Monday, May 16, 2011

Stadium Arcadium

There are a few tiresome things that have been dragging on far too long on the regional sports scene. The Fighting Sioux nickname controversy, the general ineptitude of the Timberwolves, and topping the list, the Vikings pursuit of a stadium.

To clarify an important point, I'm not against public money for stadiums, and I consider myself a huge Vikings fan. I'm willing to bet that I've attended more games and put more time/money into this team than 90% of fans out there. I do not want them to leave Minnesota, but it's hard to have much sympathy for their situation when they keep shooting themselves in the foot.

Let's take a trip down memory lane to the Anoka County stadium days, when the team had an agreement on a $675 million facility, with $250 coming from the team. With the inevitable overruns, the true cost would likely have been in the $750-800 million range, with the Vikings share falling around $300. Of course that was scuttled when Zygi started flirting with Minneapolis about a competing plan. The county lawmakers up north decided they did not appreciate being treated as pawns, and here we are 5 years later, in the same spot. A similar joint venture with the Gophers on a shared stadium was also slapped down along the way. So as you listen to the threats, coercion and woe-is-us messages coming from the Vikings camp, it's important to remember that this could've been solved long ago.

The problem of course, is greed. The end goal of the team has always been to have it's cake and eat it too; maximize profits, team value and share nothing with anyone. Anything less than the ideal solution that will allow for that is immediately dismissed as "unworkable". Now the saga continues against the backdrop of a state budget that's underwater by $5 billion and the NFL locked in a showdown of greed that could potentially cancel it's next season. If it wasn't for bad timing, this franchise would have none at all.

But again, they've made the choice that have brought them to this point.

So now we have two stadium proposals to ponder, a far-flung palace in Arden Hills vs. a new building on the current Metrodome site in dowtown Minneapolis. Assuming we look past the fact that the Vikings don't seem to be a trustworthy partner in this type of negotiation, and that if not for their greed, this whole situation could've been avoided, what does the public gain by footing the bill for this thing? Full disclosure, I was a big proponent of the Twins stadium after watching years of baseball in the Metrodump. Baseball needs to be played outdoors, and is also the last major sport that can be attended somewhat affordably by average people. I buy the argument that sports facities don't really spur new economic activity. That dollars simply flow from other forms of entertainment to offset trips to the game. Whether you buy into that notion fully is your decision, but it tends to strike me as logical. Lacking teams, money spent on sports would likely still be spent regardless, at least that's what happens in my life.

But what else other than sports is bringing tens of thousands of people to downtown Minneapolis 100+ nights a year? What connects more suburbanites to downtown that the excursions to watch these teams play? City dwellers may say the hell with those people, let them stay home and quit cluttering up my downtown. Unfortunately that's your tax base folks, and love em or hate em, the place you live is going to come out better the next time a budget is approved if more people have a vested interest in keeping it vibrant. Target Field has been a perfect example of a sports attraction's power in this area. New businesses are opening, old ones are making additions, and all of dowtown Minneapolis has felt the lift from the 3 million wallets going through it's turnstiles. Whether the honeymoon continues, as it has with the Xcel in St. Paul, remains to be seen. But for the moment at least, there are many more people with a personal connection to the city.

The same return on investment, in the form of more people having a vested interest in your city, won't be seen by a municipality hosting a football stadium. Sure the ten Vikings games played each year will be augmented by concerts and other events, but can we expect it to yield the same sort of day-to-day lift that other sports venues offer? Some business will get a charge, especially on game days, but it's unlikely that crowds will be consistent enough to generate similar impact to the last two publicly-backed projects we've seen.

As I've said, public financing for stadiums is not an issue for me. I like sports and pay for a million government services I don't use, why not get something I enjoy out of it? But I also do not appreciate being treated like a fool, which has too often been the feeling Vikings stadium discussions have given. Maybe this time they get everything they want, and this thing finally gets put to bed. But is the best thing for the team also the best thing for the fans?

Let's break it down, tale 'o the tape style:


Location

Arden Hills
Pros: Tailgating, better gameday experience, not having to hassle with downtown
Cons: Being screwed if you don't plan on tailgating, having to spend a boatload of money on new infrastructure, chances of a serious cluster**** developing while trying to exit

Minneapolis
Pros: Central location, easy access through existing infrastructure, access to about 1,000 restaurants, public transit, revitalized downtown businesses

Listen, I like tailgating as much as the next guy, but I don't want to be locked into it every time I feel like going to a game. Build the stadium in what's essentially an open field, and that's what you'll get. Make an island and you risk getting stranded. People will try to tell you that development of bars and restaurants will occur in the surrounding area, and I'm sure they'll be right to some degree. But whatever happens will not amount to even a fraction of what's available downtown. You want an example of what happens when they build a stadium in the middle of nowhere? Take a trip to University of Phoenix Stadium in Glendale, AZ. Sure they have parking lots aplenty, but on days when it's a million degrees outside and folks don't feel like getting heat stroke before the game, they flock to the adjoining restaurants...all three of them.

When I was in attendance, the available venues were packed to the gills four hours before gametime, with lines of people stretching around the block waiting to get in. Seems to me this situation is going to mirror things pretty well if the Arden Hills site is chosen, with freezing patrons simply swapped for the sweltering ones. And don't even get me started on the nightmare that is 70,000 people attempting to leave via a cheesy network of roads that can't come close to handling them. Why build some cheap imitation of an entertainment district when the real thing already exists ten miles away? Why spend the estimated quarter-billion dollars on infrastructure when the light rail we already spent the same kind of money on rolls up to the door of the competing site? We drop money hand over fist to try and make downtown more accessible, then start throwing attractions halfway to Duluth? Get a grip folks, a few thousand people cooking brats in the parking lot never won anyone anything, look big picture here.

Advantage: Minneapolis


Financing

Arden Hills
A shade over $1 billion with a team contribution of $407 million

Minneapolis
$895 million with a requested $400 million from the team, also need to factor in an estimated $40-50 million lost from having to play at a smaller venue during construction

The question of "fair share" when discussing team contributions for stadiums is a dicey one. Many folks thing the number should be 100%. As I've said, that's not my camp, but it certainly doesn't seem unreasonable to begin discussions at a 50/50 split. A $450 million price tag for Minneapolis would top what other NFL teams have paid in terms of dollars, but is also a lower percentage than some, based on the $895 million total. The Vikings were quick to respond that the requested $400 million in funding for the Minneapolis proposal would be too much, particularly when the loss from 2-3 seasons spent in a college stadium factored in.

The team did offer a contribution of $407 million as part of the Arden Hills proposal. But that looks less generous when you factor in a total price tage of over $1 billion and the revenue streams from parking, naming rights, personal seat licenses, etc. being added to the franchise coffers. Reading from yesterday's Strib article gives the impression that the total tab could run higher still, approaching the $1.3 billion range:

Hours before the Arden Hills deal was announced, Ted Mondale, the governor's chief stadium negotiator, issued a long-awaited cost comparison of the two sites that showed the Arden Hills stadium would cost up to $1.28 billion, compared to $895 million at the Metrodome. According to the analysis, the Arden Hills site would require $275 million to $340 million in highway, parking and other improvements. The Metrodome site would need $30 million for new parking spaces and skyway connections

Call me cynical, but this whole thing reminds me of the bait-and-switch tactic being employed a few months ago, when the Purple offered to fund a higher percentage of a cheaper, open-air stadium. The tactic there seemed to be along the lines of "We'll pay half, but if you want a roof on it, that's your problem." They knew full well that a roof was a must to make it a year-round venue, but it looked better on paper to offer a 50% share of something a couple hundred millions dollars cheaper. As with most things, you have to read the fine print. This variation in infrastructure costs, which the state is on the hook for, feels like more of the same.

Advantage: Minneapolis (or at least it will be when the true cost comes out)


Timing

Arden Hills
Worked with the team and county over a period of weeks to develop a plan

Minneapolis
Haphazardly threw together a proposal at the 11th hour only after Hennepin County backed out. Compounded the error by cluttering it up with Timberwolves-related nonsense that should've been addressed separately.

Advantage: Arden Hills, by a mile

So what now? Tough to say, they have two weeks to go in the legislative session, which is my opinion is not enough time to answer the outstanding questions. Furthermore, the govenor seems to be giving off signals that he favors the downtown Minneapolis plan. This whole situation give the impression that, while progress is being made, we're still a year out from a solution. I for one hope that delay results in a cohesive Minneapolis plan being offered and accepted, for the reasons detailed above.

At this point, the only thing that we know for certain is that the Vikings will go for whichever plan benefits them the most financially. I can't blame them for that, no billionaire became a billionaire by failing to take the best deal available. But from the perspective of a taxpayer, even one who can stomach the idea of funding this thing, it's time to place one hand over your wallet. Pardon me for being leery of an industry that essentially prints money, yet keeps claiming poverty.

Nevermind that professional sports franchises are never willing to produce the financial records proving the losses they claim. Or that franchises constantly seem to appreciate, with a slew of prospective buyers any time one of them goes up for sale. No, no, just take they're word for it, this is a terrible business to be in and they'll soon be forced to sell, move or liquidate...unless of course you can spare a dime brother. To the city of Minneapolis and state of Minnesota, please don't blink here. Stick to your guns, as we learned with the Twins, it's amazing what suddenly becomes palatable when it becomes clear there are no other options.



Otherwise, if a compromise needs to be made, tie a back-end payment into the sale of the team if it occurs within 10 years. Zygi reportedly bought this pig for $600 million, and Forbes had it valued around $800 million in 2010. I'm no expert, but I'm guessing a new facility kicks that valuation up to at least $1 billion, if not higher. Factor in the operation revenue to be gained in the interim and for the first 10 years, anything north of that mark goes back to the state coffers.

So those are my stadium thoughts, sorry for the length, but it's the last I'll be writing about it until something actually gets signed, sealed and delivered. No telling when that will be. A lot of people may take issue with my views, saying that they're unrealistic, and this is the price of admission for being an NFL town, but I really don't care. As much as I love the Vikings, I can live without them more easily than just about any other team in town (save for the Wolves). In my opinion, the NFL has completely sold out it's in-person experience for the sake of TV audiences, and watching 5 games at once from the comfort of a couch or barstool bypassed the hassle of attending in person long ago. What's more, I've grown tired of the antics from both the league and this team. Both have grown like an invasive weed, to the point of choking out all other life on the sports landscape. Their arrogance offends me, and I would love for Minnesota to be the first market to say "Thanks, but no thanks" when the stadium gun is put to their head. Alas, I'm convinced there is no possible way that happens, but a guy can dream.

Worst case scenario, they move them to LA, big whoop. This might lose me my fan card, but I think that's been a hollow threat all along. It's doubtful that the people who want to build the LA stadium won't want a controlling interest in the team that plays there, and I don't see Zygi moving it just to cede control. But it's out there, so needs to be noted. If it happens, I'll get along like millions of other fans across the country, rooting for an out-of-market team the same way I typically do now, on TV. While my sympathies would lay with those dedicated souls who consider being in the stands on Sunday a staple of life, they'd have to understand that the team and league did it to themselves. Besides, nothing is easier than being a long-distance fan in the age of the Internet and satellite television, you guys will be okay. And hey, you never know, maybe we'll get an expansion team that's not a cursed pack of losers.

Like I said fellow Purple faithful, if getting fed up at this episode of team history is grounds for kicking me off the bandwagon, so be it. My first choice is for a workable deal to be struck, but if the Vikings keep angling for more and more, as has been their m.o. in the past, I have no problem walking away. Rest assured that there will always be that portion of me that only stirs while watching the Vikes play, it's too ingrained to ever leave, but this whole thing makes me feel as if I'm being treated like an idiot. Maybe things would be different if they're wasn't a petty labor squabble going on at the moment, I'm not sure. It's just that every time I turn around it seems like sports is eating another part of itself. The ticket prices keep going up, while the talent pools just grow more deluded and players more detached. It's hard not to feel stupid for caring about it at times.

Of course, my original offer to the Vikings still stands: Win a Super Bowl and we'll pay every dime.

I'm not holding my breath.

1 comment:

  1. One thing about University of Phoenix Stadium is that it also has Jobing.com Arena next door and that area is still not able to develop. I don't know how they can think Arden Hills is a good idea.

    ReplyDelete