Falcons can have new building — as long as they pay for it
The Georgia Dome is only 20 years old and just fine as a sports venue. (AJC photo)
This is the way it used to work in sports: Build a stadium for a sports team. Decades later, when it grew old and weathered and shingles began to fall from the roof and maybe the rats began to build condominiums, there would be discussion about tearing it down and starting over.
This is the way it works now in sports: Build a stadium for a sports team. A decade or two later (maybe), when the building ceases in its perceived ability to generate enough revenue for the sports owner, then it’s time to build a new one to make him happy.
There is an increasing likelihood that the Georgia Dome, which opened 20 years ago, is going to be torn down, giving way to a retractable roof stadium. The cost of the new palace: $947 million. This assumes it doesn’t go up (which it will) or Groupon doesn’t run a special on stadium seats and drink holders.
Falcons owner Arthur Blank has long ago expressed his desire for a new stadium, and as a general rule when self-made billionaires express an interest in something, they get it. Give the man credit for this: He’s probably going to pull this off without once alienating the public by threatening to move his team to Los Angeles, Toronto or London, or just selling it to Winnipeg. That’s not an easy feat.
As Blank has said to me on a few occasions about the stadium issue, “It’s kind of like making sausage.” In other words, it’s best to just enjoy the finished product rather than focus on the ugly details of how it came to be.
But there’s something wrong with this. There’s something wrong when a perfectly good building is scheduled to be detonated. There’s something wrong when even one taxpayer dollar – let alone $300 million – is used toward somebody’s football stadium. Do we have other economic issues, or is that all just a political smear campaign?
Blank, like any owner, wants to generate more revenue. (AP photo)
Don’t get me wrong. I have nothing against the Falcons having a new stadium. I certainly have nothing against Blank, who has been as strong and beloved of a sports owner as this city ever has had. It’s difficult not to like Blank as a person, a businessman and a sports fan. He is passionate and generous. He is neither a corporate logo nor a buffoon, two things we see far too much of in sports ownership.
It’s also easy to understand Blank’s position on this: He can’t generate enough revenue in the Georgia Dome – enough being relative to the giant ATM-like stadiums that exist in Dallas, Washington and New York. The Georgia Dome doesn’t have enough suites, enough signage, enough martini bars. It’s the reason the Falcons’ overall value pales in comparison to that of other NFL franchises.
But the Georgia Dome is just fine for spectators. It’s just fine for teams. It’s just fine for a Final Four or a monster truck race or a trade show. Nobody is affected by the fact that it doesn’t make a sufficient “cha-ching” sound for the Falcons other than the Falcons’ owner.
New buildings are nice. But the Falcons are a private business, not a post office or a branch of government. I just happen to believe that business owners should pay for the building that houses their business. I know – such a quaint and novel thought.
It’s true that Blank and the Georgia World Congress Center Authority are going to be partners in this venture. But the fact remains that the GWCC would not be seeking a new building if the Falcons didn’t want one. It shouldn’t matter that the $300 million contribution for the proposed new stadium is coming from a hotel-motel sales tax and therefore not directly coming out of the pockets of most Atlanta residents. I’m just as angry any time I travel to another city and have to pay a tax for a stadium or arena there for the same reason.
Too many stadiums are being built today because cities are held hostage by sports franchises — and I say this somebody who grew up as a sports fan and makes their living covering the teams.
A new stadium would look lovely, yes. But the Georgia Dome isn’t a scar on downtown. Other areas of downtown are the scars. What’s being done about that? Would $300 million help?
The building isn’t crumbling. Our priorities are.
By Jeff Schultz
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460 comments Add your comment
All In With Mr. Blank
April 26th, 2012
6:48 am
Jeff, as usual you’re making great points. But missing the critical one. It’s no longer the 1960s and we’re no longer dealing with the Smith family. Like it or not, the game (and the economics) have changed. You don’t win championships by being conservative as a team or conservative financially. We’ve got the right owner who has figured out how to put a championship management and coaching team around him. Help him get his stadium. You want to to backwards and do the safe thing? Not me. There is no treading water. You’re either moving forward or losing ground. I remember a great comment made a few years ago by Arthur Blank, “There is no finish line.”
Shep
April 26th, 2012
6:49 am
I agree not one red cent of my money to this stupid and needless football stadium. If the falcons don’t like it, they can just leave atlanta and we will never miss them. you can stay at home and watch the game on your big screen tv. this is typical, just typical, of the messed up priorities of this country, state and city in these times.
Scott Brantley
April 26th, 2012
6:49 am
And what happens when, after another 2 decades, the stadium isn’t up to par with other revenue-generating facilities?
Still Defiant and Unrepentant Male
April 26th, 2012
6:54 am
No tax dollars for a new football stadium, ever!! I will personally investigate every person involved in getting a new tax funded stadium and offer all my evidence to a Federal prosecutor in hopes the crooks all do hard time. I hope the rest of you will also investigate and that some of you will turn State’s evidence against the crooks.
Jimmy Crack
April 26th, 2012
7:01 am
Taxes, taxes, taxes, taxes, taxes, and don’t forget a crazy spike in ticket prices. That means once again our stadium will be half-filled with opposing fans because unbeknownst to the upper 10% of society, the rest of us won’t spend that kind of money.
Ronald
April 26th, 2012
7:08 am
Bunch of whiners in here! Waaaaaaaaaaaa
Ronald
April 26th, 2012
7:10 am
The GA Dome is a DUMP. Nothing attractive about it whatsoever. Time to pull your skirts up and chip in!
jay
April 26th, 2012
7:15 am
Completely disagree with this. This is the kind of backwards thinking that keeps cities in the South from doing anything or getting anywhere. Let’s not fund anything. Nothing for MARTA, nothing for roadways, nothing for schools, nothing for the Falcons. What a joke. Up North, we value good schools, public transit and good sports teams. Here, you let the roads rot, you let MARTA rot, you let sports teams leave. What an atrocity. No taxes for anything!! Let’s not improve anything! Let’s keep every penny in our wallets and let the entire region rot away. Wish I could move back north but I’m stuck here, with a transit system, schools, roads, sports teams rotting away day by day by day.
Ronald
April 26th, 2012
7:17 am
^Give that man a gold star and give the rest of you people a pacifier!
herbert
April 26th, 2012
7:17 am
Get Real : Your point is sound. Why should we pay for his view and more money for his pocket. If he wants this fund it yourself. I have no problem with the tax on hotels and motels to pay for this. but dont go into my pocket to help his pocket.
Snake Doc
April 26th, 2012
7:35 am
Larry – How’s socialism working out for you? Getting scared because people are sick and tired of paying for your miserable existence and you might actually have to get a job, support your self? Afraid your not gonna be able so suckle off the government teet in the future? Maybe nows the time you took some responsibility for the noggin full of mush you seem to be cursed with.
Your a left wing socialist whack job
Trojan
April 26th, 2012
7:54 am
Not one tax payer dollar should be spent to help millionaires make more money. Let them invest their own money.
Call It Like It Is
April 26th, 2012
7:57 am
Pure silly. Nothing wrong with the dome. Arthur just wants more money. Let him pay for it. And those that support him, well just whip our that check book and send him some money or you can just wait till he has a 50% increase in the price of a ticket. Just leave the rest of us out of it.
SalGRichardC
April 26th, 2012
8:02 am
Jeff,
Thank you for those words, esp. the last line. One would expect more common sense from Mr. Blank. Hopefully, his people are paying attention to us fans’ disbelief.
Annie G
April 26th, 2012
8:04 am
How about instead of giving his money away to charities around the world, he gives it to Atlanta, his home, and the city that allowed him and Marcus to thrive. Atlanta is a mess so I think it technically qualifies as a charity. HIs fortune could easily build the new steadium, debt free, the city will thirve, the Falcons will thrive, and everyone will live happily ever after. Oh wait, that makes too much sense to work.
Greg M
April 26th, 2012
8:08 am
Let’s be like Green Bay and have the fans be owners of the new Dome and Falcons.
dtanner
April 26th, 2012
8:10 am
arthur blank is worth 1.5 billion YES BILLION!,let him build his own damn stadium with HIS own damn money not mine!
Larry
April 26th, 2012
8:10 am
My word! I’ve never been accused of being both a right and a left wing extremist on the same blog!
Snake Doc,
I’m not sure to whom which “Larry” you refer. But just for the record, I am more a proud “centrist” with proud conservative values and economic beliefs who falls just “right” of center…not extreme right.
I believe our current president just could be the worst and most incompetent in presidential history, I believe the one that preceded him was too dumb to be a president, the one before him an embarrassment to our nation, and the one before him a nice guy but truly only a VP kind of talent and ability.
This leaves Ronald Reagan, the greatest president by a mile of my generation and we truly missed having him around after his presidency but his Alzheimer’s prevented this. And oh by the way, I make mistakes too…I voted for Carter! :-0
Jeff, I promise, no more polotics for me here but I had to clear up some bizarre acusations.
“There is no worse lie than a truth misunderstood by those who hear it. ”
TA
April 26th, 2012
8:11 am
If he wants more money made at the dome, renovate it and build more suites.
Dawgwild
April 26th, 2012
8:12 am
No more free pizza for you at the Dome!
Andrew B Smith
April 26th, 2012
8:16 am
Lets take a step back for a second. The good news here is that all parties have been in working discussions to pursue options that are beneficial to all involved.
If the Falcons build their own stadium, that will be a loss for GWCC because it will pull business away from the dome (Falcons, bowl games, concerts, etc.). The new stadium would be a competitor to the dome. It also makes it harder to make a new stadium affordable. A jointly owned stadium allows increased revenue for Falcons while maintaining the revenue stream for GWCC. If a new stadium is built, this is the best option! The challenge is to structure the deal to creat a win-win situation.
Wutehvah
April 26th, 2012
8:19 am
Move to the North side and outta downtown
Payton34
April 26th, 2012
8:23 am
If money collected from taxes is used to partially fun the building of the stadium, the question is how are revenues from events distributed. For example – any Superbowl or Chik-fil-A games. The city/state should be able to determine what would be needed to offset the initial costs – which would be an investment. The stadium should not belong to Arthur Blank/Falcons unless they pay the entire costs of building the stadium. It is important to keep in mind that infrastructure costs will also be incurred beyond the building of the stadium.
Larry
April 26th, 2012
8:26 am
jay and Ronald,
The two of you are utter, unabashed pinheads.
I’ve lived in both, and traveled to both hundreds of times as a Delta multi-million miler…you are dead wrong!
Our roads are infinitely better that Philly, DC, Boston or New York. I’ll give you Marta…but that’s it.
So you can have your abusive taxation (the irony of Boston rebelling against England and then becoming the most taxed city in America), the 100,000 toll booths, and city and state government that tell you what to do and how to do it. You can have your sidewalks filled with trash and soot. You can have your smog, your accepted vulgarity and promiscuity. You can have it all.
I’ll keep some of the most beautiful terrain, topography and weather on the east coast and my freedom to make decision for myself, not by politicians. We like nice things too (haven’t you noticed?) but prefer they be earned or paid for by those whom will benefit most versus passing the burden on even those whom can’t afford or possibly too handicapped to attend a sporting event.
And one question for you two tax loving, I can’t manage my money so I need the government to manage it for me, goobers: have you ever heard of someone retiring and moving up north?
Season tickets
April 26th, 2012
8:28 am
All this talk of a new stadium so Arthur Blank can make more money is ridiculous. If he can’t make money on the exhorbitant amount I pay for club level tickets, the $9 beers, and overpriced food (all terrible by the way), then the problem is 100% on him. Why would I fund a new stadium that will result in even higher prices back to me? Stupid.
Hey Dallas, We Can Build A Billion Dollar Stadium Too — Peach Pundit
April 26th, 2012
8:28 am
[...] Jeff Schultz has an excellent article saying a new stadium is fine, but the Falcons should pay for it. It’s also easy to understand Blank’s position on this: He can’t generate enough revenue in [...]
yawn
April 26th, 2012
8:29 am
The Falcons have not, and never will, receive one dollar of my money.
DaWG
April 26th, 2012
8:32 am
AMEN! If it ain’t broke, don’t fix it. This venue is good enough to sell out every year for the SECCG and many, many other events. I love the DOME!
stupup74
April 26th, 2012
8:36 am
Mr. Blank can have his stadium if he promises to buy the braves and build them a new downtown stadium and gets them a new TV contract.
(one can dream)
Unbelievable
April 26th, 2012
8:36 am
On one had the state is willing to back the building of a new stadium that will cost upwards of $1 billion by kicking in about 30% upfront and another 20% for hidden infrastruture improvements that is not being discussed. On the otherhand the same state is willing to deny its citizens health care coverage under the federal government. The priorities in this state are royally #$%^ed up
Silver Creek Dawg
April 26th, 2012
8:36 am
I’m fine with your premise that if the Falcons want a new stadium, let them pay for it.
But think about this scenario. The Falcons build a $1 billion stadium in the northern suburbs with a retractable roof and the necessary amenities around it. The Dome stays as it is downtown. When the SEC title game contract ends, the Falcons, seeking additional revenue streams, bid on it separate from the Dome and win it. The Falcons also bid on a Final Four and get it too. Supercross and multiple concerts also flock to the new facility.
In this case, the city now loses out on hundreds of millions in revenue they could have had and they now have a huge facility nobody wants to rent. Is that a risk the GWCC Authority is willing to take? I wouldn’t bet on it.
daveeo
April 26th, 2012
8:38 am
I just returned from a trip to Indianapolis – home of the Colts and Lucas Oil Stadium, of course – where I rented a car at the airport. Total taxes on the rental? 40.45%!! That’s what Atlanta, and its visitors, will get with a new stadium.
Go to each of the cities with a newer stadium and check out the hotel and car rental tax rates… and Lucas doesn’t even have a retractable roof. The bad press from PAYING visitors will pair poorly with comments about downtown panhandlers.
MARTA Rida
April 26th, 2012
8:42 am
The era of suburban stadiums are over. The infrastructure exist downtown, restaurants, bars, and hotels are all downtown. There is no way that building a new stadium outside of downtown will work. The Dome is great, a perfect 70 degrees all year-long, MARTA station, and adjacent to the CNN Center. I agree, left Blank build the new stadium. The Dome is perfectly suited for the SEC Football Championship, Chick-fil-a Bowl, Final Fours, SEC Basketball Tourney, and GSU games.
Child Please
April 26th, 2012
8:44 am
Here is what needs to happen: Arthur Blank wants an open air stadium so the Falcons need to go play at Turner Field for the next few years until it’s time for that stadium to be torn down. Give the lifespan of stadiums these days the Braves will be demanding a new one in about 7 yrs.
Turner Field is located in the worst part of downtown Atl., as it is outside the major hub. MARTA will never build a transit station over there and you will never have hotels and restaurants to sprout up around Turner Field. Plus TF sits unused anytime the Braves are not playing.
When TF has outlived it’s usefulness then the Braves and Falcons should play in a retractable roof stadium in the current site they are planning near the current Georgia Dome. Both teams will have a new stadium, the one venue will be on the MARTA transit line, and you have hotels, restaurants, and other entertainment venues (Aquarium, World of Coke, Centennial Park, etc.) in close proximity.
And taxpayers won’t get screwed again when the Braves come whining about needing a new stadium in 7 years (or less).
daveeo
April 26th, 2012
8:45 am
Oops! Sorry, Lucas does have a retractable roof – poor research. I guess the 40.45% tax rate will have to do.
ugat99
April 26th, 2012
8:46 am
Please build an open air stadium!!! Why does a sun-belt city need a freakin domed stadium?? It’s ridiculous!! I remember 20 some odd years ago when they said they were going to build a domed stadium here, I said NOOOOOOOOOOOOOOO, pleade don”t!!! Geeeeeez, I had season tickets for years at UGA, and I can count the times on one hand that I had to worry about rain!! We are blessed with great weather here in the South usually during the Fall months. I absolutely hate domed stadiums!! These games were meant to be played outdoors!!
Larry
April 26th, 2012
8:50 am
Child Please,
Unlike Atlanta Fulton County Stadium, Like most dedicated baseball configurations, Turner Field is built in a v shape thus unsuitable and likely non modifiable for football.
And a big NO for baseball in a dome, retractable roof or not. Arizona where it can reach 120 degrees in the summer, maybe. Atlanta…definitely not.
Rothschild
April 26th, 2012
8:51 am
You are 100 percent right, Schultz. Thanks for writing this.
Aquagirl
April 26th, 2012
8:53 am
The Falcons build a $1 billion stadium in the northern suburbs with a retractable roof and the necessary amenities around it.
Two words: Coolray Field.
If the Falcons can find a county as dumb as Gwinnett, they should go for it and fleece those suckers.
BW
April 26th, 2012
8:55 am
Daveeo
There is no way that entire 40% is due to the stadium in Indy…I’m calling bull on that.
Rodster
April 26th, 2012
8:56 am
I agree with ‘Get Real’. Put a pay back deadline on it and make it something uniquely special, not just another domed stadium.
megamicro
April 26th, 2012
8:59 am
sorry, whitey ain’t riding with his family on MARTA.
nmonroe
April 26th, 2012
9:00 am
Jeff, perfect. If Arthur Blank wants a stadium, let him pay for it. No one benefits from this but Arthur Blank. The value of his asset – the Falcons – goes up, and the city is left holding the bag with a depreciating stadium.
The $300 million in taxes themselve damage tourism and more than offset any benefit to the public.
Here’s what went on with the Dallas stadium; it’s a scary prospect that Atlanta does not need:
Originally estimated to cost $650 million, the stadium’s current construction cost was $1.15 billion,[15] making it one of the most expensive sports venues ever built. To aid Cowboys owner and general manager Jerry Jones in paying the construction costs of the new stadium, Arlington voters approved the increase of the city’s sales tax by 0.5 percent, the hotel occupancy tax by 2 percent, and car rental tax by 5 percent. The City of Arlington provided over $325 million (including interest) in bonds as funding,[15][16] and Jones covered any cost overruns. Also, the NFL provided the Cowboys with an additional $150 million loan, as per their policy for facilitating financing for the construction of new stadiums.[17]
Season tickets
April 26th, 2012
9:00 am
If Blank can’t make money off the ridiculous amount I pay for season tickets and overpriced concessions then he shouldn’t be trusted with taxpayer money. Why not focus on building an exciting team that can win in the playoffs first and launch the stadium plans after everyone’s woozy from the success? I couldn’t give my tickets away the last couple of years so Blank better give some hard thought to the addition of PSLs. Bottom line: Falcons are a boring product playing in a boring dome that serves bad overpriced food. A really rough sell.
BW
April 26th, 2012
9:01 am
megamicro
Thanks for just putting it out there…I’m tired of PC…we all now that certain people will simply live in fear their entire lives
Whitey
April 26th, 2012
9:02 am
DON’T RIDE MARTA BECAUSE BLACK THUGS WILL STEAL YOUR IPHONES!
Money Sense
April 26th, 2012
9:04 am
“I’m just as angry any time I travel to another city and have to pay a tax for a stadium or arena there for the same reason.”
But Jeff, you don’t pay that tax. Like all media, you get comped tickets, parking and meals during games and get reimbursed for all travel expenses. It’s regular fans who have to pay these outrageous prices for tickets, parking, beer, food, … which is why the media rarely if ever writes critical articles about these costs—they never pay them!!! Nice.
nmonroe
April 26th, 2012
9:08 am
To the guy who equates championships with a new stadium, just how is that working out in Dallas?
By the way, MetLife Stadium in NY was build with private funds – no public money involved. (Yes, it’s owned by 2 teams, not one.)
J. Layman
April 26th, 2012
9:11 am
You make valid points… but if the city isn’t careful it will lose the Falcons… almost happened last year. Of course it doesn’t really matter in the long run… just look at the 90’s…. 4 world series… 2 superbowls… and the Olympics.
FalconFreak
April 26th, 2012
9:13 am
Ok Mr. Shultz, time to give up the sports gig…..and run for office. Finally, someone who makes sense and who has some idea of fiscal responsibility. Maybe you should enter the mayoral race next time around. You’ve got my vote!