Not to be left out in all the California stadium excitement, the owners of the Jacksonville Jaguars are levying some threats of their own, saying that if the Florida state legislature doesn’t approve $30 million in renovation subsidies over the next 30 years, they just won’t renovate at all! Yeah! That’ll show ’em!
As Noah Pransky of Shadow of the Stadium pointed out on Friday, though, this is a pretty stupid threat:
The Jaguars’ own subsidy application claims the $18 million club upgrade would net the team an additional $2.3 million per year (plus the naming rights).
So, assuming Khan has no trouble financing a construction loan, the Jags could conceivably just pay for the profitable club renovations themselves now and make their investment back in 10-15 years. The state, however, would need about 200 years to recoup its investment based on its 6% sales tax cut of that “new” revenue.
So: A football team is considering a renovation plan that would both pay for itself and turn a small profit, but decided to ask the state to pay for instead, because then it would turn a large profit. And if the state doesn’t agree to it, the team owner will refuse to go ahead with the renovation, costing the state next to nothing but himself a good bit more. I wonder if he also has a gub.