Destinations

Minnesota Super Bowl Bid and Visitor Influx Could Hinge on Tax Breaks

Mar 16, 2014 2:00 pm

Skift Take

The Twin Cities are competing with New Orleans and Indianapolis for the visitor dollars that a winning Super Bowl bid would generate. Minnesota has the transportation and hotel infrastructure to compete if its Legislature doesn’t screw things up on the tax front. Still, if Minnesota doesn’t win its 2018 bid, there’s always the next year.

— Jason Clampet

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Bruce Kluckhohn  / USA TODAY Sports

The NFL is warning Minnesota not to stumble when it comes to Super Bowl ticket-tax breaks. Pictured on Oct 13, 2013, Minnesota Vikings running back Adrian Peterson (28) breaks the tackle of Carolina Panthers cornerback Melvin White (23) in the second quarter at Mall of America Field at H.H.H. Metrodome. Bruce Kluckhohn / USA TODAY Sports


The NFL put the Minnesota Legislature on notice Friday that failing to deliver Super Bowl ticket tax breaks could hamper the Twin Cities’ bid for the 2018 game at the new Vikings stadium.

Six league executives concluded a two-day review of stadium site plans, transportation infrastructure and hospitality venues that local organizers say will help bring the game back to Minnesota for the first time since 1992.

However, state lawmakers are debating whether to grant league-mandated waivers on sales taxes on game tickets and related events during the week leading up to Super Bowl LII.

“It’s an incredibly competitive environment,” said Frank Supovitz, NFL senior vice president of events.

“All of those types of considerations really figure into what the bottom line of a Super Bowl might be and whether it is financially competitive.”

The Twin Cities are competing with Indianapolis and New Orleans to host the game scheduled for Feb. 4, 2018.

After years of debate, the Legislature in 2012 approved $498 million in public subsidies to help the Vikings build a stadium on the site of the Metrodome. The team has committed at least $477 million to the project.

With the team’s Metrodome lease scheduled to expire in 2012, NFL Commissioner Roger Goodell lobbied lawmakers to resolve the Vikings’ stadium issue and said the league would strongly consider returning for another Super Bowl at a new facility.

“I wouldn’t call it a fait accompli,” Supovitz said. “I would say it was something that was incredibly helpful to that process. There has been a record on behalf of the NFL to support communities that have built new buildings in public-private partnerships.

“There’s no quid pro quo. It’s still a competitive bid process, and that’s why so many people are working for such a long period of time to make sure the best Twin Cities bid goes forward.”

Super Bowl bids are due April 1. Supovitz’s staff will analyze each 190-page proposal, but they do not recommend markets. The NFL’s 32 owners will select the 2018 site during their May 19-21 meeting in Atlanta.

State Rep. Pat Garofalo, R-Farmington, pushed back against the NFL this month by introducing a bill that would block Super Bowl tax breaks.

“The Legislature finds that the provision of substantial state-funded, public financing for the professional football stadium constitutes the maximum amount of state assistance that is appropriate for state taxpayers to provide to host a Super Bowl,” according to the bill, which does not have a Senate companion.

Stadium authority chairwoman Michele Kelm-Helgen pointed out that Indianapolis and New Orleans hosted Super Bowls in 2012 and 2013, respectively, after including tax breaks in their bids.

She said Indianapolis reported a $40 million net gain in tax revenue from hosting the game.

“What is the tax revenue we’re going to leave on the table if we don’t win this bid?” Kelm-Helgen asked.

“At some point, people have to look at what the tax gain is that we would be giving up if we’re not competitive. If they don’t come, we don’t have any of that.”

The 70,000-seat stadium is scheduled to open in 2016, giving the Vikings two seasons to troubleshoot and streamline operations before Super Bowl LII.

Kelm-Helgen and Vikings vice president Lester Bagley led league executives on a tour of the stadium site, Minneapolis Convention Center, Orchestra Hall and Ordway Center for Performing Arts — possible sites for the NFL awards show — plus the light-rail transportation hub at St. Paul’s Union Depot.

Super Bowl Boulevard, the NFL’s popular street fair, most likely would be held on a renovated Nicollet Mall in downtown Minneapolis, where fire pits and other heating devices would keep fans warm.

The league requires a minimum of 19,000 hotel rooms and viable transportation to move up to 120,000 visitors scattered throughout Minneapolis, St. Paul, Bloomington and Roseville.

“We know how to do big things well, and we have a great new stadium,” said Bagley. “We showed the NFL we have the venues, the logistics, the transportation system and the stadium.

“We got a great start, but we aren’t going to get there without the strong leadership of our civic leaders and corporate group and a strong bid.”

An unsuccessful 2018 bid still could position the Twin Cities to host a subsequent Super Bowl.

Marc Ganis, president of the Chicago-based sports business consulting firm SportsCorp, is skeptical the Twin Cities will beat out New Orleans, which is tied with Miami for hosting the most Super Bowls (10).

“Whether the 2018 bid is successful or not, it should be strong and, if unsuccessful, be sure to leave a positive impression and bid for 2019,” Ganis said Friday.

“If the Twin Cities proceeds in this manner, it is likely that a Super Bowl will be played in the new stadium in Minneapolis before the decade is out.”

Bagley said the Vikings and local steering committee are betting on 2018.

“We think the year is 2018, and that is our agenda, and we’re pushing hard,” he said. “We have a great new stadium. That’s a huge point in our favor, but it’s a very competitive bid.

“We’ve got a good shot, but we’ve got to deliver a great bid and great package and answer the question: Why should the NFL come to Minneapolis-St. Paul in February 2018?”

Weather, of course, will be a factor during Super Bowl week.

Average Feb. 4 temperatures in the Twin Cities range from a high of 26 degrees to a low of 9, according to the National Weather Service.

This year was much colder. The average high and low from Jan. 29 to Feb. 4 were 19 and minus 4.

Record temperatures range from 51 degrees (2005) to minus 10 (1907).

Last month, the NFL hosted its first open-air Super Bowl in a cold-weather market, in East Rutherford, N.J., where it was a balmy 51 degrees at kickoff.

The Metrodome played host to Super Bowl XXVI on Jan. 26, 1992, when the Washington Redskins defeated the Buffalo Bills 37-24.

The next three Super Bowls are in Glendale, Ariz.; Santa Clara, Calif.; and Houston.

Follow Brian Murphy on Twitter.

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