Looks like the Washington Nationals finally found someone interested in throwing money at them for a new spring-training stadium, even if it’s only theoretical money at this point:
Palm Beach County is willing to play ball with two Major League Baseball teams trying to get a new spring training stadium, but public cost and tax hurdles could get in the way.
The County Commission Tuesday gave its endorsement to trying to craft a deal with the Houston Astros and Washington Nationals that could include building a $100 million stadium and training facility that would host both teams for spring training.
Palm Beach County already has a spring training stadium — Roger Dean Stadium in Jupiter, which tragically does not look like this — which is home to the Miami Marlins and St. Louis Cardinals, but county officials are hoping that adding a second stadium and two more teams will “keep baseball spring training here in Florida,” according to County Mayor Priscilla Taylor. Because, I guess, they’re trying to build a critical mass of teams so that they don’t all move to Arizona, is the theory?
Anyway, the county commission doesn’t know where a stadium would go (there are reportedly ten sites under consideration) or how that $100 million would be paid for (the state has offered $50 million in funding over 37 years, which would only pay for a small sliver of the cost). The county could kick in some hotel tax money, and … yeah, that’s about as far as they’ve got. “There are still a lot of unknowns,” county commissioner Paulette Burdick told the South Florida Sun-Sentinel. Tell me about it.
The disarray of the world financial system continues to hit the stadium world: The latest victim looks to be the Harris County-Houston Sports Authority, which could see huge hikes in its bond payments on Minute Maid Park, Reliant Stadium, and the Toyota Center thanks to the collapse of the esoteric financial instruments known as
credit default interest rate swaps. (You may recall CDSs for bringing down a little company called AIG.) Without going into all the technical details — which, frankly, I’m not sure I understand even after reading more about default swaps than is really healthy [UPDATE: Apparently I really didn't understand, as I mistook credit default swaps, which sunk AIG, for interest rate swaps, which threaten to sink the Sports Authority; everything else I wrote here is still valid, though] — the upshot is that in order to undo the bad financing, the sports authority will have to pay off its stadium debt early, with annual debt service expected to rise from $62.3 million to $83.7 million over the next two years.
That’s troublesome, because the authority only collected $79.3 million total in 2008 — and tax revenues, which depend on things like car rental and hotels that are highly dependent on a booming economy, look to be dropping. “I’m deeply concerned about the financial stability of the sports authority and all its bonded indebtedness,” former authority chair Jack Rains told Bloomberg News (which somehow managed to give Janet Jackson’s “wardrobe malfunction” equal mention in its article). “When you borrow for 30 years, you have to do prudent things, and they didn’t.”
If the shortfall comes true, the sports authority could end up having to go to the county for a bailout. And we know how well that’s worked in the past.