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The Patriots Nix Hartford, Stay in Foxboro -- Background

$375 million stadium deal falls through, Connecticut officials incensed


Hartford, Connecticut, May 1, 1999 -- Like a spurned suitor, Hartford lost its big to seduce the New England Patriots. The team, which desperately wanted a new stadium to replace its present inadequate facility, ultimately rejected the city's overture to pay for entire cost of a new facility to bring the team two hours south of its present home in Foxboro Massachusetts.

The Hartford plan was the centerpiece of a revitalization effort that would build a convention center and a hotel in the middle of the city. Layoffs and downsizing in the insurance industry, the area's major employer, have hurt the region. Also, the city was still hurting over the departure of the Hartford Whalers, an NHL team, to Carolina two years ago.The move of the Patriots to Hartford, it was thought, would boost the economy and morale.

Amid great fanfare, Connecticut Governor John Rowland announced what he thought was an agreement with Robert Kraft last November. The state would pay for the stadium, and related facilities such as roads. The deal, called the "greatest financial deal any [NFL] owner has ever received" by three NFL franchise owners, according to a report in the Boston Globe, contained some extraordinary guarantees, including a promise to pay Kraft as much as $175 million in cash over the first ten years "if he failed to sell out premium seats." In addition to offering the stadium for no charge, the state agreed to pay as much as $200M or more over 30 years for stadium improvements and renovations, all the costs of buying and cleaning the stadium site and up to $15 million for a training facility. Mr. Kraft would have paid no rent for the land on which he would build a new $50 million hotel, no property taxes on the stadium, hotel or an entertainment pavilion. All these goodies came up to  about $375 million and would be paid off via team payroll, sales and usage taxes, in addition to a 10% ticket tax. Mr. Kraft will receive 90% of all incoming revenue from Patriots-related events. He would earn all profits from concessions.

Although most state politicians supported this deal, problems occurred . The facility would not be ready in 2001, but in 2002 at the earliest. Environmental concerns about the location were also voiced. At the same time, the NFL, concerned at the eroding market share of a team which would move from the 6th largest television market to the 27th, could be substantial.

Massachusetts officials slowly pieced together a deal that could keep the team in Foxboro. Far less generous than Hartford, the Bay State leaders offered $70 million in public funds for infrastructure work as an enticement to keep the team in Foxboro. Just two days before a deadline, Mr. Kraft exercised escape clause in the November agreement, giving him the right to back out of the deal with no financial penalty.

The bulk of the new stadium would be paid by Mr. Kraft. NFL Commissioner Paul Tagliabue made a trip to Massachusetts to speak with its Governor and legislative leaders. One of them,  House Speaker Thomas Finneran, changed his previous opposition to any financial incentives, to back this deal. According to the Boston Herald, Mr. Kraft would then give the state an estimated $1.4 million in annual revenue from two sources: stadium user fees such as a ticket surcharge, and a license fee for satellite parking lots around the stadium." The funds are designed to offset an estimated $42 million worth of road, sewer and other improvements that would be made on land Kraft owns.

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