Friday roundup: IRS hands sports owners another tax break, A’s accused of skimping on Coliseum land price, Rays could decide this summer on … something

Happy Friday! Here is a fatberg of stadium and arena news to clog up your weekend:

  • San Jose Mercury News columnist Daniel Borenstein says the Oakland A’s owners could be getting a discount of between $15 million and $65 million on their purchase of half the Oakland Coliseum site from Alameda County, which is hard to tell without opening up the site to other bids, which Alameda County didn’t do. You could also look at comparable land sale prices and try to guess, which shows that the A’s owners’ offer is maybe closer to fair value; it’s not a tremendous subsidy either way, but still oh go ahead, just write us a check for whatever you think is fair is probably not the best way to sell off public assets, yeah.
  • St. Petersburg Mayor Rick Kriseman says he expects to hear by this summer from Tampa Bay Rays owner Stuart Sternberg whether Sternberg will seek to build a stadium in St. Pete or across the bay in Tampa. Of course, Sternberg already announced once that he was picking Tampa and then gave up when nobody in Tampa wanted to pay for his $900 million stadium, so what an announcement this summer would exactly mean, other than who Sternberg will next go to hat in hand, remains unclear.
  • Fred Lindecke, who helped get an ordinance passed in St. Louis in 2002 that requires a voter referendum before spending public sports venues, would like to remind you that the soccer stadium deal approved last December still has to clear that hurdle, not that anybody is talking about it. Since the soccer subsidies would all be tax kickbacks and discounted land, not straight-up cash, I suspect this could be headed for another lawsuit.
  • Cory Booker and James Lankford have reintroduced their bill to block the use of federal tax-exempt bonds for sports venues, but only Booker got in the headline because Lankford isn’t running for president. (Okay, also it’s from a New Jersey news site, and Booker is from New Jersey.) Meanwhile, the IRS just handed sports team owners an exemption from an obscure provision of the Trump tax law that would have forced them to pay taxes on player trades; now teams can freely trade their employees like chattel without having to worry about taxes that all other business owners have to, thank god that’s resolved.
  • Golden State Warriors star Kevin Durant, for some reason, revealed that “Seattle is having a meeting to try to bring back the Sonics,” but turns out it’s just Chris Hansen meeting with a bunch of his partners and allies from his failed Sodo arena plan, not anyone from city government at all, so everybody please calm down.
  • The rival soccer team that lost out to David Beckham’s Inter Miami for the Lockhart Stadium site in Fort Lauderdale is now suing to block Beckham’s plans for a temporary stadium and permanent practice facility there, because this is David Beckham so of course they are.
  • Publicly owned Wayne State University is helping to build a $25 million arena for the Detroit Pistons‘ minor-league affiliate, and Henderson, Nevada could pay half the cost of a $22 million Las Vegas Golden Knights practice facility, and clearly cities will just hand out money if you put “SPORTZ” on the name of your project, even if it will draw pretty much zero new tourists or spending or anything. Which, yeah, I know is the entire premise of this site, but sometimes the craziness of it all just leaps up and smacks you in the face, you know?
  • The Philadelphia Union owners have hired architects to develop a “master plan” for development around their stadium in Chester, because they promised the city development and there hasn’t been any development and maybe drawing a picture of some development will make it appear, couldn’t hurt, right?
  • Wannabe Halifax CFL owner Anthony LeBlanc insisted that “we are moving things along, yeah” on getting federal land to build a stadium on, while showing no actual evidence that things are moving along. “The only direction that council has ever given on this is ‘dear staff, please analyze the business case when it comes,’” countered Halifax regional councillor Sam Austin. “Everything else is media swirl.”
  • Never mind that bill that could have repealed the Austin F.C. stadium’s property tax break, because its sponsor has grandfathered in the stadium and any other property tax breaks that were already approved.
  • Hamilton, Ontario, could be putting its arena up for sale, if you’re in the market for an arena in Hamilton, Ontario.
  • And finally, here’s an article by the Sacramento Bee’s Tony Bizjak on how an MLS franchise would be great for Sacramento because MLS offers cheap tickets and a diverse crowd who like public transportation and MILLENNIALS!!!, plus also maybe it could help incubate the next Google, somehow! And will it cost anything or have any other negative impacts? Yes, including $33 million in public subsidies, but Tony Bizjak doesn’t worry about such trivialities. MILLENNIALS, people!!!

Friday roundup: Jacksonville mayor says “whatever Jaguars want” on stadium renovations, that’s it, I’m done, I can’t even finish this headline

Running late on the roundup this week — I just published two new articles on the wastefulness of film tax credits and New York’s probably fruitless attempts to fight off sea level rise, plus I have another major writing deadline today — so let’s get to it:

Friday roundup: Neo-Expos seek public land for stadium, Hawaii mulls new stadium to host nothing, D-Backs spend bupkis fixing supposedly crumbling stadium

So very, very much news:

  • Would-be Montreal Expos reviver Stephen Bronfman has reportedly settled on federally owned land in Peel Basin near downtown as a prospective stadium site once a franchise is obtained, through expansion or relocation. Mayor Valérie Plante called the idea “interesting”; other than that, there’s been no word of what Bronfman would pay for the land or how the stadium would be paid for or really anything involving money, so sure, “interesting” is a fine evaluation of this news.
  • Charles Allen, the D.C. councilmember whose district includes RFK Stadium, calls the site “a very wrong choice for an NFL stadium,” and instead would like to see housing and parks there. Mayor Muriel Bowser disagrees, so this is going to come down to a good old council fight. Too bad Marion Barry isn’t around anymore to make things interesting.
  • Hawaii is considering spending $350 million in public money on a new football stadium to replace Aloha Stadium because, according to state senator Glenn Wakai, “It’s kind of like driving a Datsun pickup truck that is just being run into the ground. At a certain point, time to get a new pickup truck.” Given that Aloha Stadium currently hosts nothing much at all other than University of Hawaii football, it’s more like spending $350 million to replace your pickup truck that just sits in the driveway with a new pickup truck, but far be it from me to interfere with Sen. Wakai’s attempts to bash Datsun for some reason.
  • Halifax is still considering whether to spend $120-140 million on a stadium for an expansion CFL team, maybe via the magic of tax increment financing; University of Calgary economist Trevor Tombe points out that a TIF isn’t magic but just “makes the subsidy less transparent, less obvious that it indeed even is a subsidy” — but then, pulling the wool over the public’s eyes is a kind of magic, no?
  • The Oakland Raiders have a “very real” chance of playing 2019 at the Oakland Coliseum, according to … this Bleacher Report headline, but nothing in the actual story? What the hell, Bleacher Report?
  • Arizona Diamondbacks owner Ken Kendrick has claimed that the team’s stadium would need $8 million in upgrades over the winter, but has only spent $150,000. Which isn’t totally a gotcha — team execs say they’re conserving the stadium maintenance fund to spend on future repairs — but it does poke a bit of a hole in their argument that the stadium is in such bad shape that MLB could order the Diamondbacks to leave Arizona.
  • Austin residents will get to vote in November on whether the city can give public land to a pro sports team owner without a public vote, but it’ll probably be too late to affect the deal to do that for Austin F.C. owner Anthony Precourt. It’ll come in handy next time Austin is in the market for a pro sports team, I guess, though then the owner will probably just figure out a different way to ask for subsidies. “Better late than never” doesn’t work that well when it comes to democracy.
  • Calgary Mayor Naheed Nenshi said he’s “not sure that there’s much space for public consultation” on a redevelopment project to include a Flames arena, though he added that “it would be very interesting to hear from the public on what they think the right amount of public participation in this should be, and certainly there will be an opportunity for the public to have their voices heard but it might not happen until there’s something on the table.” It’s hard to tell whether that’s a justification or an apology — and keep in mind that Nenshi was deliberately shut out of the committee negotiating any deal — but there you are.
  • MLS commissioner Don Garber just got a five-year extension, and — quelle coincidence! — the league is now talking about expanding to 32 teams by 2026. Whether this is really a Ponzi-esque attempt to paper over weak financials with a constant influx of expansion fees won’t be entirely clear until the expansion finally stops and we see how the money looks then, but one thing is increasingly clear: It’s kind of crazy to throw stadium money around in hopes of landing an MLS franchise when it’s increasingly clear every reasonably large city in the U.S. is going to get one sooner or later.
  • And finally, Amazon pulled out of its $3 billion tax break deal with New York yesterday, and it sounds like it’s because its execs were tired of taking a PR beating around the company’s anti-union stance and contracting for ICE. Some New Yorkers are celebrating victory, others are retreating into the Casino Night Fallacy, and as always, The Onion has the final word.

Friday roundup: Fact-checking Suns arena impact claims, the hidden cost of hosting the NCAA Final Four, and everybody gets a soccer team!

Thanks to everyone who became a Field of Schemes supporter this week in order to get a pair of my goofy refrigerator magnets! If you want to hop on the magnet train, you can still do so now, or you can first stop and read the rest of the news of a wacky week in stadium and arena developments:

  • The Arizona Republic has been full of both articles and op-eds this week asserting that giving $168 million to the Phoenix Suns for arena renovations is a good thing (sample reasoning: “The arena is old and needs updated. The Suns are young and need direction.”), but then it also ran an excellent fact-check that concluded that claims of the arena having a significant impact on the city’s economy are “mostly false,” citing the umpteen economic studies showing exactly that (sample conclusion, from Temple economist Michael Leeds: “A baseball team has about the same impact on a community as a midsize department store”). On balance, good enough work that I hope the Republic can avoid being bought by an evil hedge fund that is trying to buy up newspapers and strip-mine them for any assets; what would really be nice would be if they can be bought by someone who can afford copy editors (“is old and needs updated”?), but I know it’s 2019 and we can’t have everything.
  • Where the Oakland Raiders are rumored to be playing the 2019 season this week: San Francisco, Santa Clara, and Oakland. These are all disappointingly old ideas — am I going to have to be the one to suggest Rio de Janeiro?
  • And speaking of me, I wrote a long essay for Deadspin this week on how changes in baseball economic structure are incentivizing owners to cut player salaries without illegally colluding to do so. This is at best tangential to the stadium business, except inasmuch as it’s about “how sports team owners make their money and what affects their profits,” so it’s good to know even if you don’t especially care about who signs Manny Machado or Bryce Harper.
  • The president of the USL wants to expand the soccer league’s two tiers to 80 teams total, which is getting awfully close to the ABA’s “bring a check and you can have a team” model.
  • The new Austin F.C. MLS team was approved to start play in 2021, and celebrated by proposing a chant to memorialize the city council vote that approved its stadium funding: “7-Fooour, 7-Fooour/It’s not the score, it was the vote/That got us all our brand new home.” I am not making this up. (If I were making this up, I would at least try to get it to rhyme.)
  • Los Angeles Angels owner Arte Moreno signed a one-year lease extension on the team’s stadium through 2020, which is disappointing in that I really thought the city should have used this leverage to demand a longer-term lease extension (what’s Moreno going to do otherwise, go play in Rio de Janeiro?). But Craig Calcaterra’s summary of the situation (sample description: this will give time to resolve “a long-term solution for what, at least from the Angels’ perspective, is a stadium problem”) is so on point and such a good model for how to report stadium controversies fairly and accurately that I’m not in the mood to complain.
  • Hosting the NCAA Final Four will cost Minnesota $10 million, because there are lots of curtains to be hung and temporary seating to be put in place, and the NCAA sure as hell isn’t going to pay for it. But Minnesota will surely earn it back in new tax revenues, because economic studies show … oh wait.
  • Some billionaire in St. Louis thinks the city should have an NBA team, and some writer for something called the St. Louis American thinks the city should try to steal the New Orleans Pelicans. Now let us never speak of this again.

Friday roundup: Skip right past the first four items and go directly to the hidden-camera video on the Austin soccer-vs.-soccer beef, you know you wanna

This was feeling like a long week even before Americans with guns decided to make a late rush to break last year’s record for most people killed in major mass shootings. Fortunately, we have news in the field of whether to devote scarce public resources to boosting the profits of professional sports team owners to amuse us! Ha ha! Are we amused yet?

  • Los Angeles has been selected as the host of next year’s inaugural World Urban Games, a thing that is like the Olympics only it involves sports no one cares about, like three-on-three basketball. (Though admittedly, the Olympics also involves plenty of sports no one cares about.) L.A. had to offer no actual money to be the host, just use of its sports venues, so if anyone actually travels to L.A. to see these things, there’s an actual chance this might work out to the city’s economic benefit! Crazy talk!
  • The group that wants to bring an MLB team to Portland has pulled its offer to buy the city’s school headquarters to build a stadium on the site, saying it would be better used for affordable housing. (Read: The community hated the stadium idea, and they didn’t want to fight about it.) The group will reportedly announce a new site by the end of the month, but it’s not worth holding your breath over because MLB isn’t giving Portland a team in the immediate future, if ever.
  • Saskatoon city officials are looking into building a new downtown arena for about $175 million because … they didn’t actually say why. The old one is old? Mark Rosentraub sold them on a new one? Not that a new downtown Saskatoon arena is necessarily a terrible idea, especially if the city can collect rent and other revenues from it, but an even less terrible idea would be focusing on “Do we need a new arena?” before jumping straight to “How can we build one?”
  • There’s a new pro-ticket tax group in Columbus calling itself Protect Art 4 Columbus that describes itself as “a group of art enthusiasts, sports fans and other community members,” and if this isn’t an Astroturf group, they really needed to come up with a name that made themselves sound less like one.
  • I do not have the energy to explain the beef between the wannabe Austin MLS team owner and the wannabe Austin USL team owner and how they’re both building stadiums and supporters of one stadium are accusing supporters of another stadium of lying about their ballot petitions by saying “we’re trying to build a soccer stadium” when it’s really to stop the other guys from building a soccer stadium, so just watch the video, it’s blurry and confusing and shot in portrait mode, just like the kids today all like!

Columbus to keep Crew, send Anthony Precourt to Austin, this has gotta be a win-win

I posted the week-ending news roundup late on Friday, but still not apparently late enough for the stadium news cycle, which promptly exploded in the afternoon, starting with the news that Cleveland Browns owner Jimmy Haslam was finalizing a deal to buy the Columbus Crew from owner Anthony Precourt so that it can stay in Columbus in a new stadium and Precourt can get an expansion team to move to Austin, Texas.

A bit of a recap for anyone new to this story: The Crew owners have been griping about wanting a new stadium to replace their current one (which was built all the way back in 1999) since they were the old Crew owners back in 2013; Precourt upped the ante last year by saying if Columbus wouldn’t build him a new stadium, he’d move the team to Austin. Precourt subsequently got Austin to approve a stadium deal there that included a $100 million tax break, but meanwhile Columbus sued under the “Art Modell Law” passed after the Browns moved to Baltimore to force Precourt to offer the team to local buyers first, and a fan group called Save the Crew issued proposals for a new downtown stadium in Columbus, to be paid for … somehow.

That takes us up to Friday, when it was revealed that Haslam — plus some local investors — had negotiated with Precourt and MLS to instead buy the Crew and have them stay put; Precourt will still get an expansion franchise in Austin, and everybody is happy. At least, maybe everybody is happy? There are still a bunch of unanswered questions here, like:

  • Who’s paying what to whom for what here? MLS is a “single-entity” structure, meaning that the league owns the actual teams, and the team “owners” only control operating rights. The Columbus Dispatch reports that the deal likely involves “the local investors purchasing the Columbus MLS rights from the league and current Crew operator Precourt Sports Ventures transferring its equity interest in the league to an Austin franchise, presumably an expansion team” — presumably this means Haslam and friends are paying something close to the $150 million expansion fee price that the league won’t be getting from Precourt. Unless maybe Precourt is paying the difference? This is all rich dudes shuffling money around themselves, so whatever, but it’d still be interesting to know.
  • What happens with the other cities looking for expansion teams? MLS already had a long list of cities angling to get the next two expansion franchises set to be announced, but it appears that Precourt and Austin have jumped the line. Media outlets in Sacramento, thought to be one of the expansion frontrunners, are already wringing their hands over the prospect of now only having one expansion slot to compete for. Assuming MLS doesn’t decide to keep both of next year’s expansion slots and make Austin its 29th team, or throw David Beckham back under the bus, or really anything, because MLS can decide whatever it wants here. (My bet would be on making the remaining cities compete for one slot, but if multiple cities come up with viable ownership groups and lucrative stadium subsidies, announce, “We changed our mind — everybody gets bees!”
  • Who’s going to pay for this new Columbus stadium, anyway? The Columbus Dispatch reports that there’s no deadline for a new Crew stadium to be in place, and that the team will continue to play in its old stadium until then, which would seem to reduce Haslam’s leverage if he wants to get public cash to help with his stadium plans. But it’s always possible Haslam has already been working things out along these lines with Columbus officials — news reporting on all this is fairly lousy so far, as to be expected when news drops on a Friday afternoon.

So what’s the upshot here? That MLS was more scared of moving the Crew to Austin than we’d been led to believe, either because of the Modell Law or because they didn’t want to be seen pissing off an established fan group or just because they saw the opportunity to get another NFL owner on board, and they just love those guys. Regardless, that Columbus will apparently get to keep its MLS team without having to pony up huge subsidies for a stadium for an expansion team has got to be seen as at least tentatively good news, and a sign that public mobilization can impact the battles of elephants. There are still many, many more shoes to drop, however, so glass-half-empty advocates, keep hope alive that this will still suck for someone! Anything is possible in the topsy-turvy world of MLS!

Friday roundup: Bad MLB attendance, bad CFL loans, bad temporary Raiders relocation ideas

And in other news:

Travis County says Austin never consulted it on Precourt tax exemption, threatens to sue to block it

Oh hey, guess what? In its haste to approve a $100 million tax exemption for a new stadium for the soon-to-be-erstwhile Columbus Crew, the Austin city council neglected to consult Travis County, which would also be giving up a cut of taxes under the proposed deal. And Travis County commissioners are having none of it, threatening to sue to force the MLS team to pay taxes on its stadium if necessary:

On Tuesday, Travis County commissioners unanimously voted to “authorize the county attorney to preserve the county’s right to challenge the tax-exempt status of the stadium company’s use of city property.”

They also voted to “pursue negotiations with the city and other local taxing entities on expectations for preserving taxable value in the redevelopment of publicly owned real estate.”

The city’s proposed agreement with Crew owner Anthony Precourt doesn’t actually say that the land would be tax-free — it just says the city would own the land and stadium and lease it to Precourt, which usually works as a get-out-of-property-taxes-free dodge. Usually, but not always: A New Jersey court ruled in 2014 that Red Bull New York had to pay property taxes on its team-run, city-owned stadium in Harrison, on the grounds that a pro soccer stadium isn’t an “essential public purpose.” (The Red Bulls and Harrison later settled out of court on a deal where the team basically makes payments in lieu of property taxes.)

In Austin’s case, the tax-exempt status is up to the Travis Central Appraisal District, which is a county-run (I think — this information is not included among the CAD’s many, many frequently asked questions) agency that is in charge of appraisals. If the appraisal district grants an exemption, the county can, and it looks like probably will, appeal the ruling.

So what happens now, with a giant tax bill for Precourt on the line? The Austin American-Statesman asked Mayor Steve Adler, who replied, “I don’t know that, but I do know that the agreement says the team is responsible for any such taxes, not the city.” Ducking out of the way and letting your partner take the bullets — a time-honored tradition, but not one I expect Precourt is likely to appreciate. Can’t wait to hear what he’ll have to say about all this once he’s done admiring his new logo!

Austin approves final MLS stadium talks, Columbus Crew to move sometime or another probably maybe

Well, that was anticlimactic: After several weeks in which the Austin city council put off a decision on providing more than $100 million in property tax breaks for a new soccer stadium to lure the Columbus Crew to town, with four members in favor, four opposed, and three swing votes, yesterday the swing votes all swung toward “yes” and the measure passed 7-4. The Crew will now relocate to Texas at some point in the next year or two or three, unless the lease talks that were authorized yesterday collapse (unlikely at this stage), or Columbus wins its Modell Law suit to block the team from moving (who knows), or Crew owner Anthony Precourt changes his mind for some reason (also unlikely given how happy his press statement sounded after the vote, but also who knows).

The council also voted on 19 amendments to the stadium bill: I can’t find full coverage of what passed and what didn’t — it’s not helping that there’s no WiFi on this train even though there was supposed to be, clearly they need to tear down the train system and build a new one — but the Austin American-Statesman does report that the one to double the team’s rent to just under $1 million a year was defeated after Mayor Steve Adler warned that this was “the best deal of its kind in the country” and warned that asking for any concessions could kill it. I would beg to differ — Orlando S.C.‘s stadium deal was a fair bit better, for one. The Austin deal isn’t horrible as these things go, but that doesn’t make it reasonable either, but rather in that broad swath of “at least we didn’t get screwed over as bad as some other cities” that makes up most stadium deals. But then, soccer fans are used to celebrating pyrrhic victories.

Friday roundup: Delayed votes, poorly considered tributes, and a no-LeBron loan offer

Greetings from my undisclosed location! I have time for an abbreviated news roundup this week: