Not so fast: Why a Vikings’ move wouldn’t be easy
To long-time followers of stadium dramas in Minnesota, the arrival of the National Football League commissioner at the Capitol today is ho-hum predictable.
The grand entrance of Commissioner Roger Goodell and Art Rooney II, the owner of the Pittsburgh Steelers and chairman of the NFL’s stadium committee, is meant to convey a sense of urgency to the Legislature to act NOW on stadium legislation.
“It was very clear that they see the Vikings will be in play if this is not resolved, or unfavorably resolved, in this session,’’ Gov. Mark Dayton said Thursday after a phone conversation with the league.
There are some who will be all in a dither about Goodell’s meeting with the governor and legislative leaders. “The league must be serious,’’ will be the thought of the nervous types.
And perhaps the league is serious. Certainly, it is serious about getting the Legislature to take an action that most legislators are reluctant to take. A new stadium means more money for the Vikings and more money for the league.
But moving an NFL team, especially a team so beloved as the Vikings, is not so simple as backing up the moving trucks and heading out of town.
Relocation fees, 75 per cent support from other owners, a place to go all are real issues.
Owners' approval
Start with that 75 per cent figure. A franchise which wishes to move must receive the support of 24 of the 32 league owners. It’s far from a given that the Vikings’ owners, Zygi and Mark Wilf, could get that sort of support.
There are any number of reasons league owners would be reluctant to grant approval for the team to leave Minnesota.
There are other franchises – Buffalo, Jacksonville, San Diego and Oakland – all in the same stadium stew as the Vikings. Would Minnesota’s situation be deemed the most serious by other league owners?
Despite the fact that the Metrodome is unloved by virtually all, there are good reasons that league owners would think twice about leaving. The Twin Cities still has more corporate headquarters than most metros in the land. That matters to the corporate NFL. Corporations mean sponsorships and purchase of expensive stadium suites and brotherhood.
There is also this fact: The lifeblood of the NFL is television revenue. The dome may not generate the sort of gate receipt money as most NFL stadiums, but even in bad years, television ratings in Minnesota are always among the highest in the league.
Are 75 per cent of the owners ready to walk away from those sorts of long-term benefits for a couple of owners they don’t know all that well?
(Remember, the Wilfs’ didn’t buy the team until 2005. Despite their claims that the Vikings are somehow losing money, they haven’t done badly on their purchase. According to Forbes Magazine, which annually places values on sports teams, the Wilfs bought the team for $600 million. It’s now valued at $774 million, 30th in the league, ahead of only Oakland and Jacksonville. A new stadium likely would raise the value of the team closer to $1 billion, which is about mid-level in the league.)
Second, there is a multi-million dollar reason the Wilfs would be reluctant to hit the road. It’s called the league’s relocation fee. This is a sliding fee — seemingly plucked from the air — that brother owners charge the moving owner, presumably based on the escalating value of the team.
In the 1990s, the Los Angeles Rams moved to St. Louis (because LA wouldn’t build a stadium) and the Rams’ ownership paid $29 million. Houston’s franchise moved to Tennessee and coughed up $28 million in relocation charges.
Minnesota VikingsMinnesota legislators seem reluctant to fund a proposed new Vikings stadium, but would the funding be easy to come by in other cities?It’s generally assumed that if the Vikings (or Buffalo, et al), would move to Los Angeles, the fee could range anywhere from $200 million to $1 billion.
But that’s not the only stumbling block to an LA move.
The reason teams have left the second biggest market in the country is for want of a revenue-producing stadium. The Coliseum in LA and the Rose Bowl in Pasadena are massive, but, the Metrodome, by comparison, appears sleek and modern.
There long has been talk of a new football palace in LA and it actually appears that a privately funded $1 billion stadium, that would be called Farmer’s Field, could be constructed.
AEG ownership
But this brings on a whole new set of potential stumbling blocks. Farmer’s Field would be built by Anschutz Entertainment Group (AEG), with Farmer’s Insurance paying $700 million for naming rights.
AEG has one big condition to bringing an NFL team back to LA: It wants substantial ownership in the team.
Would Zygi Wilf really sell a substantial portion of the Vikes? This is, after all, a very wealthy man who clearly finds great gratification, beyond dollars, in owning a team. (Hey, the team owner actually gets to stand on the sideline and is a VIP in Minnesota.)
No question, Wilf could sell the Vikings to AEG or some other LA entity for huge dollars. (The Los Angeles Dodgers were just purchased for $2 billion.) But he would be giving up both a large portion of the team and prominence.
Understand, the politics of big time sports in LA are at least as dynamic as they are in Minnesota.
“I continue to do everything I can to bring an NFL team to Los Angeles,’’ LA Mayor Antonio Villaraigosa told the Orange County Register last month. “As I’ve said before, we’re closer than any time since the Rams and Raiders left but we still have a long way to go.’’
But again, there are many signs that Los Angeles would not be the destination of a re-location team such as the Vikings.
At the Super Bowl this year, Goodell announced that the only way the league would move into LA is via an expansion team. And if there was to be expansion, two teams would be added to the league.
There’s a reason expansion is so appealing to league owners. Expansion teams are forced to pay even a greater amount to the league than teams paying relocation fees.
But, of course, expansion reduces the number of options where existing teams, such as the Vikings, might move.
Certainly, there are other cities that would be happy to take the Vikings. Birmingham and Portland each are said to be potential sites; but those are locations far more problematic than proven Minnesota.
The Wilfs are the wild-card in this deal. Deep down, they must know that if they’re patient, they will get their new stadium in Minnesota and the value of his team will soar.
But over and over again, legislators say they don’t “trust’’ the Wilfs.
Long-time legislators say that over time, they learned to trust the Twins’ stadium negotiator, Jerry Bell.
“When he spoke,’’ said Sen. Doug Magnus, R-Slayton, “you knew he was speaking for the Pohlads.’’
MinnPost/James NordLester BagleyLegislators aren’t sure that Lester Bagley, the Vikings’ stadium negotiator, has that sort of voice for the Wilfs.
It should be recalled that even the hometown Pohlads pulled every negotiating trick in the book before resolving their stadium deal. (The final stumbling block in that deal was over whether the public or the team should cover construction over-runs. In the end, the Pohlads accepted the over-run obligation and ultimately put more money into the ballpark than was required.)
The question among sports fans is whether the Wilfs are more like Norm Green, the owner of the old Minnesota North Stars, or the Pohlads.
In stressing urgency, Dayton always uses Green and the North Stars as the example. Green moved the franchise to Dallas and the Twin Cities were without pro hockey until the Xcel Center was built.
In stressing there is time, Hennepin County commissioner Mike Opat and legislators talk of the Twins negotiations as the example. Those negotiations went on for a decade. Opat says he believes the region has “at least a year – probably more’’ -- before the stadium talks with the Vikings are at “crisis’’ point.
Meantime, since the House government operations committee rejected advancing the stadium bill on Monday night, there has been growing criticism of the funding plan itself. Both the state portion, to be paid with electronic pull tab receipts, and the Minneapolis portion, to be paid for by extending the convention center sales tax, appear “thin” to many legislators.
Republicans are also using the 9-6 no vote in the Government Operations Committee to blame DFLers for the failure. (Only one DFLer voted to advance the bill out of committee.) This has forced DFL legislative leaders to say that they will come up with more votes when needed.
Overall, however, few legislators believe that a stadium bill can pass on the floor of either body this session.
Goodell is arriving, presumably at the request of Dayton, to make skeptical pols believe that the clock is ticking. The problem for the NFL — and Viking stadium supporters — is that most Minnesotans have heard it all before.
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Comments (18)
The Vikings have a more immediate problem
Where they gonna play while this new stadium somewhere else it built? They can threaten to move in the future, but need a place to play NOW, and there's not reason that stadium authorities should require anything less than another ten year lease at the dome. You build into the lease agreement requirements that the team only get out of the lease by paying $500 million, or building a new stadium in MN with 90% private money, and we're done, problem solved. The Vikings stay, and they get a new stadium. The clock is ticking and the Vikings have no real leverage at this point. Sure, they move or threaten to move, but they have nowhere to play in the meantime.
Paul Udstrand
That is easy to solve. The Packers could let them play at Lambeau Field. That way the Vikes fans could get used to the drive over to Green Bay, just like before the Vikes came. Also pick up more modern Packer gear. I think they have upgraded since 1960.
In theory I'm sure the
In theory I'm sure the aforementioned LA Coliseum or the Rose Bowl would be willing to work with the Vikings. This is assuming they'll move, which they won't.
the real LA threat
It is counter intuiitive to me that the solution to the lack of a publicly funded stadium here is a privately funded stadium in LA.
Private funding in MN is the answer.
The only thing standing in the way is a truly prodigious greed on the part of the owners and the NFL.
They don't think it's a good investment?? Then how good could it be for the public? If they don't want to fund their own business, as far as I'm concerned, they can take their shell game right on out of town, and good riddance.
Good story Mr. Grow! And, you are right, we've seen it before...
[Mr. Grow, thank you for the informative piece...a good eample of good reporting.}
And we have seen all this before, in many ways. Time and again our elected representatives get stampeded like a herd being driven to a packing plant by tycoons. All of us are in the herd too.
Using state money to fund any aspect of a private business venture requires careful cool-headed planning, deliberation and diligence. And to me, this much is sure, our so-called state’s “leaders” continually allow themselves to get sucked into a loop circuit that serves the interest of the korporate brotherhood…
Time and again, is seems like every session, big public policies get shoved on the table. It has reached the point that watching and listening to the legislature reminds me of a small city council trying to decide which pot-hole to patch first. What happned to legislative committees?
Put it another way: Where does financing the Vikings fit on the list of Minnesota’s priorities? For example, is funding the Vikings more important than upgrading wastewater treatment facilities? Preventing pollution runoff into lakes and streams? Improving the ratio of teachers to students? Controlling the infiltration of Asian carp?
Put it this way: How do Minnesotans reconcile the GOP majority shutting down state government ten short months ago citing their “no new taxes” pledge with today’s notion that the state can throw a few hundred million at a football team and its owners and players that are…may I say, well off?
Or, is all that matters to the GOP legislature is cowering to korporate tycoons and being a member of the korporate brotherhood?
I advocate bring the White Earth Nation back into the deal (seriously). They know how to make money and how to run a business. To my way of viewing things, the GOP Legislature has proved it can’t run the simplest of things...I doubt they could run water if they had instructions on how to turn the faucet.
Of course, if the Vikings offered me a free executive suite on the fifty yard line for the next five years…I might have a different perspective. I don't hate football or the rivalry with my friends in other states with pro teams...and I drink beer too.
I think my conflict is more widespread than some may believe.
Another "problem" for the Wilfs' up and moving
are the historic rivalries largely responsible for the TV ratings. Will the Packers or da Bears generate the same fan furvor among Angelinos? I think it's doubtful.
What are sports politics elsewhere?
It was my initial understanding that there were two LA developers, so opined they had a hammer-lock on viable land locations for their stadium. So there was competition there, but in any case they would drive hard bargains - after all they would be interested in making money. Thanks to Doug we now know how AEG would profit. So of the other possible towns - what are capitalist factoids in those places. It seems our leaders are reading narrow perspective tea leaves and do hot grasp the real world. Why should we expect politicians to understand business world realities - few have any experience at all. Maybe, Governor Dayton should consult his Dad in his dreams.
The key paragraph and truth about all of this.
Doug's article is excellent!
The key para is this one "There’s a reason expansion is so appealing to league owners. Expansion teams are forced to pay even a greater amount to the league than teams paying relocation fees".
The entrance fee for a new team in LA might be as high as 2 BILLION dollars. Which would be split up amongst all of the NFL owners. Or they can take just millions from the Wilf Family. Scratch your head and figure that out. Why on earth would the NFL owners pass on the first option to grant the 2nd option?
Conclusion, any threats of the Vikings moving are just plain false.
Vikings Stadium
Excellent article by Grow, but all it only means that we MIGHT have a little more time than some think. The bottom line is that a new stadium must be built in order to keep the Vikings. Anyone who argues that any NFL team will play in the Metrodome long-term is either disingenuous or uninformed.
The NFL says they will NOT expand into L.A.
This is a great piece. I do think there's one area that could use clarification. I was listening to KFAN radio in my car yesterday (Thursday). Dan Barreiro had on the NFL's executive VP of operations -- a high-level person who speaks with authority for the league. Can't recall his name -- it was Eric Grubman or something like that.
They discussed the LA situation at length. The official was adamant that the league's position is to remain at the current 32 teams. He said repeatedly that the league is looking to put a team in LA, but not an expansion team.
He may have been blowing smoke, but those are the words he spoke.
There's several teams that could move
so it makes sense. Until all those teams decide to stay put, I doubt they would want to act like expansion is going to happen. it would undermine stadium bids like this one.
So what was Goodell saying at
So what was Goodell saying at the Super Bowl -- that only an expansion team would go to LA? Was he lying?
VIKINGS COULD BE SOLD TO DON BEAVER!
I'm not at all worried about a move to L.A. by the Vikings. I'm concerned about a possible sale to Don Beaver.
People should get so excited about 3M
or any other major corporation that employs or could employ thousands of Minnesotans, rather than athletic mercenaries who play for whomever holds their contracts.
Fervor for the hometown kids, or even the local college team, I can understand. But why is it that people are so heavily invested in retaining corporate athletes?
You got me
I'll never understand it. I suspect marketing has a lot to do with it, but I have absolutely no idea what the big deal with pro sports is.
Team moves (occasionally) are good for owners
A team moving when they don't get what they want is good for the other NFL owners. When done in moderation it keeps the threat alive for any other team negotiating for a subsidy.
Why settle for this deal?
Why do we feel we have to take this very flawed deal? Why is nobody willing to tell the Wilfs they need to come up with more cash to make it a real deal? None of the money they supposedly contribute to the deal comes from them. The NFL puts a bunch in, the naming rights get used, and seat licenses get contributed. Where's Ziggi's contribution? He will clearly make several hundred million dollars on the deal, why not put something in and get it done?