There are new owners hoping to bring an MLS expansion franchise (and MLS stadium) to St. Louis, and the Post-Dispatch is reporting on it with typically dispassionate hometown newspaper skepticism:
For those who thought the city’s ambitions of becoming a Major League Soccer town died at the ballot box last year, there is hope — and its name is Taylor.
Taylor is the family behind Enterprise rental cars, which is based in the St. Louis suburb of Clayton. The Post-Dispatch goes on to pick up such press release soundbites as that this would be the first MLS team majority-owned by women, and that Enterprise has lots of ties with local nonprofits, and okay okay, we get it, what about the damn stadium that was the stumbling block the last time somebody tried to get a soccer expansion team for St. Louis?
A roughly $250 million stadium dedicated to the soccer franchise would be “overwhelmingly” privately financed, the Taylors say. Public help would likely come from dedicated sales taxes on concessions and other merchandise sold to patrons, a property tax break from a city agency owning the stadium site and leasing it to the group, state tax credits and a break on the city’s 5 percent ticket tax.
That “overwhelmingly” sounds good; that longish list of tax breaks sounds less good. Let’s take them one at a time:
- Those “dedicated sales taxes on concessions and merchandise” would apparently mean an extra 3% sales tax surcharge within the stadium. That would mostly come out of the team’s pockets — the economics gets a bit complicated, but suffice to say that as with ticket taxes, sports teams tend to lower concessions prices to eat the surcharge themselves, since they are already trying to charge fans as much as the market will bear for hot dogs — so probably wouldn’t be a significant public subsidy.
- The size of the proposed property tax break is unknown — here’s the site under consideration if somebody wants to dig through St. Louis tax records to estimate how much it would normally be expected to pay.
- Actual MLS ticket sales and prices are famously hard to calculate thanks to teams’ policies of goosing the gate by giving away tickets for free or cheap, but if we guesstimate 300,000 tickets a year at an average of $30 a pop, then eliminating the 5% ticket tax would cost the city about $450,000 a year.
So all told, yeah, that all sounds preferable to the $60 million from sales tax hikes and kicked-back property taxes on adjacent land that would have gone into the previous soccer stadium plan. Though of course right now we’re just taking the word of the prospective team owners for it, so let’s see what the fully fleshed-out proposal looks like. Hopefully the Post-Dispatch will remove its rose-colored glasses long enough to report on that, once it’s available.