HOUSTON NFL STADIUM TO GET TAX REBATE
November 16, 2000
Copyright 2000 MediaVentures
The Houston City Council has voted to give up $632,000 a year in taxes on the Texans' new Reliant Stadium that opens in 2002. Team owner Bob McNair and the Houston Livestock Show and Rodeo asked for the tax break to help finance the venue. City officials said a 2004 Super Bowl game planned for the venue would offset most of
the tax loss.
Reliant
names new Harris County Stadium and complex
October 26, 2000
HOUSTON - Harris County Sports and Convention Corporation in conjunction with Houston Livestock Show & Rodeo and the Houston Texans, announced today that Reliant Energy has acquired the naming rights for Houston’s new state-of-the-art
football stadium and the sports, entertainment and convention complex currently
known as the Astrodomain Complex.
Reliant
Energy’s 32-year agreement to acquire the naming rights for five different
buildings and the complex is the most comprehensive naming rights agreement in
history. Reliant Park will be a partnership of mutual support between the Harris
County Sports and Convention Corporation, the Houston Texans, RodeoHouston and
Reliant Energy. The facilities at Reliant Park will include Reliant Stadium,
Reliant Astrodome, Reliant Arena, Reliant Hall and Reliant Center, the new
exposition center which is currently under construction. The terms of the deal
were not disclosed. The 32-year deal covers the two pre-opening years for the
stadium and lasts throughout the 30-year lease that the Houston Texans and
RodeoHouston are negotiating with the Harris County Sports and Convention
Corporation.
Reliant
Energy has previously announced plans to split into two different publicly
traded companies by the end of 2001 in order to separate its regulated
businesses, including Reliant Energy HL&P/Entex, from its unregulated
activities. The new entity, to be called Reliant Resources, will assume the
naming rights sponsorship for the life of the contract, with the sponsorship
becoming a cornerstone of its unregulated competitive marketing efforts.
The
five facilities in Reliant Park have an anticipated event inventory of 350 event
days per year, exceeding all other stadiums in the country. In addition to
naming rights, the agreement provides Reliant Energy with significant
sponsorship rights and benefits with RodeoHouston, the Harris County Sports
& Convention Corporation and the National Football League’s newest
franchise, the Houston Texans, for the term of the agreement.
The
announcement was made at a press conference on the grounds of the newly named
Reliant Park and was attended by Reliant Energy Chairman, President and CEO
Steve Letbetter, Harris County Judge Robert Eckels, Harris County Commissioner
El Franco Lee, Houston Mayor Lee Brown, Harris County Sports & Convention
Corporation Chairman Mike Surface, Houston Livestock Show & Rodeo President
Mike Wells and Houston Texans Owner Founder Bob McNair.
“The
naming of Reliant Park is a natural extension of Reliant Energy’s commitment
to this community, which spans more than 100 years,” Letbetter said. “We’re
pleased to be involved in such a unique partnership that will provide
entertainment and activities for a large part of the population of Harris
County. The facilities here, including the stadium and new exposition center,
are world class, and we are excited to have our name associated with them.”
Reliant
Stadium is set to open in August of 2002, when the Houston Texans will host the
Miami Dolphins in their first home preseason contest. Reliant Stadium will seat
69,500 and is favored to host Super Bowl XXXVIII in January of 2004. Its
world-class design features the first retractable roof football stadium with a
natural grass playing surface. The roof can open and close to adjust to weather
conditions, resulting in year-round, climate-controlled comfort. Reliant Stadium
also will be the home of RodeoHouston and its annual 2 million patrons.
“This
partnership represents a major investment in the future of Harris County and
Houston by Reliant Energy,” said Eckels. “This investment will help to
revitalize the Main Street corridor and provide excitement for football and
rodeo fans here in Harris County. In addition, this partnership will help us
attract millions of new visitors to this region for meetings, conferences and
special events each year.”
Reliant
Center, currently under construction, is situated on the north side of the
260-acre Reliant Park and is scheduled to open in the spring of 2002. Reliant
Center will have a total of 1.4 million square feet with more than 700,000
square feet of single-level contiguous exposition space and 72 meeting rooms.
Reliant Center will serve as a primary venue for RodeoHouston, along with
Reliant Stadium, beginning in February of 2003.
“Today’s
announcement represents an important milestone in the history of this complex,”
Surface said. “The additional exposure provided by this partnership will
significantly increase our ability to promote the complex as a true world-class
facility.”
“Reliant
Energy has been a major supporter of the Houston Livestock Show & Rodeo for
many years, and we are proud that this association will continue over the next
three decades,” said Wells. “With our friends the Houston Texans, we’re
building a future that will result in one of the greatest venues in the sports
and entertainment industry. The Houston Livestock Show & Rodeo will be able
to have an even greater impact on the futures of thousands of young men and
women with the ability to expand our scholarship and educational programs.”
“We
are thrilled to have a partner like Reliant Energy for Houston’s new
state-of-the-art sports complex,” Houston Texans Founder Bob McNair said. “Reliant
has the same commitment to Houston, Harris County and southeast Texas that we
have. This partnership is sure to benefit Houstonians and Texans for many years
to come.”
Reliant
Arena, currently known as the Astroarena, is a self-sufficient, multi-functional
facility. In addition to nearly 250,000 square feet of exhibit space, Reliant
Arena features an 8,000-seat arena and 2,000-seat pavilion.
Reliant
Hall, currently known as the Astrohall, has more than 640,000 square feet of
space and is Houston’s largest single-level exposition and conference center.
Reliant
Astrodome is known as the “Eighth Wonder of the World” for good reason. It
was the first domed stadium when it was built in 1965 and has served as a symbol
of the unique spirit of achievement for Houston ever since.
Reliant
Energy, based in Houston, Texas, is an international energy services and energy
delivery company with approximately $20 billion in annual revenue and assets
totaling more than $28 billion. The company has a wholesale energy trading and
marketing business that ranks among the top five in the U.S. in combined
electricity and natural gas volumes and has a presence in most of the major
power regions of the U.S. It also has power generation and wholesale trading and
marketing operations in Western Europe. The company has nearly 27,000 megawatts
of power generation in operation in the U.S. and Western Europe and has
announced acquisitions and development projects that will add nearly 4,000
megawatts. Reliant Energy also has marketing and distribution operations serving
nearly four million electricity and natural gas customers in the U.S., interests
in power distribution operations in Latin America and a telecommunications
business serving the Houston area
Thursday, September 7, 2000
Texans will start play in 2002
Associated Press
HOUSTON -- A not-too-well-kept secret was revealed Wednesday when Houston owner Bob McNair announced the nickname of the NFL's 32nd franchise will be the Texans.
The name won out over the Stallions and Apollos.
"Are you ready for some football?" McNair shouted to a downtown crowd estimated at 16,000
which turned out to learn the team's name, logo and colors.
The colors for the team that will begin play in 2002 will be battle red, steel blue and liberty white
with a bull's head logo that includes a Texas Lone Star on one side.
"We're so excited about the return of the NFL to Houston," McNair said. "We don't want to be
stereotyped as cowboys. We are proud of our past but we don't want to be bound by it."
Looking out over a stretch of downtown Texas Avenue that was turned into a football field,
complete with goal posts, NFL commissioner Paul Tagliabue revealed the team name and logo
on a large screen.
"With teamwork you can achieve the impossible," Tagliabue said. "Not many years ago, you
thought, 'it's not going to happen,' but it did happen and you can be proud of yourselves. You
made it happen."
McNair paid $700 million for the franchise in a lengthy battle with Los Angeles, a favored place
for the NFL because of the size of its media market. But Los Angeles never presented a unified
plan and McNair won the team.
The crowd that showed up on a steamy afternoon reacted positively to the new name. Several spectators grabbed their cell phones to spread the word. "Yeah, it's the Texans," one man shouted into his
phone.
Another fan, Chris Lockeridge, beamed beneath his hard hat which bore a sign with the year 2002 and a question mark attached.
"I rooted for the Oilers and now I'll be rooting for the Texans," Lockeridge said. "It doesn't matter what they're called. I'll root for them."
The team labeled the day "The Big Return," with the Texans replacing the Houston Oilers, who left for Tennessee after the 1996 season.
"We've developed a name and logo that fans throughout the area and around the country and world will embrace for years to come," McNair said. "It is a logo worthy of the name and the brand of football
I expect our team to play.
"The name and logo embody the pride, strength, independence, courage and achievement that make the people of Houston and our area special."
Earlier, former NFL kicker Raul Allegre staged a kickoff in the Astrodome to former players from Texas Southern, the University of Houston and Rice University to symbolically get the day of celebration
started.
McNair said the footballs would be delivered to the mayors in Austin, San Antonio and Beaumont as part of the nickname announcement in those cities. Presentations to other cities were planned for
Thursday.
A 69,500-seat retractable roof stadium is under construction adjacent to the Astrodome that will house the new NFL team and the Houston Livestock Show and Rodeo beginning in 2002.
McNair has even bigger plans for his new stadium. He is preparing a presentation to the NFL and expects not only to get the 2004 Super Bowl in Houston, but to become a part of the Super Bowl
rotation.
Several former Oilers and former coach Bum Phillips were present at the ceremony.
University of Texas fans, noting the similarity of the Texans' bull logo and their own Longhorns mascot, immediately started waving their "Hook 'em horns" hand signal, including Lockeridge.
"We'll just have to shorten it a bit for the Texans, " he said.
PAYMENT TO HOUSTON STADIUM ARCHITECT DELAYED
November 11, 1999
Copyright 1999 MediaVentures
The Harris County-Houston Sports Authority is delaying a payment to an architectural firm working to reduce the cost of a new NFL stadium while board members
reassess their position on the venue.
Ellerbe Becket has been working for more than a month to reduce the price of the venue to $310 million. The price has escalated by $30 million since the 69,500-seat
stadium was originally designed more than a year ago. The sports authority hoped revenue from a new arena would help free other funds to make up the difference. Now that
voters rejected the arena, the reductions will be necessary.
Some members of the board said they weren't aware of the company's work and didn't want to pay the $75,000 bill until they learned more about it. District officials
accepted blame for the problem, saying they were focused on the arena issue and under a deadline to get the NFL stadium project going to meet the 2002 deadline.
During the discussion, some board members suggested that if the price cannot be reduced to the original $310 million, they might want to change the agreement with
Bob McNair, who purchased the NFL franchise. McNair has said he cannot contribute more to the project because of the $700 million price he paid for the team.
Meanwhile, Mayor Lee Brown left the city for a 17-day Africa trip without signing an agreement for the Authority to build the new football stadium. Brown said he wanted
more time for his staff to study details of the proposal. McNair expressed concerns the delay could hurt the city's chance for opening on time in 2002.
Some observers believe the mayor's action was an intended snub after the defeat of the arena issue. While McNair supported it, his partner, Chuck Watson, helped fund
the opposition. Watson is owner of the IHL Aeros.
FATE OF HOUSTON'S NFL STADIUM RESTS ON ARENA VOTE
October 28, 1999
Copyright 1999 MediaVentures
If Houston voters reject a plan to build a new arena, there won't be enough money to build a new NFL stadium, according to the Harris County-Houston Sports Authority.
That's because the ticket and parking tax revenue generated by the arena is needed to free up other cash for the NFL stadium's construction.
The NFL recently awarded its 32nd franchise to Houston after first giving it to Los Angeles. Developers in Los Angeles were unable to come up with a satisfactory
stadium plan, so the NFL bounced the franchise to Houston which was waiting in the wings. Houston developer Bob McNair and sports authority officials said they had the
money in place for the stadium.
Sports authority members now say that because the authority can't cover a 10% overrun on the $310 million construction cost, new revenue from the arena is the only
way to make up the difference. The price has gone up because the financing was calculated a year ago and prices increased while Los Angeles attempted to work out a
plan.
McNair paid $700 million for the franchise and says he cannot cover stadium cost overruns. He has agreed to pay $50 million toward construction plus $4 million a year.
The authority will pay $195 million and the Houston Livestock Show and Rodeo will pay the rest.
The authority wants McNair to publicly endorse the arena project. McNair's partner in the NFL project is Chuck Watson, owner of the IHL Aeros, who opposes the new
arena and is helping finance an opposition campaign. Watson is also reportedly negotiating with the NHL Ottawa Senators about a move from Canada to Houston. After
negotiations early this week, McNair agreed Wednesday to support the campaign
Houston voters are being asked to use existing tax money to help pay for a new arena. The $160 million project would be equally funded by the sports authority and
Leslie Alexander, owner of the NBA Rockets, WNBA Comets and Thunderbears of the Arena Football League. Alexander is also reportedly interested in the Senators.
When the sports authority was finalizing the deal with McNair in September, it held out for a tax on stadium tickets. The authority was concerned that paying more for the
$160 million arena than it originally planned could jeopardize funding for a new NFL stadium. Financial advisors say the authority can only issue $76 million more in debt,
leaving a shortfall on the deal. The authority approved a ticket tax on arena events to make up the difference. The plan calls for the tax to be refunded to the Rockets for all
basketball games along with those of the WNBA Comets and AFL Thunderbears. Ticket taxes on other events would be kept by the authority and would increase bonding
capacity by $15 million.
If approved, the arena would open in 2003.
MONEY TALKS: NFL AWARDS NEW FRANCHISE TO HOUSTON
October 7, 1999
Copyright 1999 MediaVentures
Bob McNair's offer of $700 million for a new NFL franchise was enough to bring NFL owners to a unanimous vote to put the league's final franchise in Houston and eliminate
Los Angeles from the race. The price does not include the $310 million that will be spent on a new retractable-roof stadium, pushing the final cost over $1 billion. The team will
play its first season in 2002 and was promised a Super Bowl soon thereafter.
The price compares to the $470 million paid last year by Al Lerner for the Cleveland Browns and $140 million paid by Jerry Richardson of the Carolina Panthers and Wayne
Weaver of the Jacksonville Jaguars paid for their teams. Daniel Snyder paid $750 million for the Washington Redskins this year, but that included Jack Kent Cooke Stadium and
$160 million in debt. McNair originally bid $400 million for the team.
Michael Ovitz was reportedly willing to pay $540 million to put the team in Los Angeles at Hollywood Park. Ovitz last week bought an option on land next to the casino and race track. The option expires Friday.
McNair must now come up with $50 million toward the new stadium and up to $100 million in start-up costs. Promising a Super Bowl to Houston is expected to help McNair
sell luxury suites and club seats because he will be able to include that game in his marketing plan. McNair will also benefit from the league's decision to allow him to pay the fee
over five years. The schedule calls for a $150 million payment every January 15 between 2000 and 2003 with the final payment of $100 million due in 2004. The fee is split equally
among the current owners, meaning each will get more than $23 million. The St. Louis Rams are excluded from sharing the booty as part of its agreement to move to St. Louis
from Los Angeles.
Under McNair's plan, the Houston-Harris County Sports Authority will pay $195 million for a new 68,000-seat stadium from an existing hotel and motel tax with the rest coming
from McNair, and the Houston Livestock Show and Rodeo, another major tenant of the building. The stadium would feature a movable roof, natural grass field and will be built
near the Astrodome.
The total project would cost $310 million and the Authority would issue $260 million in bonds. The money not covered by the tax would come from football team annual rents
of $1.05 million and a rodeo rent payment of $1.5 million. Parking and sales taxes make up the rest. The agreement requires McNair to guarantee $4.01 million a year in total
revenue, including rent. Most of McNair's contribution will come from the sale of permanent seat licenses. He will also get parking, concession and ticket money during games
and divide advertising and naming rights earnings with the rodeo and the county.
The rodeo gets all its ticket earnings, but parking and concession revenue goes to the county. The rodeo also gets fees from concessionaires who want exclusive rights to
sell their products at the stadium. Rodeo officials expect to benefit from the greater capacity of the new building. It already sells out the Astrodome several times a year.
Last spring the NFL awarded the franchise to Los Angeles with the provision that an acceptable stadium plan be presented by September 15. No specific owner was named,
but Ovitz was promoting a plan to build a stadium in Carson while another group, New Coliseum Partners headed by Edward Roski and Eli Broad, wanted to renovate the Los
Angeles Coliseum. The NFL soon rejected Ovitz's plan and urged him to work with New Coliseum Partners to come up with a Coliseum proposal. Both sides required public
money to create the type of parking required by the NFL, but local and state officials said they would not put tax money toward the project. In the end, the NFL did not find either
proposal satisfactory.
Most observers expect the NFL to eventually put a franchise in Los Angeles and within hours after the Houston decision was announced, speculation began on which team
would relocate to Southern California. At the top of the list is the Oakland Raiders, but the Minnesota Vikings, Arizona Cardinals and New Orleans Saints are also mentioned.
One Los Angeles city council member released a statement saying the NFL's action opened the door for the Raiders to return and other city officials confirmed they had
spoken with the team about a possible return. Recently Al Davis, who owns the Raiders, said his team could not be profitable in its current situation. The Raiders are involved in a
legal battle with the Oakland-Alameda County Stadium Authority over the agreement that brought the team back from Los Angeles. The Raiders say they have the right to break
their lease because they were promised sellouts that never materialized. Davis, who usually abstains from voting on relocation issues, voted in favor of Houston.
The Raiders left Los Angeles for Oakland because of complaints about the Coliseum. Coliseum problems also scuttled the current effort. If a team moves to Los Angeles, it
will face the issue of building a new stadium and how to do it with mostly private funds.
WILL IT BE HOUSTON OR LOS ANGELES FOR THE NFL?
September 16, 1999
Copyright 1999 MediaVentures
September 15 came and went without NFL approval of a plan to put the league's final franchise in Los Angeles. While the NFL says Los Angeles is not out of the running, the
passing of the deadline clearly opens the door for Houston's Robert McNair to claim the franchise and build a new stadium for the team. Here's where things stand now:
Los Angeles Coliseum
The NFL's original favored site has one major flaw: parking. Two groups that have been working on a plan for the site, New Coliseum Partners and former Disney executive
and Hollywood agent Michael Ovitz, have not found a way to satisfy the NFL's demand for close-in parking at an affordable price. City and state governments have said they won't
contribute to the expense and the developers say the cost is too high to work without public money.
The Ovitz plan, which the NFL prefers, calls for the 68,000-seat stadium to be renovated in the theme of Roman coliseums with a frosted glass rim that is lit at night. Two large
towers on each end of the stadium would hold more than 200 luxury suites that also overlook a picnic area and two reflecting pools. A misting system would cool fans, including
those sitting in 15,000 proposed club seats.
The venue could be expanded to 92,000 seats to host a Super Bowl. New 27,000-space parking garages that are covered with dirt and grass, add green space to the area.
The adjacent sports arena would be razed to make room for the garages.
While Ovtiz and his investment group would fund the $298 million project, public money would be needed for the $225 million parking garage designs. An environmental study
would also be needed and that could delay the opening until 2003. Some NFL owners suggested it was more important to come up with the right plan, even if it delayed the team's
debut.
The proposal by New Coliseum Partners is less flashy and requires shuttle buses to move fans between parking structures providing 17,000 spaces and the stadium. An
NFL study of the Los Angeles market says close-in parking is a must to make the stadium successful.
An effort to merge both plans into a less expensive design still required public money and did not meet NFL approval.
Hollywood Park
A proposal to build a new stadium at Hollywood Park is reportedly being drafted by Marvin Davis. The NFL has asked Davis to put together a plan. The site already won NFL
approval several years ago when the Raiders considered it for a new stadium before moving to Oakland.
No one knows what Davis' stadium plan will be, but his option on the property expires Sept. 24. Davis has reportedly made a strong franchise fee offer and the league
reportedly said it would work to bring Denver's John Elway to Los Angeles to help market the team.
Carson
Michael Ovitz originally proposed a new stadium in Carson before the NFL rejected the idea and told him to work with New Coliseum Partners on a Coliseum rehabilitation
plan. Ovitz is proposing a $300 million stadium near Carson, CA with $100 million coming from local governments. The design would be a Spanish-style mission.
Although Ovitz abandoned the plan at the urging of the NFL, city officials still want an NFL team and continue to press their case.
Houston
Privately NFL owners have always said they like Houston's proposal because McNair has already solved his stadium financing problems.
Under the plan, the Houston-Harris County Sports Authority will pay $195 million from an existing hotel and motel tax with the rest coming from McNair, and the Houston
Livestock Show and Rodeo, another major tenant of the building. The plan came together with the Authority adding another $5 million and McNair and the Rodeo committing to
another $5 million each. McNair's total contribution will be $50 million, plus what he needs to actually buy the franchise. The stadium would feature a movable roof, natural grass
field and could be open by 2002. It will be built near the Astrodome.
The total project would cost $310 million and the Authority would issue $260 million in bonds. The money not covered by the tax would come from football team annual rents of
$1.05 million and a rodeo rent payment of $1.5 million. Parking and sales taxes make up the rest. The agreement requires McNair to guarantee $4.01 million a year in total
revenue, including rent. Most of McNair's contribution will come from the sale of permanent seat licenses. He will also get parking, concession and ticket money during games
and divide advertising and naming rights earnings with the rodeo and the county.
The rodeo gets all its ticket earnings, but parking and concession revenue goes to the county. The rodeo also gets fees from concessionaires who want exclusive rights to
sell their products at the stadium. Rodeo officials expect to benefit from the greater capacity of the new building. It already sells out the Astrodome several times a year.
The next decision will be the NFL's and it's not expected to take action until the owners meet again Oct. 5. Pundits in Los Angeles are saying the delays and pitting of groups
against one another are part of an NFL plan to drive the cost of the new franchise to a record $600 million.
HOUSTON READY TO HOST NFL IF LA FUMBLES
July 29, 1999
Copyright 1999 MediaVentures
Developers in Houston are ready to build a stadium to host an NFL team if Los Angeles fails in its bid and indications are that Houston may have reason to hope. Jerry Richardson, the NFL's
expansion committee co-chair, told the Houston Chronicle that the Los Angeles plan so far is not worthy of the league's final franchise. Richardson said it does not have the financing or public support the league wants. The NFL has given the Los Angeles contenders until September to put together a viable plan.
Los Angeles presented its most recently plan to NFL owners in Chicago this week, but the presentation did not include a financing plan. Developers said they are waiting for the NFL to set a price on the new franchise before working up final numbers. League officials said they were open to accepting bids from the two Los Angeles groups vying for the franchise. If the amount is not high enough, the NFL could set a price.
Houston and Los Angeles were originally competing for the franchise, but the NFL awarded it Los Angeles, but not to a specific group. Instead the league told New Coliseum Partners, headed by Ed Roski Jr and Eli Broad, to join with former Disney executive Michael Eisner to put together a plan for the Los Angeles Coliseum. The two sides have come to a compromise, but have not gotten promises for $150 million in public money that would be needed. In fact, local and state officials have said repeatedly they don't plan to invest tax dollars in the franchise or stadium work. State officials have said they might be willing to sell revenue bonds to help pay for parking infrastructure at the stadium, financed by parking revenues. The suggestion comes with the catch that the NFL must invest at least $125 million in the cost of the stadium renovation.
When the NFL awarded the franchise to Los Angeles, it also told Houston officials to stand by. If Los Angeles failed, the league would be happy to talk with Houston which had a stadium plan favored by the NFL from the start. The NFL reportedly selected Los Angeles instead because of the size of its television market.
In Houston, Robert McNair has been keeping in close contact with NFL owners, reassuring them that the city is ready to put its domed stadium plan into action if only they are awarded the franchise. McNair has worked out a plan for a $310 million retractable roof stadium. Financing includes $195 million in public money that has already been approved by the Harris County-Houston Sports Authority. No public vote would be needed. McNair has also promised to fund sell-outs for every game for five years to guarantee the game will be televised. McNair's investment would include $50 million in cash plus $1.05 million in annual rent. Parking and other revenues would total $2.96 million a year toward the cost. The building would also host the Houston Livestock Show and Rodeo, which takes a significant number of dates and pays $1.5 million in yearly rent.
The Los Angeles renovation would create a stadium with seating for 62,000. It could be expanded to 80,000 for Super Bowls and University of Southern California games. The stadium would also have 180 luxury suites and 15,000 club seats. Seat licenses are considered a possibility, but are not considered certain.
Los Angeles promoters have also said they could not be ready to field a team until 2003 while the NFL wants to begin in 2002. Houston can be ready in 2002, but may play its first season in the Astrodome.
NFL TELLS HOUSTON TO KEEP ITS OPTIONS OPEN
June 10, 1999
Copyright 1999 MediaVentures
The NFL has told Houston officials not to give up on their hopes for an NFL expansion team. Houston and two groups from Los Angeles competed in the final round of bids for the leagues 32nd and last team. The NFL awarded the franchise to Los Angeles, but not to a specific promoter because it was not satisfied with the stadium proposals on the table. The groups were given until this fall to put together a plan, but the NFL's comments to Houston shows that it may not be convinced that a workable proposal will be made.
The NFL's message was communicated in a two-hour meeting recently between Paul Tagliabue, NFL commissioner, and Bob McNair, the proponent of Houston's effort. Tagliabue also told McNair to stop efforts aimed at enticing an existing team to move to Houston. McNair agreed to wait until Sept. 15, the NFL's deadline for Los Angeles, but said after that point he will resume negotiations with other NFL owners.
NFL owners were impressed with Houston's stadium proposal, especially since both public and private financial issues were resolved. In Los Angeles, it heard a proposal from a group called New Coliseum Partners for a renovation of the Los Angeles Coliseum and a proposal from Michael Ovitz for a new stadium in Carson. The NFL preferred the Coliseum and urged Ovitz to develop his own plan. Ovitz has made a presentation, but the NFL has suggested that the two groups join forces. Ovitz has declined.
The Los Angeles plans have a common weakness in how they handle parking. The proposal by New Coliseum Partners is short of the amount of parking the NFL says is needed, plus the parking is located away from the venue, requiring shuttle buses to move fans back and forth. The Ovitz proposal has parking adjacent to the stadium, but requires public money to be successful. Local political sources are against putting significant public money into the NFL's effort.
The Houston proposal calls for $195 million from the Harris County-Houston Sports Authority plus private funds from McNair and the Houston Livestock Show and Rodeo, another major tenant of the building.
MCNAIR HOPES IF HE BUILDS IT IN HOUSTON, THEY WILL COME
May 20, 1999
Copyright 1999 MediaVentures
Houston's Bob McNair wants to build a new NFL stadium even though the city has not been awarded a franchise. McNair lost in a bid to win the league's 32nd franchise when it was awarded to Los Angeles, but his proposal impressed many NFL owners.
Despite the loss, McNair believes Houston is a strong enough market that it will be able to convince a team to move if a suitable home can be provided. His proposal came one day after Phoenix-area voters rejected a proposal by the Cardinals to build a new stadium there. Observers in Phoenix have suggested that one option for the team is to move, although team officials have not made that threat.
Even without the franchise, McNair is willing to gamble his own money by making a major investment in the stadium. If a team decided to move to Houston, he would expect to receive at least a 30% managing share of the team in exchange for the right to play in the stadium.
McNair put together a plan for a $310 million, retractable roof stadium. Financing included $195 million from the Harris County-Houston Sports Authority, which has already approved the investment. No public vote would be required. McNair also guaranteed the NFL that he would fund sell-outs for every game to ensure the game would be broadcast. McNair's investment would include $50 million in cash plus $1.05 million in annual rent. Parking and other revenues would total $2.96 million a year toward the cost. The building would also host the Houston Livestock Show and Rodeo, which takes a significant number of dates and pays $1.5 million in yearly rent.
Leader of NFL cheers city unity
Plans for retractable-roof stadium boost the chance for a new team
By JOHN WILLIAMS
Houston Chronicle
June 29, 1998
Two years after NFL officials widely loathed Houston for losing the Oilers, NFL Commissioner Paul Tagliabue lauded local leaders Monday for their unified effort to get another team.
Tagliabue, who met for several hours with elected and appointed officials to see nearly completed plans for a retractable-roof stadium next to the Astrodome, praised "a real solid partnership" in Houston.
Such unity is needed to show that Houston wants an NFL team, and it apparently places this city ahead of Los Angeles, its chief competitor for the 32nd and perhaps last NFL franchise.
"The real measure of success of this meeting," Tagliabue said, "was that the progress and concrete plans we talked about today were beyond my imagination when I was here two years ago."
Los Angeles has a larger media base, which NFL officials like, but Houston is making a bull rush for a fast decision because L.A. has not determined a new stadium's location or how to finance it, with at least six parties battling to become the franchise owner.
In Houston, officials are working with local businessman Bob McNair to complete plans for the type of stadium Tagliabue said is needed to ensure a new franchise's economic viability.
Tagliabue said the stadium proposal Houston officials showed him would be a one-of-a-kind in America, and compares favorably with new venues in Osaka, Japan, and Amsterdam, Netherlands.
"It would instantly be a state-of-the-art landmark -- a retractable-domed stadium," Tagliabue said. "It would be to the future of Houston what the Astrodome has been for the last four decades. It would stand out worldwide as a state-of-the-art stadium."
It was the first meeting between Tagliabue and County Judge Robert Eckels, Mayor Lee Brown, Harris County-Houston Sports Authority Chairman Jack Rains, Houston Livestock Show and Rodeo President Jim Bloodworth and McNair, who
hopes to win the expansion franchise.
Also attending were Carolina Panthers owner Jerry Richardson, who chairs the league's Stadium Committee, and Roger Goddell, who helps evaluate and coordinate stadium deals for the NFL.
Tagliabue reiterated several times that Houston is showing a unified effort.
Three years ago, NFL officials were at war with then-Mayor Bob Lanier, who was trying to change federal laws and threatening lawsuits to restrict the league's power. Lanier's threats came as owner Bud Adams was negotiating to move his Oilers to Nashville.
Asked to compare the difference, Tagliabue said, "Sometimes you talk about comparing apples and oranges -- this would be more watermelons and blueberries, however you dramatize such comparisons."
Tagliabue also said the sports authority, which would construct the football stadium, has shown it can put together a project by building The Ballpark at Union Station.
"That gives to me a much higher degree of confidence than I have ever had before that the mechanism for making this type of facility a reality is here," Tagliabue said.
He said he would expect that the league's Stadium Committee will get a report on Houston's plan in September, and that McNair and Houston officials can make a presentation to NFL owners in October.
There is, however, no timetable on awarding the next franchise.
Following Monday's meeting, McNair said he hopes Houston pushes the NFL for a fast decision, to prevent Los Angeles from catching up on planning for its stadium.
To stay ahead of Los Angeles, Houston needs to complete the stadium financing plan, which still has several sticking points, including a final price tag.
"The most critical time of the entire project is the next 30 days," McNair said. "After hearing comments from the gentlemen who came to our city today, and having spoken to many of the other NFL owners, I truly believe the NFL wants a team in
Houston.
"But I know that until we finalize our own arrangements between the county, city and sports authority, we cannot fairly ask the NFL, nor will we receive, a final commitment for a team."
McNair said he believes Houston will eventually get a franchise, through expansion or relocation.
"There is competition, but they (NFL) can't speak for all interests," he said. "They want teams in Houston and Los Angeles. The other city may not get a team for four or five years."
Bloodworth said the rodeo and McNair are close to determining how to split stadium naming rights and interior advertising.
Once that is done, sports authority officials believe that it will be easy to complete the stadium financing plan, which calls for the rodeo to pledge about $35 million, the sports authority about $180 million and McNair the balance.
The sports authority wants to cap the stadium cost at about $285 million, McNair at about $300 million.
Brown and Eckels said they would push to make sure a deal is done, that a new stadium and NFL team would be good for Houston.
A stadium would sit adjacent to the Astrodome, which county officials would turn into a giant trade-show facility by building new floors inside.
Brown also said the stadium would help Houston's efforts to attract the 2012 Summer Olympics. The stadium could be arranged to hold track and field events, as well as soccer games.
"This mayor is very excited about it," Brown said. "I tackled a few players myself. I went to college on a football scholarship, so I have a real love and passion for football."
Reliant names new Harris County Stadium and complex
October 26, 2000
HOUSTON - Harris County Sports and Convention Corporation in conjunction with Houston Livestock Show & Rodeo and the Houston Texans, announced today that Reliant Energy has acquired the naming rights for Houston’s new state-of-the-art football stadium and the sports, entertainment and convention complex currently known as the Astrodomain Complex.
Reliant Energy’s 32-year agreement to acquire the naming rights for five different buildings and the complex is the most comprehensive naming rights agreement in history. Reliant Park will be a partnership of mutual support between the Harris County Sports and Convention Corporation, the Houston Texans, RodeoHouston and Reliant Energy. The facilities at Reliant Park will include Reliant Stadium, Reliant Astrodome, Reliant Arena, Reliant Hall and Reliant Center, the new exposition center which is currently under construction. The terms of the deal were not disclosed. The 32-year deal covers the two pre-opening years for the stadium and lasts throughout the 30-year lease that the Houston Texans and RodeoHouston are negotiating with the Harris County Sports and Convention Corporation.
Reliant Energy has previously announced plans to split into two different publicly traded companies by the end of 2001 in order to separate its regulated businesses, including Reliant Energy HL&P/Entex, from its unregulated activities. The new entity, to be called Reliant Resources, will assume the naming rights sponsorship for the life of the contract, with the sponsorship becoming a cornerstone of its unregulated competitive marketing efforts.
The five facilities in Reliant Park have an anticipated event inventory of 350 event days per year, exceeding all other stadiums in the country. In addition to naming rights, the agreement provides Reliant Energy with significant sponsorship rights and benefits with RodeoHouston, the Harris County Sports & Convention Corporation and the National Football League’s newest franchise, the Houston Texans, for the term of the agreement.
The announcement was made at a press conference on the grounds of the newly named Reliant Park and was attended by Reliant Energy Chairman, President and CEO Steve Letbetter, Harris County Judge Robert Eckels, Harris County Commissioner El Franco Lee, Houston Mayor Lee Brown, Harris County Sports & Convention Corporation Chairman Mike Surface, Houston Livestock Show & Rodeo President Mike Wells and Houston Texans Owner Founder Bob McNair.
“The naming of Reliant Park is a natural extension of Reliant Energy’s commitment to this community, which spans more than 100 years,” Letbetter said. “We’re pleased to be involved in such a unique partnership that will provide entertainment and activities for a large part of the population of Harris County. The facilities here, including the stadium and new exposition center, are world class, and we are excited to have our name associated with them.”
Reliant Stadium is set to open in August of 2002, when the Houston Texans will host the Miami Dolphins in their first home preseason contest. Reliant Stadium will seat 69,500 and is favored to host Super Bowl XXXVIII in January of 2004. Its world-class design features the first retractable roof football stadium with a natural grass playing surface. The roof can open and close to adjust to weather conditions, resulting in year-round, climate-controlled comfort. Reliant Stadium also will be the home of RodeoHouston and its annual 2 million patrons.
“This partnership represents a major investment in the future of Harris County and Houston by Reliant Energy,” said Eckels. “This investment will help to revitalize the Main Street corridor and provide excitement for football and rodeo fans here in Harris County. In addition, this partnership will help us attract millions of new visitors to this region for meetings, conferences and special events each year.”
Reliant Center, currently under construction, is situated on the north side of the 260-acre Reliant Park and is scheduled to open in the spring of 2002. Reliant Center will have a total of 1.4 million square feet with more than 700,000 square feet of single-level contiguous exposition space and 72 meeting rooms. Reliant Center will serve as a primary venue for RodeoHouston, along with Reliant Stadium, beginning in February of 2003.
“Today’s announcement represents an important milestone in the history of this complex,” Surface said. “The additional exposure provided by this partnership will significantly increase our ability to promote the complex as a true world-class facility.”
“Reliant Energy has been a major supporter of the Houston Livestock Show & Rodeo for many years, and we are proud that this association will continue over the next three decades,” said Wells. “With our friends the Houston Texans, we’re building a future that will result in one of the greatest venues in the sports and entertainment industry. The Houston Livestock Show & Rodeo will be able to have an even greater impact on the futures of thousands of young men and women with the ability to expand our scholarship and educational programs.”
“We are thrilled to have a partner like Reliant Energy for Houston’s new state-of-the-art sports complex,” Houston Texans Founder Bob McNair said. “Reliant has the same commitment to Houston, Harris County and southeast Texas that we have. This partnership is sure to benefit Houstonians and Texans for many years to come.”
Reliant Arena, currently known as the Astroarena, is a self-sufficient, multi-functional facility. In addition to nearly 250,000 square feet of exhibit space, Reliant Arena features an 8,000-seat arena and 2,000-seat pavilion.
Reliant Hall, currently known as the Astrohall, has more than 640,000 square feet of space and is Houston’s largest single-level exposition and conference center.
Reliant Astrodome is known as the “Eighth Wonder of the World” for good reason. It was the first domed stadium when it was built in 1965 and has served as a symbol of the unique spirit of achievement for Houston ever since.
Reliant Energy, based in Houston, Texas, is an international energy services and energy delivery company with approximately $20 billion in annual revenue and assets totaling more than $28 billion. The company has a wholesale energy trading and marketing business that ranks among the top five in the U.S. in combined electricity and natural gas volumes and has a presence in most of the major power regions of the U.S. It also has power generation and wholesale trading and marketing operations in Western Europe. The company has nearly 27,000 megawatts of power generation in operation in the U.S. and Western Europe and has announced acquisitions and development projects that will add nearly 4,000 megawatts. Reliant Energy also has marketing and distribution operations serving nearly four million electricity and natural gas customers in the U.S., interests in power distribution operations in Latin America and a telecommunications business serving the Houston area.
Reliant Stadium FAQ
Where will Reliant Stadium be located?
Reliant Stadium will be located on County-owned property at, and adjacent to, the Astrodomain Complex, with additional parking facilities to be located on property made available by the Rodeo. A practice field for the NFL Club will be constructed by the NFL Club (at its expense) on a 9-10 acre tract of County-owned land at Kirby and Murworth opposite the Astrodomain Complex.
Who will construct Reliant Stadium?
Reliant Stadium will be developed by the Harris County-Houston Sports Authority and Harris County Sports & Convention Corporation.
When is Reliant Stadium targeted for completion?
Reliant Stadium is targeted for completion in August 2002, in time for the NFL Club's 2002 pre-season.
Will Reliant Stadium be available for use for Olympic events?
Yes. The parties have agreed to use reasonable efforts to accommodate the use of
Reliant Stadium for the Olympic Games if awarded to Houston, Harris County, Texas.
What is the budget for the construction of Reliant Stadium?
$367 million. $325 million hard construction costs, $25 million for architectural & engineering, $17 million for furniture, fixtures and equipment.
What is the Sports Authority's contribution to the construction costs for
Reliant Stadium?
The Sports Authority's hotel occupancy taxes and short-term vehicle rental taxes will be pledged to provide a targeted amount of $252 million in net bond proceeds, with the additional net bond proceeds (targeted to be $65 million) being secured by $4,782,000.00 in new revenues and ticket and parking taxes or surcharges generated by the operation and use of Reliant Stadium. With these two sources available, the Sports Authority has committed to fund no more than $317 million in net bond proceeds to pay for the construction of
Reliant Stadium.
What is the NFL Club's contribution to the construction costs for Reliant Stadium?
The NFL Club will contribute $50 million to the construction of Reliant Stadium, payable in three installments which may be funded by the sale of personal seats licenses for seating at the NFL Club's events/games.
What protections will be in place to insure that Reliant Stadium will be built within the budget?
The parties have agreed that any construction contractor retained to build Reliant Stadium will be required to sign a construction contract which would include a guaranteed maximum price and provide for substantial liquidated damages in the event Reliant Stadium is not delivered on-time.
What is the NFL Club's annual contribution to Reliant Stadium?
The NFL Club will contribute a guaranteed amount of $4,010,000.00 annually, generated from revenues and ticket and parking taxes or surcharges at
Reliant Stadium.
What is the Rodeo's annual contribution to Reliant Stadium?
he Rodeo will contribute $1,500,000.00 annually, plus payments generated by additional parking and ticket taxes and/or surcharges at Reliant Stadium.
How have the tenants insured that Reliant Stadium (after construction) will continue to remain in a first-class condition?
The parties have agreed to fund $2,500,000 annually into a capital repair and replacement fund to insure that
Reliant Stadium remains in a first-class condition comparable to that of similar facilities.
Will the NFL Club enter into a non-relocation agreement as in the transaction with the Astros?
Yes. The NFL Club has agreed to enter into an appropriate non-relocation agreement in order to provide an enforceable (including in a bankruptcy proceeding) prohibition against the relocation of the NFL Club's franchise during the lease term.
How are concession rights, naming rights, signage/advertising rights and branding rights addressed?
These rights will be allocated among the County, the NFL Club and the Rodeo.
