By Oliver Canning
The intricate and often arduous journey of constructing modern sports cathedrals was a focal point of the 50th Annual Sports Lawyers Association Conference. The May 16 session, “Breaking Ground: The Legal Complexities of Building a Modern Sports Stadium,” brought together legal experts from top NFL and MLS teams, alongside seasoned external counsel, to dissect these multifaceted challenges. The discussion ran through the typical life cycle of these monumental projects, from the initial stages of securing approvals and financing, through the complex web of design and construction agreements, and finally to the crucial preparations for a stadium’s grand opening.
Guiding the insightful discussion was Lisa Wiznitzer, an Associate at Loeb & Loeb, who expertly framed the conversation around three key phases of stadium development. Sharing their frontline experiences were Jennifer O’Sullivan, Chief Legal Officer and Chief Operating Officer for NYC Football Club, who has been instrumental in navigating the groundbreaking for the MLS team’s first dedicated stadium in New York City; Daniel Werly, Senior Vice President and Chief Operating Officer for the Tennessee Titans, currently overseeing the construction of the Titans’ new Nashville home; and Krista Whitaker, Executive Vice President and Chief Legal Officer for the Chicago Bears, who is in the formative stages of the Bears’ quest for a new stadium. Providing a crucial external counsel perspective on the intricacies of construction law and risk management was Lisa Glahn, a Partner at Foley & Lardner LLP.
Krista Whitaker: Early Hurdles and Strategic Levers for the Chicago Bears
Krista Whitaker of the Chicago Bears shared that her organization is in the “very, very initial stages” of their new stadium project, having progressed through schematic design and now poised to select key architectural and construction partners once a site and agreement are negotiated and solidified. She emphasized that this early phase is dominated by two paramount considerations: “site and money.” Whitaker discussed how the Bears explored multiple locations, including the current Museum Campus, a site in Bronzeville, and a massive land purchase in Arlington Heights, with the choice heavily influenced by economic feasibility and the potential for public-private partnerships.
One of the core challenges, Whitaker explained, involves navigating the complex financial “levers,” including the capital stack, overall cost of the project, and ensuring a fiscally responsible investment, whether the team owns the building outright or leases it as a tenant. Political engagement with city officials and league partners is also crucial, alongside managing public perception, as the Bears have faced public commentary and criticism about their site considerations. Despite a massive planned private investment from the Bears—projected at $2.3 billion, or about 84% of the stadium cost, second only to SoFi Stadium in the NFL for private funding—Whitaker noted the public narrative often centers on taxpayer contributions. Thus, demonstrating the project’s economic benefits to the community, including job creation and union labor, remains a key focus.
As the Bears look further ahead, Whitaker talked about preliminary discussions regarding sponsorship for a new venue. This involves carefully reviewing existing agreements to honor exclusivities while creating opportunities for new partners. For the Bears, who have never had a stadium naming rights sponsor due to Soldier Field’s status as city-owned land, the approach to a new naming rights deal will emphasize community impact and alignment with a partner’s values, aiming for something “different and special” that is more than a mere financial transaction. She acknowledged the panel discussion was timely, as the Bears are currently grappling with decisions on design architects, responsibility matrices, and structuring effective incentives for their future construction partners.
Jennifer O’Sullivan: NYCFC’s Decade-Long Journey to a Stadium in the Five Boroughs
Jennifer O’Sullivan provided a compelling narrative of NYCFC’s decade-long endeavor to secure and break ground on the first soccer-specific stadium within New York City’s five boroughs. The club broke ground in December of 2023 in Willetts Point, Queens, on a block of land famously known as the “Valley of Ashes.” This project is not merely a stadium; it’s a transformative, multi-use district featuring 2,500 units of affordable housing, a new school, retail shops, and a hotel. O’Sullivan highlighted the immense challenge of building in New York, particularly navigating the Uniform Land Use Review Procedure (ULURP), a rigorous, community-driven public approval process.
Success in this complex environment, O’Sullivan stressed, hinged on thorough and extensive groundwork established well in advance of the formal ULURP process. This included securing the support of local elected officials, union leaders, and community residents. NYCFC made significant up-front pledges: the stadium would be 100% privately financed (a project nearing $1 billion for a 25,000-seat venue) and 100% union constructed. This transparency and commitment, along with vital support from the mayoral administration, were critical to obtaining near-unanimous approvals from the community board, Queensborough President, City Planning Commission, and ultimately a 47-1 vote from the New York City Council—a remarkable feat in a city notorious for its political complexities.
O’Sullivan also detailed the financial intricacies. While private investment by their parent company, City Football Group, demonstrated commitment and added credibility, it didn’t eliminate hurdles or eradicate obstacles. Negotiations with city entities like the NYC Economic Development Commission over the land lease were still “lengthy and painful,” requiring significant education on the club’s business model. With the stadium now under construction, O’Sullivan emphasized the continued commitment to local and union labor, working in conjunction with their construction partner, Turner, on MWBE targets, local hiring fairs, and apprenticeship programs. Looking ahead to opening in 2027, NYCFC is strategically phasing its partnership sales, from naming rights to general seating, and designing the venue to be a year-round community resource, with its headquarters on-site.
Daniel Werly: The Tennessee Titans’ Path to a New Nashville Landmark
Daniel Werly shared insights from the Tennessee Titans’ new stadium project, which broke ground in February 2024 and is now moving towards its halfway construction mark, targeting a Spring 2027 opening. He described the approval process as a “massive team effort,” initially targeting a major renovation of their current 25-year-old stadium. However, due diligence revealed that underlying infrastructure issues made the renovation costs comparable to building anew. This necessitated a strategic pivot and extensive communication and negotiation with city and state officials. Werly emphasized their approach of framing the challenge as a shared problem that was common to all, which, after a challenging 14-month lobbying period, led to a collaborative solution.
Financially, Werly explained how the Titans utilized taxpayer money in the form of revenue bonds, a necessity for their planned 60,000-seat domed stadium. The financing structure was designed to avoid raising local residents’ taxes, relying instead on revenue streams like hotel taxes (to which he humorously thanked the conference attendees for contributing) and sales tax captured within the new stadium and its surrounding campus. This makes stadium patrons and tourists the primary funders of the project. Werly also noted the complexity of aligning the differing priorities of state officials (focused on attracting major events like the Super Bowl, World Cup, and major stadium concerts, hence the need for a roof) and city officials, further complicated by differing political affiliations.
Regarding community impact, Werly clarified that the Titans opted against a formal Community Benefits Agreement. Instead, they proactively developed the “One Community” program based on three pillars identified through community outreach: opportunity, neighborhoods, and education. This initiative, comprising around 15-16 programs, including workforce development in construction trades, building sports fields at local schools, and supporting affordable housing, was launched well before any stadium deal or public funding was secured. When asked about measuring ROI, Werly stated that while there isn’t a specific “break-even day,” the organization closely analyzes the projected change in revenue versus expenses and debt service to ensure the project is a healthy business decision, a crucial consideration throughout the deal-making process given the severe financial implications of design and funding choices.
Lisa Glahn: Mitigating Risks in Complex Construction Contracts
Lisa Glahn, drawing on her extensive experience as outside counsel, offered important insights on the legal intricacies of stadium construction, particularly during what moderator Lisa Wiznitzer termed “phase two”—negotiating agreements. Glahn noted that a primary concern for teams entering this phase is the overwhelming question of whether the project will “ever get off the ground” due to the numerous potential roadblocks. She advised that in the initial stages, keeping the decision-making group small and focused—comprising legal, ownership, risk advisors, and key community leaders—is crucial for laying a solid foundation for all subsequent legal and business determinations.
Glahn then spoke about the “hot button issues” frequently encountered in large-scale construction contracting. These include managing escalation and supply chain risks, issues that are now compounded by tariff uncertainties and the high-level technological integrations unique to modern stadiums, such as advanced scoreboards and sound systems. Design completeness and the allocation of design risk are also paramount, as these projects are rarely linear and often involve multiple architectural entities and design-build components, making clear delineation of responsibility essential to avoid future disputes. Schedule guarantees and liquidated damages are critical tools for ensuring timely completion, especially in light of the revenue implications of game schedules. Glahn cited her work on the North End Zone project at Gillette Stadium in Foxborough, MA, where “event penalties” were implemented to ensure functionality before specific events, in addition to standard liquidated damages.
Finally, Glahn underscored the complexity of indemnification, insurance, and overall risk transfer. She strongly advocated for early involvement of internal and external risk advisors and an owner’s project manager. She recommended that owners take control of the insurance structure, often through an owner-controlled insurance program, rather than allowing contractors to dictate terms. Perhaps most significantly, Glahn echoed the sentiments of the team representatives, emphasizing that strong relationships are fundamental. As legal counsel, her goal is to “enhance the relationship and not degrade it,” recognizing that a collaborative, rather than overly draconian, approach with construction partners ultimately yields higher-quality results, as “you get more bees with honey.”
