Monday, June 12, 2000
Stadium lease has loophole for extras
Bengals can demand latest in technology
By Dan Klepal
The Cincinnati Enquirer
Taxpayers may still have to buy things for the Cincinnati Bengals' new home even after construction at Paul Brown Stadium is finished.
A clause in the lease Hamilton County negotiated with the team keeps taxpayers, and future taxpayers, on the hook for any new gadget or gizmo that catches on in other NFL stadiums during the next 30 years.
If an expensive new technology is installed in 14 other NFL stadiums — or seven others where public money was used to pay for it — Hamilton County taxpayers must buy the same thing for Paul Brown Stadium.
It's called keeping up with the Joneses ... as in the Jerry Joneses.
County and team officials say it's in the community's best interest to keep the $450 million facility, scheduled to open Aug. 19, up to standard.
Stadium critics say the provision hands the Bengals a blank check, which the team will use again and again to make an already sweet deal sweeter.
“The possibilities are infinite,” said Cincinnati attorney Tim Mara, who has sued the county over other aspects of the lease. “It boggles the mind to think what the costs might be over 30 years.
“It's another example of how the county is at the mercy of (Bengals owner) Mike Brown again.”
But the county and Bengals say the provision is reasonable.
Troy Blackburn, director of stadium development for the team, said the upgrade provision in the lease came about after tough negotiations with the county.
The team was trying to have guaranteed revenues worked into the lease. It had
happened in several other NFL deals, including Oakland and Baltimore, but the county wouldn't go along with that.
“The county did not want to be part of guaranteeing long-term revenues to the team,” Mr. Blackburn said. “The furthest they could go was giving us a facility that will be competitive with other facilities, now and into the future.
“This gives us the confidence to know we're not going to be stuck with a Model T in a few years.”
Spending tens of millions might prevent the county from spending hundreds of millions on a new stadium when the Bengals lease expires in 30 years, said Hamilton County Commission President Bob Bedinghaus.
“If spending that money extends the useful life of the stadium, it makes perfect sense,” Mr. Bedinghaus said. “If there is something out there that really catches on and it's in 14 other stadiums, it becomes exactly the kind of thing we need to put in our facility.”
Commissioner John Dowlin doesn't see it that way.
Mr. Dowlin said he voted to approve the lease, eventhough his heart wasn't in it. He said the provision forcing the county to upgrade the stadium is just one of many items he thought was a bad deal for taxpayers.
“It didn't give me any more heartburn than any of the rest of the lease,” Mr. Dowlin said. “My reaction was: I don't like any of this, but the people have spoken and they want to keep the team in town.”
The lease outlines a few examples of future technology which might become common in other NFL stadiums:
ăSmart seats: Usually found in the expensive seating areas, smart seats have computer screens attached to the arm rest so fans can log onto the Internet and check statistics, replays, player information and more while the game is being played. Smart seats have been installed in a few baseball parks, such as the one in St. Petersburg, Fla., but are still rare in NFL stadiums.
ăTicketless entry systems: These are electronic turnstiles which read a bar code on the back of tickets, and help prevent counterfeiting. These systems also allow teams to cut costs by reducing staff.
ăNext generation sound and video systems: Paul Brown Stadium will have one of the most sophisticated scoreboards in the NFL, and is on par with newer stadiums in Washington, Baltimore and Nashville.
About a year ago the Bengals asked the county to spend an additional $3.7 million to make the scoreboard better. The county agreed, but only if the Bengals offset that cost by deleting other aspects of the project.
Bengals officials decided to scrap the ticketless entry system, automatic teller machines (which will still be in the new stadium, but at the Bengals' expense) and a pedestrian bridge leading from Race Street to the stadium.
But was the ticketless entry system really deleted, or simply delayed since the county may have to install one once 14 other stadiums get it?
Mr. Blackburn said it's unclear whether the team would even want the ticketless entry system, even if it could demand that the county install one.
Besides, he said, it is unfair to judge the lease on any one aspect of the agreement.
“What is the benchmark by which we're judging whether the lease if fair or not?” Mr. Blackburn asked. “The test isn't: Is this a better deal for taxpayers than the (Cinergy Field) lease. Obviously, that didn't allow the teams to compete on a long-term basis.
“You have to take a step back and look at what it does to allow us to have a competitive franchise. We're paying $50 million to make it happen, and that's very different than Baltimore and Nashville.
“This is a fair deal that gives us the opportunity to compete.”
But at what cost to taxpayers?
“Time will tell,” Mr. Bedinghaus said.
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