Nissan Stadium. Photo: by Gabriel Tovar
The Tennessee Titans and Nashville Mayor John Cooper have officially announced a deal between the organization and city to build a new, enclosed stadium that would cost over $2 billion without burdening the Nashville taxpayers.
This new stadium will open up a world of possibilities for Nashville as the planned stadium will fit between 55,000 to 60,000 spectators. A brand new, state-of-the art stadium will attract events such as the Super Bowl, NCAA College Football Playoffs, the Grammys and create an atmosphere for CMA Fest that has never been seen before. An enclosed arena will guarantee an inclement weather-free experience for Titans fans and concert-goers.
This monumental deal will be paid for by a sales tax in Nissan Stadium, marking a 130-acre radius around the stadium’s campus, and with a 7 percent hotel occupancy tax in Davidson County. No money from the city’s general fund will go towards the stadium’s construction.
“This new stadium proposal protects Metro taxpayers by not spending a single dollar that could be spent elsewhere on our core priorities like education and public safety,” Cooper noted in his press conference. “Doing nothing was not a legal option for us, and renovating the current stadium proved to be financially irresponsible, so we are proposing a new stadium paid for by the team, the state, tourists and spending around the stadium–not by your family.”
Funding for the new stadium comes from four separate revenue sources, described in detail below. The Titans, the NFL, and personal seat license (PSL) sales represent the largest source of funding for the new stadium. General obligation bonds are not a part of the proposal, and zero dollars are required from Metro’s operating budget.
Sources of Funding For the New Stadium:
- Football-Related Sources: Titans, NFL (subject to final NFL approval), and PSL sales ($840 million)
- State: A one-time contribution ($500 million) contingent on the building of a new, enclosed stadium
- Hospitality: Tourists and visitors through a new 1% hotel/motel tax contingent on the building of a new, enclosed stadium
- Stadium/Campus: Sales and use taxes collected at the stadium and on its campus.
The remaining $760 million will come from revenue bonds issued by the Metro Sports Authority to be repaid through the revenue streams described above, all of which, per state statute, can only be used for this project or other stadium-related costs.
“I’m grateful to Amy Adams Strunk, Burke Nihill and the entire Titans organization for their commitment to Nashville,” Cooper added. “Residents’ tax dollars can go to core city services because the Titans have stepped up to cover future ongoing maintenance on the new stadium. I’d also like to thank Governor [Bill] Lee and our partners at the state legislature for recognizing the Titans’ enormous economic contributions. Together, we are making sure that the Titans stay in Tennessee for generations to come.”
The proposed stadium would be built directly east of Nissan Stadium on land that is currently parking lots. As part of the proposal, Metro would regain control of over 66 acres of land, including the existing Nissan Stadium site. Land that would have remained surface parking for the next 17 years can now serve Nashville with a large park, greenways, affordable housing, a multi-modal boulevard, local businesses and more–all without selling any public land.
The Titans have agreed to maintain and backstop upkeep over the life of the lease, and Metro will own the stadium when the lease expires–creating a multi-billion dollar asset for the city.
“Nashville’s new stadium will be a game changer for the community, enhancing the national and international reputation of our great city and state and delivering world-class events to our doorstep that we could never have dreamed of 25 years ago,” says Titans President and CEO, Burke Nihill. “We couldn’t be more appreciative of Mayor Cooper’s commitment to prioritizing the taxpayers of Nashville and his vision for a bold future on the East Bank. We look forward to the discussion of these terms with Metro Council and the Sports Authority, and hearing from our neighbors in the community as this process continues.”
The new lease will run for a minimum of 30 years, and the new stadium could be ready as early as the 2026 NFL season.
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