BREAKING: City proposes spending $650M toward stadium renovation
Proposal unveiled Monday would be part of more than $1.3B in Bank of America Stadium changes; would keep Panthers here for nearly 20 years
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City unveils proposal to renovate Bank of America Stadium using tourism tax money; City share: $650M, Tepper share: $688M
Time for an upgrade? (Photo by Kevin Young/The 5 and 2 Project)
by Tony Mecia
The city of Charlotte is proposing to spend $650M in public money toward a $1.3B renovation of Bank of America Stadium, with the balance picked up by Tepper Sports & Entertainment.
The long-awaited proposal, which has been under development for years, was cast by the city as a way to continue to support an economic engine that draws football fans and concert-goers and provides unmatched benefits to the hospitality industry and its workers and to the city.
The city’s portion of the money would come from tourism taxes, specifically taxes on food and beverages and a portion of occupancy taxes. That money needs to be spent on tourism-related projects.
The proposal was unveiled by Assistant City Manager Tracy Dodson at a meeting Monday of the City Council’s jobs and economic development committee.
Dodson said the money would be used for “necessary work that is needed in a 30-year-old facility.” Some of the changes include seating, video and sound systems and concessions. The Panthers would agree to stay in Charlotte for nearly 20 years, she said.
[Watch the presentation for yourself]
Details were still being shared Monday afternoon. (More to come later.)
Debate ahead: The release of the proposal for Bank of America Stadium is sure to ignite debates on talk radio and around local water coolers about the wisdom of taxpayers subsidizing the sports operations of one of the NFL’s wealthiest owners.
Forbes estimates Tepper’s net worth at $20.6B, a fortune he amassed largely as a hedge fund manager through the company he founded, Appaloosa Management.
Tepper’s last couple of years in Charlotte have been a PR manager’s nightmare, from confronting employees at the Dilworth Neighborhood Grille who had a critical message on the restaurant’s marquee, to the Jacksonville drink-throwing episode, to repeated firing and hiring of coaches, to backing out of agreements at Eastland Mall and in Rock Hill. He and his wife, Nicole, have donated millions to local charities, including pledges to help build a new main library uptown, build a family justice center in east Charlotte and support higher education, but those efforts often receive less attention than the higher-profile debacles.
Economists generally believe that local government subsidies of sports stadiums provide a poor return on investment because they generate little new economic activity. Instead, the spending at stadiums and nearby restaurants and hotels is typically shifted from other spending.
Approval expected: Still, the Charlotte City Council will almost certainly agree to plans to renovate the stadium. That’s because they believe renovating costs less than building a new stadium, and the major source of the money — tourism taxes — is required to be spent on tourism-generating projects. They also don’t want to risk losing what they consider to be an economic asset by having the Panthers move elsewhere.
In a talk in January, council member Malcolm Graham, who chairs the council’s Jobs and Economic Development Committee, said that even though the amount of tax money sought by the Panthers “may shock the conscience” that the 28-year-old stadium had real needs, such as “gutters and roofing and technology and stuff like that.” He said he wanted to make a “business decision” on the matter, given that the stadium generates “$1.5 billion” in yearly economic impact and benefits people like “waiters, waitresses, bartenders, small business owners, event planners, folks who work at the stadium part-time, seniors, to augment their income.”
Other council members have stayed unusually tight-lipped about negotiations with the Panthers, which have been ongoing for years. Joe Bruno of WSOC reported last spring that city officials had discussed contributing $600M toward stadium renovations that would cost a total of $1.2B. The Ledger reported in January that the City Council was briefed in December 2023 and was told the city’s costs could be higher than the $600M figure.
The City Council agreed to $87M in renovations of the stadium in 2013. Subsequent renovations, including an estimated $50M to reconfigure parts of the stadium for soccer team Charlotte FC, were paid for by Tepper Sports & Entertainment. Construction of the stadium was privately financed. It opened in 1996.
The full council is expected to discuss the proposal later today and over the coming weeks.
Related Ledger articles:
“Hefty price tag ahead for Panthers' stadium renovations, council member says” (🔒, Jan. 26)
“Will Tepper’s drink-throwing delay plans for Bank of America Stadium?” (🔒, Jan. 3)
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Executive editor: Tony Mecia; Managing editor: Cristina Bolling; Staff writer: Lindsey Banks; Business manager: Brie Chrisman, BC Creative
Just like MJ, the owner is wealthy beyond imagination but chooses to put an inferior product on the field and we are supposed to get excited about spending money on a pet project for a billionaire? Sorry, hard to justify handing over that kind of money, especially after his past transgressions on other projects that were supposed to generate increased revenues.
I am not in favor of subsidizing millionaires, especially when ticket prices are out of reach for the majority of taxpayers.