Can Charlotte spare millions for Tepper’s soccer dream?
Multi-billionaire Panthers owner wants $200M from city for pro soccer, reports say. Where will the money come from?
Note: This article appeared in the Sept. 25, 2019, edition of the Charlotte Ledger e-newsletter. If you want the latest smart, local business-y news, sign up for free here.
Panthers owner David Tepper has approached the city for taxpayer money — and it’s not for football. In closed session, the Charlotte City Council on Monday night heard from Tepper’s representatives, who said he’d like up to $200M in taxpayer funding to help land a new pro soccer team, according to media reports. From WBTV, which broke the story Tuesday:
The two sources briefed on the request told WBTV the closed session was for council members to receive an initial pitch to build an MLS facility in Charlotte. …
While council members did not take a formal vote at the conclusion of the presentation, they did give approval for city staff to continue exploring options to fund the project.
The Biz Journal’s Erik Spanberg later filled in some of the details — including that the city cash would go for stadium upgrades, a team HQ and a training center:
Carolina Panthers owner David Tepper wants $110 million to $212 million for upgrades at Bank of America Stadium and a companion Major League Soccer team headquarters and practice facility in Charlotte, a city government source told CBJ on Tuesday afternoon. …
Changes to BofA Stadium would make the venue more soccer-friendly. The city government source who spoke to CBJ said the stadium upgrades and an MLS team headquarters and training center would represent the sum of the city’s investment unless and until Tepper begins discussions on a retractable-roof domed stadium. The Panthers owner has said he hopes to build a new multipurpose stadium within a decade.
Until now, most of the attention to Tepper’s need for taxpayer money centered on the Panthers. Tepper said over the summer he’d like taxpayers to help pay for a new domed football stadium. Those tend to cost in the neighborhood of $2B, and taxpayers might be on the hook for about half.
This is a separate request for soccer. (Multi-billionaires are needy people.)
Even laying aside the usual concerns about subsidizing sports teams owned by billionaires, the case for the city paying money for soccer seems even weaker than paying for football — especially since Tepper is already building practice facilities and HQ buildings in Rock Hill (with $120M in South Carolina tax money). Charlotte’s contribution sounds as though it would go toward separate soccer practice facilities and a headquarters in Charlotte. Businesses often like to talk about “synergies,” but where are they here? How about some “adaptive re-use” of Panthers facilities for soccer?
Money crunch: Because we’re learning this from media leaks, we don’t know for sure what the plan is. The initial reports from WBTV and the Biz Journal contradict each other. The numbers in them might be a little high. As far as where the city might unearth millions of dollars in the next few months, the most obvious source is from hospitality taxes, such as occupancy and prepared-food taxes. The city has been saving some of those for stadium renovations and other tourism-related projects.
The real problem, though, is that even though hospitality tax revenue is rising — hotel and food taxes brought in $100M last year, triple the level from 15 years ago — the demand for it is rising even faster. There’s the issue of the football stadium. Upkeep on the basketball arena. NASCAR Hall of Fame. Possible upcoming renovations to Discovery Place. Convention Center. And now soccer is added to the list?
The City Council will probably go ahead and green-light spending for soccer. Eventually, though, something will have to give. Will it be taxpayers doing the giving?
Bonus observation: Does it make sense to spend millions to improve Bank of America Stadium for soccer if we’re going to knock it down and build a new domed football stadium in 10 years?
Bonus bonus observation: At least the city won’t have to spend millions to reconfigure Bank of America Stadium for Billy Joel. (Right?)
