Texans pursuing NRG Stadium upgrades strategy

The Houston Texans are focusing on redeveloping NRG Stadium rather than pursuing a new home, according to the NFL franchise’s president, Mike Tomon.

Tomon was appointed to his new position in January, joining the Texans from Legends, where he had worked since 2014, most recently as co-president and chief operating officer. NRG Stadium forms part of the wider NRG Park complex, which also includes the Astrodome, the former home of Major League Baseball’s Houston Astros.

One of the core tasks for Tomon is to lead the Texans’ efforts in contributing to the masterplan for the future of NRG Park and negotiate the team’s lease at NRG Stadium, which is due to expire in 2032.

Earlier reports had stated the Texans were considering using public funds to help pay for a potential new stadium, but Tomon said efforts are focusing on improving their current home as NRG Park talks continue with the Houston Livestock Show and Rodeo and Harris County.

“We have genuinely just been focused on the renovation, what studies are underway, what the project could look like and making sure we are in step with our partners,” Tomon told the Houston Business Journal.

NRG Stadium opened in 2002 and in November it was reported that the venue was set for a series of upgrades as it prepares to host the final of football’s Gold Cup in 2025, as well as matches at the FIFA World Cup in 2026.

The upgrades were approved by the Harris County Sports & Convention Corporation (HCSCC), NRG Park’s landlord, and include a $35m (£27.1m/€32.2m) roof replacement. The project will also feature an updated sound system and video boards, as well as renovated suites on the 300-level and 400-level.

Tomon said that with seven years still remaining on the team’s lease deal, time is on the Texans side with understanding the economic impact of any redevelopment project and finding the most cost-effective solution the current key priorities. 

“When you embark on big transformative projects — which a renovation at this scale would be — they all have their own complexities,” Tomon stated. “What’s unique for us is we’re seven years out. We’re approaching this in a prudent and collaborative way.”

Tomon has also ruled out the prospect of leaving Houston. The Texans’ current lease deal includes a non-relocation agreement which includes a clause stating that the team could apply for, or seek approval from the NFL, to relocate during the final five years of its contract.

However, Tomon said: “From a business standpoint, why would you leave? We have such a special market here and have the fanbase here. That would be counterintuitive to all the initiatives we have underway and all the success we’ve already had.”

Bills ‘seeking $650m debt waiver’

In other news, the Buffalo Bills are reportedly seeking an exception to NFL debt limits to borrow $650m to fund construction of New Highmark Stadium, whose costs continue to climb.

In November, it was revealed that the Bills’ new stadium was set to cost more than $2.1bn, significantly more than what was budgeted by the NFL team when construction commenced. New Highmark Stadium is scheduled to open in 2026. It will have a capacity of around 63,000 and will replace the current Highmark Stadium, which seats 71,000 fans.

Highmark Blue Cross Blue Shield of Western New York acquired naming rights to the new venue in June 2023 as an official groundbreaking ceremony was held for the project. At the time, the stadium was projected to cost $1.54bn, which itself was an increase on the initial $1.4bn that was budgeted.

Just three months into construction, it was reported that the project was almost $300m over budget due to increased labour and material costs. Bills officials in November confirmed that the cost would be “north of $2.1bn”.

The Terry Pegula ownership group will cover the additional costs, as has previously been agreed. New York State has committed $600m towards the project, with Erie County providing $250m.

The NFL, through its G-4 loan programme, and the Bills were due to provide the remaining $550m of the initial $1.4bn project.

Sports Business Journal has now reported that with the price tag reaching $2.2bn, the Bills are seeking approval from fellow NFL team owners to borrow $650m at the next league meeting running from March 30 to April 2.

The new debt requires a waiver from other owners in order for it to not count against the $700m operating debt limit under league policy. The New Highmark Stadium financing plan already included $200m of debt, which the Bills are borrowing under the terms of the G-4 programme.

If approved, SBJ said the $650m debt waiver would be the third largest approved by owners, behind the $850m for Atlanta Falcons’ Mercedes-Benz Stadium in 2014 and $2.25bn for the Los Angeles Rams’ SoFi Stadium in 2018.

The Bills in January provided further insight into New Highmark Stadium through the release of a fresh set of renderings showcasing details of the lower bowl and concourse areas with 360° visibility of the field. Ticketmaster also strengthened its connection with the team by signing on as the venue’s first founding partner.