Look for final resolution of whether the Minnesota Vikings obtain public funding for a new stadium to be a crisis decision made later rather than next year. Last week’s state legislative session ended with no specific plan identifying a public funding source and timeline for building a new retractable roof stadium on the Metrodome site for a near $1 billion cost.
The Vikings have been in pursuit of a stadium since Arne Carlson was governor in the 1990s. A team official privately said back then the Vikings were being told to wait until the Twins’ stadium needs were addressed. About 10 years passed and the Twins now have their stadium but the Vikings are still waiting.
The Vikings’ stadium experience is likely to follow that of the Twins who finally received governmental approval when the team no longer was contractually bound to stay in Minnesota and play at the Metrodome. The Vikings’ lease at the dome expires after the 2011 season and the franchise can relocate to another city.
Although team management and representatives of the Metropolitan Sports Facilities Commission would love to gain approval for funding a new stadium on the Metrodome site during next year’s legislative session, the issue probably willl not be resolved. Members of the House of Representatives are up for re-election in 2008 and funding a proposed $1 billion stadium requiring both public and private funding is a subject legislators seeking re-election likely want to avoid.
Funding the stadium is obviously a controversial issue. The Twins stadium, projected at about half the cost, was a divisive topic for years among the public and politicians. The Vikings’ stadium drive will be no easier, perhaps more difficult because of the higher cost and because Hennepin County is already providing sales tax revenue to the Twins stadium. Talk of a metro sales tax to fund the Vikings stadium and other community needs will be appealing to some, but Anoka County, once the proposed home for the stadium, may line up first among opponents from various counties.
Drawing attention, too, from stadium opponents will be the financial success of the NFL. Although the NFL doesn’t make public the profits of its privately held teams, the Vikings are believed to be among the lowest money makers in the 32 team league for many years. However, it’s also believed the Vikings made an annual operating profit of several million dollars until last year when the franchise lost money. Plus, franchise value is impressive since Red McCombs reportedly purchased the team in 1998 for about $250 million and sold it in 2005 for approximately $600 million.
The NFL is a money- making machine with its TV, merchandising and ticket revenues. The NFL has also more successfully controlled labor expenses than other professional leagues. As America’s most popular sport, the NFL is riding high with no end seen to its growth as it now explores product expansion into Europe and Asia.
The drive for a new stadium will be based on more than the Vikings. A retractable roof facility will replace the Metrodome and provide a site for a long list of events that benefit the community. Whether it’s high school events filling a community need because of inclement weather, or big time events like an NCAA basketball tournament bringing economic vitality to the region, the argument is that a new domed stadium will serve Minneapolis and the entire area in a valuable way. Look for that theme to be spread by stadium proponents in the months ahead.
The Vikings enormous popularity in Minnesota will be an asset in pursuing a stadium. If the team can become a winner on the field that will create even more support for a stadium. But even with sold out games and local TV ratings that dwarf those of Minnesota’s other pro teams, the stadium proponents best tool of persuasion is a ticking clock and expiration of the lease. In the end the Vikings probably will get their stadium but don’t expect a decision until 2009 or later.
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