1. Qualcomm Stadium Project Devin Cardoza July 12, 2004 GBA 573

2. Project Details: ► Install hard-wired consoles into all of Qualcomm Stadium’s 70,561 seats.  Instant messaging  Online voting  Order from snack bar  Access stats from other games  View instant replays

3. Why? ► Qualcomm’s archaic design makes it harder to compete with newer, modern stadiums  Reduced revenues due to lower attendance  Can’t justify higher ticket prices  Due to lack of revenues, Chargers may move.  Good cost/benefit based on assumptions made

4. Scope: ► To install consoles in every seat in the stadium ► Installation must be completed by start of 2005 football season ► Start project after Superbowl (7 month period of performance)

5. 3 Phases: ► Find and purchase hardware ► Installation Phase ► Test & Training phase

6. Assumptions: ► 3% increase in attendance  61,521 average in 2003 ► 5% increase in ticket prices  $46.82 average in 2003 ► 5% increase in snack bar prices  $10 average per person

7. Assumptions (contd.): ► $500,000 for hardware ► 2 weeks to search for vendor and place purchase order ► 15 People over 90 days to install ► 1 Week to test ► 2 weeks to train 700 employees ► $25,000/year for ongoing tech. support ► Management involvement for 7 months

8. Forecasted Costs Cause of ExpenditureCost Purchase Hardware$500,000.00 Supplier Selection$2,200.00 Installation$216,000.00 Testing Phase$10,000.00 Training$58,000.00 Ongoing Technical Support$25,000.00 Management Support$98,700.00 Total Costs:$909,900.00

9. Forecasted Annual Benefits BenefitIncreased Revenue 3% Increase In Attendance$725,849.37 5% Increase in Ticket Price$1,152,165.29 5% Increase in Price of Snack Bar Items$270,692.00 Total Increased Revenue:$2,148,706.65

11. ROI:

12. Risks: ► Schedule slippage causes implementation to be incomplete by ’05 season ► Budget rises due to unforeseen events ► Estimates are exaggerated ► Fans don’t use the new equipment

13. Mitigation: ► Use Earned Value Management ► Progress Payments ► Make consoles user friendly, electronic instructions to guide throughout the process ► Stick to a communication plan with the project team

14. Measures of Success: ► Attendance increases by 3% ► Snack bar revenue increases by 5% ► Project finishes before 2005 season & within budget ► ROI of at least 240% after 3 year period

15. Final Analysis: ► Great return on investment ► Enhanced experience for the fans ► Will create a higher revenue stream ► Will help to keep team in town until new stadium can be built