Earlier this month, the Chicago Bears announced that they were moving forward with their plans to build a new stadium, as their current stadium, Soldier Field, is one of the oldest stadiums in the NFL. However, their new stadium will be constructed in Chicago’s northwest suburb of Arlington Heights, as opposed to a downtown waterfront location with an entertainment district as initially proposed. The Bears have stated that they are working with the local government to ensure that the new stadium does not use any state funding, which the waterfront location would have required. [1]
This announcement comes off the heels of significant backlash from state officials, including from Governor JB Pritzker.[2] In an effort to curb the public funding of sporting venues, state lawmakers introduced a bill at the beginning of the year called the BEARS Act. This law would have disqualified franchises from receiving state funding for any venue construction, repairs, or renovations unless they achieved a season record at or above .500 in three of the previous five seasons. Significant penalties would be enforced for failure to maintain records of such results or for falsifying such records.[3]
While this bill is stuck in committee, if passed it would have an effect not just on the Chicago Bears, but on the Chicago White Sox and Chicago Fire FC as well. These three teams are currently in the planning stages of building new stadiums and have not had the level of success in recent years to qualify for public funds under this bill. The Chicago Fire, a founding member of the MLS, currently plays at Soldier Field, but is planning on building a new stadium in The 78 – a new development in the city’s South Loop – with hopes to begin construction next year. [4]
Meanwhile, the White Sox’s lease of Rate Field, the team’s home since 1991, is set to expire in 2029, and there have been ongoing discussions about whether to renovate the current stadium, build a new one, or leave Chicago entirely.[5] Nashville has been touted as a potential relocation destination, as the MLB is currently the only Big Four league that does not have a team in the state of Tennessee, one of the fastest-growing states in the country.[6] These discussions coincide with a new agreement between the current majority owner Jerry Reinsdorf, and minority owner Justin Ishbia, who is also the co-owner of the Phoenix Suns and the Phoenix Mercury and minority owner of Nashville SC, that will give Reinsdorf the option from 2029 to 2033 to sell his majority share to Ishbia.[7]
It will be interesting to see if more states moving forward will adopt similar legislation in response to backlash about tax revenue subsidizing multi-billion dollar franchises. Several NFL teams, like Jacksonville, New Orleans, and Denver, are currently in the process of negotiating new stadium deals and leases, so if legislatures wanted to act, now would be the time to do so.
[1] https://www.chicagobears.com/news/open-letter-regarding-arlington-heights-stadium-from-president-ceo-kevin-warren
[2] https://www.fo x32chicago.com/news/pritzker-bears-taxes
[3] https://www.ilga.gov/Legislation/BillStatus?DocTypeID=HB&DocNum=2969&GAID=18&SessionID=114&LegID=161208
[4] https://wgntv.com/news/chicago-news/community-concerns-chicago-fire-stadium/
[5] https://www.nbcchicago.com/news/local/white-sox-ownership-deal-could-make-the-team-a-completely-different-franchise/3765009/
[6] https://www.nytimes.com/athletic/5848339/2024/10/16/jerry-reinsdorf-chicago-white-sox-sale/; https://www.wkrn.com/news/tennessee-news/tn-population-growth-rates/
[7] https://www.mlb.com/news/white-sox-announce-long-term-ownership-investment-agreement
Stacy Walker is a third-year law student at the University at Buffalo School of Law. Her areas of interest lie at the intersection of sports and corporate transactions, with prior research done on private equity investments in youth sports and professional stadium development projects.
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