So now that every team in the NBA is set to get a $58 million a year windfall from the league’s new TV contract, does that mean that teams will stop complaining that they’re losing money and need operating subsidies from their home cities? Yeah, right:
City officials said the TV contract doesn’t change their view of a deal made six months ago to lock the team into Indy for 10 years. The Capital Improvement Board agreed to use $160 million in tax money to cover operating costs and upgrades at Bankers Life Fieldhouse. The team keeps revenue from all fieldhouse events — basketball and non-basketball alike.
“We still believe that our current agreement … is in the best interest of the city and CIB,” Ann Lathrop, president of the CIB, wrote in an email response to questions.
The city agreed to pay the Pacers $16 million a year to play in their rent-free arena in order to keep the team from threatening to leave, so I guess it’s true that the TV deal doesn’t make that logic any dumber: The Pacers would still get their cut of the TV boodle in another city, so the move threat is just as viable (or nonviable) now as it was when the new lease was agreed to.
Still, given that the Pacers management insisted that the subsidies were needed because the team was losing money, and that even after kicking in for heftier player salaries that will result from the TV windfall and the money that the Pacers and other former ABA teams have to tithe to the old Spirits of St. Louis owners, the Pacers should clear about $25 million a year in added revenues, this does make Indianapolis’s subsidy agreement look even worse. Which is pretty bad, given that it already looked like the worst deal ever.