Here’s why NFL teams want smaller stadiums, and it’s not about saving fans from nosebleeds

There have been a flurry of articles of late asking and trying to answer the question “Why are NFL stadium getting smaller?” in the wake of plans by the Buffalo Bills owners to go from 71,000 to 62,000 seats and the Tennessee Titans owners to go from 69,000 to 60,000. The Tennessean newspaper — brutally paywalled, but also pssst — said that the smaller size has “perplexed fans,” but then cited a bunch of team sources saying really this downsizing is for you, the fans:

The Titans don’t sell out the current 69,000-seat stadium for most of their games, [Titans CEO Burke] Nihill told council members during a November meeting.

“We didn’t start with an arbitrary number,” Nihill said. “We started with, what is the right experience for fans? And then (considered) a diverse range of products, and 60,000 is the right number.”…

The smaller scale of the proposed stadium is meant to “feel more civic (and) less ostentatious, as NFL stadiums often are,” architect David Manica told Metro Council members in early November.

It’s a departure from older stadium design strategies, which sought to pack in seats to meet capacity goals. The new school of thought focuses more on “fan experiences,” according to the Titans and NFL officials.

“The term ‘nose-bleed seat’ is not a positive term,” Nihill said.

Okay, that’s a bunch of reasons right there, which we will take one at a time:

  • The Titans can’t sell out now. Tennessee is actually at 99.5% capacity according to official ticket sales figures, after hitting 99.2% last season. It’s possible that some of those tickets are discounted or freebies — known as “papering the house,” and more common when the NFL blacked out games on TV that weren’t sellouts — but we’ll come back to this.
  • The Titans don’t want the stadium to feel ostentatious. The team plans to spend over $2 billion (a lot of that in public money) and has released renderings featuring people attending a concert where the stage is held up by gravitonium, so it’s maybe a tad disingenuous to suggest that they’re trying to keep the place feeling homey.
  • The Titans want to eliminate nosebleed seats. This is often a claim for new stadiums — but in reality, whether you consider your seat a nosebleed has nothing to do with how many fans have better seats than you and everything to do with how far you personally are from the game, and newer stadiums tend to jam in so many luxury boxes that even at smaller capacities, the worst seat in the new house is often worse than the worst seat i the old one. It’s true that Manica has tried to mitigate this a bit by increasing the rake of the proposed upper decks — in regular English, they’ll be steeper, meaning the upper upper decks will be a bit closer to the field — but since none of them will overhang the lowest deck at all, it’s still not likely to feel extremely intimate.

When it comes down to it, NFL teams are designing stadiums based on how much money they will make them, and capacity comes into play there in two ways: cost and ticket demand. On the first front, obviously it doesn’t make sense to spend, say, an extra $20,000 on building an additional seat if it’s not going to bring in at least $20,000 in extra revenues over time; team owners, then, have an incentive less to eliminate nosebleed seats than to eliminate cheap seats, especially as construction costs soar.

Which brings us to the second point, which is that cheap seats don’t only affect the prices you can charge for the cheap seats, but also bring down overall demand for all seats once fans realize they can get into the game without paying through the nose. Sports teams have known this for a while now, but it really started hitting home around 20 years ago when the Boston Red Sox started jacking up prices through the roof, knowing fans would pay almost anything to score any tickets at tiny Fenway Park. Ever since then, smaller has been better, though no team has yet gone so far as to build a stadium with just one seat and then sell it for $1 billion to Martin Shkreli.

Finally, the NFL has a particular reason to want smaller stadiums, and it’s all about big-screen TVs. Here’s NFL VP Eric Grubman way back in 2013, fer chrissakes:

“What if a new stadium we built wasn’t 70,000, but it was 40,000 seats with 20,000 standing room?” he said. “But the standing room was in a bar-type environment with three sides of screens, and one side where you see the field. Completely connected. And in those three sides of screens, you not only got every piece of NFL content, including replays, Red Zone [Channel], and analysis, but you got every other piece of news and sports content that you would like to have if you were at home.

“Now you have the game, the bar and social setting, and you have the content. What’s that ticket worth? What’s that environment feel like to a young person? Where do you want to be? Do you want to be in that seat, or do you want to be in that pavilion?”

That’s still about selling tickets — in this case, tickets to watch the game on TV in the stadium — but the point is that modern football fans (or as Grubman called them, “young people,” because we weren’t saying “Gen Z” back then) are fine with watching games on giant 4K screens, so there’s no reason to spend a lot of construction dollars on adding more seats that will just make it harder to charge top dollar to those few fans who genuinely want to be at the game. That sounds a lot less noble than optimizing “fan experiences,” certainly, but it would be more honest to say: We’ve decided only to sell tickets to rich people, and everyone else can either watch at home or pay to watch in our sports bars. This is the future of sports, at least so long as the supply of rich people holds out, and that seems like a safe bet for now.

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Friday roundup: Calgary hires wolf to guard its Flames arena chicken coop, and Stan Kroenke’s no good very bad day

Before we get to our weekly cavalcade of doom, some actual good news this week: Tom Scocca, the longtime sports-and-everything-else writer who last got mention here for his excellent newsletter Hmm Daily, which later transmogrified into the excellent newsletter Indignity, announced that he and his longtime running partner Joe MacLeod will be taking the reigns at the online publication Popula, formerly part of the same Civil network of news sites as Hmm Daily. If that was way too many obscure web/email publications for you in one sentence, here’s the tl;dr: Tom Scocca is one of the funniest and most insightful writers out there, and now he’s going to be not only easier to find an link to but he’s going to have a freelance budget to assign more articles by other (hopefully funny and insightful) writers as well. For starters, here’s a column about whether it’s okay to take advantage of the other team not having enough players to run up the score in a flag football game for 9-year-olds. This is the kind of insightful (and funny!) writing that America needs to heal its wounds.

Cavalcade of doom time!

  • The city of Calgary and the Flames owners have officially restarted talks on a new arena, nine months after team officials walked away from a previous deal because they were mad they would have to pay too much money. (This seems kinda like city officials are engaging in bad parenting to me, but okay.) Negotiating on behalf of the city will be consultants CAA ICON, best remembered around here for their terrible Buffalo Bills economic impact study; it’s tempting to say better to have them working for the city than against it, but you also have to wonder if they could have found a consultant without both feet planted quite so firmly in the “new venues are the bomb” world.
  • Stan Kroenke is reportedly going to be required to pay the NFL $571 million toward its $790 million settlement with the city of St. Louis for yanking the Rams out of town in violation of its own league bylaws. Add in the $3 billion in cost overruns he had to pay for his new L.A. stadium and it’s tempting to see Kroenke as the big loser in the Rams-return-to-L.A. saga, but it’s also hard to see exactly who the winner is — St. Louis got a pile of cash and doesn’t have to spend money on building another stadium, so I guess that’s a kind of win, at least until somebody decides the city needs the NFL back and they spend even more than that on luring an expansion team.
  • A giant tranche of public information about the Buffalo Bills stadium project just dropped, though it doesn’t appear to include that Erie County study of the projected cost of renovating the team’s old stadium that the county keeps releasing with all the important bits blacked out. (There is an “alternatives analysis” that rules out renovation on the grounds that “a renovation project of the type that would likely be necessary to encourage a long-term lease renewal would be extensive,” which is studyspeak for “the Bills owners want something real shiny.”) I haven’t dug through it all yet, but feel free to do so yourself, or just enjoy the opportunity to go around saying “tranche” a lot, I sure am.
  • Tennessee Titans fans who paid for personal seat licenses for the right to buy season tickets at the team’s current stadium are pissed that they’ll have to pay for new personal seat licenses for the right to buy season tickets at a new one. The Titans say they’ll credit current PSL holders with however much they spent for the old ones, but given that the choice is “give us more money now or else see your entire investment go up in smoke,” I’d be pissed, too.
  • St. Louis S.C.‘s new $461 million stadium may not be ready by the team’s MLS debut next spring because some workers broke an electric line, and then it rained. I would make a “time to tear it down and build a new one” joke, but I’m kind of afraid someone would take it seriously.
  • Illinois voters are split on whether they want the Chicago Bears to stay in Chicago or move to suburban Arlington Heights, but only 12% are okay with spending tax money on building a new stadium, and only another 28% are okay with devoting public funds to infrastructure for one. None of this should be surprising, given that that’s what polls pretty much always say, though elected officials also pretty much always ignore what the public thinks.
  • This excellent Kathryn Schulz article about the history of public lotteries has nothing to do with stadium scams per se, but given that it’s about how government have ended up extracting money from people who can least afford it in order to support a giant private industry while pretending it lets them cut taxes, it at least rhymes.
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Erie County still won’t disclose Bills stadium repair needs, but will show you a picture of a railing

At 3:46 pm on Friday, I received my long-awaited response to my appeal of Erie County’s Buffalo Bills stadium renovation study that the county released only after blacking out all the informative bits. Here’s what I had written to the county’s Freedom of Information Law appeals officer back on October 12, after the redacted study failed to shed any light whatsoever on whether the study really showed, as a Bills rep had claimed, that the entire upper deck would “have to be replaced” at a cost of $500 million, and renovation overall would cost $1 billion:

The records that were redacted include the projected cost of maintenance and repairs to Highmark Stadium and any information regarding how that figure was calculated. I am now seeking the additional release of only those sections of the report, which should not violate either safety or contracting concerns.

And here’s the first page of what I received:

Deep, exasperated sigh.

That’s from page 7 of the full report; what I really wanted was to see the blacked-out sections of the executive summary on pages 5 and 6, where two whole paragraphs were redacted right before the phrase “In addition to the structural deficiencies” — which strongly implies those missing paragraphs were about the structural deficiencies in the current stadium, and maybe how much they would cost to repair. But this time around I didn’t get pages 1-6 at all, with no explanation.

[UPDATE: Just got (11:14 am on 11/8) a reply that the executive summary redactions were all retained because “the information that remains redacted has been defined as something that would publicly reveal structural elements currently unknown to the public and releasing it would create an opportunity for a threat to public safety.”]

There are a few new unredacted parts of the study that provide hints, at least, to how much repair work might cost. For example:

The 300 level is the Bills stadium’s top deck, the one that that Bills spokesperson had said was so badly deteriorated that it made renovation “not realistic.” With all the details of what would be getting repaired having been redacted, it’s hard to tell exactly what’s going on here — for starters, are those $91,000 in “single occurrence repairs” on top of the $140,000 in “annual” repairs, or part of them? Still, one thing is evident: The repairs itemized in the Erie County report amount to something in the hundreds of thousands of dollars per year, which implies it would take until at least the year 3021 for a full renovation to cost anything like the $1 billion the team has claimed.

(We do still have that separate state study that placed an $862 million price tag on renovation, but that’s mostly a wishlist of things the Bills owners might want, not a list of things that actually have to be done to keep the stadium safe and operational.)

And then there are the rare pages in the report with no redactions at all, like this one:

Those railings look fine to me, but I’m not a structural engineer, so really someone should ask some engineers to evaluate the conditions and indicate how much they would cost to fix, and then issue some sort of report that … oh, that’s what this report was meant to do, but the answers are a state secret? Even from the taxpayers being asked to foot the bill? Then I’m going with “those railings look fine to me” — it may be an uneducated assessment, but it’s still more informed than what you’ll get from a page of black bars.

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Bills study says old stadium only needs $443m in renovations, much of it for things like snazzier clubs and “decoration work”

New York state released its stadium study for the Buffalo Bills yesterday — no, not the one claiming that it would cost $1 billion to renovate the team’s old stadium, and not its cost-benefit analysis from 2019, both of which Gov. Kathy Hochul is refusing to make public. Rather, this is a study by AECOM, an engineering firm, of whether to build new or renovate and whether to build in the suburbs or downtown, and it concludes:

  • “The cost to renovate the existing stadium is estimated at approximately $862 million, compared to $1.354 billion for a new stadium at Orchard Park (a difference of approximately $492 million).”
  • “The cost to build the same stadium in a downtown location is estimated to add an additional $350 million to the project cost, not including the potential cost to relocate residents and businesses and the potential time required to move through the SEQRA process (potentially up to $100 million additional costs) as well as the cost to add a roof to the stadium if required to address orientation issues of downtown site (an additional $300 million). With these additional costs, a new downtown stadium could cost up to $2.1 billion or more.”

Those certainly sound like good arguments for building a new stadium at the current Orchard Park site rather than in Buffalo, and maybe to build new rather than renovate, though $492 million in savings is nothing to sneeze at. But where did AECOM get those estimates, anyway? Is an $862 million renovation really necessary?

That’s it? Not even a footnote, or a sourcing credit? I’m not sure how much AECOM is being paid for compiling this study, but it seems like somebody skimped on this section. (Just kidding, if government officials won’t release the stadium renovation study without blacking it out, I’m sure nobody in government was going to complain if AECOM omitted cost specifics.)

We can get a few hints on what the proposed renovations would entail, though, from the “renovation considerations” appendix, which includes the following bullet points:

  • Because the Bills stadium’s main concessions concourse is below street level, “resulting in a fan experience inconsistent with other venues in the league,” a renovation would need to raise up the concourse, which would then require reconfiguring the lower deck seating.
  • There’s only one tunnel where vehicles can enter the field from outside the stadium, which “presents logistical issues” for both football and concerts. To remedy this, one entire endzone seating section would need to be rebuilt.
  • The current upper deck has “extensive deterioration” and would require replacement, at least “pending confirmation of applicable engineering assessment.” (Did Erie County refuse to let AECOM see the renovation report, too?)
  • The existing stadium lacks “contemporary food service/catering facilities” and club facilities fail to provide “game-day atmosphere desired by patrons and ownership.”

That is a real mixed bag of needs and wants, so how much of the renovation cost would be for which items? Scroll way down to Appendix 3.1, and we get some answers: Redoing the lower seating bowl would cost $38 million, adding a second vehicle tunnel would cost $28 million, replacing the upper deck would cost $96 million, upgrading food service would cost $32 million, snazzier clubs would cost $16 million, and a bunch of random items (including both ADA upgrades and “decoration work” would cost $233 million. That comes to only $443 million, but after adding $220 million in “contractor mark-ups” — really, contractors would get to turn a 50% profit on this thing? — and $199 million in “developer soft costs,” which are basically overhead and things like design fees, we get to that $862 million figure.

Not that contractor fees aren’t real things you have to pay, but this is quite a leap from “there are a bunch of things the Bills owners would like that would cost a few tens of millions each” to “screw it, may as well spend $1.35 billion on a new stadium, then.” And in particular, the much-repeated $500 million figure for keeping the upper deck from falling down appears to be much less in reality, only $96 million (plus contractor mark-ups). We’ll see if any journalists or elected officials bother to read far enough into the report to notice this; in the meantime, it’s more urgent than ever now that Erie County release that renovation study without all the words blacked out — time for me to go bug the FOIL appeals officer again, I guess.

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Erie County withholds details of alleged $500m in needed Bills stadium repairs, because “safety”

One of the underlying assertions behind the Buffalo Bills owners’ demand for a new stadium is that the old one is falling down. Literally: We’ve seen team VP Ron Raccuia declare that the upper deck “will fail in plus-or-minus 5 years,” whatever that means (could it fail by 2016?), as well as claims that an “independent engineering study” shows the upper deck would “have to be replaced” at a cost of $500 million, with a full renovation costing $1 billion. At a price tag like that, spending $1.4 billion on a new stadium starts to sound, if not reasonable, at least less crazy.

Of course, plenty of team owners have claimed their old buildings were falling down to try to get new ones, so I filed a Freedom of Information Law request last week for the report, which was conducted by the engineering firm DiDonato for the Erie County Department of Public Works. And to my surprise, given that FOIL requests often take months to process, I got a response back yesterday morning, just eight days later, with this bombshell information:

Okay, that’s maybe not so much “information” as the lack thereof. What gives, Erie County FOIL Officer? The cover letter on the FOIL response stated:

1. As a critical piece of infrastructure, under the category of Commercial Facilities Sector, releasing details about the structure could endanger the life or safety of any person who enters the stadium.

2. Erie County is currently in ongoing negotiations with New York State and the Buffalo Bills regarding the future of the football team in Erie County.  Therefore, releasing the entire study would most certainly impair an imminent contract award.

3. Finally, as you can see, the study is a Draft and subject to change.  Therefore, it is a communication between Erie County and a consultant and therefore subject to the inter/intra-agency exception.

Okay, so revealing how much it would cost to maintain and repair the Bills’ current stadium, and how that cost was calculated, would “endanger the life or safety” of football fans, because … yeah, I got nothing. Nor can I begin to guess how making public the cost estimates would “impair an imminent contract award” for a new stadium, except inasmuch as if the costs don’t turn out to be as high as Bills execs are claiming, it could cause a public outcry about handing over hundreds of millions of dollars to the team owners for a new one — but that’s the kind of “impairment” that open access to public records is supposed to result in. “We can’t tell you, because we don’t want fans to know whether concrete might fall on them or whether building a $1.4 billion new stadium is really necessary” is maybe not the pinnacle of transparent government.

The full redacted study — which only includes 12 pages out of a 182-page report, and much of those are blacked out — can be found here, for anyone curious about what information Erie County decided to allow out into the world. We do learn that $250 million has been spent over the years on upgrades to the stadium (most significantly $130 million in 2013 on “new video displays, additional concessions stands and restrooms and various elements to improve circulation and provide ADA access in and around the facility”), and that “the Stadium currently remains in overall fair to good condition with some elements in fair condition” — followed immediately by a redaction, so there’s no way to tell which elements are in only “fair” shape, or what “fair” means in this case. Erie County could tell you, but they don’t want to endanger your life and safety — do you have any idea how many people trip and fall each year on stray commas? You’ll thank them for it later.

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