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Giants, Jets Receive $300 Million in NFL Stadium Loan


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Giants, Jets Receive $300 Million in NFL Stadium Loan (Update1)


By Aaron Kuriloff


Dec. 7 (Bloomberg) -- The New York Giants and Jets received approval for $300 million in National Football League loans toward a shared $1.2 billion stadium in the New Jersey Meadowlands.


Representatives of the league's teams, meeting in Dallas, voted 30-2 to grant each New York franchise $150 million through a program that provides financing for stadium construction, Giants co-owner Steve Tisch said in an interview. No other single project has received more than $150 million since the NFL's program began in 1999.


"With no other obstacles, we're in good position to break ground in the spring,'' Tisch said.


The Jets-Giants request risked being the first that the owners rejected. Some owners were concerned that increased revenue from the new stadium, once added to the players' salary pool, would boost payrolls for all teams. Owners of both teams said the privately financed stadium was contingent on the $300 million NFL contribution.


The NFL players union said this week it was willing to cut the salary ceiling by $800 million over 15 years to reduce the stadium's impact on other teams. It said a new facility would raise salaries by around $2 million a year.


With financing secure, the next step for the stadium project is an environmental-impact hearing Dec. 13-14 before two New Jersey state commissions.


Share Stadium


The Giants and Jets said they should get twice the usual loan because they are the only NFL teams sharing a facility. They agreed to split the costs of replacing 30-year-old Giants Stadium in East Rutherford, New Jersey, after the Jets were unable to get public funding for a stadium on Manhattan's West Side.


The teams' plans call for building an 84,000-seat stadium next door to Giants Stadium, with a footprint of about 630,000 square feet, according to a document submitted to the New Jersey Department of Environmental Protection and the Meadowlands Commission, which will hold the hearings next week.


The Giants plan to build a 20-acre training facility in the southwest corner of the development, along with parking areas and tailgating zones. Broadcast facilities, sports medicine clinics, stores, restaurants and a New Jersey Transit rail spur also are part of the project.


Playing in the U.S.'s largest market, the Giants had annual revenue of $182 million, according to a 2006 listing by Forbes magazine, while the Jets had about $179 million. The Washington Redskins led the league, with $303 million.




A new stadium might help both New York teams generate more money from skyboxes, luxury seating, parking, concessions and naming rights, even after borrowing for construction, said Craig Depken, who teaches sports economics at the University of Texas, Arlington.


Depken said the average NFL team gains about $20 million in profit annually from a new stadium.


"I imagine at current rates, the debt will be something like $20-25 million a year, so they'll need to get more than the $20 million league average,'' Depken said. "I have no doubt they'll get it.''


The teams may make more money, and help pay for the stadium, by selling seat licenses, a one-time fee for a transferable permit to buy tickets, said Max Muhleman, president of Private Sports Consultants in Charlotte, North Carolina, who has worked on stadium projects for the Carolina Panthers and other NFL teams.


"They receive ownership or equity in their seats that can be transferred or sold if they wish,'' Muhleman said. "This is not a front-burner need, but it could contribute a significant amount of capital, around $90 or $100 million.''


Revenue Restrictions


Other teams don't share in local revenue that new stadiums generate, such as money from luxury seats, skyboxes, parking and naming rights. Because the NFL's labor agreement calculates the salary ceiling as a percentage of total league revenue, the new stadium also will raise player salaries for all teams.


Ralph Wilson, owner of the Buffalo Bills, was one of two owners to vote against the labor agreement in March 2006. U.S. Senator Charles E. Schumer, a New York Democrat, joined Wilson in an Oct. 10 news conference saying the agreement threatened the NFL's competitive balance because it left teams such as Buffalo with income pegged to the local economy and expenses dictated by teams in bigger markets such as New York City, Washington or Dallas.


Gene Upshaw, president of the National Football League Player's Association, said this week that the union would accept an $800 million cut over 15 years in the salary limit -- $102 million per team this season -- in order to alleviate concerns about labor costs to other teams.


Cowboys owner Jerry Jones also said in an interview in October that owners were working to mitigate revenue differences and called giving the Giants and Jets $300 million a "reasonable approach.''


"I think we are working and have worked with the player's association to mitigate that revenue so it can take steps to clear the way for a new stadium,'' Jones said.


To contact the reporter in this story: Aaron Kuriloff in New York at [email protected]


Last Updated: December 7, 2006 12:21 EST

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  • 5 weeks later...



Stadium Deal Has Created Unlikely Team in Giants and Jets



Published: January 7, 2007


In 1965, the Giants had the first pick of the National Football League draft. With it, they selected Tucker Frederickson, a blond, square-jawed and decorous running back from Auburn University in Alabama, an all-American in every way.


That same day, the rival American Football League conducted its draft, and with their first pick the Jets turned to the University of Alabama and chose Joe Namath, a dark-haired rogue with a world of talent, a dossier of demerits and an impish grin.


Today, the Giants and the Jets take the field for playoff games on the same day, another chapter in their more than 40-year symbiotic relationship as contemporaries in the world?s biggest sports marketplace.


They are two very different sports franchises, led by men, on the field and in the owners? boxes, with contrasting management styles. They are entities with distinct cultures ? the Giants more entrenched and the Jets more flamboyant. Generally, they are followed by fan bases dissimilar in nature.


Yet they are habitually linked and should be for generations to come. While the Giants and the Jets have shared a publicly owned stadium since 1984, they are in the final stages of completing the plans to privately finance a $1.3 billion joint stadium in the Meadowlands Sports Complex that would open in 2010. The once bitter rivals of the 1960s and 1970s are close business partners, even as they approach that collaboration from disparate vantage points.


The Giants co-owner John Mara, who remembers when a 1969 Giants-Jets preseason game brought scores of fistfights in the stands and vicious hitting on the field, said the earliest talks about the new stadium also resulted in tense, heated meetings between the teams.


?But we?ve worked it out,? Mara said. ?The relationship is better than it ever has been.?


The Jets? owner, Woody Johnson, agreed, though he conceded that the teams remained unswerving competitors.


?You have a battle for the hearts and minds of the people in the community,? Johnson said Friday in a telephone interview. ?That?s a natural rivalry and that?s what the fans want. It is the natural state of two businesses in the same town. But we?ve come together for the new stadium.?


The manifest differences between the franchises, however, do not seem to have been obscured by the unprecedented agreement to construct one stadium for two N.F.L. teams.


?Their ambitions may have merged to build a stadium, but their identities are going to continue to diverge more and more,? said Marc Ganis, a sports industry consultant based in Chicago who advises N.F.L. teams. ?It is part of their makeup to be at odds. The Giants are more traditional and the Jets more futuristic. Look at their recent coaching choices. The Jets were comfortable hiring a 34-year-old with no head-coaching experience in Eric Mangini. With Tom Coughlin, the Giants went for the older, experienced coach who was known as a disciplinarian.


?It does not mean one is going to be more successful on or off the field. But it is a reflection of their disparities.?


Giants and Jets officials responded to such an appraisal, not surprisingly, with differing opinions.


?Our history is rooted in 1969, Namath and the Super Bowl,? said Jay Cross, the Jets? president. ?We?re a young, scrappy Broadway team that wants to be seen as an energetic, youthful and progressive franchise. We don?t do that in contrast to someone else.?


Cross added, ?We recognize the Giants are the senior team.?


Mara, whose grandfather bought the Giants for $500 in 1925, disagreed with the perception that his team?s philosophy was staid or dated.


?We are certainly traditional,? Mara said, ?but building a $1.3 billion stadium is not the mark of a staid or conservative organization. The 2004 trade for Eli Manning is hardly the mark of an organization that is stodgy or not willing to take a risk. We have been, for better or worse, one of the most aggressive teams in the free-agent market. We have done some pretty bold things.


?Yes, we?re not going to have vertical stripes on our uniforms, have cheerleaders on the field or be selling a lingerie calendar on our Web site like some teams, but there are other ways to be bold and aggressive.?


New Jersey officials involved in the stadium talks in the past two years said they saw clear differences in the approaches of Giants and Jets management.


For starters, since the Giants had opened talks with the state and designed a new Meadowlands stadium as the Jets were busy with their failed five-year struggle to put a stadium on Manhattan?s West Side, the Jets? entry into the New Jersey negotiations in mid-2005 was not smooth.


The Giants were not receptive to Jets proposals that the new New Jersey stadium be made more neutral for each team. The biggest sticking point was the inclusion of Giants offices and practice fields attached to the stadium.


Paul Fader, the lawyer who helped negotiate the stadium deal for Richard J. Codey, then the acting governor, said: ?The Giants said: ?We never tried to leave; we?re the ones who committed to stay here. Why should we have to make any concessions?? There were some tough sessions. It was edgy. Nothing unprofessional was said, but the conversation was pointed.?


The Jets stood their ground. On Friday, Johnson said, ?The stadium had to look and feel neutral.?


The Jets, feeling like second-class citizens at Giants Stadium for the past 22 years, knew the negative impact a large Giants practice facility would have on Jets fans. Eventually, the Giants agreed to move their practice facilities to a remote location in the sports complex. The Jets will practice and have their offices several miles away in Florham Park, N.J.


?You saw many other differences in how the Giants and Jets went about things,? said George R. Zoffinger, the chief executive of the New Jersey Sports and Exposition Authority, which oversees the Meadowlands complex. ?The Giants truly cared about the football aspects of the stadium. The Jets had a broader view of where they could make money off the ancillary uses of the facility. They had the ideas for retail, real estate, signage, sponsorships.?


Carl Goldberg, chairman of the sports authority, said: ?The Jets came to the table with a lot of work already done on the technology of how to make the most of a flexible modern stadium. At the same time, there had to be room for appreciating what the Giants meant to the history of this facility. Giants Stadium would not exist for either team these last few decades without Wellington Mara.?


Wellington Mara, John?s father, was among the first sports franchise owners to relocate his team to a suburb when his Giants moved from Yankee Stadium in 1973 and settled in northern New Jersey in 1976.


Fader said he sometimes felt the Giants-Jets meetings unfolded along stereotypical lines.


?People say the typical Giants fan wears plain pants and comes from Connecticut,? said Fader, who called himself a Giants fan. ?The typical Jets fan comes from Long Island and wears a T-shirt. Well, the Giants came to meetings in suits and were more staid. I felt the Jets had a younger presence and were a little more informal. There were very different styles.


?The Jets, for example, initially wanted a 90,000-seat stadium. That?s a big, raucous place. The Giants said the extra 10,000 seats would make the stadium too high and that the extra 10,000 seats would be too far from the field and not be a good seat anyway. Both were thinking of their fans, just differently.?


The new stadium is expected to have 68,000 general admission seats, 9,000 premium seats, 200 luxury suites for 5,000 fans, as well as 100,000 square feet of conference space, a football Hall of Fame, football-themed restaurants and 40,000 square feet for Giants and Jets team stores. An additional 500,000 square feet of retail, restaurant and broadcast facilities is planned, along with several tailgate zones.


The new stadium will accomplish something else for the old New York football rivals: it may make them the most valuable franchises in the United States.


?Both teams will easily be worth more than $1.2 billion,? said Mike Ozanian, a senior editor at Forbes magazine, which estimated the Giants? current worth at $890 million and the Jets? at $876 million. ?That could put the Giants and Jets atop the N.F.L. What they?ll be able to get for corporate sponsorships at that new stadium will blow people away.?


Little wonder the relationship between the Giants and the Jets is more amiable than ever.


When the Giants play today at Philadelphia and the Jets visit New England, it will be only the second time the Giants and the Jets have played on the same day in the N.F.L. postseason. In late December 1981, the Giants upset the Eagles in Philadelphia, 27-21. The Jets lost to Buffalo, 31-27, at home in Shea Stadium.


Neither Mara nor Johnson said he would be rooting for his neighborhood rival today. They did not say they were rooting against the other, either. They had a telephone conversation Friday during which they exchanged good-luck wishes.


The teams are scheduled to play each other next season. It is clear that remnants of the competitive tensions of the 1960s have not entirely dissipated.


?Now, next season, if both teams are playing well,? Mara said, ?that will be a big game.?

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Two teams in the same sport sharing a stadium is just silly.


I would agree with you most of the time but not in this case. both teams were planning on building seperate 1 billion dollar stadiums. How much sense does that make if you only play 10 (including preseason) games a year at home?


Two teams in the same sport sharing a stadium is just silly.


So true! Pesky ass jets do nothing but annoy the rest of the NFL!

They're like some red-headed step child that just gets in the way.


You must be real smart

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both teams were planning on building seperate 1 billion dollar stadiums. How much sense does that make if you only play 10 (including preseason) games a year at home?

Agreed. Look at all the stupid things they have to do during the off season to keep the Meadowlands profitable. Imagine that x 2. I would have to decide if I wanted to see the Taylor Hicks concert at Jets Stadium or the Clay Aiken concert at Giants stadium. I mean - how could I possibly choose?


On the plus side, we could see CONCACAF soccer in TWO different venues! Wow! [

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Swedish company gets $998M contract to build new stadium for NFL Giants and Jets

Updated 1/26/2007 9:36 AM ET


By Janet Frankston Lorin, Associated Press


NEWARK ? The price of the new football stadium for the New York Giants and New York Jets has risen to $1.4 billion.


The teams, which are jointly financing the stadium, awarded the biggest single contract to a Swedish construction company Friday.


Skanska AB says that it has received a $998 million order to design and build the open-air stadium at the Meadowlands sports complex in East Rutherford, N.J.


"It shows the continued momentum and we are on the timeline that we need to be for a 2010 opening," said Alice McGillion, a spokeswoman for New Meadowlands Stadium Corp., the company representing the team owners.


The stadium will seat 82,000 people and include 217 luxury suite boxes, Skanska spokesman Peter Gimbe said.


McGillion said the number of seats could change, depending on the final design.


Skanska said the contract with the Meadowlands NFL Football Stadium LLC is its largest U.S. contract yet.


McGillion said the teams expect to unveil exterior plans for the stadium in late February or early March, with a groundbreaking in late spring or early summer.


In December, the teams got a big boost from owners of the National Football League, who approved a $300 million loan to help pay for the stadium.


The project is also going through the approval process with the state of New Jersey.


The state Department of Environmental Protection and the Meadowlands Commission expect a final environmental impact study of the project in February; their approval could come in March.

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Two teams in the same sport sharing a stadium is just silly.


I would agree with you most of the time but not in this case. both teams were planning on building seperate 1 billion dollar stadiums. How much sense does that make if you only play 10 (including preseason) games a year at home?


Two teams in the same sport sharing a stadium is just silly.


So true! Pesky ass jets do nothing but annoy the rest of the NFL!

They're like some red-headed step child that just gets in the way.


You must be real smart

Learning how to ignore immaturity is useful at times like this.

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Jets, Giants Close $1.3 Billion in Stadium Financing (Update3)


By Aaron Kuriloff


Aug. 16 (Bloomberg) -- The New York Jets and Giants football teams completed a $1.3 billion financing agreement to build an 84,000-seat stadium in East Rutherford, New Jersey.


The Jets borrowed $650 million from Citigroup Inc. and the Royal Bank of Canada, while the Giants got the same amount from Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc., Jets President Jay Cross said in an interview.


The transaction shows the strength of the National Football League, which had revenue of $6 billion last year, even during a global financial crunch brought on by the subprime mortgage crisis, said Marc Ganis, president of SportsCorp Ltd., a Chicago-based sports industry consulting firm.


"Even in a time of extraordinarily tight credit, these teams are still able to raise huge sums of money,'' Ganis said.


The facility will be constructed near Giants Stadium, the teams' current home, and is scheduled to open in 2010. The teams agreed to split the cost after the Jets failed to secure approval for a stadium on Manhattan's West Side.


The Giants-Jets stadium will be the most expensive in U.S. history, topping the $1 billion the Dallas Cowboys say they are spending on their new arena in Arlington, Texas, and it required the league to waive some of its financial rules.


League owners voted 30-2 in December to grant the teams a combined $300 million, twice the previous high, from a fund that provides money for construction. In March, the owners voted 31-1 to allow the teams to borrow almost five times the typical $150 franchise limit, and carry the debt as long as 25 years due to the costs associated with building a stadium in the New York area.


TV Income


The NFL's 32 teams each received $84.7 million from national television contracts last season, according to financial records of the Green Bay Packers, the league's only publicly held franchise.


The Giants plan to build a 20-acre training complex in the southwest corner of the development. Broadcast facilities, sports-medicine clinics, stores, restaurants and a New Jersey Transit rail spur also are part of the project.


To contact the reporter on this story: Aaron Kuriloff in New York at [email protected]


Last Updated: August 16, 2007 18:42 EDT

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Two teams in the same sport sharing a stadium is just silly.


Not in the New York market with myriad other venues available for non-sports entertainment, especially for a sport like the NFL with such limited home-dates.


There just couldn't be a justifiable recoupment of funds in the non-football months to warrant two (for all intents and purposes) competing arenas. I mean, Bruce Springstein can only play so many concerts a year in the summer.

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Two teams in the same sport sharing a stadium is just silly.


Not in the New York market with myriad other venues available for non-sports entertainment, especially for a sport like the NFL with such limited home-dates.


There just couldn't be a justifiable recoupment of funds in the non-football months to warrant two (for all intents and purposes) competing arenas. I mean, Bruce Springstein can only play so many concerts a year in the summer.


I dont think its silly either. It would be a waste to have two seperate billion dollar stadiums. If the NFL had more home dates then it would be worth it, but its not worth the price at 8 games.

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Kaleidoscope of Colors Coming to New Stadium



Published: September 5, 2007


The new stadium the Jets and the Giants are scheduled to occupy in 2010 will be distinguished by an outer skin of aluminum louvers and by interior lighting that will switch colors depending on which team is playing at home.


The changing colors ? green for the Jets, blue for the Giants ? reflect each team?s desire to individualize the look of the 82,500-seat stadium in East Rutherford, N.J. The teams? current home, Giants Stadium, opened in 1976, but the Jets have long felt like a second-class tenant there since arriving in 1984. The louvers in the new stadium, which are arranged in various densities, may also reflect the teams? colors.


Although construction has been going on at the site north and east of Giants Stadium since April, groundbreaking on the $1.3 billion stadium will take place today, with officials from both teams; the N.F.L., including Commissioner Roger Goodell; and the state expected to attend.


It is the newest local sports project after decades without construction: the Devils? Newark arena will open next month; the Mets and the Yankees are building ballparks that are expected to open in 2009; construction of the Red Bulls? stadium is underway in Harrison, N.J.; and the Nets still anticipate building an arena near downtown Brooklyn.


Since Giants Stadium opened, 22 stadiums have opened in the N.F.L., including the new Soldier Field, which involved building a new stadium inside the exterior of the old one.


Eight facilities are older than Giants Stadium. One of them, the Dallas Cowboys? Texas Stadium, is to be replaced by a $1 billion facility in 2009. Another, Lambeau Field in Green Bay, Wis., had a $295 million modernization that was completed without compromising its essence in 2003.


According to renderings of the Jets-Giants stadium obtained by The New York Times, giant red pylons at the north and east entrances will display videos of each team, depending on which one is playing.


A signature feature of the stadium ? which will be built in the shape of a rounded rectangle ? will be the massive Great Wall that will be partly visible through the louvers at the main entrance.


The wall will be 400 feet long and 40 feet high, showing panels of images that will rotate between photographic murals of the Giants and Jets on game days and different pictures for concerts and other events.


Inside, four 40-by-130-foot scoreboards will hang from each corner of the upper deck.


The sight lines will be similar to those at Giants Stadium, which seats a little over 80,000, but in some cases seats will be farther away because the new facility will have more than double the square footage. The stadium complies with the Americans with Disabilities Act, and it will have four restaurants, nearly double the current 117 luxury suites, and 9,200 club seats, two club lounges, wider concourses and at least one hall of fame.


Just outside the stadium is the location for a railway station ? which connects the Meadowlands to the Pascack Valley Line of New Jersey Transit ? that is expected to be completed in 2009. The addition of the rail station is similar to the plan to bring a Metro-North stop to the new Yankee Stadium.


There will be numerous tailgating zones, and myriad options to buy food and merchandise in the plaza that will ring the stadium.


The Giants and the Jets are the only N.F.L. teams to share a stadium, but there was never a guarantee that they would build the new one together. For a time, the teams were on parallel tracks to the future.


The Giants planned to renovate Giants Stadium at a cost of $750 million. Meanwhile, the Jets stood fast to a $2.2 billion proposal to construct a stadium on the West Side of Manhattan that would have been an extension of the Jacob K. Javits Convention Center and the main Olympic stadium if New York City had won the bid to play host to the 2012 Summer Games.


The Jets? politically sensitive plan was attacked by Cablevision, owner of nearby Madison Square Garden, and was eventually spurned by the Public Authorities Control Board.


In September 2005, the teams signed an agreement to jointly develop the stadium in New Jersey, which was then estimated to cost $800 million.


The $1.3 billion cost to finance construction of the new stadium has the teams considering whether to require season-ticket holders to buy one-time personal seat licenses. The teams have already obtained a loan of $300 million from the league?s G-3 stadium financing program that must be repaid over 15 years from club seat revenues.

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