Friday roundup: Islanders close to Nassau deal, Olympic stadium to be razed after four uses, and it’s rethink your MLS stadium site week!

And in other stadium and arena news this week:

Have a great weekend, and see you Monday!

Falcons make more money by lowering food prices, also make less money by lowering food prices

I have griped here about the New York Times’ Ken Belson on so many occasions, usually right after he’s written a long article drawing sweeping conclusions that aren’t actually quite justified by the facts of what he’s describing. Today, Belson is back with a report on concessions prices at the new Atlanta Falcons stadium, and let’s see if he has improved any:

In Atlanta, Concessions Prices Go Down and Revenue Goes Up

Wow, that would be an impressive feat! How did they manage this?

Despite a 50 percent decrease in prices for food and nonalcoholic drinks compared to prices in the Georgia Dome, the amount spent per fan increased by 16 percent, Blank’s sports company, AMB Sports and Entertainment, said on Thursday.

The results suggest that fans will consume more if prices are kept at more reasonable levels, with potentially no effects on the team’s bottom line.

That … is not how math works. Even if fans spend more overall on cheaper food, actual team revenue from concessions depends on what’s left over after you pay for all that additional food — so if you bring in 16% more in cash but spend, say, 30% more on buying frozen hot dogs, that’s not “no effects on the team’s bottom line.” So how did this gambit actually work out in terms of net revenue?

Belson doesn’t actually say, but fortunately Bloomberg has the full story:

[Fans] bought more food — sales were up 53 percent — and each fan spent, on average, 16 percent more on concessions. It wasn’t enough to offset the drop in prices, though. The team made less on concessions in 2017 than it did the year before, according Steve Cannon, chief executive officer of AMB Group, the company through which Blank owns the team.

Okay, then! So Belson’s article really should have been headlined “Falcons Cut Food Prices by Half, But Make It Up in Volume.’

To be fair: Belson doesn’t explicitly say that the Falcons are profiting on the food price cuts (though he implies that they could), and even the headline could mean “gross revenue goes up” and not “net revenue (i.e., profit) goes up,” though that’s not how normal humans tend to read that word. Still, it’s all very misleading, especially when Bloomberg shows how to get it right.

Why is this all important, aside from getting to poke fun at the Paper of Record yet again? Because the true numbers hint at the reason why concession prices — and ticket prices, and everything prices — at sporting events are so crazy high: Yes, you can make more fans happy by setting prices lower, but in the early 21st-century economy, you make more money by selling fewer seats/pulled pork sandwiches to fewer people than by selling more of them to more people.

Props to the Falcons management for not choosing to do it that way — given Cannon’s quote to Bloomberg that “sure, we could shake out a few more dollars of margin under the old model, but we believe that the direction we’ve taken, given all the other positive benefits, is the bigger revenue play, period,” it sounds like they figure this is a necessary loss leader to keep people interested in live football, especially with fans increasingly choosing to watch on TV or not at all. Or maybe they figure fans will spend more willingly on pricey tickets this way, as I predicted when they announced the food pricing scheme back in 2016. Either way, it’s a move that’s worth not oversimplifying if we want to understand how sports teams try to extract maximum dollars from our pockets, and that’s what we’re here to do every day, right?

Megatron’s Butthole is leaking

And speaking of unfortunate headlines, here’s one from yesterday’s Kansas City Star atop an AP story ahead of last night’s College Football Playoff title game at the Atlanta Falcons‘ new stadium:

High-tech Atlanta stadium a hit with fans after early woes

Mercedes-Benz Stadium is about to be on perhaps its largest national stage — Monday night’s College Football Playoff title game — and fans say Atlanta’s new $1.5 billion facility is living up to the hype despite a series of construction setbacks that delayed its opening…

So far, the stadium is winning attendees over despite its signature feature, the retractable roof, being opened a couple times during events since the opening in August. The roof, which opens and closes like a camera lens, is one of the many attractions of the stadium including the massive 360-degree, 63,000-square-foot halo video board and cheap food pricing.

So those construction delays and malfunctioning retractable roof are all a thing of the past, and everything works great now! Except maybe you might have wanted to wait for the game actually to be played before writing that headline:

The roof of Atlanta’s $1.6 billion stadium is leaking at the CFP title game
With rain hitting Atlanta on Monday, reporters at the College Football Playoff national title game noticed a stream of water pouring in from the Mercedes-Benz Stadium roof.

And:

Fans frustrated after long waits to get into Mercedes-Benz Stadium

The lines were constant, no matter how early fans arrived. By 5:30 p.m., nearly three hours before game time, the wait to get into the stadium was running about an hour.

And worst of all:

President Donald Trump arrived in Atlanta on Monday night to attend the National Championship Game between Alabama and Georgia.

Okay, so Trump’s presence can’t actually be blamed on the new stadium, except inasmuch as that if Atlanta hadn’t gone and helped build it, they probably wouldn’t have gotten to host the CFP championship game and then would have been spared the president’s presence. (Is this what economists call an externality?) The leaky roof is a bigger problem, and it really might be time to ask whether spending hundreds of millions of dollars on a cool-looking retractable roof is worth it when it doesn’t retract and also doesn’t really work as a roof. Though I guess it did earn the stadium an awesome nickname, and what price can you put on that?

Georgia Dome torn down at age 25, because that’s how we 21st-century Americans roll

The Georgia Dome got blowed up real good this morning, and let’s take a moment to watch that now:

If you’re thinking, “Man, future generations are going to wonder why we expended an enormous carbon footprint to build giant buildings just to knock them down again,” you’ll be pleased to know that the Georgia Dome’s entire existence on Earth was just slightly over 25 years, meaning it didn’t even live as long as all those rock stars who died young.

Which brings up the question: Where does the Georgia Dome fall on the all-time list of sports venues that were demolished while their paint was still dry? My first thought was the Miami Arena, since the Heat moved out after just 11 years, but it hung around hosting arena football and minor-league hockey until 2008, when it was put down at age 20. Another building from the late ’80s NBA expansion class managed to beat it out for planned obsolescence: The Charlotte Coliseum opened in August 1988 and was torn down in June 2007 (here’s its snuff video), which makes it the only sports venue I can think of that didn’t even make it out of its teens.

The commonality among all these buildings is … not much. They were all erected in the late ’80s and early ’90s, and the basketball teams griped that their arenas didn’t have enough in the way of luxury suites — but Georgia Dome had plenty of premium seating. If anything, the common thread is that team owners thought they could get away with demanding new buildings, and did. As sports economist Rod Fort told me shortly after Miami abandoned its old arena at age 11, “I don’t see anything wrong, from an owner’s perspective, with the idea of a new stadium every year.” He may yet live to see it happen.

Handicapping Deadspin’s “Worst Stadium Scam” Vote

Deadspin is holding its second annual Deadspin Awards, and among the categories, you will be excited to know, is Worst Stadium Scam. And it’s set to be a tight race, with these candidates, not all of which are technically from 2017, but let’s not nitpick:

  • The Raiders robbing Las Vegas
  • The Flames trying to rob Calgary
  • The Falcons robbing Atlanta
  • The Louisville Cardinals robbing Louisville
  • FC Cincinnati robbing Cincinnati
  • The Pistons and Red Wings robbing Detroit

Even though these seem mostly selected by which stories were covered by Deadspin in the last year (Nashville SC robbing Nashville didn’t make the cut, nor did the Cavaliers robbing Cleveland), that’s a pretty solid selection. The Raiders and Falcons stand out for the scale of the subsidies — the Raiders will get $750 million in state cash while paying zero rent, while the Falcons will end up getting almost that much over time — and the Falcons have the bonus scamminess of hiding $400 million of their payday in a “waterfall fund” that will keep paying out long after the stadium’s opening. The Flames and FC Cincinnati haven’t been successful in their shakedowns yet, but are notable for trying (and failing) to get a more team-friendly mayor elected in the former case, and for demanding subsidies on the grounds that their owner has never asked for them before so he’s due in the latter. The Red Wings and Pistons are getting about $350 million in public money from a bankrupt city (or from a state that is otherwise starving a bankrupt city, at least), while the Louisville basketball arena deal is just a nightmare without an end.

I’m not going to reveal how I voted, except to say that it was a tough decision, and I won’t be unhappy at all if one of my second choices takes home the prize. Go cast your ballot now, and give extortionate corporate behavior and terrible public policy the shiny trophy it so desperately deserves.

Friday roundup: Atlanta Falcons’ non-retracting retractable roof now can’t even keep rain out

Crazed billionaires are shutting down our nation’s news media when employees try to assert their rights, so let’s enjoy journalism while we still have it with another week in news briefs:

  • The Saskatchewan Roughriders‘ old stadium got blowed up real good.
  • The developers who want to build a $15 million modular stadium for the NASL team San Diego 1904 F.C. haven’t actually filed a development plan yet with the city of Oceanside.
  • The Atlanta Falcons‘ non-retracting retractable roof has already sprung a leak.
  • Asked by the New York Post about the New York Islanders‘ bid to build a new arena on state land near Belmont Park, team owner Jonathan Ledecky replied, ““I think we’re circling the airport, just waiting to be given a landing clue,” which doesn’t actually mean anything at all that I can tell, but it sure is an evocative image. Then he pointed to the team’s new $7 million practice facility on Long Island, with a “world-class chef” for players, as “emblematic of what we can do if we were granted the right [to build] at Belmont.”
  • Sacramento city officials want to use the Kings‘ old arena, now vacant after Sacramento built the team a new arena, as a temporary convention center while the city conducts a $125 million renovation of its regular convention center. The arena is an arena, not a convention center, and it’s still owned by the Kings owners, not the city, and I’m sure this is all going to go just swimmingly, no need to be concerned at all.

Friday roundup: New soccer stadiums, yet another Vegas arena, Falcons roof still not done

Happy fifth anniversary of Hurricane Sandy, everybody! While you get ready to go to your anniversary parties and dress up as, um, hurricanes, and you know what, this riff isn’t going anywhere, let’s get to the news:

  • Had you forgotten about former UNLV basketball star Jackie Robinson’s $1.4 billion retractable-roofed-arena-plus-hotel-plus-other-stuff project just because Las Vegas already has one new arena, he hasn’t — and now says it’s a $2.7 billion project that will include a 63-story hotel, a conference center, a 24-lane bowling alley, and a wedding chapel. No construction has begun yet, but Robinson says it will all be completed by 2020, or else maybe by then it will cost $5.2 billion and include a space elevator.
  • Chris Hansen is trying a new gambit to turn attention away from Oak View Group’s KeyArena renovation plan and toward his SoDo new-arena plan, and it involves declaring the OVG plan a “public” and not a “private” process, which would require a longer environmental review process, and if your eyes are glazing over already I don’t blame you, skip to the next item, it’s got juicy if unproven allegations of political corruption in it.
  • New York Mets owner Fred Wilpon has given Gov. Andrew Cuomo’s 2017 re-election campaign a $65,000 donation that’s twice as large as all other donations he’s previously given the governor combined, and with Wilpon in the midst of looking to get approval from the state for a new soccer stadium Islanders arena (sorry, had a brain fart on this one while typing) next to Belmont Park racetrack … well, you connect the dots. (Or don’t: An Empire State Development spokesperson snapped, “Participation in the political process has zero bearing on any of this and any of these ‘sources’ with questions are free to contact us instead of trafficking in conspiracy theories.”) Bigger question: Fred Wilpon has $65,000 to spare?
  • The Atlanta Falcons‘ retractable roof is now set to finally work by March 2018. Probably.
  • Nashville held a hearing on its proposed $75 million soccer stadium subsidy deal, and if you guessed that a self-proclaimed soccer mom said it would be a “feather in our cap” while a non-soccer-fan local resident said “you’re asking me to help fund a quarter-of-a-billion-dollar project for another sports team that most likely will not benefit me,” then you’re right on the money.
  • The prospective NASL team San Diego 1904 F.C. is planning a stadium that will cost only $15 million because it will be built modularly elsewhere and shipped to the stadium site in Oceanside, but at least they didn’t skimp on the searchlight renderings.
  • The chair of Rhode Island’s senate finance committee says he’ll put a halt to the Pawtucket Red Sox‘ $38 million stadium subsidy request if the team owners don’t provide more financial information. It sounds like this is over the team’s internal finances, and could be resolved with a non-disclosure agreement, but still, it’s something to keep an eye on, since projects have succeeded or fallen over pettier things.
  • Louisville approved $30 million in bonds to help pay for a new Louisville City F.C. soccer stadium, in exchange for which the team will repay $14.5 million over 10 years, which comes to about $11 million in present value, so the city will only lose $19 million on the deal, unless there’s still plans for as much as $35 million in state property-tax kickbacks via a TIF, in which case this is really a $54 million subsidy for a minor-league soccer stadium. Maybe they should go with one of those modular dealies instead? Just a thought.

Friday roundup: Tampa official stonewalls, Falcons get sued, Amazon is the new Olympics

Okay, let’s do this thing:

Friday roundup: A’s pollution woes, Falcons roof woes, Hansen email woes, and more!

Whole lot of news leftovers this week, so let’s get right to it:

  • It’s not certain yet how serious the environmental cleanup issues at the Oakland A’s proposed Peralta Community College stadium site are, but anytime you have the phrases “the amount of hazardous materials in the ground is unclear” and “two possible groundwater plumes impacted by carcinogens” in one article, that’s not a good sign. Meanwhile, local residents are concerned about gentrification and traffic and all the other things that local residents would be concerned about.
  • There’s another new poll in Calgary, and this time it’s Naheed Nenshi who’s leading Bill Smith by double digits, instead of the other way around. This poll’s methodology is even dodgier than the last one — it was of people who signed up for an online survey — so pretty much all we can say definitely at this point is no one knows. Though it does seem pretty clear from yet another poll that whoever Calgarians are voting for on Monday, it won’t be because of their position on a Flames arena.
  • The Atlanta Falcons‘ retractable roof won’t be retracting this season, and may even not be ready for the start of next season. These things are hard, man.
  • Nevada is preparing to sell $200 million in bonds (to be repaid by a state gas tax) to fund highway improvements for the new Las Vegas Raiders stadium, though Gov. Brian Sandoval says the state would have to make the improvements anyway. Eventually. But then he said, “I just don’t want us to do work that has to be undone,” so your guess is as good as mine here.
  • Pawtucket is preparing to scrape off future increases in property tax receipts for a 60- to 70-acre swath of downtown and hand them over to the Pawtucket Red Sox for a new stadium, an amount they expect to total at least $890,000 a year. Because downtown Pawtucket would never grow without a new baseball stadium, and there’s no chance of a shortfall that would cause Pawtucket to dip into its general fund, and nobody should think too hard about whether if minor-league baseball stadiums are really so great for development, this wouldn’t mean that property tax revenues should be expected to fall in the part of the city that the PawSox would be abandoning. Really, it’ll all be cool, man, you’ll see.
  • Somebody asked Tim Leiweke what he thinks of building a new stadium for the Tampa Bay Rays for some reason, and given that he’s a guy that is in the business of building new stadiums, it’s unsurprising that he thinks it’s a great idea. Though I am somewhat surprised that he employed the phrase “Every snowbird in Canada will want to watch the Toronto Blue Jays when they come and play,” given that having to depend on fans of road teams to fill the seats is already kind of a problem.
  • The study showing that spending $30 million in city money on a $30-million-or-so Louisville City F.C. stadium would pay off for the city turns out to have been funded by the soccer team, and city councilmembers are not happy. “There’s something there that someone doesn’t want us to find,” said councilmember Kevin Kramer. “I just don’t know what it is.” And College of the Holy Cross economics professor Victor Matheson chimed in, “I expect for-profit sports team owners to generate absurdly high economic estimate numbers in order to con gullible city council members into granting subsidies.” I don’t know where you could possibly be getting that idea, Victor!
  • Congress is considering a bill to eliminate the use of federally tax-exempt bonds for sports facilities, and … oh, wait, it’s the same bill that Cory Booker and James Lankford introduced back in June, and which hasn’t gotten a committee hearing yet in either the House or the Senate. It has four sponsors in the House, though, and two in the Senate, so only 263 more votes to go!
  • A Miami-Dade judge has dismissed a lawsuit charging that the sale of public land to David Beckham’s MLS franchise illegally evaded competitive bidding laws, then immediately suggested that the case will really be decided on appeal: “I found this to be an extremely challenging decision. Brighter minds than me will tell me whether I was right or wrong.” MLS maybe should be having backup plans for a different expansion franchise starting next season, just a thought.
  • The New York Times real estate section is doing what it does best, declaring the new Milwaukee Bucks arena to be “a pivotal point for a city that has struggled with a decline in industrial activity,” because cranes, dammit, okay? Maybe somebody should have called over to the Times sports section to fact-check this?
  • And last but not least, Chris Hansen is now saying that his SoDo arena plan missed a chance at reconsideration by the Seattle city council because the council’s emails requesting additional information got caught in his spam filter or something. If that’s not a sign that it’s time to knock off for the weekend, I don’t know what is.

This week in boondoggle vivisection: Plenty of good seats available in SF, Cleveland, Ottawa

We’ll get to the weekly news roundup in a minute, but first, I need to mention this editorial from yesterday’s Globe and Mail, which makes several eminently reasonable points about how Calgary shouldn’t capitulate to the Flames owners’ extortion attempts for arena cash (“using past bad decisions to justify terrible future decisions does not qualify as logic,” “arena financing is a hamster wheel, and here is an opportunity to jump off”), and then says this:

Everyone involved should take note of a remark this week by Neil deMause, renowned stadium boondoggle vivisectionist and creator of the fieldofschemes.com website: “The number of mayors who’ve been voted out of office for standing up to sports team subsidy demands remains zero.”

That’s right, I am a major-newspaper-certified renowned boondoggle vivisectionist, y’all. Clearly it’s time to order some new business cards.

Okay, the rest of the week’s news:

  • The Los Angeles Rams aren’t the only California team having trouble getting fans to turn out for games in the September heat: The San Francisco 49ers are seeing so many empty seats on the sunny side of their stadium that they’ve hired architects to see if it’d be possible to add a sun shade. One problem: The stadium can’t get any taller, as it’s in the flight path of San Jose’s airport. Until then, the 49ers are handing out free water bottles and sunscreen to fans on the hot side of the stadium, which is nice and all, but probably isn’t what you want for your big marketing push. This once again points up how smart the 49ers management was to stick fans with PSLs before the team got lousy and people noticed how crappy the new stadium was for actually watching football in.
  • And speaking of empty seats, the Cleveland Indians won their American League–record 22nd straight game yesterday, but they still can’t sell out their ballpark, which not that long ago saw a record sellout streak of 455 straight games. Indians GM Mike Chernoff blamed Cleveland’s small size, the start of the school year, and “weekdays,” three things that apparently didn’t exist in the ’90s. At least he didn’t blame the 23-year-old stadium or demand upgrades as a solution — yet, anyway.
  • And also speaking of empty seats, the Ottawa Senators have begun tarping over part of their upper deck for every game, because they can’t sell tickets there. The Senators owner is already blaming his 21-year-old arena for that one (apparently the last owner built it in the wrong place), so team president Tom Anselmi was left to say: “We just need more of us to come to more games more often.” Can’t argue with that!
  • And also also speaking of empty seats, the 2018 Pyeongchang Winter Olympics have only sold about 5% of available tickets so far to actual fans (ticket brokers have bought up another 18%), with less than five months to go before the games start. If you’re looking to snap up a bargain to watch curling, though, be forewarned: Not all the new hotels planned for the Olympics are finished yet.
  • And speaking of seats that a team hopes won’t be empty, the Oakland A’s will be letting in fans for free to a game next April against the White Sox. Make jokes all you want about how dismal an A’s-White Sox matchup will be, it’s still free baseball, and you never know what you might see that you’ve never seen before.
  • NHL commissioner Gary Bettman declared that that the scaled-down Nassau Coliseum is “not a viable option” for the New York Islanders, two weeks before the team is set to present plans to Nassau County for a new arena near Belmont Park. A total coincidence, I’m sure.
  • The Rhode Island state senate started hearings on a new Pawtucket Red Sox proposal yesterday, with the team owners and their allies noting that “the team’s 54-percent share of stadium costs is the highest portion of private investment in 14 AA and AAA ballparks built over the last decade,” according to the Providence Journal. What was that someone was just saying about using bad decisions to justify terrible future decisions?
  • Deadspin’s Drew Magary has come up with a new nickname for the Atlanta Falcons‘ new iris-roofed stadium: Megatron’s Butthole. Drew Magary needs to be put in charge of all stadium nicknames, starting immediately.