Skip to comments.NFL teams have upper hand in stadium negotiations
Posted on 07/30/2014 4:40:09 PM PDT by Kid Shelleen
The trend of professional sports team owners holding the upper hand over state and local politicians with new stadium construction demands is a long one, stretching across all sports in large, medium and small markets.
And the power comes from one handy threat almost all team owners pull out: We will simply move.
Its a story line seen from Baltimore to Minneapolis to Jacksonville.
(Excerpt) Read more at bills.buffalonews.com ...
I have been a HUGE pro football fan since the 50s. All of these cities should tell the NFL just where they can shove their stadiums.
NOTHING stirs the heart of a local politician like the computer simulated view of the playing field from his comp tix in the new stadium luxury box.
I thought the game was the thing.
For a billion dollar stadium project, the team gets the equivalent of a $4.16 million dollar subsidy for every single home game for thirty years.
Public funding of stadiums is STUPID
and they will fund a “study” that will show the city becomes an economic nirvana with a new stadium. Studies show what the funders want it to show, of course.
That LA ploy certainly worked for the Irsays in Indianapolis.
$725 million from the taxpayers AND they get the money from all the non-NFL events held in the stadium like concerts and conventions.
Absolutely ridiculous due to crony capitalist Democrat mayor Bart Peterson.
And surprisingly (!) the study itself is usually performed by some crony capitalist affiliate.
Yep and it probably cost a half million to a million for the study
AGREE. There is no GOOD reason for tax supported sports.
That’s why new stadiums are getting solar panels and wind turbines.
Soccer is socialist. Oops, never mind, wrong thread.
As long as the majority of football fans are apolitical selfish, overgrown children (think of a 40 year old wearing a jersey of a 25 year old while checking his fantasy football stats), this will continue. The NFL is swimming in cash, but they can’t pony up for their own the “necessities” of a modern stadium.
I am a Green Bay Packer shareholder, they can not move
I know plenty of those overgrown children. They are addicted it seems to the phony religion of sports and can’t seem to pare it down any. Sports first and anything else is second.
Here’s the deal with the crony capitalist government funded projects. It’s true whether you are talking about Lucas Oil Stadium, the Carmel Center for Performing Arts (Palladium) or public transit.
1. The capital costs of the brick and mortar is projected to be $X.
2. The actual costs of building same wind up being least $2-3X. And the promoter of the project knows this.
3. The revenue projected to be generated by the project is $X (so the project is supposed to fund itself).
4. The actual revenue projections are wildly inflated. For example, Carmel’s Palladium had a business plan to pay for itself with four sold out performances per week every week of the year. That has never happened, it’s never going to happen, and the promoters fully know this. The real revenue is some fraction of $X.
5. The business plan to sell it to the government NEVER takes into account operating costs to keep the lights on and the staff paid. It’s only bricks and mortar capital costs.
6. Once the public facility is built and commences operations, it’s suddenly “news” that the revenue isn’t paying for the project. The operators go to the public fiscal body and expect them to make good the inevitable shortfall. That has to come out of the current budget every year, or be the subject of an additional bond issuance. Either way, it is not backed by the revenue from the facility, but instead from general property tax or local income tax funds. Of course this leaves less money for real civic services like police, fire, roads and parks.
7. Once the fiscal body agrees to make good the shortfall, it is forever on the hook to continue the subsidy. And once that happens, any incentive for efficient operation as a business model is gone. Why look to contain costs when the local potentates have undertaken the policy of writing a blank check every year?
8. The private operator, event manager or sports team owner forever guzzles at the government money trough, until such time as they grow tired of same and seek a new playground. Then the process is repeated.
Houston and Cleveland did just that. They ended up shelling out four or five times what they would have spent to keep the original franchises in getting the NFL to return.
The latest here in Vikingland is that after extorting a billion dollars out of taxpayers to build a new palace for Zygi Wilf, the Audobon Society is angry because they are afraid birds will fly into the glass windows and kill themselves.
I’m assuming any bird that flies into downtown Minneapolis in December is really, really lost.
Or is a Vikings fan.
In recent years, suicide for us Vikings fans has been probably the easiest option. So you may have a point.
Why is the Los Angeles market still without a franchise?
Simple, it’s used as leverage for team owners to threaten a move or get the free stadium they want. Think about it, a free $700 million stadium is worth more than 1/32 of the franchise fee for a new team.
Perfect analysis, except the required stadium tab is now about a $ billion based on the new Minnesota facility.
The Indy deal at $700 mil was opened 6 yrs ago.
It's not just the stadium, it's all the loot that goes with it. It's a license to guzzle at the government money trough.
Keep in mind, the NFL salary cap is tied to each team's cut of the television contracts. The salary cap is always less than the TV cut. From the standpoint of "personnel costs," every NFL owner is well in the black just from TV revenue before they sell one ticket or licensed jersey. And that doesn't even count their cut from concessions, parking, and other goodies, like tax breaks. Sure, the teams have other expenses, but they aren't back breakers. You cannot lose money as an NFL owner. It's like owning an oil well that that never runs dry.
Why do you think that the average NFL team is worth $1.17 Billion?
Jerry Jones got a chunk from Arlington but financed the bulk himself, and the stadium will pay for itself through all the additional revenue brought in. But this is an exception and has a lot to do with the location, multiple uses, etc. most other stadiums are not a magnet for development and losing propositions.
The country continues to borrow and spend like it’s the early 80s
No control what so ever.
I was amazed that the TV rights package a while back was more than the whole league was worth
I believe NFL football is about the only tv programming left that has consistent blowout tv ratings and isn’t often DVR’d (to skip commercials).
NFL owners may be very flawed individuals, but they are certainly not stupid.
but with all the political correctness, pink shoes, over-sexual commercials for everything and crap - how long can we even stand to watch it on TV?
RE: I am a Green Bay Packer shareholder, they can not move
Totally agree. It is asinine to build a freakin' outdoor football only stadium that is used for 8 home games per season and two pre-season games.
Sure you've got the Sounders soccer team in Seattle when the Seahawks aren't in season. But big deal.
That don't pay the rent.
And if you have a sometimes great team, like the Seahawks are, for NOW, ticket prices are impossibly high.
But what about teams in "rebuilding seasons" like the Lions have been in for the past what, 30 years?
A great new stadium like Ford field hasn't EXACTLY paid off. Despite hosting a SB.
And it will never host another one.
RE: The Audobon Society is angry because they are afraid birds will fly into the glass windows and kill themselves.
No worries, the fumes from the dying carcasses of another Vikings failed season will soon tint the glass.
Wouldn’t San Antonio Undocumented Democrats be more representative? And receive approval more quickly by His Lordship?
I think we’ll be better this season. Turner gives us a high-quality OC, and Zimmer is not Leslie Frazier. He also can spell d-e-f-e-n-s-e, which we will need to beat your 8-7-1 Packers.
Close... big, old sport--
But... no cigar
And look how much was spent on Jerry World in Arlington, but it’s okay for him since OPM paid for most of it
Jerry Jones is the George Steinbrenner of football.
Sure the NFL has a salary cap, and MLB doesn't.
But I imagine ol' Jerry finding a way to just buy himself some more SB rings.
And he's got the "palace" to put asses in seats.
Courtesy of taxpayers, of course.
he ain’t gonna win any rings running it the way he is, he needs to stop being Coach in Chief
No kidding, I used to be a huge fan, but thanks to the grifter sports leagues, outrageous salaries, and liberal jock-sniffers covering it with their gay this and gay that, I can hardly watch, save for baseball on the radio and a bit of golf here and there (usually non-major tournaments I can pick up on non-ESPN outlets).
Ah, the old Continental league.
As a 70s kid and up until the mid 80s, I liked pro sports but lost interest.
Fast forward to 2004 or so, I still really didn’t care one way or the other. Thereabouts, the public TV network I was at started to try be a mini ESPN. That came about from a lot of the elite there did all the good paying gigs and if you weren’t a favorite, you don’t get invited.
Anyway, I became a Schedu-All expert and found how to look far off to the future planning and pending productions to schedule vacation, doctor appointments, and anything else to dodge having to waste a weekend making the joke money and little or no comp.time since things were scheduled to make sure there wasn’t any.
The big lie was we the unwashed and unfavorite might be able to get in the elitist world. Never happened for anyone. I said as much but was ridiculed for a while.
The other thing that I saw was that elite hired their pals from outside for very easy money even though there were directors on staff that could handle hs and little college ball.
You could goof on this bender I doubt Mark Davis going take Raiders to Texas he been doing this off and on first was Los Angeles now San Antonio
You can goof on him it kinda funny
The only reason they have the upper hand is because somebody is always willing to prostitute themselves. Plenty off businesses use the same method for deciding where to put factories and headquarters. There’s no reason to pay for a building you don’t have to.