OMAHA, Neb. (AP) — Union Pacific struck a deal with Canadian National to secure that rival's support for its proposed $85 billion acquisition of Norfolk Southern railroad.
The deal to create the nation's first transcontinental railroad has been divisive within the industry because it would concentrate so much market power in the hands of one company that would control more than 40% of all rail traffic and reduce the number of major freight railroads in the United States down to five. BNSF, CPKC and CSX railroads all strongly oppose the merger, but now Canadian National said it will support it after winning concessions from Union Pacific.
The U.S. Surface Transportation Board is just beginning to review the proposed $85 billion merger, but it has demanded more information from the railroads by the end of the month before it will move forward. Shippers have also lined up on both sides of the deal with some excited about the promises of faster cross-country deliveries while other companies mainly in the chemical and agriculture industries worry about the possibility of higher rates and service problems.
UP CEO Jim Vena said he believes these agreements with Canadian National will address many of the competitive concerns with the merger because CN will gain permission to be able to serve any customers that will see significantly reduced shipping options after the merger. And CN will take over Norfolk Southern's ownership of smaller railroads in St. Louis and Kansas City to ensure the merged railroad will never control the majority of those operations.
“This is truly more compelling today than we ever looked at it before,” Vena said Thursday as he discussed Union Pacific's second-quarter earnings. “We think we have a strong case.”
Canadian National will also gain access to tracks between St. Louis and Kansas City and a key rail yard in Kansas City that will help that railroad compete better for business to and from Mexico while Union Pacific will get the ability to move more traffic around the congested tracks in Chicago.
“As the rail industry considers significant structural change, it is essential that customers continue to benefit from meaningful competition and choice,” CN President and CEO Tracy Robinson said.
The Surface Transportation Board will review the deal under a tough new standard it adopted in 2001 after a series of disastrous rail mergers in the 1990s that led to shipment delays of weeks or even months. These untested rules require any merger of the six largest railroads to be in the public interest and show that it will enhance competition. When the Surface Transportation Board approved the first major rail merger in more than two decades three years ago, it used a less stringent standard allowing Canadian Pacific’s $31 billion acquisition of Kansas City Southern.
FILE - A Canadian National locomotive goes through the Canadian National Taschereau yard in Montreal, Saturday, Nov. 28, 2009. (Graham Hughes/The Canadian Press via AP, File)
FILE - A Union Pacific train travels through Union, Neb., July 31, 2018. (AP Photo/Nati Harnik, File)
CHARLOTTE, N.C. (AP) — Carolina Panthers owner David Tepper is investing an additional $500 million into ongoing stadium renovations to improve overall fan experience with an eye toward potentially bringing the Super Bowl, NFL draft, 2031 Women’s World Cup and other major sporting events to Charlotte.
The investment coincides with the team announcing it has reached a long-term extension on a stadium naming rights deal Thursday with Bank of America.
The additional investment in the 30-year-old downtown stadium brings the total cost of renovations to $1.3 billion.
The project is expected to be completed by 2030.
The Panthers released new stadium renderings highlighting enhancements and a broader vision of what is referred to as the new “Charlotte corridor,” which includes a 4,400-seat music venue designed to help make the city a more attractive year-round weekend destination.
“The long-term extension with Bank of America reflects the strength of our partnership and our shared commitment to the Carolinas,” Tepper, the owner and chairman of Tepper Sports & Entertainment (TSE), said in a release. “For over three decades, Bank of America Stadium has helped create lasting memories for our fans and we’re excited for them to see what’s ahead. Our goal is to create experiences that enhance the passion and energy of the region while transforming this corridor into a weekend destination for world-class sports, entertainment and community events.”
Bank of America Stadium is currently home to the Major League Soccer’s Charlotte FC, as well as the Panthers.
It regularly hosts concerts as well as the Atlantic Coast Conference football championship, the Duke's Mayo Bowl and, most recently, a soccer match between the United States and Senegal which served as a precursor to the World Cup.
When asked directly if the Panthers are considering submitting a bid to host a first-ever Super Bowl in Charlotte, team president and TSE CEO Kristi Coleman replied, “We would love to get a Super Bowl. ... I think doing projects like this help you get it. It for sure helps your resume.”
Of course, there are other factors that go into ultimately landing the NFL’s biggest event, including number of hotels and other infrastructure.
“Does this guarantee (a Super Bowl)? No. But does this help? Yes,” Coleman said.
The additional renovations are privately funded with no additional taxpayer money required.
TSE will pay for any overage costs and ongoing maintenance associated with the project.
The city of Charlotte originally contributed $650 million to the project in 2024 with TSE adding the additional $150 million, bringing the original cost of stadium renovations to $800 million after Tepper decided to remain in the stadium rather than build a new one.
The entire stadium and its surroundings are being reimagined.
Renderings released Thursday showcase expanded indoor-outdoor gathering spaces across all levels, a 500-level social patio with sweeping views of Uptown Charlotte. There will also be larger and more dynamic scoreboards and displays and improved audio.
Seating options have been upgraded with premium offerings including technology designed to create a more connected and personalized experience.
When finished, the entire exterior of the stadium will look completely different to Panthers fans with a fresh, modern, open-air look that includes a signature illuminated crown for the Queen City skyline.
The black metal gates that surround portions of the stadium will be removed, creating a more welcoming park-style setting.
The renderings also include expanded retail and food and beverage options, increased restroom capacity, and flexible event spaces that will support game days while serving community, corporate and other special events during the offseason.
Included in what Panthers officials now call the “corridor” is the new entertainment venue outside of the North gate.
Coleman said the goal of everyone involved has been to bring Tepper’s vision to life.
Over the past few years the Panthers have brought some of the team’s fans to opposing cities to see what they like about other stadiums. They have also listened to suggestions and criticisms from existing permanent seat license holders about the game day experience in Charlotte.
“Our fans from Raleigh or Charleston and other places would say ‘we want this to be a weekend destination, not just for Sundays,’” Coleman said.
The need for music was high on the fans' wish list, Coleman said.
Such was the impetus for the building of the entertainment venue that will host 80 to 100 concerts and events during the year, as well as provide enhanced hospitality on NFL game days.
“So now people can come on a Friday and go to a concert, go to a soccer match on Saturday and then stay for a Panthers game on Sunday,” Coleman said. “That was really the vision.”
Coleman said the renovations have something everyone throughout the stadium can benefit from whether sitting in the lower bowl, upper bowl or luxury suites.
“I'm so excited that every fan will experience something different," Coleman said.
Charlotte Mayor Rob Harrington called the project an investment in Charlotte’s future “preserving an iconic venue, enhancing the fan experience, and ensuring Bank of America Stadium continues to create unforgettable memories while giving visitors countless reasons to return to our city for years to come.”
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FILE - Carolina Panthers owner David Tepper is seen prior to an NFL football game between the Carolina Panthers and the Jacksonville Jaguars in Charlotte, N.C., Sunday, Oct. 6, 2019. (AP Photo/Mike McCarn,File)
FILE - In this Aug. 16, 2012 file photo, the skyline of Charlotte, N.C., rises behind Bank of America Stadium in this aerial photo. (AP Photo/Chuck Burton, File)
