"Knowledge will forever govern ignorance

 and a people who mean to be their own governors

 must arm themselves with the power which knowledge gives."

Sunday, December 12, 2004

NY Giants Seek New $700M Stadium In NJ

At the behest of New Jersey acting Gov. Richard J. Codey, top executives of the New Jersey Sports and Exposition Authority and the Giants will discuss financing for a project to replace 28-year-old Giants Stadium with a new $700M stadium. (A little bit of sticker shock there, the original stadium was built for $78M.) The proposed stadium the Giants envision would include about 200 luxury suites, thousands of premium seats and other revenue-generating amenities.

If you ask us, the last thing New Jersey needs is to help fund the construction of a new stadium and for a New York football team no less. “
The New York Giants” have been playing their “home” games in New Jersey since 1976. Wouldn’t you think at some point the team would have shown some respect for their host state and changed the name to the Jersey Giants or at least drop the New York. Of course why pick on the Giants, the Meadowlands stadium also hosts the New York Jets and the New York MetroStars.

We’d like to see an independent cost-benefit analysis on behalf of New Jersey taxpayers completed before anyone wastes even a dime on discussions, studies and plans for a new stadium. What’s in it for the people of New Jersey? We already know how the Giants owners will benefit – they will make more money. An NFL team derives about 70% of its income from television with the balance coming from merchandise licenses, ticket and concession sales. NFL teams practice extensive revenue sharing and therefore have a powerful incentive to maximize the components of revenue that are not shared, such as premium seating and fancy concessions. Exactly what the Giants want in their new stadium.

If a new stadium is such a great investment then the Giants should have no trouble obtaining private financing. If they can’t attract investors, then we think we can safely say a new stadium is not a good investment of taxpayer money. So that leaves the Giants with the option of staying put or finding another home. The New York name seems very portable, so perhaps Connecticut or even Los Angeles would be willing to call the NY Giants their home team
.



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