Tag Archives: naming rights

It’s Good To Be Zygi

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In 2011, taxpayers gave billionaire Minnesota Vikings owner Zygmunt “Zygi” Wilf quite a gift, an even bigger gift than some realized at the time.

Taxpayers invested about half a billion public dollars to help Mr. Wilf construct his $1.1 billion business headquarters, U.S. Bank Stadium.  The State contributed $348 million, and another $150 million came from a Minneapolis hospitality tax. (While it’s often reported that Mr. Wilf paid the remainder, much of the remainder was paid by private interests — the NFL, personal seat license holders, and U.S. Bank.)

This was an extraordinary taxpayer subsidy for any business owner, much less a controversial one worth $5.3 billion who has been found liable by a New Jersey court for breaking civil state racketeering laws.

But Mr. Wilf’s gift from taxpayers went well beyond that $498 million.  State leaders also allowed the billionaire to keep 100% of the increased business value that he has realized since his publicly subsidized business headquarters was authorized.  It turns out, that’s quite an increase.  According to a Forbes magazine estimate, in 2011, the year before the approval of the stadium, Wilf’s business was worth $796 million.  The most recent Forbes estimate puts the value at a breathtaking $2.2 billion.

That’s a tidy little increase of about $1.4 billion, with a “b,” over just six years.

Not all of that $1.4 billion gain is due to the new $1.1 billion stadium and its income-generating capacity, but much of it is.  It’s now clear that if the billionaire owner had financed his business’s building the old fashioned way — without taxpayers footing half of his bill — he would easily have recouped the full amount of his business investment, and then some.  Clearly, Mr. Wilf did not need us.

In 2011, many predicted that Minnesota taxpayers would be making a very rich man substantially richer.  But it’s still breathtaking to watch the money flooding in.  Skol Zygi.

Saunders Center

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Imagine a world in which our communities still used tax dollars to honor heroes, instead of honchos, where we valued the highest character over the highest bidder.

In that world, our most expensive publicly financed buildings would be named after respected leaders like Hubert H. Humphrey, Bud Grant, Herb Brooks and soldiers, instead of mega-corporations like U.S. Bank, TCF Bank, Xcel, CHS and Target Corporation. In that world, our public assets wouldn’t be sullied by excessive amounts of gaudy corporate graffiti.

Flip_Saunders_Arena

In that world, the Minnesota Timberwolves might soon be playing in a newly renovated Flip Saunders Center, giving the City-owned home court so much more of a sense of history, character, community, heart and soul than it has as Target’s Center.

Loveland

Who Negotiated That Stadium Deal Again?

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Vikings PR people like to tell Minnesotans that the team’s owner, billionaire Zygi Wilf, is paying about 60 percent of the ever-growing $1.2 billion stadium cost.  The truth, as Star Tribune/1500ESPN columnist Patrick Reusse pointed out back in May 2012, is that something like $450 million of the Wilf’s share will be paid by people other than the Wilfs. For instance, season ticket holders will be making exorbitant seat license payments to the Wilfs, the National Football League will be paying a subsidized “loan” to the Wilfs, and U.S. Bank will be making naming rights payments to the Wilfs.  All of this will offset the Wilf’s stadium costs by about $450 million.

Taking all of that into consideration, Mr. Wilf looks to be shelling out more in the neighborhood of  $250 million of his own money, or 21% of the cost of the $1.2 billion total, not the 60 percent the Vikings claim.  It’s difficult for an outsider to come up with precise numbers, but that seems like a pretty fair, pardon the pun, ballpark estimate.

Meanwhile, state and local taxpayers are paying about half a billion dollars for the Vikings’ stadium, or about 40 percent percent of the stadium cost.  In other words, taxpayers are paying significantly more than the billionaire owner.

Despite being the majority investor, taxpayers have no say in the name of the stadium, and will be getting 0 percent of the estimated $10 million per year of corporate naming rights payments that U.S. Bank will be paying over the next two decades.  The billionaire Wilfs will be getting 100 percent of the $220 million in naming rights payments.

Formerly_People_s_Stadium

mao_tiananmen_squareIt’s bad enough that U.S. Bank looks to be getting more corporate visibility than Chairman Mao demanded for himself at Tiananmen Square. To add insult to aesthetic injury, taxpayers aren’t getting a single penny for putting up with U.S. Bank’s excessive corporate graffiti.

And so ladies and gentlemen, I give you U.S. Bank Stadium, formerly billed to skeptical taxpayers as the “people’s stadium.”  State leaders should be doing some retrospective soul-searching about how they got so thoroughly fleeced by the Wilfs on this deal.

Naming The Vikings Stadium

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And what shall we name our new little crown jewel?  No, I’m not talking about His Royal Highness Prince George Alexander Louis of Cambridge.  I’m talking about the long-gestating  stadium of Minneapolis, formerly known as Mall of America Field, formerly known as the Hubert H. Humphrey Metrodome.

The stakes for this little name game are high.  The owners of the San Francisco 49ers recently negotiated a stadium naming rights deal worth $220 million over 20 years with Levi Strauss, an obscure little brand desperate to buy itself some name recognition.  Vikings owner Zygi Wilf hopes to secure a cool $10 to $15 million per year off of naming rights of the new stadium.

The Wilfs have hired a firm to handle this task in Minnesota, Van Wagner Sports and Entertainment.  The naming guru at Van Wagner, Jeff Wagner, gave us “Target Center” a few years back.

But I am willing to offer my services for free.  After much research, here is my detailed analysis:

U.S. Bank Stadium.  This is the front-runner, because U.S. Bancorp is local, and because financial institutions are big into the stadium naming game these days.

  • Pro:  They’re sitting on lots of money and not lending much, so why not buy yourself a vanity plate?
  • Con:  Brand confusion.  Another crappy football team already has “The Bank” on the east bank, so adding a second “The Bank” branch on the west bank just would make everyone’s heads hurt.

Land O Lakes Stadium.  It would make a lot of sense for our local dairy food processor to want to put its name on the asymmetrical building that looks like a half eaten block of butter.

  • Pro:  Sounds like a melodic description of the Vikings’ beautiful home state, not like just another corporate commercial.
  • Cons:    Our neighboring rivals may have the corner on all dairy-related branding.

Wheaties Stadium.  If General Mills wants in, I hope they lead with their top sports-related brand rather than the parent company brand.

  • Pro:  “Wheaties” connotes “champions,” our aspiration.
  • Con:  “Wheaties” connotes “champions,” which would bring immediate false advertising charges.

3M Stadium.  3M, formerly known as Minnesota Mining and Manufacturing, is an iconic Minnesota company that produces world famous products such as PostIt Notes.

  • Pro:  Ultra-compact two-letter name dramatically saves on signage costs.
  • Con:  Sets up endless hilarious post-game punchlines for our beloved Wisconsin friends:  “You know what the three “m’s” in 3M Stadium really stands for, don’t you?”

Matt’s Bar Stadium.  If we must have a stadium named after a business, why not one that Minnesotans actually like, such as the loveable home of the Juicy Lucy in south Minneapolis.

  • Con:  They may not have quite as much money as U.S. Bank to pony up.
  • Pro:   It would be a homage to small businesses, which quietly account for half of Minnesota’s private sector jobs, while remaining “small enough to fail” without need of taxpayer bailouts.

OmniSynCorp Stadium.  OmniSynCorp is a little known start-up company that spent all its seed capital on hiring a corporate naming firm that now badly wants to see its name in lights.

  • Con: Promoting a business that will be in Chapter 11 in a few months may ultimately reflect poorly on the home team’s brand.
  • Pro:   The corporate naming firm promises that the corporations’ bleeding edge brand represents “an iconic homage to the game-changing synergistic synergy imbedded in our value-added values.”

Target Stadium.  I mean, why not?  We already have Target Center, Target Field, the Target Public School system, and Target Politicians.

  • Con:  It’s unfair to poor Walmart.
  • Pro:  It’s the soothing symmetry that only monopolies can offer.

People’s Stadium.  Governor Dayton famously promised us this would be a “people’s stadium,” not just the Vikings’ stadium, which persuaded the people of Minnesota to put up a half-billion dollars to pay for the joint.

  • Con:  It’s vaguely Soviet.
  • Pro:  Justice.

– Loveland

Note:  This post was also featured as a “best of the best” by MinnPost Blog Cabin.