Economics Group Special Commentary Anika R. Khan, Senior Economist anika.khan@wellsfargo.com (212) 214-8543 Randy Gerardes, Senior Municipal Analyst randall.gerardes@wellsfargo.com (212) 214-5026 Hank Carmichael, Economic Analyst john.h.carmichael@wellsfargo.com (704) 410-3059 Ariana B. Vaisey, Economic Analyst ariana.b.vaisey@wellsfargo.com (704) 410-1309 Large-Scale NFL New Stadium Construction Lifts Overall Outlays Stadium construction is thriving again, and sports franchises, especially the National Football League (NFL), are in the midst of a building boom. Indeed, the total real and nominal value of stadium construction spending put-in-place each reached $10 billion in June, on a 12-month moving average basis, registering a new record high (Figure 1.) This level compares to an average peak of just $6.8 billion during the last three stadium and arena construction cycles. Moreover, much of the development surge is from private sources rather than public funding (Figure 2). Prior construction cycles were characterized by local government stadium ownership financed via long-term leases with their tenant team. Governments generally sought capital cost recover rather than revenue maximization, which led to more modest, less costly construction designs. Since 2012, real construction spending is up more than 80 percent, with about half of the overall cost of facilities being driven by the NFL, by our estimate. The League s revenue sharing arrangement under its collective bargaining agreement somewhat limits competition among NFL teams for certain revenues. NFL teams get an equal split of ticket sales, merchandising and media rights, leaving long-term contractually obligated income (COIs) from team stadiums like sponsorships and luxury product (e.g., premium seating) to further boost team revenue. 1 However, the stadiums with the highest revenue generating COIs have been funded with the assistance of NFL financing. Stadium construction is thriving again, and sports franchises, especially the NFL, are in the midst of a building boom Figure 1 Figure 2 $12,000 $10,000 Total Sports Arena Construction Spending Private & Public Construction Put-in-Place, 12-Month Moving Average Nominal: May @ $10 billion Real: May @ $10 billion $12,000 $10,000 $7 $6 Sports Arena Construction Private & Public Construction Put-in-Place, 12-Month Moving Average, In Billions Private Spending: Jun @ $6.3 billion Public Spending: Jun @ $3.8 billion $7 $6 $8,000 $8,000 $5 $5 $4 $4 $6,000 $6,000 $3 $3 $4,000 $4,000 $2 $2 $2,000 $0 93 95 97 99 01 03 05 07 09 11 13 15 $2,000 Source: U.S. Department of Commerce and Wells Fargo Securities $0 $0 94 96 98 00 02 04 06 08 10 12 14 16 New construction has also provided the opportunity to enhance the in-venue stadium experience, including increasing technological investment as at-home conveniences pressure attendance. Unlike prior cycles, the current cycle reflects stadium economic obsolescence rather $1 $1 $0 New construction has provided the opportunity to enhance the invenue stadium experience 1 Gerardes, Randy. Game s On: Sports Facilities New Competition. February 12, 2013 This report is available on wellsfargo.com/economics and on Bloomberg WFRE.
More than half of the growth in team revenue in recent years is due to a surge in media rights than physical obsolescence, which we believe shortens the construction cycle while increasing its intensity. Therefore, we expect the current stadium cycle has more room to run, but renovations will likely begin to garner a growing share of outlays in the coming years, suggesting the pace of stadium construction growth will slow. Overall Sports Revenue Is Set to Moderate Revenue growth for North American sports has been fairly range-bound since 2013 registering solid annual growth between 5-6 percent through 2016, according to PwC (Figure 3). 2 More than half of the growth in team revenue in recent years is due to a surge in media rights, which are fees paid to show the game on television, radio, the Internet and mobile devices. For the NFL, the $450 million two-year CBS and NBC Thursday Night Football deal and the $50 million Amazon.com agreement with the NFL to stream 10 Thursday night games this year are examples. However, the media cycle is winding down, and PwC expects media rights to comprise a smaller share of total revenue growth, with year-over-year growth expected to slow to 2.8-3.2 percent from 2017 through 2020. Indeed, the overall pace of gate revenue for North American sports has also slowed in recent years. In 2013, ticket sales comprised almost half of overall sports revenue growth at nearly 3.0 percent year over year; however, the pace grew less than one percent in each year through 2016 and is projected to remain muted in the coming years. Although PwC does not break out revenue by each franchise, the trend is evident in weakening attendance at NFL games. Following five years of gains, NFL attendance slipped 2.7 percent in 2016 relative to a year earlier, with only 12 teams seeing growth, according to data from espn.com (Figure 4.) In 2015, 17 teams posted an increase in year-over-year attendance growth. Figure 3 Figure 4 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Revenue Components North America Sports Market, Year-over-Year Percent Change Forecast Gate Revenues Media Rights Sponsorship Merchandising 12 13 14 15 16 17 18 19 20 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Minnesota Kansas City Detroit Baltimore Los Angeles Chicago Green Bay NY Giants Pittsburgh Tampa Bay Dallas New Orleans Denver Cleveland Cincinnati Arizona Jacksonville Philadelphia Tennessee NY Jets New England Houston Oakland San Francisco Seattle Indianapolis Washington Carolina Atlanta Miami Buffalo Los Angeles -42.5% NFL Attendance Year-over-Year Percent Change, by Team 2016 Year-over-Year Percent Change -9.5% -11.0% -7.3% -8.9% -4.6% -4.8% -6.2% -2.8% -3.3% -3.7% -3.9% -3.9% -4.3% -0.7% -1.6% -2.3% -2.5% -2.5% -2.5% 1.9% 1.6% 1.4% 1.3% 0.7% 0.5% 4.8% 4.6% 4.2% 4.0% 6.5% 13.2% New construction or renovations can support attendance growth -4.0% Source: PwC, espn.com and Wells Fargo Securities However, new construction or renovations can support attendance growth, with most teams opening a new stadium seeing a boost in the first two years. For example, attendance at the new $1.1 billion U.S. Bank Stadium for the Minnesota Vikings jumped in the low double digits year over year in 2016, while turnout was up just 2 percent in 2015. With NFL game-day attendance slowing, team owners are aware that one way to get fans to the field is to build a new stadium. If You Build It, They Will Come -4.0% -50-40 -30-20 -10 0 10 20 The pattern of increased attendance the first two years a team moves into a new stadium or has significant renovations is fairly consistent. Since 2009, half of the 32 NFL stadiums have either been newly constructed or have undergone major renovations (Figure 5). Except the Denver Broncos, Washington Redskins, and Cleveland Browns, attendance on a year-ago basis grew within the first two years the new facility opened or renovations were completed. 2 PwC Sports Outlook, At the Gate and Beyond. October 2016 2
During this period, the Dallas Cowboys saw the largest increase in attendance the year the new stadium opened, jumping more than 20 percent year over year in 2009, following a rise of just 6 percent in 2008. Dallas Cowboys gate revenue is estimated to have increased to $112 million in 2009, from $47 million in 2008, pushing up the annual season stadium revenue by $65 million, which is a hefty new construction premium. 3 The AT&T Stadium was the only newly constructed NFL stadium in 2009, and the other 31 NFL teams averaged a drop of $360,000. Other notable increases in attendance during the year of new construction or renovations included the MetLife Stadium for the New York Jets, Levis Stadium for the San Francisco 49ers, with each growing more than 9 percent relative to a year earlier. The Buffalo Bills renovation in 2012 resulted in attendance advancing 9 percent year over year in each of the two years following the completion. Figure 5 NFL Attendance & Stadiums Attendance (YoY CHG) Year Stadium T eam (League) Stadium T -1 T T +1 T +2 Com pleted (T ) Age Construction T ype Dallas Cowboys (NFL) AT&T Stadium 6.0 21.4-2.2-1.5 2009 8 New Construction Kansas City Chiefs Arrowhead Stadium -8.1 1.9 3.5-7.0 2010 7 Renovations New York Giants MetLife Stadium 3.8-2.7 3.4 1.7 2010 7 New Construction New York Jets MetLife Stadium -9.0 9.3 2.1-2.3 2010 7 New Construction Buffalo Bills New Era Field -0.3-0.1 9.3 9.3 2012 5 Renovations Denver Broncos Sports Authority Field 6.1-3.0-3.1-3.1 2012 5 Renovations Washington Redskins FedEx Field -7.3-0.9-1.7-1.7 2012 5 Renovations Cleveland Browns FirstEnergy Field -5.1-3.5-3.5-2.0 2013 4 Renovations Jacksonville Jaguars Everbank Field 7.0 4.1 4.1-1.1 2013 4 Renovations Philadelphia Eagles Lincoln Financial Field 1.1 1.1 0.1-2.5 2014 3 Renovations San Francisco 49ers Levi's Stadium 9.5 9.5-4.2-4.3 2014 3 New Construction Green Bay Packers Lambeau Field -3.6-0.1 1.9 2015 2 Renovations Miami Dolphins Hard Rock Stadium 4.6-9.5 2016 1 Renovations Minnesota Vikings U.S. Bank Stadium 1.9 13.2 2016 1 New Construction Carolina Panthers Bank of America Stadium 2017 Renovations Tampa Bay Buccaneers Raymond James Stadium 2017 Renovations Los Angeles Rams Hollywood Park Stadium 2017 New Construction Los Angeles Chargers Hollywood Park Stadium 2020 New Construction Source: espn.com, StadiumDB.com, and Wells Fargo Securities What Happens When You Don t Build It? In the 2016/2017 Green Bay Annual report (the only team with publically available financials because it is fan-owned and a public entity), the organization noted that overall revenue grew over the year. Gains were realized from the national television contract, which is equally shared by the 32 teams, game-day revenues like ticket sales, and sponsorships. 4 From the report, we can see that each team received $244 million in 2016, up from $222.6 million in 2015. 5 The team s local revenue, which is kept by the team, reached a record $197.4 million, with much of the increase due to Pro Shop sales, but an increase in ticket prices also played a role. The Green Bay Packers financial report provides some perspective of revenue drivers from a team in the smallest NFL television market, which is playing in a stadium with renovations but not new construction. In a Green Bay Press Gazette article, Mark Murphy (CEO and President of the Green Bay Packers) noted that each new stadium results in higher ticket prices, raising league averages and new stadiums make it more difficult for the Green Bay Packers to maintain income rankings among NFL teams. 6 Hence, the organization completed a two-year $55 million renovation of the Lambeau Field premium seating areas in 2017 and constructed Titletown, a mixed-use development project adjacent to the stadium. To illustrate Mark Murphy s point about valuation rankings, we turn to Forbes. In 2015, the Green Bay Packers were ranked the No. 10 most valuable NFL team, while the Minnesota The pattern of increased attendance the first two years a team moves into a new stadium or has significant renovations is fairly consistent Each new stadium results in higher ticket prices, raising league averages 3 Winfree, Jason. NFL Franchise Values, Locations, and Stadium Economics. 2011 4 National revenue, which is shared amongst all 32 teams include national television and radio contracts, international television, properties, enterprises and films and the Visiting Team Share of gate revenue 5 Green Bay Packers Annual Report. Green Bay Packers, July 24, 2017 6 Ryman, Richard. Packers Report Another Year Record Revenue. Green Bay Press Gazette, July 12, 2017 3
The four NFL teams that have seen the greatest appreciation in 2016 either committed to relocating or moved to a new stadium Five NFL projects registered more than $1 billion in project costs since 2011 Vikings ranked No. 18. In 2016, when the Minnesota Vikings opened the doors to their new stadium, the Green Bay Packers fell to No. 13, while the Minnesota Vikings edged a notch higher to be ranked No. 17. We also find the team value of the Minnesota Vikings spiked 38 percent over the year. Ranked in third place by year-over-year valuation, the Minnesota Vikings placed only behind the Los Angeles Rams and Oakland Raiders, who each relocated or committed to relocating into larger markets. The Green Bay Packers, on the other hand, increased value by a middle-of-the-road 21 percent, which is consistent with the league average showing a 22 percent valuation increase in 2016. Hence, it is not surprising to find the four NFL teams that have seen the greatest appreciation in 2016 relative to a year earlier either committed to relocating (Los Angeles Rams, San Diego Chargers, and Oakland Raiders) or moved to a new stadium (Minnesota Vikings.) Relocations Spark NFL Stadium Loan Financing It's hard to imagine a time when NFL teams were prohibited from relocating. In 1982, Al Davis, the principal owner, and president of the Oakland Raiders won a major lawsuit against the NFL to move the Oakland Raiders from Oakland-Alameda Coliseum to the Los Angeles Memorial Coliseum. The lawsuit ushered in the first wave of relocations (Baltimore Colts to Indianapolis in 1984 and the St. Louis Cardinals to Phoenix in 1987.) 7 Club owners understood that moving into a new stadium could boost overall revenue and hence, valuations especially as the Colts and Cardinals moved from smaller television markets and traded up to larger markets. The next round of relocations was marked by teams in larger television markets seeking public funding in smaller markets. The Cleveland Browns (19 th largest television market in 2015) moved to Baltimore (ranked No. 26) and became the Baltimore Ravens in 1996, and the Houston Oilers (ranked No. 10) moved to Memphis (ranked No. 50) and became the Tennessee Oilers, later the Tennessee Titans. With the NFL losing television revenue due to relocations, the league implemented the G-3 program in 1999, which is a loan to help facilitate new stadium construction. With publicprivate funding, the G-3 program would match up to $150 million of an NFL owner s private contribution for a new stadium like PSLs, stadium rights or luxury seating. However, if a team was unable to generate enough funds through local revenue, the team would forfeit a portion of its shared television revenue. In particular, the resolution stated that the amount of the loans would be determined by the television market size, with 50 percent of private contributions allocated to the six largest markets which would be New York, Los Angeles, Chicago, Philadelphia, Dallas-Ft. Worth, and San Francisco based on 2015 rankings of television households. The remaining markets received 34 percent. This arrangement ensured the most agreeable mix of financing and location that maximized the television audience. The G-4 loan program, which is an extension of G-3, was launched in 2011 as part of the collective bargaining agreement. The loan helps owners secure additional streams of income through COIs and also assists in funding technology upgrades for the league to keep up with the ever-evolving shift in media consumption and remain competitive with other sports franchises and entertainment. On the back of G-4 funding, five NFL projects registered more than $1 billion in project costs since 2011 including the Los Angeles Stadium and Entertainment District at Hollywood Park for the Rams and Chargers ($2.6 billion), and the Las Vegas Stadium for the Oakland Raiders ($1.9 billion). Technology upgrades are also making projects in this cycle more costly. Bringing the At-Home Experience to the Field: Tech & Seats In 2009, the Dallas Cowboys, the world s highest valued sports team, opened AT&T Stadium ($1.3 billion). The AT&T stadium has panoramic views of the field and main seating capacity of 80,000 but could accommodate nearly 100,000 and a massive HD video board above the center 7 Oriard, Michael. Brand NFL: Making and Selling America s Favorite port. 2010 4
of the field. In a Bleacher Report article, Jerry Jones averred, Fifty percent of what I spent on the AT&T Stadium was for television. 8 However, the Dallas Cowboys personal seat licenses (PSLs), which are a 30-year lease agreement required to purchase season tickets in premium locations of the stadium, was a key factor in offsetting construction costs and generating additional revenue for the team. In 2009, Jerry Jones told The New York Times, the stadium s 315 luxury suites sold for $100,000-$500,000, while the licensed club seats sold for $16,000-$150,000. 9 Sparked by the AT&T stadium, enhanced technology and premium seating has been put in place to draw the average fan from the comfort of their home to the stadium on game day. NFL stadiums now are including amenities such as free Wi-Fi, enabling fans to check their fantasy scores, post on social media or even watch other games, massive high-resolution video boards, and cell phone apps that assist in creating the most convenient, enjoyable experience. The proliferation of smartphone apps for sports fans is one of the biggest challenges for franchises and is evident in the slower pace of gate revenue and attendance, especially at NFL games. According to Nielsen, the average time spent watching live television (4.21 hours a day for an adult 18 and older), fell in Q1 relative to the same quarter a year ago. However, time spent on smart phone apps (2.19 hours) registered explosive growth. 10 Smartphone adoption has grown substantially with about three-quarters of Americans owning the device, compared to just 35 percent in 2011, according to the Pew Research Center. 11 Moreover, most adults say they use their connected devices like smartphones and tablets as second-screens while watching television. Levi s Stadium, home of the San Francisco 49ers, is a beacon of advanced technology in NFL stadiums. The stadium has the bandwidth for 70,000 fans, with 70 miles of wiring throughout the stadium supporting 1,200 distributed antenna systems, which brings 40 times more Internet bandwidth than any stadium in the country 12. In addition, the stadium has Bluetooth technology that leads fans directly to their seats, or anywhere they want to go in the stadium through an app on their cell phone. Mercedes-Benz Stadium, home turf of Super Bowl 51 runner-up Atlanta Falcons, has a circular retractable roof. Inside of the roof opening, the stadium features a fivestory high, 360-degree high-resolution video board, the first of its kind. 13 These technological investments that link the structure with the fan experience are costly expenditures that drive up construction outlays, but they are necessary to bring fans to the stadium. The NFL is not the only game in town. According to Sports Illustrated s Ranking the 25 Most Tech Savy Sports Teams in 2016, there were four National Basketball Association (NBA) and two Major League Baseball (MLB) teams that ranked in the top 10. The Sacramento Kings, Golden State Warriors, and Atlanta Hawks grabbed the first three positions, while the Atlanta Braves and Los Angeles Dodgers also garnered high rankings. The Sacramento Kings, who just christened their brand new Golden 1 Center, leveraged a dualmode remote control smartphone app to enhance the fan experience. The app offers real-time information spanning from game stats, concession lines, offers seat upgrades and food delivery to fans seats. The Atlanta Hawks became the first team in the NBA in 2014 to use 3D projection mapping on the court that displays exciting visuals during introductions, and also installed advanced recovery equipment such as cryotherapy and sensory deprivation tanks. Staying in the Peach State, Major League Baseball s Atlanta Braves brand new SunTrust Park has an all-fiber network for quality Internet access and also has used technology to attract lastminute fans. The stadium offers a low-cost monthly membership that sends a message to fans the Enhanced technology and premium seating has been put in place to draw the average fan from the comfort of their home to the stadium 8 Cole, Jason. Jerry Jones Q&A: Cowboys Owner on Greg-Hardy, Roger Goodell and State of the NFL, Bleacher Report. August 11, 2016 9 Sandomir, Richard. A Texas-Size Stadium. NY Times, July 16, 2009 10 The Nielsen Total Audience Report Q1 2017 11 Social Media Fact Sheet. Pew Research Center: Internet, Science & Tech, January 12, 2017 12 Bajarin, Tim. Levi's Stadium Is the Most High-Tech Sports Venue Yet. Time Magazine, August 18, 2014 13 Tuchman, Robert. What Makes the Atlanta Falcons' New Stadium the Best Ever. Forbes Magazine, August 22, 2017 5
Roughly 15 percent of professional sports stadiums seating inventory is considered premium NBA teams have followed population and wealth from suburbs into center cities day of the game, asking if they would like to attend. If they reply with a yes, the fan is sent a digital ticket to the game. Not only is technology being used in the stadium to enhance fan experience across major sports leagues, but it also is being used to draw in fans. 14 However, NFL teams are still leading in stadium technology investment as eight NFL teams placed on the list, garnering more positions than any other league. The New Normal: Luxury Seating Products The convivial at-home experience has forced teams hands in improving the in-stadium experience, shifting toward more premium, luxury product at ball games. In addition, it has placed a greater importance on team owners to maximize revenue per seat. Media products such as the Red Zone Channel and NFL Sunday Ticket, which allow customers to see every scoring play or watch any NFL game, has drastically improved the at-home experience of watching professional sports. This has been an important driver behind the stadium construction boom that is taking place, as teams must now build new, state-of-the-art facilities that can enhance ticket holders game day experience. Premium seating provides a high-end game-watching experience, including luxury boxes, club seating with private dining or bar areas, wait staff, and even exclusive on-field, courtside or tunnel privileges. In 2016, PwC estimates that roughly 15 percent of professional sports stadiums seating inventory is considered premium, but these seats account for about 40 percent of ticket revenue. PSLs have played a role in stadium financing since the Carolina Panthers used them to raise $125 million for their $248 million Charlotte stadium in 1996, with revenues collected by teams through PSLs increasing substantially in recent years. 15 To explain PSLs further, fans are leasing a piece of real estate (a luxury box or a seat) within the stadium from the team, and it is considered to be stadium revenue that is not shared with the league. The buyer also must purchase game tickets from the league, which is shared among all teams. This is an enormous incentive for team owners to devote more resources and construction investment into luxury seating products and their marketability, as revenues are driven higher and not shared. Moreover, if a club loan uses NFL financing, the loan is repaid out of the visiting team s share of the luxury seating, e.g., the luxury box and club seat revenue. Despite an offer of $400 million in state support for a new stadium in St. Louis, Rams owner Stan Kroenke decided to re-locate his team to the Los Angeles area, which is the second-largest television market, where he intends to cover all stadium construction costs with private financing. The two other NFL teams approved for relocations in 2016 the San Diego Chargers and Oakland Raiders are also leaving smaller cities where they struggled to attract corporate funds and well-heeled fans to support new stadium projects. However, with three NFL relocations already in process, there are likely fewer on the horizon. NBA teams have followed population and wealth from suburbs into center cities, such as the Nets moving from New Jersey to Brooklyn. That said, land constraints in metro areas make it difficult for more NBA teams to follow suit, and mean that renovations are more likely than re-locations going forward. Other examples of PSLs include the San Francisco 49ers new Levi s Stadium and Golden State Warriors. The San Francisco 49ers raised more than $530 million from PSL sales, which sold for as much as $80,000 per seat. 16 This year, the Golden State Warriors announced that they would sell PSLs to help fund construction of the new Chase Center, becoming the first NBA team to use the financing method. 17 In fact, PSLs have become such a valuable source of revenue that the Falcons decided not to sell single-game tickets in their new 14 Mark Burns. Ranking the 25 most tech savvy sports teams in 2016. Sports Illustrated, December 14, 2016 15 football.ballparks.com/nfl/carolinapanthers 16 Rosenberg, Mike. 49ers sell out Levi s Stadium few single-game tickets coming. I, August 12. 2016 17 Rovell, Darren. "Warriors to become first NBA team with broad use of personal seat licenses." ESPN.com, July 20, 2017 6
stadium, offering PSLs for sale on 61,000 out of 71,000 seats. Previously, PSLs were only sold on prime seats. 18 Corporate Partnerships Beyond the pockets of wealthy fans, corporate money is also contributing to a greater level of stadium financing through lucrative naming rights deals and advertising agreements. These large advertisement and naming rights deals help stadiums recoup outlays associated with new stadium construction. Advertising revenue for the league increased 3 percent in 2016, up to $3.5 billion, which is split equally among all 32 teams. 19 Sponsorship revenue growth is not limited to the NFL, however. For the first time next season, the NBA will allow teams to sell space on team jerseys to corporate sponsorships, and NBA Commissioner Adam Silver believes this will contribute about $100 million in shared league revenue per year 20. While a small part of the estimated $7 billion of NBA revenue projected next season and not a driver of construction, this is an interesting development and illustrates the increased dollars flowing into professional sports and the emerging importance of relationships between leagues and corporations. As stadiums have become more impressive structures with unique, cutting-edge features and luxury products, corporations have become more willing to shell out more money for naming rights. MetLife agreed in 2011 to pay $400 million over 25 years for naming rights of the New York Jets and New York Giants stadium, for instance. Sponsorship in the stadium is nearly ubiquitous with a large high-definition video board in each corner to highlight corporate sponsors. Corporations have also taken advantage of the high-end luxury products offered in stadiums, such as Mercedes-Benz Stadium s SunTrust Club, AMG Lounge, and Harrah s Casino Club. The new stadiums bring more eyeballs and provide more brand exposure. This has been a large driver of the increased stadium spending, as owners recognize the potential streams of revenue that come from lucrative sponsorships, and new state-of-the-art facilities can inspire firms to open their wallets. Looking Ahead: Older Stadiums Next In Line? Since the early 1990s, the average stadium construction cycle has lasted about six years. Based on the duration of the current cycle, it would stand to reason that stadium construction spending is set to cool in the coming year. Much of our focus has been on the NFL largely because the League accounts for half of overall new stadium construction outlays by our estimate. Most NFL teams now play in stadiums that are either new, under construction or have been recently renovated. However, there are six older stadiums that are due for new construction or more substantial upgrades including the Chicago Bears Soldier Field, Baltimore Ravens M&T Bank Stadium, Cincinnati Bengals Paul Brown Stadium, Tennessee Titans Nissan Stadium, Pittsburgh Steelers Heinz Field, and Houston Texans NRG Stadium (especially following Hurricane Harvey.) Teams with larger television markets, like the Chicago Bears and Houston Texans typically have more sizable projects, but the remaining stadiums will likely undergo renovations just to keep up with the new construction from other clubs. That said, there is an additional incentive for the Baltimore Ravens, Cincinnati Bengals, and Tennessee Titans to begin renovations as they all placed in the bottom third of Forbes 2016 NFL Valuations list. With fewer large-scale NFL stadiums projects in the pipeline, the pace of stadium construction will likely slow in the coming years. With fewer large-scale NFL stadiums projects in the pipeline, the pace of stadium construction will slow in the coming years 18 Ruiz, Steven. The Falcons' bizarre season-tickets-only strategy is going to price most people out. USA Today, July 27, 2017 19 Badenhausen, Kurt. NFL TV ad revenue hits record $3.5 billion despite drop in ratings. Forbes Magazine, March 1,2017 20 Rovell, Darren. NBA approves on-jersey advertising program. ESPN Internet Ventures, April 15, 2016 7
Appendix A NFL Stadium Construction Since 1997 Year Opened/ Funding T V Market 1 Stadium T eam (s) Com pleted T otal Cost Renovation Private Public Rank University of Phoenix Stadium Arizona Cardinals 2006 $455 $147 $308 11 Mercedes-Benz Stadium Atlanta Falcons 2017 $1,600 $1,600 $0 9 M&T Bank Stadium Baltimore Ravens 1998 $226 $22 $204 26 New Era Field Buffalo Bills 2012 $130 Y es $0 $130 52 Bank of America Stadium Carolina Panthers 2017 $88 Yes $0 $88 24 Soldier Field (renovation) Chicago Bears 2003 $587 Yes $200 $387 3 Paul Brown Stadium Cincinnati Bengals 2000 $450 $25 $425 36 Cleveland Browns Stadium Cleveland Browns 1999 $27 1 $7 1 $200 19 FirstEnergy Stadium Cleveland Browns 2013 $120 Y es $90 $30 19 Cowboys Stadium Dallas Cowboys 2009 $1,194 $7 50 $444 5 Sports Authority Field at Mile High Denver Broncos 2001 $401 $112 $289 17 Sports Authority Field at Mile High Denver Broncos 2012 $30 Y es $30 $0 17 Ford Field Detroit Lions 2002 $440 $330 $110 12 MetLife Stadium Giants/Jets 2010 $1,600 $1,600 $0 1 Lambeau Field (renovation) Green Bay Packers 2003 $295 Y es $126 $169 68 Lambeau Field Green Bay Packers 2015 $141 Y es $141 $0 68 NRZ Stadium Houston Texans 2002 $474 $185 $289 10 Lucas Oil Stadium Indianapolis Colts 2008 $7 20 $100 $620 27 EverBank Field Jacksonville Jaguars 2013 $63 Y es $20 $43 48 Arrowhead Stadium Kansas City Chiefs 2010 $37 5 Yes $125 $250 31 Hardrock Stadium Miami Dolphins 2015 $550 Y es $550 $0 16 U.S. Bank Stadium Minnesota Vikings 2016 $1,129 $7 81 $348 15 Gillette Stadium New England Patriots 2002 $412 $340 $7 2 7 Gillette Stadium New England Patriots 2017 Y es Mercedes-Benz Superdome New Orleans Saints 2011 $336 $180 $156 51 Raiders Stadium Oakland Raiders 20202 $1,900 $7 50 Lincoln Financial Field Philadelphia Eagles 2003 $518 $330 $188 4 Lincoln Financial Field Philadelphia Eagles 2014 $125 Y es $125 $0 4 Heinz Field Pittsburgh Steelers 2001 $281 $109 $172 22 Hollywood Park Stadium Rams/ Chargers 2020 $2,600 Levi's Stadium San Francisco 49ers 2014 $1,300 $1,300 $0 6 Century Link Field Seattle Seahawks 2002 $461 $161 $300 14 Raymond James Stadium Tampa Bay Buccaneers 1998 $194 $0 $194 13 Raymond James Stadium Tampa Bay Buccaneers 2017 $150 Y es $121 $29 13 Nissan Stadium Tennessee Titans 1999 $292 $85 $207 29 FedEx Field Washington Redskins 1997 $251 $180 $7 1 8 FedEx Field Washington Redskins 2012 $27 Y es $27 $0 8 1 2015 NFL Record & Factbook, 2015 Top 100 Television Markets, rankings are determined by TV household Source: Conventions & Sports Leisure and Wells Fargo Securities 8
Appendix B Dallas Cowboys New England Patiots New York Giants San Francisco 49ers Washington Redskins Los Angeles Rams New York Jets Chicago Bears Houston Texans Philadelphia Eagles Denver Broncos Miami Dolphins Green Bay Packers Baltimore Ravens Pittsburgh Steelers Seattle Seahawks Minnesota Vikings Indianapolis Colts Atlanta Falcons Oakland Raiders Los Angeles Chargers Carolina Panthers Arizona Cardinals Tennessee Titans Jacksonville Jaguars Kansas City Chiefs Cleveland Browns Tampa Bay Buccaneers New Orleans Saints Cincinnati Bengals Detroit Lions Buffalo Bills Source: Forbes NFL Team Valuations In Billions, 2016 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Appendix C 2015 Most Watched Programs Source: Nielsen and Wells Fargo Securities Viewership Program (in Millions) Date Network Super Bowl XLIX 115.2 February 1, 2015 NBC Super Bowl XLIX post-game show 7 3.2 February 1, 2015 NBC Colts vs. Patriots 42.3 January 18, 2015 CBS 87 th Academy Awards 1 38.6 February 22, 2015 ABC College Football Playoff National Championship 33.7 January 12, 2015 ESPN Lions vs. Cowboys post-game show 33.1 January 4, 2015 ESPN Panthers vs. Seahawks 31.1 January 10, 2015 FOX The Blacklist ("Luther Braxton", Super Bowl XLIX lead-out) 1 30.5 February 1, 2015 NBC Colts vs. Broncos post-game show 28.6 January 11, 2015 NBC Alabama vs. Ohio State (College Football Playoff) 28.5 January 1, 2015 ESPN 1 Not a sporting event 9
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