Falcons financing likely up to BofA, SunTrust

One of the more compelling competitions in the NFL this year won’t happen on the field.

In Atlanta, Southern banking giants SunTrust and Bank of America are vying to lead the financing for the Falcons’ new $1.2 billion stadium. What’s more, those banks, and others, are being asked not only to pitch their lending services in meetings, but they’re also being asked to bring their marketing and sponsorship executives for discussions, said Greg Beadles, the Falcons’ executive vice president, chief financial and administrative officer.

The Falcons have been meeting lenders in recent weeks and are expected to make their selection before the end of the year.

The combination of lending with sponsorship/marketing is one aspect of the dealings that’s unusual. But also striking is the consideration that Bank of America, despite being tapped a year ago as financial adviser for the stadium, is not guaranteed to get the lending business.

“It is very unusual,” said Mitchell Ziets, a sports finance adviser who has consulted for the Falcons in the past but is not involved in the current lending process. Almost always, Ziets said, a team that names a financial adviser for a stadium project then uses that institution to lead the debt sale.

Bank of America declined to comment.

There is some competing history here, though. SunTrust, which for years has worked to increase its presence in the sports lending business, has been the Falcons’ bank since the team’s inception in 1966, handling everything from back-office financials to smaller loans. It also is the team’s banking category sponsor. In addition, SunTrust is headquartered in Atlanta, and finance sources said the bank’s sports finance group is intent to win such a big deal in its backyard.

Peter Dorfman, who manages SunTrust’s sports effort, did not reply for comment.

Bank of America, while based in Charlotte, has key Atlanta ties as well. Not only has it been the Falcons’ financial adviser on the new stadium project, but BofA lent Falcons owner Arthur Blank hundreds of millions of dollars when he acquired the team in 2002 for $545 million and has been the Home Depot co-founder’s longtime banker.

Bank of America is also a powerhouse in the sports finance world. Sources in finance had long ago assumed BofA would get the Falcons business, so news that SunTrust was in the running has had the finance world talking.

Other financial institutions are also vying for the business, but insiders expect the choice will come down to a decision between the two big Southern banks.

It is not uncommon for a bank that is set to lend to a team to also become a sponsor. It is somewhat more unusual, though, for the banks to come with sponsorship executives in tow to make their presentations, and to do so at the invitation of the prospective client.

The Falcons broke ground on the new stadium in May, but that does not mean the club needs the private funds immediately. The public is putting $200 million into the project, and the NFL is making $200 million available in funds as well. Those are sources the team can tap before private sources are ready.

The team is responsible for the remaining $800 million of the stadium’s cost, but not all of that, if even the majority, needs to come from a bank, either. The team is currently considering how many personal seat licenses to sell, with proceeds to go to the stadium cost.

Whichever bank gets the lead financing position, that choice does not preclude other lenders from taking part in a syndication, where the lead bank cuts the loan and sells pieces to other financial institutions in an effort to spread risk. However, the lead role garners higher fees and is seen as prestigious and thus is highly coveted.