The Houston Texans are currently in a bit of a bind with the renovations needed for NRG Stadium, which the team has called home since 2002. The team has hired a new president, Mike Tomon, whose biggest first task is ensuring the team has a home stadium for the foreseeable future.
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The Texans are reportedly working on a new lease agreement with the stadium, but a new assessment has deemed that the stadium is in "average or below average condition compared to its peers." There has been a long list of deferred upgrades, which could lead to the team seeking to relocate entirely.
One of Tomon's biggest qualities was his "extensive history in stadium development." This extensive history has a lot to do with him being a top executive for Legends, the immersive stadium experience venues that have opened in Los Angeles and Las Vegas.
With Tomon's skill set in stadium development, there could be a proverbial fork in the road for the Texans needing to spend billions to upgrade NRG Stadium or simply moving to a new location with a brand-new stadium altogether.
According to a report from the Houston Chronicle, "$1.4 billion is needed over 30 years at the stadium, according to a recent assessment – and premium features the Texans may want to add begin to approach the cost of a rebuild, the team could decide a new stadium is the better option."
The report also indicates that sources close to the Texans have mulled over the idea of relocating completely.
"Two sources familiar with the Texans' thinking told the Chronicle the Texans have explored the possibility of a new stadium, though the team has not committed to that path. The team has not proposed a new stadium in the lease negotiations, and the ultimate decision will depend on what makes the most financial sense for the Texans, the Rodeo and Harris County, which owns the campus and leases it to the two organizations, the two sources said."
The biggest issue is the $1.4 billion needed to get NRG Stadium up to date would fall to the residents of Houston and Harris County. Elected leaders from those counties are also reportedly still paying off the debt they incurred from building NRG Stadium 25 years ago.
The Harris County-Houston Sports Authority is also paying off $1 billion in bonds it used to build NRG, Daikin Park, and Toyota Center, with a pay-off date of 2056. The sports authority would then not have enough capital to finance another stadium.
What is also strange about NRG Stadium, is the Texans are not responsible for paying maintenance fees due to a deal they struck when the organization put up revenue from permanent seat licenses toward the construction of the stadium.
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The county is then responsible for ensuring that the repairs would be accomplished via more taxes. Houston and Harris County could find themselves in the same predicament that Jackson County did with the Kansas City Chiefs, as the taxpayers rejected proposals to renovate Arrowhead Stadium.
The Texans also do not own NRG Stadium and instead have been renting the property.
"The Texans, worth an estimated $6.1 billion according to Forbes, also may have one of the best rent structures in the NFL: They pay roughly $4 million a year to the county in rent, but they often get all of it back in tax rebates.
In seven of the last eight years, the Texans have made more on the rebates than they paid in rent, according to data from financial audits. That means the government essentially paid the team to play at NRG Stadium in those years. The lone exception was 2020."
It would appear that instead of asking taxpayers to cover the massive costs in terms of renovations, the Texans might choose to spend that $1.4 billion on a brand-new state-of-the-art stadium in a brand-new location.
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For more on the Texans, head to Newsweek Sports.
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