What we know: Charlotte might give Tepper $650 million to renovate Bank of America Stadium

After months of buzz, the city of Charlotte revealed Monday that it is considering spending $650 million to help pay for renovations to Bank of America Stadium. It would be the biggest commitment taxpayers have ever made to a Charlotte sports team.

Here’s what we know:

Where is this $650 million coming from?

The county imposes a 1 percent tax on restaurant and bar tabs and a 2 percent tax on hotel rooms. Those taxes brought in more than $50 million in 2022. State law requires that money be spent only on tourism-related activities. City officials said the money would come from that bucket, meaning it will not affect property taxes.

Oh, good, so it won’t come out of my pocket.

Actually, it will. Property taxes are more of a lightning rod, but the prepared food tax is largely paid by Mecklenburg residents when they go out to eat, and even some of the hotel tax is paid by Charlotte region residents.

Tepper, Panthers want $650M from Charlotte for Bank of America Stadium renovations

So these tourism taxes can only be spent on things like stadiums?

The law says they must be spent on tourism-related things. But there has been some debate over what that includes. More police officers? Probably not. Pay raises for teachers? Probably not. A rail line from the airport to uptown? Almost certainly.

In Charlotte, though, the tax tends to be spent on the Hornets’ arena, the Panthers’ stadium, the NASCAR Hall of Fame and the like. The city would have given $65 million to lure a tennis tournament from Cincinnati, but the tournament decided to stay put.

Should Panthers owner David Tepper pay for these renovations?

Tepper Sports & Entertainment would put in $150 million, or 18.75%, compared with the city’s 81.25%. The Tepper folks also point out they’ve already spent $117 million on the stadium and anticipate spending $421 million on future renovation and maintenance costs.

Charlotte FC owner David Tepper looks on from the field after a victory against New York City FC, 1-0, after the home opener at Bank of America Stadium in Charlotte, NC on February 24, 2024.

How much is Tepper worth?

Around $20.6 billion, according to Forbes.

What does the city get for its $650 million?

A couple things. A promise that the Panthers and Charlotte FC will stay in Charlotte for 20 years (although Tepper could pay a penalty to leave earlier). And the Panthers claim events at the stadium created $1.1 billion in economic impact in 2023. Many economists say tax dollars for sports stadium is a bad investment and that estimates of economic impact are overblown.

NC clears key hurdle for Bank of America Stadium renovations with 29-year tax extension

Would the Panthers and Charlotte FC leave if the city doesn’t contribute this money?

They could. Tepper already terminated plans for a practice facility in Rock Hill. At the same time, Charlotte is one of the nation’s fastest-growing markets, and an attractive place to own a team.

Carolina Panthers place kicker Eddy Pineiro, center, is hoisted by his teammates after making the winning field goal during the game against the Texans at Bank of America Stadium on Sunday, October 29, 2023. The Panthers beat the Texans, 15-13.

Do the Panthers get money from the legalization of sports gambling in North Carolina that could help defray the cost?

The Panthers are a new official partner of FanDuel, and it is believed the partnership brings in tens of millions of dollars for the team. The team also recently renewed its stadium naming rights contract with Bank of America.

Carolina Panthers reach stadium naming rights agreement with Bank of America

Is this a done deal? What’s next?

The City Council will vote on the proposal, perhaps on June 24. City staff plan to collect community feedback between now and then.