Q&A on Indy Eleven stadium debate

State lawmakers have a hearing tentatively scheduled for Monday on building an $82 million, 18,500-seat stadium for the Indy Eleven soccer team and other events.

Here's a primer on the issues:

How would it be funded?

A 10 percent tax on tickets and other taxes generated by the stadium would service the debt, about $5 million per year.

Who says the stadium would generate that kind of money?

The team plans to release an economic feasibility study soon. Economists often scoff at such studies as overly optimistic. But the team hopes that a feasibility study done by a local company — with a season of actual data — will help its credibility.

What if the stadium doesn't generate enough money to cover debt payments?

That's the issue. That's what's being negotiated.

The team has been using the slogan "If you don't go, you don't pay." That's true — if the stadium performs to expectations. But taxpayers apparently would be on the hook if it does not.

The team, however, says that owner Ersal Ozdemir intends to have "skin in the game." It's unclear how much.

Why doesn't Ozdemir just build the stadium himself?

Indy Eleven says it needs government-issued tax-free bonds — and their lower interest rates — to make the finances work.

President Barack Obama's recent budget proposal would eliminate such tax subsidies for stadiums. Although that budget is unlikely to pass, the issue of federal subsidies for stadiums is certainly on the radar.

How is the financing different from that for Lucas Oil Stadium and Bankers Life Fieldhouse?

The Capital Improvement Board pays for those buildings with taxes from a variety of purchases, including car rentals, hotel rooms and food and beverages. That's money that could be applied to other city expenses. Others would say that money drives tourism and conventions, and boosts Indy's image.

The CIB, which also operates the Indiana Convention Center, received $134 million from taxes in 2013.

The Indy Eleven says its stadium would not use tax money. But, again, that's assuming the stadium performs to expectations over many years. The stadium being proposed is far less expensive than Lucas Oil Stadium or Bankers Life Fieldhouse.

The renderings of the stadium look cool, but do we really need something like that?

Part of the team's pitch is that this is the next step in the evolution of Indianapolis as a sports city — a modern-looking stadium with a growth sport, soccer, as its anchor tenant. Skeptics would say soccer has been called a "growth sport" for 40 years.

The team did, however, turn heads in the soccer world by filling IUPUI's Carroll Stadium for every home game in its inaugural season. A team spokesman said that, like other professional sports teams, it budgets for complimentary tickets for "deserving community and philanthropic partners." The spokesman said that accounted for 6 to 8 percent of tickets. He said no single-game tickets were discounted.

There are other potential uses for the stadium. An NCAA official testified to the legislature last year that the stadium could be used for NCAA championships in sports such as football, soccer, lacrosse and field hockey. But he made no guarantees and remained neutral on the issue of building the stadium.

The NCAA's viewpoint hasn't changed, a spokesperson said Tuesday.

Indy Eleven also is promoting the idea of concerts at the facility, although another outdoor concert venue is planned for Downtown.

Where would the stadium be built?

The team has said only that it has a few Downtown locations in mind. A blog called The Game Beckons has excellent posts analyzing various possibilities.

What is the North American Soccer League, and how long will it be around?

The organization of pro soccer in the United States is fluid, to say the least.

The NASL is a second division professional league as sanctioned by U.S. Soccer. Major League Soccer is Division I, and United Soccer Leagues is Division III. The NASL is entering its fourth season.

Two of the NASL's 11 teams, Minneapolis and San Antonio, are in consideration for an expansion slot in MLS. MLS is moving into the market of one NASL team, Atlanta.

The NASL is adding two teams in 2016.

Indy Eleven President Peter Wilt said he's bullish about the future of the NASL because in his 28 years in pro soccer he has never seen as much demand for franchises across all leagues.

But it's unclear how soccer's politics will shake out. On Tuesday, USL announced that it would apply for Division II status. The NASL could eventually merge with another league. The dream, perhaps unrealistic, is Division I status. The league also could fold. But Wilt said strong franchises won't ever be left out.

"Historically, there has been a second division league in American soccer for generations and there will be going forward, regardless of NASL's path," he said.

Shouldn't Indy wait to build a stadium until it gains entry into the MLS?

MLS Commissioner Don Garber has said the league will cap expansion at 24 teams. The next expansion franchise will be No. 24. That's expected to be chosen this year.

When or if there's another round of expansion is unclear. Garber said he wanted 24 teams by 2020.

How does that affect the stadium proposal?

"Indy Eleven has shown the demand and the need is currently there for the capacity and amenities," Wilt said. "Second, Major League Soccer is not even an option without the stadium. This stadium would allow the Eleven to play in any league in the United States."

Call Star reporter Mark Alesia at (317) 444-6311. Follow him on Twitter: @markalesia. Read his bio page and other stories.