Falcons can have new building — as long as they pay for it

The only thing wrong with this building is it doesn't make Arthur Blank enough money. (AJC photo)

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)

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

460 comments Add your comment

gretschdrum

April 26th, 2012
9:16 am

Jeff, HOW DID YOU KNOW? IT IS the same Kasim Reed who said “Atlanta would survive without the NHL”. This idiot is either in the pocket of the ASG, NHL or feels like his constituency doesn’t ‘relate’ to the sport…ya get it? Ya get it? :) Probably all three, right? Regardless, his two faced approached to the NFL should be prime fodder for an astute opponent come election time.

Chuck Clausen

April 26th, 2012
9:16 am

As a Falcon fan, I’d like to know how the stadiums of the other 31 NFL teams have been paid for. Would forcing ownership to pay for something which the Falcon’s competition does not pay for put the Falcons at a competitive disadvantage.

gdawginkalamazoo

April 26th, 2012
9:17 am

How about building a winning team? It is not the buildings fault that you fill it with a crappy team. I have seen the Falcons lose on grass, on artificial turf, in a dome, and in an open air stadium. I pretty sure they have lost in a stadium with a retractable roof too.

You would hope that Blank would be more concerned about putting a winner on the field instead of a winning field under the team.

Mr Smiley

April 26th, 2012
9:17 am

Everyone’s an idiot. The taxpayers are making an investment…not just handing out $300M. It’s an investment people WITH RETURNS!

Frankly spending tax money on a new stadium is much better than the millions of tax money that gets wasted for personal political gains. At least the public will reap the benefits.

Bill Austin

April 26th, 2012
9:19 am

Jeff,

I just had this very conversation with a colleague. I agree with you totally, right down to the punctuation marks!

Fernand Point

April 26th, 2012
9:20 am

Larry- Here is the actual list of the top twenty billionaires. http://www.washingtonpost.com/business/economy/2010-forbes-richest-americans-meet-the-top-20/2011/06/16/AGfUJSaH_gallery.html?hpid=z1#photo=1 I would definitely say that there are more than three Republicans on this list. Nice try

Liz

April 26th, 2012
9:28 am

First of all, the Falcons DO NOT suck. So for all of you who are saying that, maybe you should move to a town where there is a football team you feel does not suck. I don’t care, just be quiet.

Second of all, Georgia State is a perfectly good school who has been educating people for decades. I graduated from there and experienced some of the best times of my life on that campus. I was there on the field when we played our first football game. It was a beautiful moment we all worked REALLY hard for.

What does politics have to do with this? Either Blank, the NFL and the hotel tax from Georgia pay for this, or no one does. I am a diehard Falcons fan, but there are a few things I don’t want to change with the new stadium, most importantly the price of the tickets.

megamicro

April 26th, 2012
9:33 am

north or nothing! lots of empty land on 515 past ball ground.

Troy Goodwin

April 26th, 2012
9:33 am

There’s NOTHING wrong with The Georgia Dome; What it needs is a retractable roof over it, and if you wanted a new stadium? Just do what The City of Vancouver did with BC Place; Replace the roof. Solution solved.

PureEvil

April 26th, 2012
9:34 am

Like the city of Atlanta doesn’t already blow money on stupid things!! Who cares at least this is going to be something we can enjoy unlike some of the thug hangout / parks they’ve built over the years!!!!

PureEvil

April 26th, 2012
9:38 am

There’s NOTHING wrong with The Georgia Dome

You haven’t been to other NFL stadiums have you??

tax payer

April 26th, 2012
9:39 am

If the city and ultimately the people are going to benefit from a new stadium with final fours, super bowls, and other events, then we the people shouldn’t have a problem putting in a 1/3 of the cost.

Frankie

April 26th, 2012
9:47 am

1. WHere will they play if they tear down the dome?
2. We all know that the new stadium would mean increase in ticket sales.

3. the 3rd tier would cost as much as the existing 2nd tier does now.
4. Move it to Gwinnett and then he can get the PARKING revenue he needs and that will decrease the ticket cost and sales tax request…..wishful thinking

5. is there enough activities to keep the dome and build a stadium elsewhere?

Whynotgolf

April 26th, 2012
9:49 am

Bottom line…you cannot blame Blank for wanting a better revenue producing stadium…if he’s coming out of pocket $700 mil…if the remaining money can be generated with the traveler tax. I say go for it….1 Superbowl will recoup that money.

Key Largo

April 26th, 2012
9:54 am

when was the Superdome built? early to mid 70’s? Saints seem ok with it. The state kicks in a little$$$, everyone is happy.

[...] 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 [...]

[...] AJC writer has the decency to call Shenanigans. Blogger Jeff Schultz has a good take and ends his post with a perfect line about the Georgia Dome and the need for a new stadium: “The building [...]

Mister.Earl

April 26th, 2012
9:58 am

Three Questions

Will the new retractible dome be as butt ugly as the current building?

Would Atlanta dare to build something worthy of design excellence?

Can Asante Samuel cover Marques Colston?

guillotine

April 26th, 2012
10:01 am

move the Falcons! Who outside the perimeter cares about them anyways.

roterhals

April 26th, 2012
10:02 am

retractable roof stadiums are for wimps

furmanuga

April 26th, 2012
10:03 am

I respect Blank very much and appreciate what he’s done for the Falcons franchise. But I also believe this is just plain wrong. Let that money go where it could be used more to help actual people. Like schools or disabled vets. I probably will forget I said this but this makes my fandom for the Falcons less so. Plus, win a Super Bowl or something and then bring this idea to the table. Constantly getting blown out in one playoff game isn’t enough to endear this idea to us.

Apostle

April 26th, 2012
10:06 am

If the Falcons want a new home let them pay for it.As taxpayers we have more important issues to deal with.

PureEvil

April 26th, 2012
10:17 am

Who outside the perimeter cares about them anyways

Only majority of the people with enough money to attend games!!

PureEvil

April 26th, 2012
10:20 am

As taxpayers we have more important issues to deal with.

Yeah….. like building another park for thugs to take over!!

Bobo is Not the Problem

April 26th, 2012
10:21 am

Yuck. I hated the dome and I hate the retractable-roof idea, mostly because the dang thing will be closed whenever there are “elements”. And, retractable roofs are not nearly as outdoorsy as a traditional open-air stadium.

Elements make football great. I want to see football in the sun, rain, wind, and snow. Not in a dressed-up living room.

real fan

April 26th, 2012
10:22 am

The georgia dome was a joke when it was built. If it wasnt for Blank we would still be sitting in ugly ass miami colored chairs with that horrible miami blue and orange squares on the outside. We got one lousy super bowl out of it . And when the rest of the league saw it they knew they would never come back.You have to remember who owned the team when that thing was built. The Smiths. Who wouldnt and couldnt if they tried sell out a dome.Or put a winning team on the field.This franchise has turned a corner . Lets bring them into this next century as well as this city.

Therut

April 26th, 2012
10:34 am

Larry, you are not a weirdo, but Bat Masterson is an idiot and you are wasting you time trying to educate someone that lives off the government and thinks that they are entitled.

MARTA Rida

April 26th, 2012
10:35 am

@Whitey
Its people like who give Atlanta and MARTA a bad rep. There is nothing wrong with either. If it wasn’t for Atlanta, GA would be Mississippi.

Agree

April 26th, 2012
10:37 am

Totally agree. Why tear down a perfectly good stadium?

Instead of building a new building, the Falcons should spend their time trying to win a Super Bowl. Maybe they could also come up with some new ways to generate revenue that wouldn’t detract from their pursuit of a Super Bowl ring(s).

Jimmy Crack

April 26th, 2012
10:39 am

Keeping these stadiums in downtown Atlanta, where folks don’t commute on trains and buses like rats in bigger cities, is just bad business. Put this new stadium just north of the perimeter and it would be filled to the brim with Falcon fans and not opposing teams’ fans.

Most fans don’t want to go downtown (see traffic, crime, panhandling, $40 parking fees, etc) to see a ball game.

GaStBen

April 26th, 2012
10:40 am

So Ben can you afford triple the rent with a new stadium?

FACT: The Superbowl won’t come back to Atlanta until a new stadium is built. It’s outdated.

It makes no sense to keep the Dome and a new stadium. The retractable roof is a great idea because then it can be used for motorcross, Final Four, etc plus it puts more money in Blank’s pockets with suites and premium seating options.

Agree

April 26th, 2012
10:41 am

Pureevil, Get out. Go to a park more often.
Real fan, I see your point. But the G Dome is in great shape. It doesn’t NEED to be torn down. If the Falcons had a building that could seat 100,000 fans, would it fill up? Probably not. There is only so much you can do with a new building. In today’s world, that almost billion dollar price tag is forever. Let’s pass on a new building for now.

Yo Moma

April 26th, 2012
10:42 am

The Ga. Dome is the most profitable football venue in the NFL. We’re talking about food service and alcohol. Blank wants a bigger cut of that action as his present deal with the GWCC was a Rankin plan with the state. Blame Blank? No. Cut a blank check to fund Blank? No fricking way will we pay!

Agree

April 26th, 2012
10:42 am

Jimmy Crack, If coming downtown keeps you from coming to a Falcons game, you’re not a football fan.

atldirtybirdfan

April 26th, 2012
10:42 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”

really jeff? who the hell even thinks about that when they travel to another city. c’mon man, that’s a MAJOR reach!

Agree

April 26th, 2012
10:46 am

Yo Mama, I would say it differently, but I totally agree with you. This about a previous deal that limits the money Blank can make. It’s not about the quality of the Dome itself.

Blank doesn’t need a new building. He needs the best contract lawyer in the US to get him out of the old (Smith) deal.

DawgDad

April 26th, 2012
10:47 am

Coming to Atlanta from St. Louis I’ve seen first-hand how terribly the owners and NFL can jerk around and shake down fans and taxpayers. Tearing down the Georgia Dome doesn’t make economic sense in the PUBLIC arena, but stadium venues are public-private (or quasi-public) enterprises. At the end of the day if you want an NFL team in Atlanta you (the taxpayer) will help pay for what they want, when they want it. If you’re a fan-in-the-stands quite comfortable with the current stadium and pricing you will be re-educated.

Mr Smiley

April 26th, 2012
10:47 am

Oh yeah Apostle, like your tax payer money is really being spent wisely…

....

April 26th, 2012
10:49 am

Would much rather pay money for a new stadium than pay money to help out the crack head who lives outside the stadium

Agree

April 26th, 2012
10:49 am

ATLdirtybirdfan, Lol! I thought that too. Jeff was reaching. But his argument is still solid.

Blank wants to get rid of the Dome to get out of the old contract.

In today’s world, is it even possible to pay off an almost billion dollar deal?

Agree

April 26th, 2012
10:52 am

…. What has crackhead got to do with any of this? Your statement was kind of crackpot. That’s the only thing I can think of.

Aquagirl

April 26th, 2012
10:55 am

“Put this new stadium just north of the perimeter and it would be filled to the brim with Falcon fans and not opposing teams’ fans.”

So you want to build a stadium for locals only? Somebody flunked economics.

All these pipe dreams about a Northern suburb stadium are just that….pipe dreams. There isn’t the infrastructure (hotels, restaurants, transportation) to support out of town visitors. And you can’t build all that infrastructure just for stadium events, those hotels and restaurants can’t exist on game day receipts only.

If you want a Northside stadium, y’all are welcome to build one with local tax money. Let us know how that works out for ya.

....

April 26th, 2012
10:57 am

You pay money to help dead beats who don’t work and live off the government and spend their money on the drugs they use but yet you don’t want to spend money on a stadium. Fair enough, as a sports fan I’d rather give my money to a stadium i’ll go to than the street walker who can’t wait till the first of the month to get his/her fix

Agree

April 26th, 2012
10:58 am

Think about this for a second. If the Falcons pulled off this billion dollar deal, would it ever be paid off?

Blank isn’t going to be around forever. Does this mean that 10, 15 or 20 years from now, the next owner will want to build a “new” stadium so they can get out from under the arrangements of the “old” one?

Agree

April 26th, 2012
11:00 am

Aquagirl, Agree!

Agree

April 26th, 2012
11:03 am

…. The City of Atlanta is not the one who wants to build a new stadium. Where do you live? Because unless you live in hotels within the City of Atlanta, the cost of this new stadium is not going to directly impact you.

Larry

April 26th, 2012
11:07 am

Fernand Point,

I said “liberals” not republicans!

Do your research on their “donations.”

....

April 26th, 2012
11:07 am

Fayetteville but I spend most of my time in Atlanta with my job so essentially my sales tax and the amount of money I spend in the City of Atlanta would go towards this. I was an econ major in college. I understand how it works. I also understand that my tax money goes to many things that I should not be paying for and do not approve of. Now when something that I do get behind comes up, people disapprove. Everyone has their opinions and I respect yours. I just feel that I want my tax money going to a stadium and not some of the other crap it goes to in the city

Timbo

April 26th, 2012
11:08 am

I never hear about universities asking for tax dollars to build or expand their stadiums. The athletics department and boosters fund it. Why professional sports think they need our money to do this is beyond me – other than they can. At the very least, loan them the money with a pay back of less than 20 years.

heartofdarkness

April 26th, 2012
11:09 am

Well done, Mr. Schultz. This issue is a small telltale indicating the self destructive currents blowing through western culture today. Regressive economic policies (and publicly funded stadia are a striking example of that) have made Georgia what it is today. Unless the public treasury, policed by honest guardians, gets about a 31% equity stake in the franchise, it would appear the public’s representatives have betrayed their client. Research shows these deals funnel most increased spending in the local economy after debt reduction, into a small number of pockets. The only way this kind of public financing without repayment of principal and risk appropriate interest guaranteed by private entities gets done is through an imbalance of free market forces that shovels risk in one direction and reward in another. Proponents of this kind of venture should demonstrate openly where the risks of operation, obsolescence and events beyond man’s control are placed, and how quickly and generously the public contributions are repaid.
Otherwise, you have to ask yourself, who would cast their delegated vote for such a swindle?