operating activities
Operating loss $ (28,429,884) $ (25,826,801)
Adjustments to reconcile operating loss to net cash used in operating
activities:
Depreciation 15,567,041 15,485,151
Amortization of deferred bond issue costs 1,307,627 (4,628,461)
Amortization of bond premium (349,266) 2,111,386
Effects of changes in assets and liabilities:
Accounts receivable 862,030 -
Other assets (512) 238,416
Accounts payable (519,456) (140,694)
Accrued expenses (1,138,313) (405,044)
Net cash used in operating activities $ (12,700,734) $ (13,166,048)

AZSTA 2008 Fiscal Year Annual Report

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AZSTA 2008 Fiscal Year Annual Report