Business prof says Kings arena could bring MLS team, TV station gets all excited

What the what, CBS Sacramento?

Economists: Downtown Sacramento Kings Arena Could Pave Way For MLS Franchise

That … doesn’t even make any sense? Certainly Sacramento is vying for an MLS expansion franchise, along with everyone else on the planet, and maybe having successfully thrown a whole lot of money at the Kings would help convince the soccer league that they could have money thrown their way, too. But from an economic perspective, what does one have to do with the other? What kind of economists are these, anyway?

Sacramento State economics professor and Wells Fargo wealth adviser Sanjay Varshney says if that arena wasn’t under construction, there’s no way anyone would be talking about the possibility of an MLS stadium coming to the railyards.

“The fact that Sacramento succeeded in keeping the Kings here and are putting in a new arena will be a factor in whether or not we actually get soccer now,” he said.

So, first of all, that’s not economists, plural, it’s one economist. (No one else is cited by name in the CBS Sacramento story.) And second, it’s arguably not even one economist, because while Varshney does have a master’s in economics, he’s actually he’s a finance professor at Sacramento State’s business school, who recently stepped down as dean to work as an investment advisor for Wells Fargo’s wealthy clients.

Not that this makes Varshney unqualified to speculate wildly about how MLS will pick which cities to expand to, any more than any of the rest of us are. But hanging an entire story on this, and spinning it as something “economists” predict, is a low point even for TV news.

Back in the real world, meanwhile, MLS officials heard pitches from would-be owners in Sacramento, Minneapolis and Las Vegas for the last expansion team of the passel being handed out by the league this decade. A decision could be made by the league Board of Governors meeting on December 6, or not.

Florida’s sports teams drop 2,000-plus pages of subsidy requests on state

Apparently alongside filling out the cracktastic application form, contenders for Florida’s new process for doling out sales-tax kickbacks for sports projects are allowed to submit additional material. And oh, what additional material:

Based upon sheer paper volume, Orlando and Jacksonville would be the front-runners in the new funding process.

The application from Jacksonville, supported by the Jacksonville Jaguars, stands at 954 pages.

Orlando, working to assist the Major League Soccer expansion Orlando City Soccer Club with a new 18,000-seat stadium, submitted a 1,144-page application.

Less bulky, Daytona International Speedway LLC filed a 110-page application. South Florida Stadium LLC, filing for the Miami Dolphins’ home, submitted 219 pages of material.

Included in these 2,000-plus pages are promises of new jobs, and new tourists, and new new new new! Also most of the work is already underway, so wouldn’t actually be new in the sense of “wouldn’t happen without the subsidies.” But, you know, details! Details that staffers at the state Department of Economic Opportunity will now have to dig through and analyze, which hopefully will mean more than just checking off which boxes the various applicants have provided screwy justifications for, but I’m not exactly holding my breath.

Red Wings arena could endanger two historic Detroit buildings, council responds by not showing up

The Detroit Red Wings arena plans have hit … not exactly a snag, but possibly a speed bump, as city residents have belatedly realized that the area Red Wings owner Mike Ilitch is asking to have rezoned for development includes two historic hotel buildings, and Ilitch hasn’t specified whether he’d preserve them or raze them. And the city council is desperately interested in this matter:

On Thursday, a crowd of residents, activists and representatives of the Ilitches’ company, Olympia Development of Michigan, packed the council chambers for a committee meeting on the issue, but only two council members — Brenda Jones and Andre Spivey — showed up. The predicament left the council without a quorum and unable to ask questions.

Okay, somewhat less than desperately, then. The council has a hearing on Tuesday at which it could vote on the rezoning, or could kick everything back to January, depending on how committed it is to this whole “asking questions before voting” thing.

Davis says Raiders staying in Oakland if money is right, because other options “more lucrative,” capisce?

Oakland Raiders owner Mark Davis has declared his dedication to Oakland in classic sports owner form: By talking about how tempting it is for him to move his team elsewhere.

“We are trying everything possible to get something done in Oakland right on the same exact site we’re on right now,” Davis said. “And I’d say 99 percent of my interests and energy are going towards getting something done there. That’s really the crux of it right now. People want to know about the other sites and there are always options. But we want to get something done in Oakland.”…

“We want to stay here in Oakland,” Davis said. “There’s other opportunities that would be much more lucrative for us, to be real honest. But we are really trying to get something done in Oakland. We want a stadium the fans and the team can be proud of.”

That’s all apparently an attempt to defuse the media uproar over Davis’s statement last week that Los Angeles would be a “great option” for the Raiders, though “defuse” could also here mean “use it simultaneously as leverage and as a way to paint himself as devoted to his hometown.” Unless they can’t “get something done,” in which case, screw Oakland.

Davis also reiterated that “we’re not asking for public money” for actual stadium construction, just free development rights to the site and infrastructure work to ready the site for construction and paying off the remaining debt on the Coliseum, which could come to around $670 million, or maybe $1.1 billion. But so long as those little details are taken care of, he just loves Oakland to bits, okay?

D.C. mayor-elect nixes United land swap, wants new public subsidy plan by year’s end

I’d been wondering if it was worth noting the report from over the weekend that D.C. councilmembers were considering reworking the D.C. United stadium deal to eliminate the controversial land swap portion, when late yesterday this happened:

That’s D.C. councilmember and mayor-elect Muriel Bowser, so it’s a pretty big deal that she’s throwing her weight behind this plan. Though “plan” is probably overstating it: The swap of the city-owned Reeves Center government office building to developer Akridge for part of the required stadium land is a key piece of the deal as concocted by outgoing mayor Vincent Gray, and won’t be unraveled so easily.

First off, Akridge would have to agree to take cash for its land instead of the valuable Reeves Center property. And second, D.C. would then have to come up with not just the bonding capacity to pay Akridge (which some councilmembers think they can now manage) but the cash to pay off those bonds — $10-15 million a year, according to the Post, though that sounds high for an estimated land purchase price of $94 million. Either way, though, it’s a significant chunk of change, and eliminating the land shuffle makes it way harder to hide the fact that D.C. would be shelling out a bunch of guaranteed money now for the promise of an economic benefit on Tuesday.

That part, though, doesn’t seem to bother Bowser. In her address to the Federal City Council, a local group of top business and political leaders, she made clear that her opposition to the Reeves Center swap doesn’t extend to the rest of the deal:

“I want to be very clear about this,” she told her audience, which included two former mayors and several of the key players in the stadium deal. “I support building a soccer stadium in the District of Columbia, and I support investing public dollars to get it done.”

And she supports doing it in the next seven weeks, while reworking a deal that was already hazy even after years of negotiations. There’s no possible way this can go wrong.

DePaul arena hits $110 million in cost overruns, thanks to too-soft dirt

When last we heard from Chicago Mayor Rahm Emanuel’s plan to spend $125 million on a complex of buildings that would include a new arena for private DePaul University, it had just gotten final approval. Except that “final” is always a dangerous notion in the arena biz, something Chicago is finding out now that the price tag on the arena has soared by $110 million:

A sticking point is the “dug-in” design of the 10,000-seat arena, which places its playing floor well below ground level. That feature has pushed construction costs above the $140 million that McPier and city officials optimistically projected when they announced the project in May 2013, sources said.

Although a final price has not been set, the cost of that design, by New Haven, Conn.-based Pelli Clark Pelli, could be as much as $250 million, sources said.

Yeah, that’s not good. Apparently the problem is that nobody noticed they were going to be building the arena in soft glacial soil, which tends to cave in if you don’t shore it up with retaining walls, which is pricey. From the sound of it, McPier (the totally awesome nickname for Chicago’s Metropolitan Pier and Exposition Authority) will look to redesign the arena to bring down the price tag; if that doesn’t work, Crain’s Chicago Business gives precisely zero information on how the cost overruns would be covered. This was just the bestest idea ever!

[UPDATE: At least one Crain’s Chicago Business columnist does not think it was the bestest idea ever.]

NE Revolution could seek South Boston soccer stadium, or not

The owners of the New England Revolution (and Patriots) are reportedly looking at a site in South Boston for a new soccer-only stadium, which would be paid for … nope, that’s not in the Boston Globe article. Okay, which would cost … nope, not that either:

At this stage, it is unclear how the stadium would be financed and whether any public funding would be needed to support the project or its infrastructure.

So we’re left with: The Kraft family may be looking at a city-owned site for a stadium, which would be paid for somehow, and somebody decided to leak that to the Globe, for reasons we do not know. That’s not much, but if vague rumors of the reports of rumors are you thing, now you have one. And if you’re wondering how the Globe art department would illustrate how a stadium there would look if built entirely out of red Legos, now you have that too:

Did Detroit let Lions and Red Wings stall on water bills while punishing residents? Definitely maybe

The Daily Show took a look last night at how Detroit is shutting off water to poor residents who don’t pay their bills, but has left the water on for the Red Wings and Lions despite delinquent payments. It got lots of attention, and because the Daily Show is a comedy show, much of it was of the “Ha ha, so amusing” variety:

The controversy over water shutoffs for Detroit residents unable to pay their bills was front and center Monday night on Comedy Central’s “The Daily Show with Jon Stewart.”

It was a story that took some humorous twists and turns, and it probably was deemed offensive or even inaccurate to some as well.

That article on MLive didn’t actually provide any details of anyone who thought the segment was offensive or inaccurate, but in a followup, the site provided this:

“I can say right now that the information was not accurate,” DWSD spokesperson Curtrise Garner told MLive.com…

Garner said she would send MLive more information via e-mail Tuesday afternoon to show that all the commercial accounts mentioned in the “Daily Show” report have been paying their bills and don’t have any overdue balances.

“I’m taking a look at the larger ones here in the city and they are all current,” Garner said over the phone.

So where did this report of overdue water bills come from in the first place? It looks like from a June article in the Guardian, which further linked to a blog post by Oakland University journalism professor Shea Howell that reported that “Joe Louis Arena/Red Wings Hockey owes $80,000 and Ford Field $55,000.” Howell didn’t provide a source for those numbers, but they’re pretty specific to be made up, leading to the likely conclusion that if everyone is telling the truth, the Red Wings and Lions were behind on their water bills in June, didn’t get their water shut off, and have since paid up. Which is, as the Daily Show segment makes clear, the same treatment that low-income water protestors are requesting from the city.

I’m trying to reach Howell to get more info on her numbers, but as MLive seems eager to show us, modern journalism doesn’t need to wait until we see the actual documents. Updates as needed.

[UPDATE: Okay, thanks to a couple of correspondents who wish to remain nameless, I’ve tracked the Lions/Red Wings water bill story back a bit further: This all dates back to an April WDIV-TV report that found that the two sports teams were behind on their water bills. As of July, the teams still hadn’t paid, but as the Detroit water department told Metro Times, it was because the Lions and Red Wings owners were disputing their past stormwater runoff bills, which the water department was “still in the process of trying to collect.”

So: Detroit’s sports teams aren’t being allowed to keep their running water despite not paying their bills for that; they’re allowed to keep their running water despite not having paid different water bills. Which is less black and white than the simplified version that the Daily Show presented, and they probably should have done their homework better, or at least explained the situation more fully. But the general “one system for poor folks and another for big corporations” vibe is still legit.]

Raiders, Chargers owners say words “Los Angeles,” newspaper writers can mail it in from there

OMG OMG OMG Mark Davis said something nice about Los Angeles! He’s totally moving the Oakland Raiders there!

“Los Angeles is a great option.” Davis said.

An option for the Raiders?

“Absolutely,” he said.

And just to be clear, he added: “Sure. We loved it when we were down here.”

And San Diego Chargers owner Dean Spanos said something nice about it, too, so the Chargers are totally moving there too!

“We’re looking into all our possibilities, all our options,” Spanos said.

Does that mean potentially re-locating to Los Angeles?

“I’m just keeping all my options open,” Spanos said.

And Jacksonville Jaguars owner Shad Khan hasn’t said anything about Los Angeles, so they’re totally not moving there!

Of course, cynical types might point out that sports team owners say these kinds of things all the time, whether they’re actually interested in moving or just trying to put pressure on hometown elected officials to get cracking on stadium subsidies. (Or both. There’s nothing saying owners can’t work both sides of this street.) But we don’t allow cynical types around here, so let’s welcome your 2015 Los Angeles Raiders and Los Angeles Chargers! They’ll totally find a vacant lot to play in by then.

Wisconsin reveals that giving Bucks owners $150m in income tax rebates would make Bucks owners $150m richer

This just in! (Well, in on Friday afternoon, but nobody pays attention to the interwebs then.) Rich Kirchen has breaking news that according to Wisconsin state assembly leader Robin Vos, redirecting income taxes paid by Milwaukee Bucks players and employees could provide up to $10 million a year in funding toward the Bucks arena project, providing enough money to pay off $150 million in arena costs!

This is the first we’ve heard from Kirchen on the “jock tax” since July, when he reported that redirecting income taxes paid by Bucks players and employees could provide up to $10 million a year in arena funding. But then it was Gov. Scott Walker saying it, not Vos, so, you know, news.

So long as Kitchen is rehashing old stories, I think I’ll just quote what I said back in July about the jock tax idea:

This is revenue that Wisconsin is currently collecting, so it’s hardly free money. (Yes, it’s money that the state won’t collect if the Bucks move elsewhere, but then sports fans would just spend their entertainment dollars on something else, and employees of that something else would make more money and pay more income taxes, and so on, and so on.) So it’s really just a way of totaling up all the money that the state could credit to the Bucks, then rebating them by writing them a check equal to that amount. Except the players would still be paying the taxes, while the team owners would be getting the check. Nice work if you can get it.

Kirchen also says that an extra $150 million would more than provide the $100 million in public funding expected to be needed for the project — but given that the current price tag is from $400-500 million and the current budget goes $100 million from the Bucks, $100 million from former Bucks owner Herb Kohl, and $100 million from Mystery Investor #1 (possibly via a naming rights deal), the gap may actually be a fair bit more than that. But yes, the Wisconsin Legislative Fiscal Bureau has confirmed that if the state sends the Bucks owners a check for all the state income taxes that their employees are paying, then the Bucks owners will have a bunch more money. It’s magic!

pirmind.com