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Business group says state will lose more than $500 million without new Vikings stadium

Minneapolis business leaders — still pushing hard for a new Vikings stadium as efforts at the Legislature seem to be stalled — say that the state will suffer economically if a new stadium isn't built.

A report from the Home Team Advantage group of business leaders in the city says that without a new stadium, the state won't get many high-level sports events and conferences. It cites the likes of the Super Bowl, the Alcoholic Anonymous International Convention, the Seventh Day Adventist Convention, the Final Four and others — which the group said could be worth a total of $533 million.

The Home Team Advantage group assumes that the Vikings will leave town without a new publicly funded stadium, because it also lists the loss of revenue associated with games at the Dome.

The group says the city will lose $2.2 million in parking from 65,000 parking spaces used during the 10 Vikings games each year. (That estimate seems high: one car for each fan?)

And it says: "Metrodome and its tenants generated nearly $320 million in taxes, collected by state and local governments. This includes direct income taxes, sales taxes and admissions taxes at the Metrodome. (Note: the Vikings paid $40 million in taxes during 2010-2011. Total taxes from 1982 through 2011 were $360 million. $360 million/30 years = $12 million per year average.)"

Plus, the group estimates a $34.8 million loss to the hotel, retail, bar and restaurant industries without 10 Vikings home games and (optimistically) one playoff game a year.

In addition, Mankato would lose $5 million economic impact if the Vikings leave their training camp there, the group said.

"We want the Vikings to stay and we need the stadium to keep them here,” said Sam Grabarski, president of the Minneapolis Downtown Council and spokesman for Home Field Advantage. “Beyond the serious economic impact on the whole region, Minneapolis would also lose its prestige as an NFL franchise city. We just can’t let that happen."

Todd Klingel, president of the Minneapolis Regional Chamber of Commerce and member of Home Field Advantage, said: "If the Vikings leave, it'll be very difficult to secure another NFL team — impossible without a new stadium."

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Comments (7)

Hell with the Mpls businees.

Hell with the Mpls businees. They want to have a monopoly on everything in Minn. St Paul & it's communities should have chance to profit from a Viking Stadium. Arden Hills should be the city pick for the stadium. I for one will not spend a penny in Mpls if the stadium was to be build in Mpls. I recommend Minnesotans to do the same.

Are Vikings fans going to

Are Vikings fans going to stop eating, drinking, or finding ways to entertain themselves on 10 Sundays per year if the team leaves? That's what it would take to make the numbers above make sense. I have a hunch that most Vikings fans would find other ways to spend their dining and entertainment dollars in the state, so the true net loss if far lower than Home Team Advantage would like you to believe.

I like the fact that Joe

I like the fact that Joe Kimball questions the business group's estimates of parking revenue (65,000 cars per game equals one car per fan). But how about the other aspects of their claims of how the Minneapolis downtown would be devastated without a NEW Vikings stadium? (We should all remember: there already is a perfectly viable Metrodome downtown, whose only fault is that it does not provide enough profits for the Vikings.)

As a regular reader of various news sources, what I miss in this article is Mr. Kimball taking the time to research the issues raised. Instead, he just published whatever the businesses' press release or statement to the Legislature said. As if there were not more exaggeration in their figures, as if there were not a fuller context than he took the time to dig up and provide.

Pushing hard with lies and misinformation

This is a flat our propaganda ploy based on deliberate misinformation. The tax revenue figures ($320) million come from a 2009 RSM Mcladdrey report. That reports is estimating the total sales tax revenue from ALL pro-sports activity over a 48 year period, not just the Vikings, and not in the 30 years. The actual Vikings contribution was $167 million (rounded up). Second, the claim that the Vikings pay $20 million in income taxes is inflated, the actual current figure is $12 million. And finally the estimate that the Vikings have paid $360 million over the last 30 in income taxes is a flat out fabrication. That calculation assumes that the current Viking payroll of $140 million a year has been constant for the last 30 years. Do you think Tarkington got paid as much as Favre?

Here's a link to the McGradrey report: http://prod.static.vikings.clubs.nfl.com/assets/docs/download-rsm-study-...

Page 6, the first page of the appendix shows the table. This group didn't even round the numbers correctly, they rounded $319,306,727 UP to 320, in stead of down to $319.

Correction

In my previous comment I stated the estimate for last 48 years, not 30, I was mistaken. That 48 year estimate is offered elsewhere, the estimate THTA is using is based on Metrodome income. However the page, reference, and the numbers I provide are accurate. You can see it for yourself on PDF. The Vikings sales tax contribution is $167 million, not $320 million.

One last point....

Sorry, I'm splitting my attention so this has gotten a little choppy. That $167 million in sales taxes revenue would be impressive were it not for the fact that we DON'T lose it if the Vikings leave. That spending is subject to substitution. If people aren't spending money on Vikings games they're spending it on something else, that's what people on the 355 days a year the Vikings are not playing, and it's what they would do 365 days a year if the Vikings didn't exist.

I pounded out a short blog about this: http://pudstrand.fatcow.com/blog/?p=329

Ha!

Man I'm scattered today. If you look at the RSM report, in the table I'm referencing, they actually calculate the income tax, that $167 million is a TOTAL of all vikings taxes. The actual income tax is $115 million, just about one third what HTA is claiming.