Insider Exclusive:

Falcons Behind Hidden Ticket Increase For Fans

By Gary Reese

(4/30/08) Officials with the Georgia Dome told a high ranking member of the legislature that the escalation in club level and suite prices was to get money to the Atlanta Falcons, not the Georgia Dome, in direct contradiction to comments by Falcons owner Arthur Blank that he would not increase season ticket prices for the upcoming season.

Reportedly, the Dome’s escalation fee to those who signed extended contracts for club level and suites was used to help decrease the recent economic hit to the Falcons. “I am concerned that this was cost shifting to others and constitutes a cost increase for the most die-hard supporters of the Falcons, including corporations and working families and businesses who supported our home team for years in the past,” said Sen. Judson Hill, Chairman of the World Congress Center Oversight Authority.

According to reliable sources the Falcons allegedly receive 50% of the ‘escalation fee’ as well as a commission on the sale as sale. Not exactly a freeze on ticket prices for thousands of devoted fans. As one Republican leader put it, “WE knew that Blank was a liberal Democrat, but we didn’t know he would apply his politics to his ticket structure!”

The Dome authority approved the agreement “feeling we had no choice,” according to one highly-placed source. Threats of building a new stadium absent the state is a major issue and the possibility of “leaving the city” has reportedly been used to scare the board authority and its designated leaders. “The renovations the Falcons did (to the club level and suites) was a goodwill deal to justify the increase in the fees. The Falcons took over the suites and the club seats and now they control the costs and increases,” said a highly placed legislator.

The issue was raised by InsiderAdvantage CEO Matt Towery, a lifelong Falcon’s fan and club level owner, in an Op Ed earlier this week. Towery, who is also an attorney, said “This is, in my opinion, highly questionable. I have read every portion of the contract. The amendment to the club seat license agreement clearly stated that “…the annual license fee …may increase by the following percentages: 3 year agreement 9%; 5 year Agreement 6%; and 7 year. Agreement 3%. That is May not Will.”

Dome officials tried to explain the automatic increases noting language that stated “the escalator will be placed on the amount set forth in the original agreement…” which goes on to reference sections in old contracts. An examination of the original sections of the contracts shows a set formula for applying any escalation fees, but no mandate that they be imposed.

“I am personally so disappointed in Arthur Blank,” said Towery, who, in his former career, served as advisor to political leaders ranging from Zell Miller to Johnny Isakson to Newt Gingrich. In 1998, the state Legislature named the bridge which serves as the entrance to Blank’s former company, Home Depot, after the former legislative leader. Towery’s 1990 campaign for lieutenant governor started the careers of star lawmakers like Senate President Pro Tem Eric Johnson, House Rules Chairman Earl Ehrhart and House Appropriations Chairman Ben Harbin, all of whom co-chaired his campaign long before they rose to high office.

“We have been flooded with e-mails from corporate leaders thanking us for exposing what is, in my opinion, a potentially fraudulent act on the part of the Falcons,” said Towery. “Obviously Governor Perdue will ask some serious questions about this, given the fact that this is not in line with his ‘New Georgia’ approach to government.”

Towery expressed deep sadness over the situation: “I have been friends with Falcons players. Rep. Burkhalter and I were early supporters of the team, and Arthur Blank’s son, who is a fantastic person, served as a producer when I was at another local network affiliate. Not to mention Falcon’s executive Rich McKay serves as an honorary board member with me at the law school we both attended. For me this is a personal and sad moment - one which I would guess the Falcons will ignore.”

As Hill put it: “It’s just not fair. It is typical Falcons.”