What Charlotte needs to get for its MLS money
The city of Charlotte got a public nudge late Thursday from Major League Soccer commissioner Don Garber, who told reporters that the league is in “very, very advanced discussions” with Carolina Panthers owner David Tepper about an expansion franchise. The holdup? According to Garber, it’s Bank of America Stadium, which needs to be retrofitted for soccer, an expense Tepper and the league would like Charlotte to pay.
Mayor Vi Lyles and city council members, however, have been tight-lipped and careful about their negotiations with Tepper — and with good reason. The negotiations, which sources indicate are rapidly heading into their final stages, are about much more than a new soccer tunnel at an old football stadium. They’re about doing the right thing for Charlotte.
It’s clear there’s excitement in the city and on the council about a franchise in a growing sport that appeals to the young professionals Charlotte is trying to recruit. It’s also clear MLS wants Charlotte and Tepper in the league, and that Tepper badly would like that to happen. That means short of snubbing MLS and Tepper with a contribution of zero, the council isn’t going to sabotage a Charlotte franchise by being prudent about its contribution.
So what’s the number? Council member James Mitchell blurted out this week that Charlotte is prepared to offer something around $100 million (a statement that surely irked fellow council members and city officials who continue to work on Charlotte’s side of the negotiations.) In a vacuum, $100 million would seem to be very generous on Charlotte’s part. Most MLS teams, including those in Sacramento and St. Louis, sought less than $100 million in public dollars for new stadiums or improvements to existing stadiums in recent years. A few asked for nothing at all.
That doesn’t mean Charlotte should padlock its pocketbook. While most economists are skeptical of the direct fiscal benefits of paying for sports stadiums with public dollars, benefits such as branding, recruiting and development are harder to quantify. We do know this: Charlotte has seen promising development circle its uptown minor league baseball stadium, and the once-controversial NBA arena has helped attract events that include both the Democratic and Republican national conventions.
What’s more important than the city’s dollar figure for MLS is what the money would be going toward. For one, Charlotte knows Tepper will be coming back to the city at some point to request money for a new or improved NFL stadium. Also, Charlotte officials and Tepper have expressed interest in the past about pro sports being part of a larger venture that could bring a thriving entertainment district to uptown. Those two items are not unrelated. The deal the city is negotiating could and should include stipulations about future public funding requests from Tepper and the Panthers. An MLS deal also presents a starting framework for a more significant partnership between Tepper and Charlotte in uptown, and possibly east Charlotte.
As it is, any public dollars spent on MLS — even if they come from tourism taxes — will be met with backlash from those who think Charlotte should concentrate on more urgent needs, such as affordable housing. That’s why we hope and expect city officials are pursuing an investment that involves more than merely spending $100 million for stadium upgrades. That number might be enough to bring pro soccer to town, but it’ll be missing a bigger opportunity to make Charlotte better.