Venue Detail
Houston Texans
RSV Pro Facilities Report
March, 2014
Houston Texans
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2 Reliant Park Houston, TX 77054 Phone: 832-667-2000 URL: www.houstontexans.com Owner: Bob McNair League: National Football League, AFC South
Venue
Reliant Stadium, 2 Reliant Park, Houston, TX 77054 Owner: Harris County-Houston Sports Authority Managed by: SMG Facility Management Built: 2002 Capacity: 69,500 Permanent concession stands: 38 Concessionaire: Aramark Suite caterer: Aramark Soft drink: Coca Cola
Naming Rights
Sold to: Reliant Resources Price: $300,000,000 Term: 30 years Expires: 2030
Ticket Prices
Season tickets range from $300 to $990 Single tickets range from $40.00 to $329.00
Attendance
2011 average attendance: 71,496 2012 average attendance: 71,665 2013 average attendance: 71,658
Suites
Quantity: 185 Term: 6 to 10 years Price: $50,000 to $250,000 Seats: 14 to 24 Includes: Tickets, parking.
Club Seats
Quantity: 8,000 Term: 6 to 10 years Price: $1,750 to $3,010
Financing
The Harris County-Houston Sports Authority paid $195 million for a new 68,000-seat stadium from an existing hotel and motel tax with the rest coming from McNair and the Houston Livestock Show and Rodeo, another major tenant of the building.
The total project cost $310 million and the Authority issued $260 million in bonds. The money not covered by the tax came from football team annual rents of $1.05 million and a rodeo rent payment of $1.5 million. Parking and sales taxes make up the rest. The agreement requires McNair to guarantee $4.01 million a year in total revenue, including rent.
Seat licenses
Club seats require a license of $1,900 to $2,100, plus an annual fee of $1,575 to $2,575. In the lower level, the PSL prices range from $600 to $4,200, plus season tickets. In the upper bowl and mezzanine levels, the licenses range from $900 to $2,700, plus tickets.
A new state-of-the-art scoreboard at Reliant Stadium premiered for the opening of the 2013 season.
The new scoreboard, offers higher-definition images, up to $30 million.
Bob McNair's offer of $700 million for a new NFL franchise was enough to bring NFL owners to a unanimous vote to put the league's final franchise in Houston and eliminate Los Angeles from the race. The price does not include the $310 million that was spent on a new retractable-roof stadium, pushing the final cost over $1 billion. The team played its first season in 2002.
The price compares to the $470 million paid by Al Lerner for the Cleveland Browns and $140 million paid by Jerry Richardson of the Carolina Panthers. Daniel Snyder paid $750 million for the Washington Redskins, but that included Jack Kent Cooke Stadium and $160 million in debt. McNair originally bid $400 million for the team.
McNair came up with $50 million toward the new stadium and up to $100 million in start-up costs. Promising a Super Bowl in 2004 to Houston helped McNair sell luxury suites and club seats because he included that game in his marketing plan. McNair also benefited from the league's decision to allow him to pay the fee over five years. The schedule calls for a $150 million payment every January 15 between 2000 and 2003 with the final payment of $100 million due in 2004. The fee is split equally among the current owners, meaning each got more than $23 million. The St. Louis Rams are excluded from sharing the booty as part of its agreement to move to St. Louis from Los Angeles.
In the Texans' first year the team was generating cash at Reliant Stadium like an old pro. Concession managers say fans outspent Super Bowl crowds during the Houston team's match-up with Dallas. Merchandise sales are reportedly up to five times above the average of other NFL teams.
Team officials say fans spend about $20 each on food, drink and merchandise, about 80 percent more than the team budgeted.
With the first season under its belt, the team decided to capitalize on its popularity and started work on 19 new luxury suites, raising the total to 185. Two of the new suites seat 42 persons and lease for $100,000 per year. Seventeen other suites seat 17 to 21 persons and are priced at $50,000 to $90,000 depending upon location. All of the new suites are on the venue's upper deck.
The stadium features a movable roof, natural grass field and was built near the Astrodome.
Most of McNair's contribution will come from the sale of permanent seat licenses. He also gets parking, concession and ticket money during games and divided advertising and Naming Rights earnings with the rodeo and the county.
The rodeo gets all its ticket earnings, but parking and concession revenue goes to the county. The rodeo also gets fees from concessionaires who want exclusive rights to sell their products at the stadium. Rodeo officials expect to benefit from the greater capacity of the new building. It already sells out the Astrodome several times a year.
The Texans set a record for Naming Rights deals with the $300 million sale to Reliant Resources. The price includes the right to name the entire complex to Reliant Park with the Astrodome becoming the Reliant Astrodome. The arena becomes Reliant Arena and an upcoming exhibition center becomes the Reliant Center.
The Houston City Council voted to give up $632,000 a year in taxes on Reliant Stadium. McNair and the Houston Livestock Show and Rodeo asked for the tax break to help finance the venue. City officials said a 2004 Super Bowl game planned for the venue would offset most of the tax loss.
The team earned more than $1.5 million its first season on its hospitality village. The village, two areas adjacent to the stadium, includes tents and other facilities for parties and tailgating. Tickets are priced at $85 to $105 per person. (Facilities, Financial, NFL, Professional Sports, Venue)