Stadiums Have No Benefit To Their Cities. . .Just Ask Indianapolis

by Christopher Gates on Mar 5, 2011 10:38 PM CST in Minnesota Vikings Stadium

First, you get the stadium. Then, you get the Super Bowl. Then you get the money. THEN you get the women. Well, maybe not the women. (Photo by Jonathan Daniel/Getty Images)

As we all know, there are many people that are opposed to using "public money" to fund any portion of a new stadium for the Minnesota Vikings, saying that the benefits would not outweigh the costs of financing a stadium for billionaires and what not.

The NFL has all but said that if Minneapolis gets their act together and puts together a stadium deal for the Vikings, they'd be able to host at least one Super Bowl in the near future. Indianapolis, just a few years after constructing Lucas Oil Stadium, is scheduled to host next year's game. New York will be hosting one in the near future in their new mega-stadium, and word is that once Kansas City figures out a way to cover Arrowhead Stadium, they'll get one as well.

But Indianapolis is the one I want to focus on for a bit. Why? Well, there was a story on ESPN yesterday about how much Indianapolis. . .not the Colts, but the city of Indianapolis. . .would stand to lose if there was a lockout that caused the next Super Bowl to be canceled. The numbers are rather large.

Some estimate the windfall from the city's first Super Bowl, scheduled for Feb. 5, could reach upward of $400 million. If the game is canceled, Ball State professor Michael Hicks believes the city would lose $200 million.

If a Super Bowl in the city of Indianapolis could potentially generate $400 million, a Super Bowl for the city of Minneapolis would probably be able to generate even more. (I don't mean that as a shot at Indianapolis or anything. . .but the population of the Minneapolis metro area is nearly twice that of Indy's, and I believe that taxes in Minnesota are higher than those in Indiana, although I could be wrong on that).

I'm not sure how many folks in positions of power in Minneapolis, Hennepin County, Ramsey County, Arden Hills, and points beyond saw that article on ESPN, but hopefully it opened a few eyes. In economic times like these, $400 million. . .or more. . .certainly isn't anything to sneeze at.

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Indy would be the exception not the norm

New York doesn’t need the Super Bowl to make their stadium profitable and KC will not be getting a Super Bowl since the referendum to put the roof on was voted down by the people during that particular election. If the power structure here looks at what is going on in Indy and thinks that is the norm they are sadly mistaken. They’ve done some remarkable things there (beginning with poaching events from other cities) but you are talking years to emulate something like that.

by stram#1 on Mar 5, 2011 11:51 PM CST reply actions

I'm not even necessarily

Talking about making the stadium profitable. A Vikings stadium is going to be profitable, in the end, regardless of whether Minneapolis gets a Super Bowl or not. I’m talking about money that would be generated for the city of Minneapolis itself and numerous businesses.

I don’t know anything about the events they poached from other cities. . .all I know for sure is that, in addition to the Super Bowl in 2012, Lucas Oil Stadium is also going to be hosting the first ever Big Ten Championship Game next season, the men’s NCAA Final Four in 2015, and the women’s NCAA Final Four in 2016. All of those are going to be huge for the city of Indianapolis.

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by Christopher Gates on Mar 6, 2011 12:10 AM CST up reply actions

Which is exactly why the Vikings need to build an indoor stadium.

The stadium needs to be multi-functional so it can host many events, and generate as much taxable revenue as possible….IMO, :)

by chaosg on Mar 6, 2011 2:21 AM CST up reply actions

Then the city/state should fit the bill

for the ROOF, at least. There’s no reason the Vikings should have to pay for a roof they don’t need. You want multi-purpose (which will REDUCE football revenue, on average) then the public money should make up that difference.

by Shawn Gillogly on Mar 6, 2011 10:20 PM CST up reply actions

Now that is not a fair comparison

I’m buying the Super Bowl argument, but …

The NCAA will always favor Indianapolis for events since it is based there. And Minneapolis will have a hard time competing for a B1G championship as it lies on the outskirts of the conference and Indy is smack dab in the middle of it.

by agwbl on Mar 7, 2011 9:27 AM CST up reply actions

Really, the Dome hosted a Final Four

in its heyday. And was a regular for regional finals. So this simply isn’t backed up by historical fact.

But again, if the city/state wants a roof, THEY should pay for the roof. It’s not necessary for football.

by Shawn Gillogly on Mar 7, 2011 10:30 AM CST up reply actions

chris..

just to help your number figuring, Indiana’s sales tax is 7% on everything, although in the county where Indianapolis is located, there is a 2% hospitality tax that is used to help pay for lucas oil stadium. i’m not sure exactly how much the tax generates, but apparently, it was enough to build a stadium, and improve the convention center.
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by indianavikesfan on Mar 6, 2011 6:55 AM CST reply actions

And that's just a single Super Bowl

Don’t forget that the Big Ten now has a conference championship game, which Indy is hosting in 2011. I would think Minneapolis would be a player for that if the B1G decides to rotate that game at different venues around the conference footprint. I’ve seen figures of $100 to $200 million for a city if they host that game.

Add to that final fours or regionals, and yeah, the amount of revenue generated will pretty much pay for the stadium in a relatively shorter period of time.

You guys know I’m not a fan of a covered facility, but if that is what it takes to get it done, I’m 100% for it.

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by Ted Glover on Mar 6, 2011 10:11 AM CST reply actions