When Texans owner Cal McNair named a new team president last month, the first thing he touted about Mike Tomon’s resume was his “extensive history in stadium development.”
Tomon was previously an executive at Legends, a stadium operations firm co-founded by Dallas Cowboys owner Jerry Jones, where he worked on arrangements for new NFL stadiums in Los Angeles, Las Vegas and, most recently, Buffalo, which is set to open in 2026.
The Texans, meanwhile, have started negotiating a new lease agreement at NRG Stadium, their publicly-financed home since 2002. A recent facility assessment found the stadium was in average or below average condition compared to its peers, with a laundry list of needs from deferred maintenance over the years. But McNair’s quote and Tomon’s history suggest stronger ambitions: The team may want a new stadium entirely.
Two sources familiar with the Texans’ thinking told the Chronicle the Texans have explored the possibility of a new stadium, though the team has not committed to that path. The team has not proposed a new stadium in the lease negotiations, and the ultimate decision will depend on what makes the most financial sense for the Texans, the Rodeo and Harris County, which owns the campus and leases it to the two organizations, the two sources said.
“Our priority has always been to support a renovation of NRG Stadium and that’s where our focus remains,” Texans spokesperson Omar Majzoub said in a statement to the Chronicle. “As we’ve said before, we are committed to exploring all potential solutions to ensure long-term success and we look forward to working with the Houston Livestock Show and Rodeo, Harris County and HSCCC (the Harris County Sports and Convention Corp.) in identifying the best path forward.”
A decision could likely hinge on the price tag of a renovation. If the combined costs of maintenance – $1.4 billion is needed over 30 years at the stadium, according to a recent assessment – and premium features the Texans may want to add begin to approach the cost of a rebuild, the team could decide a new stadium is the better option.
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A new stadium could prove to be a tough sell with taxpayers. Houston and Harris County’s elected leaders are paying off the debt they incurred to build NRG Stadium 25 years ago, using taxes on hotel rooms and car rentals.
The Harris County-Houston Sports Authority, the joint venture that financed Houston’s stadium-building spree in the late 1990s and early 2000s, still owes $1 billion in principal debt on the bonds that paid to build NRG, Daikin Park and Toyota Center. It is not scheduled to pay them off until 2056, according to financial statements.
The Texans also have benefited from a team-friendly deal at NRG Stadium for the last two decades. The team put up revenue from permanent seat licenses toward the construction of the stadium, but it does not have to contribute toward most maintenance costs, unlike the Rockets and the Astros. The county is on the hook for those costs at NRG Park.
And the Texans often get more money in tax rebates than they have to pay in rent, according to financial audits – meaning the government essentially pays the team to play at NRG.
The sports authority’s debt load suggests it does not have room to take on additional loans to finance a new football stadium, and there does not appear to be enough money in the county’s general coffers to take on a rebuild.
The Texans could finance the stadium themselves, but NFL teams almost always ask for subsidies. Of the NFL’s 30 current stadiums, only five were financed without them.
And now it can be six. Look, I’ve supported these propositions in the past. On balance, I think they were worthwhile, even if the claimed financial benefits were way overblown. Downtown is a better place for having Daikin Park and the Toyota Center in it. But as noted, the Texans have really really done well with their deal. They can well afford this, if indeed this is what they want or say they have to have. I’m open to offering general infrastructure improvements in the area around the stadium as an incentive for them to build it themselves. Beyond that, whether we’re talking renovation or new construction, this needs to be on them. Campos has more.
If the public is footing any of the bill for a stadium, they ought to be entitled to a proportional cut of the profits, just like an investor who has shares in any other type of business.
Billionaires already have too many entitlements.
Won’t someone think of the billionaires!
I agree with you.
https://www.fieldofschemes.com/
The Rodeo has $310m in net assets and discriminates against LGBTs and non-Christians. They also pay no taxes. Harris County gives them $1m per year in addition to a sweetheart deal.
The Texans apparently dont pay market based rent and McNair donated to enable Gays being fired from their jobs. They may be currently grooming a supporter (Case Keenum) of a group seeking to eliminate homosexuals from sports (the FCA) as the next leader of the team. Their firing of PR head Amy Palcic appears to have been politically motivated.
The taxpayer funded Houston NCAA Final Four was officially “hosted” by a school that bans Jews and LGBTs from sports employment.
The Copa America invited a team (Saudi Arabia) that would execute any publicly out Gay male player.
NRG Park, LSSE, the Rodeo, and the Texans appear to have a de facto ban on any event where publicly out Gay male athletes are promoted in high profile sports settings.
NRG Park can hate the LGBT communiry for free. We dont need to give them anothet billion to subsidize their extreme hatred of us.