### Jaguars Owner Shad Khan: $1.4 Billion Stadium Renovation Won’t Please Critics
Jacksonville’s civic leaders have a history of making major decisions behind closed doors and then presenting them to the public as a done deal. This approach has worked in the past, but it faces significant challenges when it comes to the proposed $1.4 billion renovation of TIAA Bank Field, home of the Jacksonville Jaguars. The renovation plan, spearheaded by Jaguars owner Shad Khan, is already facing substantial opposition, particularly regarding the use of taxpayer funds.
### The Financial Dilemma
The primary issue is financing. Jacksonville’s leaders have been reluctant to discuss the financial details of the stadium upgrade, considering it premature. However, this silence is problematic. Without a clear financial plan, opponents of the renovation can easily fill the void with negative narratives. The financing of this project is crucial if the Jaguars are to remain in Jacksonville, especially given the readymade opposition to using taxpayer money for such upgrades.
### Public Sentiment
A recent University of North Florida poll revealed that while 84% of Jacksonville voters believe the Jaguars are important to the city, 61% oppose using $750 million of city funds to cover half the renovation costs. This opposition is a significant hurdle, reminiscent of the challenges Jacksonville faced in attracting an NFL team in 1993. The Jaguars’ contract with the city ends in 2030, adding urgency to the situation.
### Lessons from Other Cities
Other cities have faced similar challenges with mixed results. Nashville and Buffalo have announced plans for new stadiums with substantial state funding. Nashville’s $2 billion enclosed stadium will be financed through a mix of state contributions, a new bed tax, and sales and use taxes collected at the stadium. Buffalo’s $1.4 billion stadium will also receive state funding, with additional contributions from Erie County and the Buffalo Bills’ owner.
In contrast, cities like San Diego, St. Louis, and Oakland lost their NFL teams due to opposition to publicly funded stadium improvements. Jacksonville risks following in their footsteps if a viable financial plan isn’t developed.
### Economic Impact
Supporters of stadium renovations often claim local economic benefits, but multiple studies debunk this notion. A review of 130 studies published in the Journal of Economic Surveys in 2022 concluded that public subsidies for professional sports venues are not justified as worthwhile public investments. While there are intangible social benefits, such as community pride and quality-of-life amenities, these are insufficient to justify the level of subsidies typically provided.
### Potential Revenue Sources
Jacksonville has primarily used bed tax funds for stadium upgrades, which have minimal financial impact on local residents. However, the current bed tax revenue is insufficient to cover the city’s $750 million share of the renovation costs. Other potential revenue sources, such as sales taxes, are unlikely to gain approval from the Florida Legislature.
One innovative idea is to follow the Green Bay Packers’ model of selling non-voting stock to raise funds. The Packers recently sold 200,000 shares at $300 each, generating $60 million for stadium upgrades. If the Jaguars offered similar stock, it could provide a significant revenue boost and enhance public relations by allowing fans to claim a small ownership stake in the team.
### Political and Public Buy-In
Winning public support for the stadium renovation will require a comprehensive sales and marketing strategy. City Councilman Ron Salem supports evaluating how much the city can afford to devote to stadium renovations through a bond issue. At-large Councilman Matt Carlucci suggests holding public meetings to discuss the renovation plan, similar to the approach taken for the Four Seasons hotel development proposal.
An ironclad contract ensuring the Jaguars remain in Jacksonville for the duration of the bond issue is essential. While negotiations between city leaders and the Jaguars can’t be conducted in public, information sessions with taxpayers should be held to avoid blindsiding them.
### A Path Forward
One potential plan to cover the city’s $750 million share of the renovation costs includes:
– Using $10 million per year of bed tax funds, which could be bonded to $130 million.
– Allocating $30 million per year from the general fund, equating to $390 million if bonded.
– Selling 200,000 shares of non-voting stock at $500 each, generating $100 million.
This plan would bring the total to $620 million, with additional funds potentially coming from personal seat licenses or other innovative revenue sources.
### Conclusion
The future of the Jacksonville Jaguars hinges on the city’s ability to finance the proposed $1.4 billion stadium renovation. While public opposition to using taxpayer funds is strong, innovative financing solutions and transparent communication with the public could help garner the necessary support. The stakes are high, and the outcome will significantly impact Jacksonville’s identity and future as an NFL city.
Source: HuffPost, Jax Today
