Friday roundup: Terrible concerts, new Yankees garage costs, and why Phoenix’s ex-mayor is glad he didn’t build a Cardinals stadium

Welcome to the first-ever weekly stadium news roundup to kick off with a review of a terrible Ed Sheeran concert:

  • The Minnesota Vikings‘ $1 billion stadium still sounds like crap for concerts, reports the Minneapolis Star Tribune in its review of an Ed Sheeran show last Saturday: “Anytime Sheeran slapped out a beatnik-funky drum beat on his guitar and put it on repeat, such as ‘New Man’ or the pre-encore finale ‘Sing,’ it sounded hopelessly mucky and un-funky, sort of like a kitchen-sink garbage disposal trying to clear out gallons of half-dried concrete.” Time for Zygi Wilf to demand a new one yet? Only 28 years to go on their lease!
  • Speaking of concerts, CBC News has a chart of top touring acts that have skipped Saskatoon while playing in other cities in recent years — ostensibly because Saskatoon’s arena is too old (30 years! even older than Ed Sheeran!) and too far out of the center of town and has too antiquated a rigging system — but mostly it’s a reminder of how many arena acts are on their last legs: Paul McCartney and Barbra Streisand and Black Sabbath all played other Canadian cities but not Saskatoon? How will the city ever prepare for the future! (Also, Saskatoon’s bigger problem might just be that it’s Canada’s 19th-largest city — I bet Paul and Barbra didn’t play Lubbock, Texas, either, which is about the same population.)
  • The Miami Dolphins stadium’s revenues were up 39.7% last year, and expenses were only up 31%, so guess owner Stephen Ross’s $350 million renovation is paying off (though a large chunk of that was actually paid for by Miami-Dade County and by the NFL). It makes it all the more puzzling why the county handed over additional subsidies last summer that could be worth as much as $57.5 million, but actually, since the stadium renovations were already done and paid for by then, it would be puzzling even if Ross were losing money on the thing. Florida, man.
  • Here’s a fun Guardian article on what makes a good soccer stadium. Not sure there’s one takeaway other than “Design them to be good places to watch the match with seats close to the action, and try to make them fit into their immediate surroundings,” but that’s more than most U.S. stadium designers do, anyway.
  • Cleveland Cavaliers owner Dan Gilbert and Detroit Pistons owner Tom Gores still want an MLS expansion team in Detroit, and while they’ve determined that removing the Lions stadium’s fixed roof and building a retractable one like MLS asked would be prohibitively expensive, they have offered to spend $95 million on a training field and other soccer fields throughout the city, though Crain’s Detroit notes that it’s “unclear” if that spending “would use any public funding.” If it would, this will be an interesting test in how badly MLS wants its teams to play in soccer-friendly outdoor stadiums, and how much it just wants new owners who’ve shown they can extract cash from their local municipalities.
  • Hey, check it out, it’s an NPR report on how Worcester, Massachusetts has been undergoing a boom in development and influx of new residents thanks to its cheap rents compared to nearby Boston, to the point where some locals are worried that they’ll be priced out. Is it too late for Worcester to take back that $100 million it’s spending on a Red Sox Triple-A stadium that was supposed to be needed to put the city on the map?
  • Who says that new stadiums don’t transform the areas around them? Why, the SkinnyFats restaurant near the new Las Vegas Raiders stadium just added a new craft beer tap room! That’s gotta be worth $750 million.
  • The deal for the new New York Yankees stadium included new parking lots that were mostly to be paid for by a nonprofit shell corporation that was to own them and collect parking revenues, but now that it turns out nobody wants to pay $45 to park for Yankees games when there are plenty of cheaper parking options plus multiple subway and commuter rail lines nearby, the company is $100 million in default on rent and taxes to the city, with no real hopes of ever paying it back. I should probably add this to the “city costs” section of my Yankee Stadium subsidy spreadsheet, but I don’t have time this morning, so just mentally note that city taxpayers have now put up almost $800 million toward a stadium that was sold as involving “no public subsidies,” with state and federal subsidies putting the total taxpayer bill at nearly $1.3 billion.
  • Former Phoenix mayor Skip Rimsza says one of his proudest accomplishments is not building a downtown stadium for the Arizona Cardinals, since instead the city got to use the land to build a biomedical campus that provides way more jobs and economic activity than a football stadium. Opportunity cost in action! I’d love to write an article on all the things that cities didn’t get to build because they focused on erecting new sports facilities, but sadly my Einstein-Rosen Bridge portal is on the fritz.

Minnesota made a squillion dollars from Super Bowl LII, say people paid to say such things

If you were running a business, how would you figure out how much money you made at the end of the year? You could do an estimate of how many customers entered your store each day, estimate how much you think they spent on average, subtract a theoretical number for your costs per item sold, and call that your best guess. Or you could, you know, actually look at how much cash you have at the end of each day, and count.

The latter method is how economists prefer to calculate the impact of sporting events: Add up the tax revenues during the big game or games, and compare it to tax revenues during a normal month. If you’re an economic impact consultant who’s paid more to come up with big numbers than accurate numbers, though, it’s often better to use the former method, since there’s a lot more wiggle room for truthiness.

Which brings us to yesterday’s headlines that hosting Super Bowl LII brought in $370 million in new economic activity for the state of Minnesota:

That was the net new spending from the 10-day event Jan. 26-Feb. 4, according to an economic impact report released Tuesday by Gov. Mark Dayton.

The results, which are in dispute, came in $50 million over pre-event projections by Rockport Analytics made years in advance. Rockport, based in Pennsylvania, also wrote the final report.

If you’ve been reading this site for a while, you’ve probably already spotted the first problem, which is that this is economic activity, not economic benefits. So part of that money includes $179 million in spending by the NFL’s broadcast partners, much of which likely went directly into the pockets of the NFL, never actually touching the Minnesota economy. As far as actual tax revenue goes, the report estimated $32 million in new receipts.

That number, though, was goosed by including increased property tax receipts, I guess on the grounds that hotels are worth more when they can sell Super Bowl stays once every couple of decades?

And then we have our old friend the substitution effect, where one has to account for any money that would have been spent locally anyway, either because it was spent by locals who’d be in town regardless, or because Super Bowl tourists displaced other tourists (and locals) who steered clear of town because they didn’t want the hassle of dealing with football fans. The study trimmed about 18% from its projected economic activity for substitution, a number that it arrived at thusly:

“The average visitor spent $608 per person per day,” said Ken McGill with Rockport Analytics, a consulting company that looks at the economics of big events and wrote the report on the 2018 Super Bowl. “We interviewed, and we literally intercepted visitors … and asked them where they were from, what they were spending in certain categories and whether they’d come back.”

This, needless to say, is not rigorous science, since people are terrible reporters of their own spending activities. And, on top of that, Rockport wasn’t able to intercept anyone who would have been in town if not for the Super Bowl, since they were off doing something else.

Fortunately, Minneapolis’s chief financial officer is calculating the actual changes to city tax revenues during the Super Bowl, and will present those numbers to the city council in June. While we wait, maybe we can pass the time by seeing how things went the last time tax officials fact-checked an economic consultants’ claims:

Minneapolis All-Star Game impact overstated by 27-72%, says state revenue department

Ah, well. We’ll always have the excited headlines.

Friday roundup: Warriors rail stop turns pricey, West End stadium undead again, Montreal mayor meets with would-be Expos owners

Superbrief mode today:

  • Expanding light-rail service to the Golden State Warriors‘ new arena is now expected to cost at least $62 million, which is a lot for Muni Metro, though not for some other transit systems. The Warriors owners are kicking in $19 million, but the rest will be funded by tax money from the arena district, which may or may not be enough to cover the entire nut. Tim Redmond saw this coming.
  • F.C. Cincinnati owners are officially pivoting back to the West End stadium site that it had declared dead last month after not getting offered enough property-tax breaks on the land. How come? Team CEO Jeff Berding said of the other two options, Oakley is “not as close to the urban core as desired,” and the team couldn’t secure land in Newport, Kentucky. Sounds like the West End has the club over somewhat of a barrel, which it should be able to use to ensure the team pays full property taxes, at least, though some residents may be more concerned about keeping out a stadium entirely over fears it will further gentrify their neighborhood.
  • The mayor of Montreal is meeting today with an ownership group that wants to bring a new Expos MLB team back to town. “We don’t need a cent from the city of Montreal, but we need a little help,” prospective co-owner Stephen Bronfman said earlier this week; your guess is as good as mine what that actually means.
  • Minnesota taxpayers have spent $1.4 billion on new or renovated sports venues over the past 20 years, if anyone is counting.
  • The Pawtucket Red Sox‘ stadium demands continue to be stalled, if anyone is keeping track.
  • “A deputy in one of Russia’s 2018 FIFA World Cup host cities has claimed that a latest inspection by the world’s footballing body has neglected a missing column at a newly built stadium.” You’ve just got to read the whole Moscow Times article now, don’t you?

 

Study shows Super Bowl only sells 22% as many hotel rooms as NFL claims

If you want a good concrete example of how Super Bowl economic-benefit claims are bunk, just keep in mind this paragraph from a Sunday New York Times article on the subject:

In a forthcoming paper, [Berry College economist Frank] Stephenson examines the 2012 Indianapolis Super Bowl, which generated 224,000 hotel stays, according to its economic impact report. Indianapolis serves as an apt comparison to Minneapolis since it is a cold-weather city in the Midwest. Actually, in the week leading up to the Super Bowl and the three days afterward, Indianapolis hotels rented an additional 49,000 rooms compared with what would be expected, less than a quarter of the estimate.

That is a large discrepancy! We’ll have to wait for Berry’s full paper to get into the nitty-gritty of where all those Super Bowl visitors are staying, but it certainly helps explain why other economists like Holy Cross’s Victor Matheson have found the economic impact of the game to be less than a quarter what the NFL and host cities claim.

Stephenson goes on to note that there’s likely a ton of leakage of that money from the local economy, since fans “don’t give it to the housekeeper or bellboy or front-desk person; a lot of it just flows to whoever owns the hotel” — or as Matheson once put it, “Imagine an airplane landing at an airport and everyone gets out and gives each other a million bucks, then gets back on the plane. That’s $200 million in economic activity, but it’s not any benefit to the local economy.”

Meanwhile, the city of Minneapolis is spending $50 million on hosting the game (on top of the billion dollars or so it put into the Vikings‘ new stadium that’s hosting it), though it says it’s raised it from corporate donors. I think I’ll wait to see what the actual numbers look like after the fact, though — it’s becoming increasingly clear that when it comes to the Super Bowl, you want to check the final bill, not the initial estimates.

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!

Investigation continues into bird death toll of serial bird-killing Vikings stadium

If you like “When did you stop beating your wife?” stories, you’ll love how things are playing out in Minnesota, where the debate is now raging over exactly how many birds the Vikings stadium is killing each year:

  • The original report found 60 dead birds in a two-month period last summer and fall, which would amount to 360 dead birds a year. But! That was during peak migration season, so maybe it’s fewer dead birds than that. But also! That figure does not include “birds removed by maintenance staff, security guards, and scavengers,” or birds buy ativan spain that are stunned only to fly away and die later, so maybe it’s more dead birds than that.
  • The Vikings have issued a statement saying that the report isn’t fair, because “it is not possible to make this conclusion based on intermittent monitoring with no direct comparisons for the same time period at other buildings.” Sure, our building kills birds, but maybe other buildings kill even more birds. ARREST THE REAL BIRD-KILLERS!

More dead bird news as it becomes available, hopefully after someone completes a poll of area cats to ask their annual bird consumption.

Vikings stadium is killing 500 birds a year and has no intention of stopping

When the Minnesota Vikings‘ new stadium was under construction, there were concerns that its giant glass windows would lure unsuspecting birds to their deaths. So now that the place is open, has the bird carnage been realized? You betcha!

Over the course of the monitoring period, volunteers found 60 dead birds. Another 14 were discovered stunned, laying on the ground.

Among the casualties were 21 white-throated sparrows, nine ruby-throated hummingbirds, and one snow bunting, a.k.a., “snowflakes,” an uncommon sighting for bird-watchers like [dead-bird-counting volunteer Jim] Sharpsteen, who says he’s never seen anything like this in downtown Minneapolis.

The findings, along with reports from maintenance staff and security guards, estimate that perhaps as many as 500 birds die annually as a result of the building. Even if the actual number is half that estimate, it would still make the stadium the most lethal structure for birds anywhere in Minnesota.

And if that’s not enough, Minneapolis City Pages also includes lots and lots of dead bird photos:

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ctyp_stadiumbird2

(Full report here, with even more bird snuff porn.)

Sharpsteen and other bird-lovers would like to see the Vikings add a coating to the glass so that birds no longer mistakenly fly into it and break their little necks; the Vikings are instead conducting a formal study that is expected to be complete in 2019. By which time, if the estimates above are correct, another thousand bird corpses will litter the ground around the stadium. I sincerely hope that City Pages tweets out photos of all of them, or maybe honors them with a memorial mural.

Vikings ask people of Minnesota to build a fence to keep out people of Minnesota

The owners of the Minnesota Vikings want the state of Minnesota to help pay for a permanent fence around the $1-billion-plus new stadium that the state just helped pay to build, because why exactly?

Lester Bagley, the Vikes’ vice president of public affairs, says the fence would help maintain security. He cited the instance last season when protesters climbed the rafters to unfurl a banner denouncing the Dakota Access Pipeline.

When pressed by KARE 11 on how a new fence might have kept them at bay, Bagley admitted it wouldn’t, while noting that his argument sounded convincing at the time.

Ha ha ha, Minneapolis City Pages, very funny. What did Bagley really say?

Kent Erdahl: “Any indication that fencing was part of what (went wrong) in that last game?”

Lester Bagley: “No, it wasn’t but it still.. it showed that there are issues related to fan safety and stadium security that need to be addressed.”

Wow, okay, he pretty much did say that.

No price tag on the fence project yet, but Bagley did say he expected the state to share the cost of it, because “if it’s used for Vikings games and for non-Viking games, other events, it’s a shared cost.” I.e., the Vikings aren’t happy with their temporary fencing, and want a permanent fence, but if it’s permanent then just anybody who uses the stadium can use it, so you guys help pay for it, okay? Do you think this is the same argument Bagley used as a kid to get his parents to buy Pong “for the whole family”?

Vikings stadium paneling keeps coming loose, because it’s windy

The Minnesota Vikings‘ new $1.1 billion stadium is only four months old, and already bits are falling off it:

Workers have repaired a missing strip of zinc paneling that fell from U.S. Bank Stadium’s western prow on Monday, prompting building contractor M.A. Mortenson Construction to reinforce the facade in hopes of preventing further damage from high winds.

Mortenson executive John Wood said Wednesday that the company, along with subcontractor McGrath, will install additional fasteners to exterior panels in the coming weeks…

Initially, the panels were bolted down only along the bottom edge. After heavy storms last summer, some panels came loose and flapped in the wind. Mortenson workers then reinforced the panels along the top edge.

None of this is a catastrophe or anything — the zinc panels turned out not to be fastened securely enough to hold up to severe weather, and the contractor will fix it under the building’s two-year warranty. But it’s a worthwhile reminder that buildings require upkeep, so something coming loose isn’t any more a sign that a stadium is in need of replacement when it’s four months old than when it’s 40 years old. Though if you want to go ahead and make “U.S. Bank Stadium is falling apart, time to build a new one” jokes, by all means be my guest.

MN gov: Who said Vikings could have exclusive soccer rights to stadium? (whistles, averts eyes)

Minnesota United, which starts play in the MLS next year, is building a new stadium in St. Paul, with the help of state tax breaks. The team’s owners would like to use U.S. Bank Stadium, the new home of the Vikings that got about half a billion dollars in state funds and is owned by the state so that it can get hundreds of millions more in property tax breaks, for a few friendly matches (that’s soccer for “exhibition games”) against international teams. Vikings owner Zygi Wilf, whose own application for an MLS franchise was rejected in favor of Minnesota United’s (which was backed by, among others, the owner of the Twins), is now threatening to sue, saying they have exclusive rights to have an MLS team play home games at the stadium, and exhibition games count as home games, so nyah.

All this pissing match between two sports gorillas (er, sorry for that image) has left Minnesota Gov. Mark Dayton in the rare position of being able to attack one local sports baron in the defense of another, and he took full advantage on Wednesday:

Gov. Mark Dayton called the Vikings’ opposition to possible Major League Soccer games at U.S. Bank Stadium “sour grapes” because the team’s owners lost an expansion franchise to a rival group led by former UnitedHealth Group CEO Bill McGuire…

“This is not the Vikings’ stadium,” he added. “This is the people of Minnesota’s stadium. It’s run by the stadium authority for the people’s benefit which means generating opportunities for Minnesotans to come together and support the various opportunities they enjoy.”

You go, Mark! Maybe everyone will forget that the whole reason the Vikings have that stadium — and the lease clause about soccer rights — is because you spent years campaigning for it.