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Tennessee Titans’ Value Could Increase By $300 Million With New Stadium

Tennessee Titans’ Value Could Increase By $300 Million With New Stadium

Share to FacebookShare to TwitterShare to Linkedin Flying high: The Titans celebrate a 2021 touchdown in their 23-year-old Nissan Stadium in Nashville.

Wesley Hitt/Getty Images The Tennessee Titans are on the verge of getting a new $2.2 billion domed stadium to replace 23-year-old Nissan Stadium that should add hundreds of millions of dollars to the value of the NFL team. Thanks to taxpayers, the team isn’t going to pay for the bulk of the new stadium and will reap much more revenue from the venue than it currently gets.

While the details haven’t been finalized, it’s being reported that taxpayers will pick up a big portion of the tab. According to the Center Square, “funding for the stadium would include $500 million from the state of Tennessee along with Nashville’s portion of taxes for sales at the stadium and half of the taxes from sales on 130 acres planned to be developed outside the stadium. Tennessee has conceded (to the Titans) a 5.5% sales tax at the stadium and 2.75% sales tax in the future development outside the stadium while also approving a one-percentage-point increase in a hotel-motel tax in Davidson County. Team ownership and an NFL loan are expected to pay $700 million toward the stadium and will be responsible for any construction overages.” In addition, the state of Tennessee has conceded 50% of the tax revenue from a mixed-use real estate project for 130 acres in which the Titans will participate.

The Titans draw decent crowds, but the team generates only about $60 million a year from premium seating and sponsorships because Nissan Stadium was built before teams began to focus on maximizing such revenue streams. In contrast, during their first season at new Allegiant Stadium, the Las Vegas Raiders pulled in over $100 million in comparable revenue.

Moreover, new stadiums typically command higher ticket prices. The Raiders, for example, have the NFL’s highest average non-premium ticket price ($153), according to Team Marketing. Prior to moving to Las Vegas from Oakland, they had among the league’s cheapest ($87). The Titans presently charge an average of $94 for a non-premium ticket, tied with the New York Jets for seventh lowest in the NFL. The Titans won’t command Raiders-level prices, but they should at least be able to top $100.

Given the record-breaking sale of the Denver Broncos (pending approval from NFL owners), the typical NFL team will increase in value by double-digit percentages this year. A year ago, Forbes valued the Titans at $2.63 billion. Once the new stadium deal is signed on the dotted line, the team will be worth north of $3 billion, according to sports bankers.

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