The stadium deal for Jerry Jones and the Dallas Cowboys is weighted heavily on the side of the team. The Cowboys emphasized during the tax initiative campaign that they were putting up half the money for the stadium—$325 million—but that isn’t quite true. While the city will use the new taxes to retire its side of the debt, Jones will be able to slap his own 10 percent “tax” on tickets and a $3 tax on parking to retire his side. This will amount to about $10 million a year, or $300 million over 30 years.
But that’s hardly the limit to Jones’ new revenue streams. He’ll also get 95 percent of the corporate naming rights revenue for the new facility, which could be worth $250 million to $350 million. That’s extra money, since the team’s current home, Texas Stadium, has no corporate naming contract. Jones could also earn more than $100 million by selling personal seat licenses (priority rights for buying season tickets), and the NFL is giving the Cowboys a $100 million loan they don’t have to pay back.
So before he even sells a ticket or luxury box or hot dog or beer, Jones will be up about $800 million. Take away the $325 million, and he is still ahead $475 million. Since studies have shown NFL teams usually double their profits in new digs, Jones’ estimated annual take of $40 million could balloon into an additional $1.2 billion over the life of the 30-year deal.
The city of Arlington never asked to see the Cowboys’ books before deciding to put the issue before voters. As with the Texas Rangers stadium before it, eminent domain likely will be invoked to assemble land for the football stadium; the Arlington City Council already has threatened to use it if any property owners decide to hold out. The city has claimed the area where the stadium will be built is blighted and full of crime, neither of which is true; the local housing prices and crime rates are about average for the city.
Such spurious claims in the service of forcing small property owners to sell to larger ones have become all too common. If the Supreme Court requires the justifications to be even slightly more rigorous, and if Hamilton County succeeds merely in publicizing the NFL’s notoriously secret finances, then the balance of power will shift away from the teams. And if the judges take decisive action, 2005 could be the year the public stopped lining the pockets of billionaire owners and millionaire players by paying for the places where they earn their living.