supervisors consider admission fee for professional sporting events

A vote on whether to implement a 10 percent admission tax on professional sporting events was delayed this week by the county Finance Committee after a discussion over whether the tax is necessary.

As part of the county’s lease agreement with DC Soccer Management Company at Segra Field, the county agreed to “cooperatively pursue” an entrance fee. The revenue would help offset the annual base rent owed by the tenant until the debt is repaid. After that, the tax would be returned to the county’s general fund.

The average price of a ticket to a Loudoun United FC soccer team game is $25. With the 10% tax, an estimated $60,000 to $150,000 per year will be earned on the debt over 30 years.

Management and budget analyst Thomas Prior said while the tax should be applied to all professional sporting events, the main venue would be the Segra ground. Other potential locations affected by the tax could be the Ion International Training Center, RavenTek Park, the US Tennis Association Mid-Atlantic, Morven Park and the Trump National Golf Club in Washington, DC. It would not apply to high school sporting events, concerts or museums.

“Continuing the head tax is a way for the county to provide revenue that will be used to pay the debt service the team owes to the county. So it’s not a payment to the team, it’s compensation,” said Deputy County Administrator Erin McLellan.

Supervisors questioned whether it was part of the deal to implement the head tax or just continue it.

“Are you saying we are obligated to create this tax to offset their debt? asked Vice Chair Juli E. Briskman (D-Algonkian).

McLellan said the contract language is “pursue,” but the board is not mandated to adopt the tax.

“In pursuing legislative change, I think we also essentially implied that if we pursued legislative change, we would also bring it to the board for review. You have nothing to do. The contract cannot force change,” she said.

Committee Chairman Matthew F. Letourneau (R-Dulles) said he worked on the deal years ago with Economic Development Director Buddy Rizer.

“My clear recollection is that we said that was part of the deal and that the board would adopt a head tax and that was then built into their financial model,” he said. declared.

Rizer agreed, saying “that was always part of the plan.”

County Administrator Tim Hemstreet said he did not ask the football team to attend the meeting to answer questions because he did not expect the supervisors to have any concerns about a contract they had previously agreed to.

Supervisor Kristen C. Umstattd (D-Leesburg) said she wanted to hear from the team and other organizations that would be affected by the tax.

Briskman asked if, instead of imposing a tax, the board could offset the debt with money from the unallocated balance of the fiscal year, adding that she was concerned about burdening ticket buyers with a higher cost.

Hemstreet said the county should not pay the organization’s debt.

Supervisor Koran T. Saines (D-Sterling) said he was concerned that increasing ticket prices with a tax would lead to lower game attendance.

“There is no stipulation (in the contract) that says in 2024 we have to do this. So we could, in theory, wait another year or two if possible? He asked.

McLellan said the board could, but the agreement also said it would be pursued when possible.

County Chair Phyllis J. Randall (Democrat-At-Large) questioned why the tax should apply to all sporting events rather than just Loudoun United games.

Deputy Director for Management and Budget Nikki Speight said the received view from the Attorney General was that any tax should be applied uniformly.

A motion by Letourneau to move the item to a future meeting to get more information from Loudoun United passed unanimously.