Debt Review Committee says Real Salt Lake not financially viable

Real Salt Lake is not financially viable, the Salt Lake County Debt Review Committee ruled Friday.

Now Mayor Peter Corroon must decide if he will go against the committee's recommendation and still vote to give the team $30 million in hotel-tax revenue to help build a $110 million soccer stadium in Sandy.

"It's my decision, and I'll live with the consequences," Corroon said. He said he expects to make a decision within a week.

Team owner Dave Checketts said in a written statement that the committee's negative recommendation didn't surprise him.

"Throughout their review of our proposal, the committee has undervalued our experience in building and running professional franchises and entertainment venues," Checketts said.

According to the committee's recommendation to Corroon, the team's weaknesses far outweighed the strengths. One major weakness was that the committee believes Real won't be able to pay off its debts.

"That's the problem there — they end up with so much debt and so much debt service," said Larry Richardson, county treasurer and chairman of the

committee. "I said from the get-go, if it didn't cover the debt service, I couldn't vote for it."

Real Salt Lake leaders believe they can make more than enough money through ticket sales and concerts at the stadium to pay off the debt.

However, the committee didn't believe all of Real's "sunny" concert assumptions, said Doug Willmore, the county's chief administrative officer.

The committee was also concerned that the team's private investors would not commit funds if the team continues to lose money.

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