The Houston Chronicle: The Texans may seek public money to build a new football stadium in Houston

We discussed the subject recently, but only now we’re getting confirmation that the idea of building a new stadium is being considered. The alternative is renovation, the conceptual plans were revealed in December (https://www.instagram.com/reel/DEj-5x9sd8D ) The city has already approved $35 million for more immediate upgrades (mostly audio-visual system): https://www.si.com/nfl/texans/news/houston-texans-nrg-stadium-expected-to-receive-millions-of-dollars-in-upgrades.

Some excerpts from the story:

The Texans 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.

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.

It may also be difficult to retrofit NRG Stadium with some of the premium features the Texans may seek. Thirty years ago, some of the biggest draws of new stadiums were retractable roofs and roll-in turf fields. Now, the industry prioritizes more space for luxury suites and clubs, ideally closer to the field; and bigger concourses where fans can watch from bars and restaurants.

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.

The league’s position is that new stadiums attract major events and bring in revenue for individual teams and the communities they represent.
One of those events is the Super Bowl, which brought about 150,000 visitors to New Orleans almost two weeks ago, according to a spokesperson for New Orleans & Company, the city’s visitors bureau.

The Texans have been among the teams to express interest each year, but have not been awarded a Super Bowl since 2013, which it hosted in 2017. Ric Campo, who then served as the chairman for Houston’s bid for a Super Bowl that year, said the NFL always awards teams with new stadiums with a Super Bowl as a "quid-pro-quo."

More here, including very interesting research on the economic impact of new stadiums: https://www.houstonchronicle.com/news/investigations/article/texans-stadium-nrg-football-rodeo-20106574.php