AT&T Stadium: Unveiling the Financial Playbook

The construction of AT&T Stadium, affectionately known as “Jerry World,” was a monumental undertaking. The simple answer to the question of who paid for AT&T Stadium is a combination of public and private funding, with the Dallas Cowboys organization contributing significantly alongside taxpayer money from the city of Arlington. Now, let’s unpack that answer and delve into the intricate financial playbook that brought this iconic stadium to life.

Unpacking the Funding Structure

The financial strategy for AT&T Stadium was carefully orchestrated, a blend of risk and reward shared between the Cowboys and the public. Let’s dissect the primary sources of funding:

• Dallas Cowboys Contribution: The team, led by owner Jerry Jones, committed a substantial portion of the funding. This came from team revenue, private loans, and the sale of personal seat licenses (PSLs).
• City of Arlington Taxpayer Funds: A crucial component of the funding came from Arlington taxpayers. This was approved through a referendum where voters agreed to increase the sales tax, hotel occupancy tax, and car rental tax.
• NFL Loan: The NFL provided a loan to the Cowboys, which is a common practice for stadium construction projects.

The Role of Personal Seat Licenses (PSLs)

A key component of the Dallas Cowboys’ contribution was the sale of Personal Seat Licenses (PSLs). These licenses gave buyers the right to purchase season tickets for specific seats in the stadium. The revenue generated from PSL sales was a significant source of upfront capital for the construction project.

Arlington’s Taxpayer Contribution: A Controversial Decision

The decision to use Arlington taxpayer money was, and remains, a contentious issue. Proponents argued that the stadium would bring economic benefits to the city, including increased tourism, job creation, and enhanced property values. Opponents questioned the fairness of using public funds to subsidize a private business venture, especially given the Cowboys’ already substantial wealth. The reality, as with most things, lies somewhere in between.

The Economic Impact Debate

The economic impact of AT&T Stadium is a subject of ongoing debate.

• Proponents’ View: Supporters point to the increased tourism revenue, the creation of jobs (both during construction and ongoing operations), and the boost to local businesses. They argue that the stadium has put Arlington on the map as a destination for major sporting events and concerts.
• Critics’ View: Critics argue that the economic benefits are often overstated and that the costs to taxpayers outweigh the gains. They point out that many of the jobs created are low-paying and that the stadium may have diverted economic activity from other parts of the city. Furthermore, they question the long-term sustainability of the stadium’s economic impact.

Frequently Asked Questions (FAQs) About AT&T Stadium’s Funding

Here are some frequently asked questions that provide additional insight into the complexities of AT&T Stadium’s funding:

1. How much did AT&T Stadium cost to build?

The total cost of AT&T Stadium is estimated to be around $1.2 billion.

2. What percentage of the stadium was funded by taxpayers?

The city of Arlington initially committed $325 million in taxpayer funds, representing roughly 27% of the initial estimated construction cost. However, due to cost overruns, the percentage decreased slightly.

3. How was the taxpayer money raised?

The taxpayer money was raised through a 0.5% sales tax increase, a 2% hotel occupancy tax increase, and a 5% car rental tax increase. These tax increases were specifically designated for stadium construction and related infrastructure improvements.

4. How long will Arlington taxpayers be paying for the stadium?

The taxes dedicated to paying off the stadium bonds are expected to be collected until 2033.

5. Did the Cowboys contribute to cost overruns?

Yes, the Dallas Cowboys were responsible for covering any cost overruns beyond the initial budget. This was a key aspect of the agreement with the city of Arlington.

6. What are Personal Seat Licenses (PSLs) and how did they contribute to the funding?

Personal Seat Licenses (PSLs) grant the holder the right to purchase season tickets for specific seats. They are a one-time fee, separate from the cost of the tickets themselves. The Cowboys used PSL sales as a significant source of upfront capital to finance the stadium’s construction.

7. How many PSLs were sold?

The exact number of PSLs sold is not publicly available, but it is estimated that the Cowboys sold tens of thousands of PSLs, generating hundreds of millions of dollars.

8. What happens to the PSL if I decide to not renew my season tickets?

PSLs are transferable, meaning you can sell your PSL to someone else if you no longer wish to purchase season tickets. The Cowboys typically have a marketplace where PSL holders can list their licenses for sale.

9. Besides Cowboys games, what other events generate revenue for the stadium?

AT&T Stadium hosts a wide range of events, including concerts, college football games, soccer matches, monster truck rallies, and conventions. These events contribute significantly to the stadium’s revenue stream.

10. How does the stadium benefit the city of Arlington beyond direct revenue?

Beyond direct revenue, the stadium benefits Arlington through increased tourism, job creation (both direct and indirect), and enhanced property values in the surrounding area. It also puts Arlington on the map as a major destination for sporting events and entertainment.

11. Has the stadium met the initial economic projections for the city of Arlington?

The economic impact of AT&T Stadium is a subject of ongoing debate. Some studies suggest that the stadium has met or exceeded initial projections, while others argue that the benefits have been overstated. The actual economic impact is likely somewhere in between, depending on the methodology and assumptions used in the analysis.

12. What are the long-term financial implications of the stadium for both the Cowboys and Arlington taxpayers?

For the Dallas Cowboys, AT&T Stadium has been a tremendous financial success, significantly increasing the team’s revenue and brand value. For Arlington taxpayers, the long-term financial implications are more complex. While the stadium has generated revenue for the city, it has also required a significant investment of public funds. The ultimate success of the investment will depend on the stadium’s ability to continue attracting events and generating economic activity in the years to come, along with the city’s ability to manage debt and use the generated revenues wisely.

Conclusion: A Risky, But Rewarding, Gamble

The funding of AT&T Stadium was a complex and ambitious undertaking, involving a significant investment from both the Dallas Cowboys and Arlington taxpayers. While the use of public funds remains a controversial issue, there’s no doubt that the stadium has transformed Arlington and solidified the Cowboys’ position as a global brand. Whether the long-term economic benefits justify the public investment remains to be seen, but the legacy of “Jerry World” is undeniable. This is the stadium that transformed sports venues and set the bar higher than ever before.