Former Dome GM: There’s zero need for a new stadium
Khalil Johnson was the Georgia Dome’s general manager when it opened, so he’s a bit partial to the place. No longer affiliated with the Dome — he retired as the Georgia World Congress Center’s chief operating officer last summer — he remains one of the most respected men in his industry. And here’s what he thinks of the Falcons’ desire to build an open-air stadium where (or near) the Dome sits: Not much.
“I love football and I love the Falcons,” Johnson said. “If they need and desire a new stadium, let the owner build it himself. In this current situation, to use tax dollars isn’t viable.”
Also this: “They’re having discussions of whether [an open-air stadium would cost] less than half a billion or more than half a billion. At the same time we’re closing schools, we’ve got transportation issues and we need to figure out Grady [Hospital] … It’s not a sports question. It’s an economic issue. There are a lot more pressing needs.”
Arthur Blank bought the Falcons in 2002, a decade after the Dome opened, and has been persistent in his desire that the building be updated. Johnson worked to placate the owner but knew the day would come when Blank would want a new building.
Said Johnson, who now works out of Douglasville as a consultant regarding events and venues: “What’s the pressing need? More money for the ownership. I don’t know how that lines up with what the public wants … I just question whether the public needs to give more when most of the benefits will go to a private owner.”
About the Dome, Johnson said: “It may not be a great building but it’s a damn good building. And improvements can be made … The bones of Georgia Dome are good. Ask anybody in the business, and they’ll tell you that. It would make more economic sense to improve the Georgia Dome.”
The Falcons’ desire for an open-air stadium — one without a retractable roof, which team president Rich McKay told the AJC would be too expensive — would seem at odds with the Dome’s charter. The Falcons believe an open-air stadium would help Atlanta’s chances of playing host to games in soccer’s World Cup in 2018 or 2022, but the Dome has already staged two NCAA Final Fours and is ticketed for another in 2013.
And what of the ACC and SEC basketball tournaments, both of which have been played beneath the Dome’s roof? What of the SEC football championship and the Chick-fil-A Bowl, each held between Thanksgiving and New Year’s Day?
“I don’t think the Falcons care much about basketball games,” Johnson said. As for college football: “The [SEC] tried [playing outdoors] in Birmingham. Didn’t work. Roy Kramer [then the SEC commissioner] came to us and said, ‘I want a stadium with a roof on it.’ And what was the name for the Peach Bowl before it moved indoors? ‘Weather-plagued.’ ”
Would it be possible to build an open-air stadium next to the Dome? Said Johnson: “It makes no sense to me. We know how tight that campus is — you’ve got the GWCC, Philips Arena, a fully functional arena and a park jammed into 220 acres.”
Johnson also questions whether the public would benefit from a new stadium. “People would have to be prepared for higher ticket prices, higher food and beverage prices, higher parking and PSLs [personal seat licenses, which confer the right to buy a ticket].”
Loading ...But wouldn’t much of the money for a new stadium come, as has been the case with the Dome, from a hotel tax? And doesn’t the hotel tax affect non-Atlantans?
“The Dome gets $20 million a year from the hotel tax,” Johnson said. “What would $20 million do for Atlanta schools or for health care? And the World Congress Center is sitting there aging with no significant resources. Wouldn’t it be sensible to put that money into the Congress Center, which has been the driver for the convention business in Atlanta?”
There’s also this: “The Dome is almost paid off, which means that [hotel tax] money could be put to other use. Why plant a tree, watch it grow and then, when it’s almost grown, cut it down because you see a tree you like better?”
Isn’t there a risk that if the Falcons don’t get what they want downtown, they’ll move? “If Doraville wants to build a stadium, let them take a shot at it,” Johnson said. “But I don’t think the dollars add up. There’s nowhere to move. People aren’t sitting around with half a billion dollars.”
Johnson’s closing argument: “If Atlanta can’t pay for a new stadium, who can? And is there really a need? Again, we’re down to the question of wants versus needs.”
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259 comments Add your comment
Michael
May 21st, 2010
2:55 pm
The current Dome brings in plenty of revenue. Building a new stadium would not make a significant amount more $. It would still hold the same events the current Dome holds…no more…and will make roughly the same amount.
A few thousand extra tickets sold b/c of a fancy complex will not solve anything. Building a 500 million dollar stadium is inpractical, especially in these times. I wrote an article on KSUradio recently about how absurd it is that tax dollars are being considered to go down on a new complex while budget cuts are rising in education, and roads are torn to shreds.
It took too long for someone to speak up about it. Mark Bradley, I commend you for this article! Glad the old GM has a head on his shoulders.
KEEPING IT REAL
May 21st, 2010
2:56 pm
No need for a new stadium, there are plenty of stadiums in the NFL in worst shape than the Georgia Dome. A.B needs to come out and say what he really wants. A.B wants the money from the gate and concessions. Let him have his new stadium but he will loose money because folks won’t be able to afford the game tickets. By the way, if the stadium moves or goes to open air, my 7 years of being a STH is over.
GEORGIA97
May 21st, 2010
2:59 pm
JSS: Take a Valium, brother. Until they break ground on a new development nothing is out of the question. Besides, who wants to live a stone’s throw from the Buford Highway corridor that my old man calls “Gonorrhea Gulch”? The site is better suited for a stadium than condos.
Former Dome GM: There's zero need for a new stadium | Leaves Be Gone
May 21st, 2010
3:00 pm
[...] Atlanta Journal Constitution (blog) [...]
Bulldog59
May 21st, 2010
3:03 pm
Kids today want the latest phone, the one their buddy already has, or the latest version of Xbox, that their buddy already has, or their first car to be a little cooler than the one their buddy has.
NFL owners are just kids with more expensive toys. So, if my buddies, Jerry Jones and Bill Bidwell, get to have new stadiums, then I want one too! (said like a 4 year-old brat!)
Mr. Blank, you need to squash this now. Now more than ever Atlanta needs your philanthropy, not your request to put them further in debt. If this was totally Rich McKay’s idea, you own him already, smack him in the head for saying something so idiotic.
Agree with most of you, are you flippin’ kidding me?
the TRUTH
May 21st, 2010
3:04 pm
Mr. Blank is better served focusing on his next wife.
KD
May 21st, 2010
3:04 pm
Yes, get it out of downtown so you will not get robbed evert time you go there, there is no parking. Needs to be relocated as to where families come to spend money, not looking over your back after the game.And this is the south, we do not need an enclosed area.
enz
May 21st, 2010
3:05 pm
Keep the Dome. This is not the time to be splurging tax dollars. The Dome is not the greatest venue in sports but there’s nothing wrong with it.
Mr. Turnip-Green Jeans
May 21st, 2010
3:06 pm
If schools need money they should sell Personal Desk Licenses and Semester Tickets! Get a clue people!
cloudy
May 21st, 2010
3:08 pm
I think Khalil Johnson is the perfect person to give us his views on publicly funding a new dome and on the condition of the dome itself. Interesting to note that the last professional soccer game at KSU had about 3,000 in attendance according to the article I read. Does anyone seriously think that Atlanta would support professional soccer to the tune of 40 to 50 thousand at each game? Atlanta is a town full of front runners, If you win they might show- if you don’t win they most definitely will not come. No chance of building a large following that will support regardless of record.
Mr. Turnip-Green Jeans
May 21st, 2010
3:09 pm
Mr. Blank is better served focusing on his next wife.”
If Arthur has an ex, I’ll bet she’s walkin’ in tall cotton.
are you kidding me?
May 21st, 2010
3:14 pm
Mr. Turnip-Green Jeans Keep your day job pal- you are not too funny as you have learned by now I am sure. Maybe we could cut taxes for the wealthy some more? You think?? How outrageous that when we are having to cut so many people and programs at all levels throughout the state that this Governor and his legislative cronies would cut taxes for the wealthiest of retired citizens. And you Republicans have the audacity to say that you care one whit about the common working man??? Yeah sure you do.
All I'm Saying Is...
May 21st, 2010
3:16 pm
If the Falcons must have an open air stadium then I know the perfect spot: on the site of the old Atlanta-Fulton County Stadium across the street from Turner Field. Its simply a parking lot now and can easily be jack-hammered, dug out, and built-up to a football only open air gem of a stadium. GWC folks can keep their Dome and the Falcons can have their own place too. If you don’t believe me, simply take a look at the spot using Google Maps. And while they are at it, they can build a light rail line connecting to 5 Points eliminating the bus shuttle.
Atlanta’s contribution would be the $20 million from the tourist tax and Arthur Blank can finance the rest —- and get to keep virtually all of the concessions, parking, and ticket revenues too.
LET’S GO FALCONS!
JSS
May 21st, 2010
3:21 pm
@ Georgia97
Man, I’ll leave the pharmaceutical taking to the pros like you… I just know when to leave a “White elephant” alone! By the way, where are you going to get the Federal and State DOT agreement to move 4 lanes of interstate to make the interchange possible for a Stadium at that site? DeKalb County did, that is why they said “No” THE FIRST, SECOND and THIRD TIME! Sorry Chum, it ain’t happening!
C'ball
May 21st, 2010
3:22 pm
Who dat wants a new stadium? The Falcons are losers. Always have been… always will be. Their losing tradition rubbed off to my beloved Dawgs and even that wretched North Avenue junior varsity team.
Show us some return on our $244,000,000 investment dude. Including renovations and excluding time value of money, each Falcon regular season win so far at the Possum Dome has cost taxpayers $3,128,205. There have been 78 regular season wins since the facility opened. The Falcons have won an average of 4.33 home games per year. Who else could claim such a stellar NFL home record.
Maybe we could lure the World Champion Saints to our city after teh Falcons leave. Until my jersey is retired, I’m staying home to watch the Black and Gold Champions on television. I wish I had played in the Superdome instead of Atlanta Fulton County.
Wildebeast
May 21st, 2010
3:22 pm
The Dome isn’t going anywhere. The Falcons only use it 8 days a year. The World Congress Center uses it for overflow trade show floor space and special events 10 times that much. That’s its true value. I mean Home Depot
Angus
May 21st, 2010
3:23 pm
Wow….all I’m sayin’ is that I was just google mapping and thinking the same thing. Bring rail to service it and the Ted.
GEORGIA97
May 21st, 2010
3:25 pm
JSS sounds like the kind of guy who enjoys tickle piles.
Coondawg69
May 21st, 2010
3:37 pm
Hang on a second folks, there are several factors at play here… IF a new stadium is built and it comes in under the expected price, folks are like… whoa, what a deal. I’m sure some of this is posturing. Of course the new stadium will have to have a roof… for concerts, hoops, monster trucks, etc. ALSO, the Georgia Dome could then be retrofitted so that I can be used to lure bigger events into the World Congress Center. (It is my understanding that other cities have larger sq. ft coverage and Atlanta does miss out on such events. See Orlando, Tampa, etc.) That would mean more $$$ for the city.
Do we need a new dome today?? No. But eventually we will. It will be cheaper to build one today than years down the road. Much smarter people than me can run the numbers, but you’ll see that a new stadium, with a retractable roof, and that allows Atlanta to attract larger conventions will ultimately be better for Atlanta and local small business. .
My 2 cents.
smoochies
May 21st, 2010
3:41 pm
Maybe when the Falcons win a few SuperBowls!!!
Not necessary to build a new stadium.
JSS
May 21st, 2010
3:43 pm
Sorry you provincial person, you can’t pull me in to your little UGA/Tech jaundice… However, I once worked for the fastest growing county in the US and dealt with the DOT. Yes just don’t drop a 75,000-90,000 seat stadium that close to a Interstate which doesn’t have two natural interchanges there already. By the way, the Marta rail line and CSX rail head borders the place on the East (it’s why GM picked the place, the rail line)… Sorry chum!!!
Bushwacker
May 21st, 2010
3:43 pm
There’s zero need for sports writers but we’ve put up with MB for 3 years.
Bushwacker
May 21st, 2010
3:44 pm
excuse me , 30+ years.
ryan
May 21st, 2010
3:44 pm
Every body telling Mr Blank to shut up about a new stadium need shut up it Blank’s team the city owns the dome the Falcons need a new stadium with better parking domes are out dated . And he wants a shot a Super Bowl your not going to get in the dome . Oh yea a new stadium would great for free agents. Its his team he can do what he wants.
All I'm Saying Is...
May 21st, 2010
3:45 pm
O.K. So that’s me and Angus who have seen the light. Now we only need Arthur and his gazillion dollars to get on board and we have the makings of a solution that satisfies everybody: GWCC keeps their Dome, Atlanta keeps all the other associated sporting events staged there, The City contributes enough cash to participate in picking up some of the costs via a tax that few residents are impacted by and Arthur gets his brand spanking new football only stadium with all the suites he can sell. Plus Artie can host other events like World Cup soccer and what not to generate more bucks.
LET’S GO FALCONS!
Delbert D.
May 21st, 2010
3:47 pm
Mark – I agree, Mr. Johnson is not a politician. He’s much worse…a consultant. In my grad econ text, Nobel Laureate Milton Friedman defined ‘consultant’ as, “A ba$tard from out of town.”
I resemble that remark. I used to be one, too.
KStaz
May 21st, 2010
3:52 pm
It simply comes down to the fact the Falcons look around the NFL and see other owners, like those of the Giants, Jets, and Cowboys getting subsidised by state and local governments as well as the NFL to build shiny new Stadium(s). These teams then turn around and charge ridiculous prices for PSL’s and have added revenue generated from luxury boxes, concessions, parking, etc…The Falcons are coming to the dinner table when the plates have been wiped clean. No way any of the aforementioned teams get their pleasure palaces built if they tried in this econominc environment. Blank and Co. see the other owners generating more revenue and he wants his too. Atlanta should tell Blank to shove it and see where else could come up with the money to build him a new playground.
Elin Woods
May 21st, 2010
3:54 pm
Mark,
I will have roughly a “half billion” dollars here shortly give or take 100 million or two.
gdawginkalamazoo
May 21st, 2010
3:57 pm
Yes let Blank write the check for a new venue. I happen to like the dome as a football venue. The players don’t care as long as they are paid. The fans want to see a quality product at a reasonable price.
Panzer
May 21st, 2010
4:05 pm
You must be kidding me. We are closing schools and people are losing jobs and Blank wants public money to fund his stadium? Unbelievable.
Survival of the fittest dude!! Its not Blanks fault people can’t keep jobs. City funding of a stadium will not only benifit Blank but also the city of Atlanta.
Allen-in-Macon
May 21st, 2010
4:06 pm
Building a new stadium on the site of the old Fulton County Stadium is the best idea yet, just need some rail service. But I’m sure baseball fans would complain as it would spoil the skyline view of downtown Atlanta in the outfield at the Ted.
P.S. nothing beats outdoor pro football!
Gator CHOMP Champ
May 21st, 2010
4:06 pm
45 years of zero championships can produce some pretty poor thoughts.
Panzer
May 21st, 2010
4:07 pm
Not necessary to build a new stadium………..
It is if you want to keep up with the rest of the NFL when it comes to revenue. The Falcons have a real bad deal right now w/ the COA. Blank is getting screwed when you compare him to other owners.
are you kidding me?
May 21st, 2010
4:09 pm
ryan And the dome does not belong to Blank -and the city and taxpayers can do what they want to regardless of what Blank wants or does.
Panzer
May 21st, 2010
4:11 pm
The players don’t care as long as they are paid. The fans want to see a quality product at a reasonable price………..
If you want a quality product the Falcons need a venue that can produce more money for the Falcons and less for the COA. It would be even better if Blank said screw the city of ATL and moved the team to the northern burbs. Like Doraville!!! Built the stadium himself and then he wouldn’t have to deal with the stupid people that run the city any longer!!!!
wxwax
May 21st, 2010
4:12 pm
What if it’s not Doraville that takes a shot at it?
What if it’s Los Angeles?
are you kidding me?
May 21st, 2010
4:13 pm
Elin Woods I am just in awe of the generosity that you are so graciously offering.
Panzer
May 21st, 2010
4:14 pm
Or deal with the people downtown holding up signs beggin for money, food! Smelling like S#$% looking like something worse than s#$$!!
cloudy
May 21st, 2010
4:14 pm
Gator CHOMP Champ Yeah- kinda like the Gators before Spurrier in the 90’s eh?
Jerry
May 21st, 2010
4:15 pm
Casey Jones, one BIG mouth!!!!!!!!!!!!!!!!!!!
gdawginkalamazoo
May 21st, 2010
4:17 pm
If you want a quality product the Falcons need a venue that can produce more money for the Falcons and less for the COA.
Working out a “deal” with the COA shouldn’t mean that the COA has to build a new stadium. The Georgia Dome doesn’t make the Falcons suck. The Falcons make the Falcons suck. Product on the field has nothing to do with the venue. IF Blank wants a new deal with the city then get a new deal or leave. The COA will either have to cut a new deal to more favor Blank or see the Falcons leave. That’s business.
hubba hubba
May 21st, 2010
4:19 pm
Panzer Showing your love for Atlanta eh pal? The poor and homeless can be so unattractive eh? So distracting. So inconsiderate being right there on the street when you are walking by. How thoughtless.Let me guess- you are one of those tea-party, compassionate, conservatives???
Keith Ponder
May 21st, 2010
4:25 pm
Let KJ and Blank rassle for it. Khalil wins, the birds stay downtown Atlanta. Arthur wins, he can go to hell and take the team with him. People are losing their homes to bank foreclosures. Parents are scrapping up change to keep their kids in college and some meglamaniac who’s never won anything , but he’s still trying to match egos with Jerry Johnson. Why are we even having this conversation.
heartofdarkness
May 21st, 2010
4:25 pm
Presumably, the Falcons seek municipal bonds issued by the state to lower the costs of borrowing, due to tax incentives given to investors and generally lower interest rates on debt secured by a call on the public treasury. The club pays all the principal and interest, as well as costs and fees for the bond underwriting and distribution. The public never has to actually lay out any funds for this venture, and the club also buys insurance [backed by actual reserves] against any default risk during the life of the bonds. That’s the deal, isn’t it? Certainly, our civic fathers would not commit to spend any actual taxpayer money on a private venture, would they?
Delbert D.
May 21st, 2010
4:26 pm
LA? California is in worse financial shape than Greece.
Einstein
May 21st, 2010
4:30 pm
If Blank wants a new stadium let him finance it himself. For all of you claiming that it would be a huge money maker, don’t you think better education of our youth is an even better money maker?
Einstein
May 21st, 2010
4:33 pm
The real definition of a consultant is a man who knows 115+ ways to make love…but, doesn’t know any women.
tebowtears
May 21st, 2010
4:34 pm
Instead, the city of Atlanta needs to figure out how to save hundreds of teaching jobs and aleviate the 2nd worst traffic in the country. Besides, they screw if up every time they build a new facility..see tailgaiting at the dome and Turner Field as examples. Every time i go to Turner i want to get the hell in & out before i get held up or my car broken into. Absolutely nothing to do around Turner unless you call The Bullpen Sports bar exciting.
Panzer
May 21st, 2010
4:35 pm
Keith Ponder…….People are losing their homes to bank foreclosures. Parents are scrapping up change to keep their kids in college.
And why is this Arthur Blanks problem or the City of Atlanta?
jarvis
May 21st, 2010
4:36 pm
First, no public funds. In the long run, it will work out better for everyone. If the Falcons can get it built, not having the government’s hand in it will work out better for Arthur and his crew in the long run. They’ll receive 100% of the profits. If they can’t afford what they want, they can’t afford it.
Secondly, why would the Falcons care about any of the other things? Why would Final 4’s, or SEC Championships, or any of that matter to the Falcons? As for the Super Bowl, the NFL has made it quite apparent that Atlanta has been blackballed from future consideration as it is.
If the city wants to keep all of that, they can continue to manage the Dome.