I don’t usually post this late at night, but I just got home from coaching a perfectly enjoyable youth baseball game when BLAMMO!
The Pacers will continue to play basketball in Indianapolis for at least another decade under a $160 million deal the team and the city plan to announce Monday morning…
The Capital Improvement Board will subsidize fieldhouse operating costs to the tune of $3.7 million a year. That will cover things such as liability insurance, security and utilities. The CIB also will pay the fieldhouse’s manager $7.1 million a year, with that amount rising 3 percent each year.
In addition, the CIB will provide $26.5 million to the Pacers for upgrades to seating, new paint, and improvements to locker rooms and concessions. The CIB also will pay for $7 million in improvements directly to replace the floor, upgrade the cooling tower, and improve the facility’s steam pressure control system.
Finally, the CIB will pay $8 million over 10 years for the scoreboard and sound system and will take title of the equipment at the end of the deal…
Subsidies under the new deal amount to an average of $16 million a year. That’s higher than the $11.2 million average annual subsidy under the current three-year deal.
I really shouldn’t be surprised by this, since Indianapolis, as noted, has been paying the Pacers $33 million over the past three years just to keep playing in their taxpayer-provided arena. Stretching out the annual operating subsidy over another ten years, though — and upping the ante in the process — solidifies the city as a rare winner of the sad trifecta of supplying 100% of arena construction costs, collecting no rent or other revenues, and then paying the team to play in its free arena. Indianapolis doesn’t so much host an NBA team as lease one.
For all the stupidity on display here, there’s one person who needs to be singled out: Whoever it was in Mayor Stephen Goldsmith’s administration who, after agreeing to gift the Pacers with a new arena, looked at the team execs’ demand for a clause letting them opt out if they weren’t happy with how things were going and thought, “Yeah, sure, that’s fair!” Behaving like sports teams are hostage takers who need to be placated by any means necessary is a common sight among city officials across the U.S.; this, though, was like paying off the hostage takers and then handing them a gun. And a new hostage. A baby puppy hostage.
Stephen Goldsmith, incidentally, after having to resign as New York City deputy mayor following his arrest for spousal abuse (he was later acquitted), is now back at his previous job as a professor of government at Harvard. It’s gotta be awkward when he runs into Judith Grant Long at the cafeteria, and she just shakes her head sadly at him.