
On September 12, 1982 the Vikings opened the Metrodome. It cost $68 million to erect it. The Vikes want, and need, a new stadium and are next in line once the Twins and Gophers get their stadium issues resolved. Of course, the Vikings are making a huge push this legislative session to get all three stadiums to be considered at the same time.....but then don't hold you breath for politicians. You'll be left gasping for air every time.
At least once a year, I would be thoughtless if I did not bring out my soap-box and voice my concerns over the risk that we could end up losing the Vikings to parts unknown. Actually, we do know where. The L.A. Threat still lingers which means that the team could escape for the warmer climes of the west coast...lease or no lease.....if a stadium cannot be built for the Purple.
Since 1995, after the Rams and Raiders left, the National Football League has not had a team in Los Angeles. Since then, in cities across the nation (Phoenix, Seattle, Indianapolis, etc) owners have used the dearth of a Los Angeles franchise as weight. They have extracted concessions worth hundreds of millions of dollars from taxpayers while threatening to move to L.A.
The strategy has been a critical factor in the NFL's stunning building boom. A quick Google search lists that since 1995, stadiums have been newly built or renovated for 19 of the league's 32 teams, including Jacksonville, the site of Super Bowl XXXIX and Detroit, the site of Super Bowl XL. (And as Zygi has already stated, would it not be nice to have the Super Bowl return to the Tundra? A game in which the Vikes have home-field advantage?)
Some say the strategy has been such a success that Los Angeles, though it is the nation's second-largest television market, is more constructive to the NFL without a team than it would be with one.
The NFL has said it wants a team in Los Angeles by 2008 or 2009. League spokesman Greg Aiello said last year that the league has not determined whether it would be better to move an existing franchise or to start a new one by adding a 33rd team, whose owners would pay the others as much as $800 million to join. Aiello said the NFL is concentrating on getting a stadium ready for a prospective Southern California team.
He discarded the comment that the league and its owners have used Los Angeles as influence to win concessions from taxpayers, and noted that owners have invested mightily during the recent run of stadium projects, spending more than $1 billion.
I think he kept a straight face while voicing that statement.
Some analysts say communities are willing to give so much public money to a private company because each team creates its own trickle-down economy. A recent University of New Orleans study estimated the Saints' annual economic impact at $402 million. The city has also played host to nine Super Bowls, more than any other city. Though many economists dispute it, the NFL claims that Super Bowls now generate as much as $300 million apiece.
Stadium deals are essential to the success of an NFL franchise.
Over and over again, owners have launched campaigns to win stadium deals. Time and again with massive contributions from the public, and often with a reminder that the field might be greener in L.A.
In Seattle, concerns that the Kingdome was structurally unsound in 1996 prompted Ken Behring, then owner of the Seahawks, to weigh a move to Los Angeles. Instead, the Kingdome was imploded and replaced. The Seahawks opened the doors of a $430-million stadium, now known as Qwest Field, in 2002. The public paid $300 million; now-owner Paul Allen, the Microsoft co-founder, paid for the rest. Of course, being the sixth richest person in the world has its benefits.
In the Phoenix area, the Cardinals will move into a new, $355-million stadium for the 2006 season, six years after voters approved a measure committing public money to the project. The Cardinals spent more than $500,000 lobbying for approval. The team will pay less than a third of the stadium's cost.
In Indianapolis, Colt owner Jim Irsay butted heads with the city in 2004, charging that his stadium, the smallest in the NFL, was dragging down revenues.
Irsay's ploy with Los Angeles was not restrained; he is a member at the Riviera Country Club in Pacific Palisades. There was also a threat of a move to Canada.
In December 2004, Irsay and Indianapolis Mayor Bart Peterson announced a deal to build a $690-million stadium. Taxpayers, in order to pay back bonds funding the bulk of the project, are expected to contribute $46 million annually for the next 30 years.
Enter Zygi Wilf, the owner who is enjoying a near 90% approval rating on the Viking Underground (poll to the left). Wilf has publicly stated that "I want you to know I'm never going to threaten to move the team to get a stadium."
Good enough for me. But here is my concern, being the neurotic person that I am. I have looked into Zygi's checkbook and I see:
• $49 cool to Steve Hutchinson
• deferred bonuses due to Fred Smoot, Jermaine Wiggins, Pat Williams and others
• $600 million paid for the team
• a team-record 21 assistant coaches
• a Winter Park renovation project that will cost $2 million
• significant financial loss in 2005, estimated to be more than $10 million
• $102 million in cash this season on player salaries
• $2 million for new coach Brad Childress
• Doubling the size of the executive staff from three vice presidents to six (and we know how they can eat!)
So, why is the jaded side of me worried? I should be loving this, right? And don't get me wrong....I am! But the larger question still remains: will the team get a new stadium? If they do not, what would you do if you were Zygi Wilf and you’ve poured money into a bottomless pit and you continue to get the cold shoulder from the State?
You see, the reality that Zygi and Co. are spending more money than they are taking in bodes well for their chances that should the current group of geniuses in St. Paul whiff on the Vikings again this year, the team becomes a legitimate contender to get permission from the NFL to get a new stadium somewhere else. In this case, Los Angeles.
Zygi is smart. Very smart. Like a fox smart. I want this guy as our owner for a long time. And I want that ownership to be housed in Eden Prairie and then Anoka County. Not on Hollywood and Vine.
Have you visited the Minnesota Momentum web site yet to commit your support and put the screws to the professional wind-bags in St. Paul? Or are you waiting to join the Los Angeles Momentum movement? The choice is yours.
I agree with this as a possibility, however I would also suggest an analysis of the fact that billionaires like to have billionaire hobbies. Down here in Rochester, there is a billionaire that recently opened a golf course designed by Lehman (Somerby in Byron) and spent a ton of cash on something he knew he wasn't going to make a lot of money on. There are not that many members there at all. When asked how he felt about taking a loss he said, "some billionaires like to have pro sports teams as a hobby, while I wanted to have my own golf course." Now I know that this doesn't remove the threats that you discussed, but we should consider the fact that 1. the Wilfs are striking it rich in other places 2. the Wilfs have stayed true to their word thus far 3. Billionaires need billionaire hobbies. Face it COD its like you going out and rigging up a new home theatre; that's pocket change to a drug dealer. Buying a pro sports team and paying extra every year is like a drop in the bucket for the Wilfs.
Posted by: ajj90 at April 12, 2006 06:40 AMWell I don't disagree billionaires like billionaire hobbies. Add up what the current owner group has spent, how many golf courses would that 3/4 billion get? I happen to agree with COD. Although I think they will let the lease run out before the move (LA could handle two teams). Once the lease is gone there is no guarentee from the NFL for another team in MN. Therefore no fight from the NFL to move. By then my cable company will offer the NFL ticket and I'll just watch the LA Vikings. Once purple always purple.
Posted by: Lonnie at April 12, 2006 07:35 AMajj90...you had me spewing my morning coffee! "...that's pocket change to a drug dealer". Classic! But remember, I am a licensed drug dealer...always have to qualify my drug dealer status. But you make a good point. One could look at the club as a toy for Zygi. Much like when I reach my male menopause state and begin looking at roadsters to drive around town with.
I just also think that there will be a time in which Zygi will stop pouring money down the drain and say, "enough is enough" and want to go where he can make a profit. And I also think the more Zygi loses each year will equate to a higher ticket price hike each following season. If Zygi makes money, perhaps those ticket price hikes and a bit easier to swallow....even for a licensed drug dealer.
Lonnie: NNOOOOOOOOOOOOOOOOOOO! Never utter LA Vikings! They already have the best NBA franchise which they stole from MPLS, I am NOT giving them the best NFL franchise as well.
Posted by: MrCheerOrDie at April 12, 2006 08:15 AMI'm still upset that Dallas took our (North)Stars.
Posted by: Peter at April 12, 2006 09:15 AMWe can't dismiss the fact that we might be a contender as the next LA franchise...as if it hasn't happened to a MN team before. Even though I would think that Buffalo heads the list of teams slotted for the sunny weather and debauchery that is L.A., we can't become complacent. The Bills owner is disgusted with the new CBA and has recently told Buffalo that the franchise cannot survive in Buffalo. I think it would be a good move for Buffalo. ;)
Long live Zygi! Hail, Mr. Deep Pockets! I too, would love to see him, and his ownership group, keep our beloved Vikings in MN for decades to come. I'm confident it will happen.
Posted by: Daren "The Hiking Viking" at April 12, 2006 02:30 PMI signed up for Minnesota Momentum, and sent emails to my House & Senate members. Urging them to, at the *least*, bring all three to the floor and record a vote. I did not keep my orignal message, but I did receive a reply from Senator Limmer -
~~~~~~~~~
Thank you for writing me regarding your concern about the new stadiums
issues for the Minnesota Twins and Vikings. Many people feel as you do
about professional sports stadiums.
Like many others in this state, I am a fan of Minnesota sports, and
appreciate what they mean to the people of this state. I enjoy baseball
games in the summer and football in the fall, and have always supported
the hometown teams.
However, given the current demands for tax dollars to support
transportation, education, and other priorities, it is difficult to make
a commitment to fund new stadiums for professional sports teams. When
it comes to funding stadiums, I am hesitant to tax the people of
Hennepin or Anoka Counties to pay for professional sporting facilities.
I am in favor of allowing the people to first decide this issue through
a referendum before further addressing this bill in the legislature.
Again, thank you for your email and for taking an interest in public
policy. Please feel free to contact me again if you have more state
issues or concerns.
Sincerely,
Warren Limmer
State Senator
~~~~~~~~~
I am preparing to send this reply to his reply - You are invited to critique and correct if I'm making any huge blunders:
Dear Senator;
I appreciate your response. We'll separate out the three competing interests. I assume with your specific reference to "professional sporting facilities" we can agree that the University Stadium proposal will be receiving an Aye from you.
I am a firm believer in putting government as close to the people as possible. As I understand it, the Twins proposal does not require any state tax support, but only a state legislative approval of an action taken by the elected representatives of the county charged with that responsibility. The citizens of Hennepin county elected these people, and can throw them out next time 'round. You've got no dog in that hunt, sir.
Your concern is about tax money, specifically state tax money, if I understand your job description correctly, so we'll take the Anoka County taxes, approved by the Anoka County elected officials responsible, out of the equation for the Viking Stadium proposal, Northern Lights, in Blaine. It should generate a few additional tax dollars given $1,000,000,000 in private investment, don't you think? An investment that likely will not be made if the state doesn't participate. Hotels, restaurants, a medical complex, and retail spaces generate a bunch of business - long term business. Short term boons, like the occasional Super Bowl, NCAA Final Four, Prep Bowl for high school football and possibly soccer, and a plethora of truck pulls, Moto-cross, conventions, shows and concerts will add some more to the coffers. The proposal calls for bonds to be repaid by revenue generated by the complex, does it not?
And here's the deal. You know as well as the rest of us do that you will not be not authorizing this money to support the stadium project because you are going to authorize it to be spent on the other projects you mentioned. Plus, this isn't a zero sum game with the bottom line already decided. Property taxes, sales taxes, income taxes... rental car taxes & fees, liquor taxes & fees, hotel taxes... How can they not add up to enough to pay back the state's investment? Then, since I'm not aware of any "sunset provisions" in any of the proposals, dedicate a portion of those revenues to those other worthy projects.
I ask you sir, to reconsider your position.
Regards,
~~~~~~~~~~~~~~
if this is a billionare hobby, why would Zygi not simply be able to have his hobby in LA too.
Only a person committed to Minnesota would lose money on a team just to keep it here (and Sid, Smilin Carl ain't one of 'em)
Zygi is a businessman. Although he has recently purchased a home in Minnesota, he really has no historic reasons to keep the team here, other than he gave his word and it is a shoter flight to New Jersey.
I think New Orleans is probably the number one candidate for LA. After Katrina, and Benson being Red's best friend anyway, he would seem the most likely candidate.
Posted by: J. Lichty at April 12, 2006 06:43 PMLichty,
Maybe I am buying in to some bull that Zygi is spewing but at this point I believe that he loves the history of the NFL. He has made it clear that he wants to restore the "glory years" of Bud Grant and the Purple People Eaters.
I believe that if he truly does love the history of the NFL, the Vikings have to stay in MN.
We all have to realize that yes he is taking a loss, but if you look at the big picture, he is not losing a lot in terms of his wealth. Like Glen Taylor and the Timberwolves, Glen considers breaking even a good year. This is a hobby, and an expensive one at that. Red McCombs was in it for the money, and if he was still the owner I would have feared the loss of the team. I have not seen any sign that would put Zygi in that same category (even though he has a very short resume with the team thus far).
Let's just build this stadium and get rid of this fear :)
Posted by: ajj90 at April 12, 2006 07:22 PMBeing from Kansas City, we have our own stadium issues and TWO state governments to deal with. Just for pretend, let us ignore the stadium part of this deal. Was there any state/county/city contribution for the Mall where old Metropolitan used to stand? How about any other projects with all the features and amenities that Northern Lights will have? I can't believe there is no precedent even if you have to go back to Southdale mall or the original stadium itself. Isn't there supposed to be more private money than public money involved, albeit not all for the stadium portion?
Posted by: Dave at April 14, 2006 01:08 AMDoesn't LA need a stadium too? Or at least a major stadium upgrade? I thought that's been a sticking point so far -- the mayor and other LA politicians won't commit to a new stadium or fixing up the Coliseum to get a new franchise (move or expansion).
Posted by: spycake at April 14, 2006 09:56 AM