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Who Is Behind a $5 Billion Development in Atlanta? Yup, a Sports Team.

Pro Sports Teams Are Turning Stadiums Into Real Estate Empires

In an era where professional sports franchises are no longer just about games and glory, a growing number of teams, particularly in the National Football League (NFL), are leveraging their brands to dive deep into real estate development. This shift represents a strategic pivot from traditional revenue streams like ticket sales and broadcasting rights toward creating sprawling, mixed-use complexes that blend entertainment, retail, residential, and commercial spaces. The phenomenon is transforming stadiums from isolated venues into vibrant urban hubs, but it also raises questions about public funding, community impact, and the blurring lines between sports and big business.

At the heart of this trend is the recognition that sports teams can capitalize on their massive fan bases to drive economic activity beyond game days. Take the Los Angeles Rams, for instance, who have spearheaded one of the most ambitious projects in recent years with the Hollywood Park development in Inglewood, California. Anchored by the state-of-the-art SoFi Stadium, which opened in 2020 and hosted Super Bowl LVI, the 298-acre site is evolving into a mini-city. It includes luxury apartments, office spaces, retail outlets, a performing arts venue, and even a lake. The Rams' owner, Stan Kroenke, has invested billions into this venture, partnering with developers to create a year-round destination. The goal? To generate steady income from non-sports events, such as concerts and conventions, while boosting property values in the surrounding area. Early reports indicate that Hollywood Park has already attracted major tenants like YouTube and is projected to create thousands of jobs, injecting vitality into a once-underdeveloped neighborhood.

This model isn't unique to the Rams. Across the NFL, teams are emulating similar strategies to diversify their portfolios. The New England Patriots, under the Kraft family's ownership, pioneered this approach with Patriot Place, a 1.3-million-square-foot retail and entertainment complex adjacent to Gillette Stadium in Foxborough, Massachusetts. Opened in 2007, it features hotels, restaurants, a health care center, and even a hall of fame museum. The development has turned what was once a sleepy suburb into a bustling commercial zone, drawing millions of visitors annually. Robert Kraft has often touted it as a way to enhance the fan experience while ensuring the team's financial stability in an unpredictable sports landscape.

Further south, the Atlanta Falcons have taken a page from this playbook with the Mercedes-Benz Stadium and its surrounding developments. Owner Arthur Blank, who also founded Home Depot, has integrated the stadium into a larger revitalization effort in downtown Atlanta. The complex includes fan zones, green spaces, and partnerships with local businesses, aiming to foster community ties. Similarly, the Dallas Cowboys' AT&T Stadium in Arlington, Texas, is part of The Star, a 91-acre campus that serves as the team's headquarters and includes hotels, restaurants, and fitness facilities. Jerry Jones, the Cowboys' flamboyant owner, has positioned this as a "sports and entertainment district" that operates 365 days a year, far beyond the NFL season.

The motivations behind these ventures are multifaceted. Financially, they provide a hedge against the volatility of sports revenues, which can fluctuate with player salaries, league negotiations, and economic downturns. Real estate offers predictable income through leases, sponsorships, and property appreciation. For fans, these developments create immersive experiences—imagine tailgating at a high-end shopping mall or attending a concert in the same venue as a playoff game. Urban planners praise the potential for economic stimulus, as these projects often revitalize blighted areas, create jobs, and increase tax revenues.

However, this real estate boom isn't without controversy. Critics argue that many of these developments rely heavily on public subsidies, raising ethical questions about taxpayer money funding private profits. For example, the Buffalo Bills' new stadium project in Orchard Park, New York, has sparked debates over a proposed $850 million in public funding for a $1.4 billion facility. Opponents contend that such deals divert resources from essential services like education and infrastructure, especially when team owners are billionaires. In Las Vegas, the Raiders' Allegiant Stadium, completed in 2020, was built with $750 million in public funds, yet the surrounding area has seen uneven development, with promises of economic boom not fully materializing for local residents.

Gentrification is another thorny issue. As these mega-projects rise, they can displace long-time residents and small businesses, altering the cultural fabric of neighborhoods. In Inglewood, the Hollywood Park development has led to rising rents and property taxes, pushing out some lower-income families who have called the area home for generations. Community activists have called for more inclusive planning, such as affordable housing mandates and local hiring preferences, to ensure that benefits are shared equitably.

From a business perspective, the integration of real estate into sports operations is reshaping team valuations. According to industry analysts, franchises with robust development arms are seeing their worth skyrocket. The NFL's collective value has surpassed $100 billion, with real estate playing a key role in that growth. Teams like the San Francisco 49ers, with their Levi's Stadium in Santa Clara, California, have expanded into tech-friendly office spaces, capitalizing on Silicon Valley's proximity. The stadium's surrounding district includes innovation hubs and residential units, attracting tech giants and further blurring the lines between sports and corporate America.

Looking ahead, experts predict this trend will accelerate, especially as cities compete to host teams and events. The NFL's international expansion, with games in London and potential franchises abroad, could inspire global real estate plays. Meanwhile, domestic projects like the Chicago Bears' proposed move to Arlington Heights, Illinois, envision a massive entertainment district on the former Arlington International Racecourse site. This 326-acre plot could include hotels, restaurants, and even a museum, potentially transforming the suburb into a regional powerhouse.

Yet, sustainability is emerging as a critical factor. With climate change concerns mounting, newer developments are incorporating green features, such as solar panels, water recycling, and public transit integration. The Rams' SoFi Stadium, for instance, boasts energy-efficient designs and aims for LEED certification. This eco-conscious approach not only appeals to environmentally aware fans but also mitigates regulatory hurdles in progressive cities.

The involvement of pro sports teams in real estate also extends to player investments and endorsements. Stars like Tom Brady and Aaron Rodgers have ventured into property deals, using their fame to promote developments. This creates a symbiotic relationship where athletes become brand ambassadors for team-led projects, further entrenching the sports-real estate nexus.

Critics, including urban economists, warn of potential bubbles. If economic downturns hit, overleveraged developments could falter, leaving teams with underutilized assets. The COVID-19 pandemic highlighted vulnerabilities, as empty stadiums forced teams to pivot to virtual events and rethink space usage. Still, the resilience shown— with many complexes hosting vaccination sites and community events—underscores their adaptability.

In essence, the convergence of pro sports and real estate is redefining what it means to own a team. No longer mere entertainment entities, these franchises are becoming urban developers, community anchors, and economic engines. For fans, it means more ways to engage with their teams; for cities, it's a double-edged sword of opportunity and obligation. As the NFL and other leagues push boundaries, the stadium of the future may look less like a sports arena and more like a thriving metropolis, where the roar of the crowd mingles with the hum of daily life. This evolution, while promising, demands careful navigation to balance profit with public good, ensuring that the game remains accessible to all.

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Read the Full The New York Times Article at:
[ https://www.nytimes.com/2025/07/20/sports/football/pro-sports-teams-real-estate-development.html ]