Category Archives: St. Louis MLS team

Missouri gov pulls brakes on St. Louis MLS team’s $30m tax credit request, now what?

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[record scratch noise]:

State officials still want a private ownership group to build a Major League Soccer stadium in downtown St. Louis, but they aren’t going to funnel $30 million in tax credits to help pay for it…

Rather than the $30 million, the administration is expected to support a $5.7 million infusion of state money if the ownership group asks.

This is unexpected, but maybe shouldn’t be: As KMOV reports, while the as-yet-unnamed MLS team has long been expecting $30 million in state tax credits as part of a roughly $60 million stadium subsidy from the city and state combined, the Missouri Development Finance Board has an annual cap of $10 million in credits that it can hand out, which makes giving out $30 million to the soccer team owners over two years kind of problematic. Approval of three state cabinet officials would have been needed to lift the cap, and that didn’t happen, so in effect the MDFB said, “We only have $5.7 million left, it’s yours if you want it.”

This is kind of a surprise, as Gov. Mike Parson’s office had previously expressed interest in working out a tax credit deal, and so far as I can tell no one had indicated that the tax credit cap would be an issue before now. There’s been no response from the team owners to this new roadblock, but given that the new stadium is supposed to be open by March 2022, there’ll need to be some resolution to this funding gap sooner than later.

Meanwhile, St. Louis Mayor Lyda Krewson’s office released this statement:

The City of St. Louis and Mayor Krewson remain incredibly excited about having an MLS team. We don’t believe the state’s decision will interfere with our support of the #MLS4TheLou ownership group and their commitment to this project. It’s a more than $460 million private investment in Downtown West that will anchor a revitalized mixed-use district, create hundreds of construction and permanent jobs, and unite the City around this global sport. Bring on 2022!

So does that mean that Krewson thinks the state will eventually find $30 million in tax credit money, even if it takes a few more years? Or that the city will cover the state’s share? (It was technically the city that was asking for the credits on the team’s behalf.) Or that the team owners will move ahead with the project even without the full $30 million, in which case why was everybody saying the $30 million in state money was necessary in the first place? So very many important questions — hopefully we’ll have some answers soon, so watch this space.

Friday roundup: Helicopter rides for rich fans, pricey bridge prices, and why Deadspin mattered

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In case anyone hasn’t been following this week’s Deadspin drama, pretty much the entire staff has resigned over the past two days, following Tuesday’s decision by CEO Jim Spanfeller to fire acting editor-in-chief Barry Petchesky because the staff had responded to Spanfeller’s edict to “stick to sports” by posting a ton of excellent non-sports content. A few last posts have gone up the last couple of days, some to burn off features that were already scheduled to run and some to take classically Deadspinesque digs at management for burning down a popular website seemingly out of spite for continuing to do exactly what it had been doing for years before they bought it.

This is very bad news for journalism and America and humanity, and not only if you, like me, will miss the site’s potshots at our Big Wet President. There’s a popular notion that sports is just a fun diversion where the “outside world” of politics has no place — and that, as I hope the entire 21-year history of this site has made abundantly clear, is an extremely dangerous notion, because it means that concerns over what taxpayers are being charged for places to play sports or what athletes are being paid to play sports or who is allowed to speak out on what issues involving sports are dismissed with a Can’t we just watch the game? But games are serious — and lucrative — business, and can’t be divorced from the greater culture, any more than we should be just watching movies as pure entertainment without attention to the bigger issues involved. Deadspin was dedicated to erasing those lines and allowing its writers to address whatever they felt needed addressing at the moment, whether it was the meaning of who you’re seen sitting with at a football game or what we’re getting stuck in our rectums each year, and until and unless a successor emerges to pick up the torch, the world will be a sadder, dumber place.

(Already yesterday I read about Josh Hamilton’s arrest after his daughter said he threw a chair at her — a phrasing I owe to this excellent Deadspin non-sports article, incidentally — and wished I could read Deadspin’s analysis of it. Then I read about John Wetteland’s arrest for reportedly sexually assaulting a four-year-old child, and thought I wonder if maybe men’s sports should just be banned altogether at this point given the kind of behavior it encourages and realized Deadspin was probably my best bet for reading that take, too. It’s going to be a long however many weeks or months until something arises from Deadspin’s ashes, if that ever happens.)

Anyway, on to the weekly muddling of sports and politics:

  • The Indiana Pacers‘ arena will still be named after the bank that stopping paying for naming rights in June until the team has found a new naming-rights sponsor, which seems weird at first but actually makes total sense: It costs money to change the signage so why do it twice, and also the value of naming rights goes down with each new iteration of a corporate moniker that dilutes the name’s image for the public — quick, tell me what the Oakland Coliseum’s official name is these days — so calling it “Pacers Arena” or whatever for a few months might get fans to start calling it that permanently, and we can’t have that. And if you’re wondering why the Pacers get to sell naming rights to a building that was built entirely with public dollars and is owned by the public: It’s Indianapolis, Jake.
  • St. Louis’s new MLS stadium finally has a site picked out — Market Street near Union Station, if you’re scoring at home — and new renderings as well, though they look pretty much like the old renderings except for the one that is just a closeup of a kid riding on his parent’s (?) shoulders. The state of Missouri has received approval to sell 22 acres of land for the stadium to the city’s Land Clearance for Redevelopment Authority, which will then lease it to the MLS team for … oh, that doesn’t seem to have been reported. Just look at the pretty pictures and don’t worry your head about that nasty money business.
  • A public city database in Atlanta is indicating that the city’s $23 million pedestrian bridge for the Falcons actually cost $41.7 million, but the city insists it’s really just that they entered the same checks multiple times. I’m not sure “spent $23 million on a pedestrian bridge for a football team and also can’t do basic bookkeeping” looks much better, honestly.
  • The San Antonio Spurs — whose mascot is for some reason a kangaroo, is that a kangaroo? — have installed four new helipads so that fans can buy helicopter rides to games, which really tells you everything you need to know about 1) who sports teams are interested in marketing to these days and 2) just how ridiculously much money rich people in America have to burn these days.
  • Fresno FC owner Ray Beshoff has declared he “will almost certainly be relocating the team” because he hasn’t been provided with a new soccer-only stadium, unless “in the next two or three weeks if people come to the table with ideas or suggestions that we think are tenable.” This will come as a huge shock to fans who’ve been dedicated followers of the USL team since (looks up team on Wikipedia) March of 2018.
  • The San Francisco 49ers are raising ticket prices by 13% but giving season ticket holders free food and soda, which I guess means 49ers fans will be spending most of games from now on pigging out on all-you-can-eat nachos instead of watching the action on the field. Also, you can’t get the free food if you buy tickets on the secondary market, only if you’re the original season ticket holder. Or, I guess, borrow the season ticket holder’s free-food card? Or have a season ticket holder go up to the counter for you and get your nachos? I don’t live anywhere near Santa Clara and hate football, but I am very excited at seeing how fans figure out how to game this system.
  • Still nobody is sure which minor-league teams MLB will threaten to eliminate as part of its plan to restrict minor-league affiliates, or what criteria MLB will use for deciding who shall live and who shall die or whether MLB is even serious or just trying to scare minor-league players into not demanding they be paid minimum wage. I really should write about this for Deadsp — crap.
  • It rained at the Buffalo Bills game last weekend, so a local country music station ran a poll asking listeners: “Would you be in favor of a roof stadium or no?” Not included: any mention of what a roof would cost, or what WYRK has against the word “roofed.”
  • The corporate newspaper that helped gut a free daily by selling it to people who immediately laid off most of the editorial staff ran an article this week asking if the new New York Islanders arena will make it harder for the nearby Nassau Coliseum to draw events, but I’m not going to link to a union-busting-enabling outlet that put the article behind a paywall anyway, so let me just answer the question here: Duh, yes!
  • A former assistant to Inglewood Mayor James Butts has changed her testimony in the lawsuit against the Los Angeles Clippers‘ proposed arena, and Inglewood officials are asking that her revised testimony be rejected because they say she’s in “cahoots” with Madison Square Garden, which opposes the arena because it doesn’t want competition for its own arena nearby. Elephants, man.
  • The DreamHouse New Mexico Bowl has been canceled, because alleged film production company and title sponsor DreamHouse turns out not to exist, but rather to be a scam perpetrated by “a relentless self promoter who lies about nearly everything he says he does.”
  • A giant water droplet named Wendy has made a video suggesting that Washington’s NFL team should move back within city limits. Sorry, Sean Doolittle, this is actually the most 2019 Washington thing ever.
  • The Sunshine Coast Pickleball Association is seeking funding from the city of Sechelt for a new pickleball stadium. I don’t actually know where Sechelt is and am only dimly aware of what pickleball is, and I’m not going to ruin the perfect sentence above by looking either thing up.

Friday roundup: How Kansas City evicted a team for rent non-payment and ended up costing itself $1m, and other stories

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This week’s recommended reading: Girl to City, Amy Rigby’s just-published memoir of the two decades that took her from newly arrived art student in 1970s New York to divorced single mom and creator of the acclaimed debut album Diary of a Mod Housewife. (Disclosure, I guess: I edited an early version of one chapter for the Village Voice last year.) I picked up my copy last week at the launch of Rigby’s fall book tour, and whether you love her music or her long-running blog (guilty as charged on both counts) or enjoy tales of CBGB-era proto-gentrifying New York or coming-of-age-stories about women balancing self-doubt and determination or just a perfectly turned punchline, I highly recommend it: Like her best songs, it made me laugh and cry and think, often at the same time, and that’s all I can ask for in great art.

But first, read this news roundup post, because man, is there a lot of news to be rounded up:

Friday roundup: More on MLB attendance decline, plus stadium rumors and the reports of rumors

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In case you missed it, I revisited the question of MLB’s attendance decline for Deadspin this week, by way of picking apart a New York Times article on the topic that got a couple of things right and a whole bunch of things less right. The upshot is that team owners don’t really need lots of fans to show up, but they sure would like them to, but only if they can accomplish this without cannibalizing the luxury seat sales that are their bread and butter these days — all of which makes all the “Whither baseball?” handwringing even less justifiable. Lesson: Don’t try to measure the demand curve just by looking at product sales. (Okay, maybe that’s only the lesson I take from it, but it’s one lesson.)

Meanwhile, news!

Final St. Louis soccer stadium deal is better than previous one, but not so much as to be worth getting excited about

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The St. Louis Post-Dispatch business section ran a long article on Sunday about how the city got a much better deal on its MLS stadium after voters rejected the original plan in 2017. Most of the article’s evidence is that local elected officials who expressed qualms about the earlier plan seem fine with this one — though it’s worth noting that the quote in the headline, “Clearly a better deal,” appears nowhere in the actual article — but it also includes this chart:

That’s not exactly apples-to-apples, so let’s unpack it a bit:

As for the new plan, it includes:

  • $30 million in state tax credits (okayed by Missouri’s now-governor).
  • A sales-tax surcharge on in-stadium purchases (which probably mostly comes out of the team owners’ pockets like a ticket tax)
  • An abatement of the city’s 5% ticket tax, with half the money going to the team directly and the other half going into a “stadium upkeep fund.” The Post-Dispatch estimates each half as worth $28.7 million over 30 years, which is a total of $57.4 million over 30 years, which in present value comes to around $29 million, probably less if ticket prices (and taxes) rise significantly over the next three decades and make the tax more backloaded.

Also, in both cases the stadium will be exempt from property tax, which still no one knows how much of a savings that’s worth to the team owners.

So is that really better? For the city, absolutely, as it’s managed to cut its costs from $60 million to less than half that. For St. Louis taxpayers overall, maybe not so much, as the revival of the state subsidy makes up for most of the difference in city subsidies. It’s way better than the very original plan that would have stuck taxpayers with a $100 million bill, yes, but that’s not what voters rejected in April 2017, as the state tax credits were dead at the time.

In any case, yes, it appears that voters did get a marginally better deal by rejecting the 2017 plan — yay, democracy! — but the emphasis is strongly on marginal: Mostly, the city and team regrouped to fob off half the public costs on the state, while converting the other half from a sales-tax subsidy to a ticket-tax kickback. So long as local pols and media outlets are willing to celebrate victories like these, sports team owners probably won’t mind too much failing to stick the public with outright defeats.

Friday roundup: News outlets everywhere get pretty much everything wrong

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On a tight deadline this week, so let’s get straight to the news:

Friday roundup: Saints’ $300m subsidy moves ahead, St. Louis MLS announcement on tap, Richmond council votes no on democracy

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Sometimes I feel lucky to cover a topic with so many constant absurdities, and then this happens, and I realize that constant absurdities are just the new normal. Anyway, I did get to edit this this week, which is an excellent look at how this week’s absurdity is having potentially catastrophic impacts on people’s lives, so go read it!

But not before you read these:

  • The Louisiana State Bond Commission has approved selling $450 million worth of state bonds to fund renovations to the Superdome, in exchange for the New Orleans Saints signing a 15-year lease extension. As covered back in May, Saints owner Gayle Benson would cover one-third of the bond cost, leaving Louisiana to pay off $300 million, bringing the Saints’ five-decide subsidy total to a cool $1.442 billion. In exchange, the Saints will sign a 15-year lease extension — with another 15-year option, but there’s no way they’re going to extend their lease again without more subsidies the way this gravy train is rolling — which comes to state taxpayers ponying up $20 million a year for the presence of an NFL team, which is a hell of a lot of money, though not as much as Indiana pays the Pacers, because Indiana.
  • The St. Louis Post-Dispatch reported this week that St. Louis will be announced next Tuesday as the next MLS expansion city, bringing the number of teams in the league to a cool 154. (I think it’s actually 28, but honestly the number changes so fast it’s hard to keep track.) Deadspin read the announcement that there would be no public subsidies for the as-yet-unnamed team’s stadium and excitedly reported that the deal “might not completely fleece the city”; sadly, it will actually involve about $60 million in public subsidies, but since about half of that is coming from the state, not the city, that Deadspin headline is still technically correct, right?
  • The Richmond city council has voted 5-3 against allowing a referendum on the city’s proposed new $350 million city-subsidized arena on the November ballot, because voting is for elected officials, not regular folks. Though regular folks do still get to vote on electing elected officials, something that referendum sponsor Reva Trammell clearly had in mind when she said following the no-voting vote: “I hope the citizens hold their feet to the fire. Every damn one of them that voted against it.”
  • Two-plus years after the arrival of the Hartford Yard Goats in exchange for $63 million in public stadium cash — plus a couple million dollars every year in operating losses — the Hartford Courant has noticed that stadium jobs are usually part-time and poorly paid. Not included in the article: any analysis of how many full-time jobs could have been created by spending $63 million on just about anything else.
  • New Arizona Coyotes owner Alex Meruelo said he intends to keep the NHL team in Arizona, but that keeping it in Glendale is a “difficult situation,” at which point a Glendale spokesperson said that city officials would meet with Meruelo “to see how we can help him achieve his goals of success.” Which is all fine and due diligence and all, but given that helping Meruelo “achieve his goals” is likely to mean paying him money to play in Glendale like the city used to do, it’s not exactly promising; if nothing else, Glendale officials would do well to remember that Meruelo currently has exactly zero better arena options elsewhere in the state, so he’s not exactly negotiating from a position of strength.
  • Joe Tsai, who was already set to buy the Brooklyn Nets from Mikhail Prokhorov, has officially exercised his option to purchase the team, plus the Barclays Center arena to boot, for a reported $3.5 billion. Given that the arena is currently losing about $21 million a year, this seems like an awful lot of money even if the team does employ whatever’s left of Kevin Durant. Since Tsai already owns the New York Liberty, though, maybe it at least means that WNBA franchise will finally return to the city from its exile in the suburbs.

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

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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!!!

St. Louis MLS owners unveil square-roofed stadium (actual contents may differ from images on box)

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The wannabe St. Louis MLS team owners have released some renderings of their wannabe stadium:

So, that square roof is cool and all, but I’m not sure it works in terms of geometry, given that soccer pitches are longer than they are wide. It looks from that image like the seats at the ends are more stacked vertically than the ones on the sidelines, which could be one way of getting around that; let’s see another angle:

We’re looking from one end in the above image, so maybe. Still, it’s also possible this is some form of forced perspective, or the designers just decided to fudge the shape of an actual soccer field to get a cooler image, and the actual roof — if there ever is an actual roof — will be more rectangular. Which is actually what appears to be going on in this GIF:

Team co-owner Carolyn Kindle Betz did call the renderings “conceptual,” so I’m going to take that to mean “it won’t actually look like this, we just wanted something to distract you with.”

Which is fine, but can’t we get any renderings with the more usual fantastical stadium elements, like weird lighting effects and people cheering at nothing in particular? Please?

Ahhhh, much better. Judging from the keeper sprawled on the ground, it looks like somebody (the red team?) has just scored, which isn’t too surprising given that the black team has utterly failed to track back to play any defense.

The stadium — which you will recall is set to get something on the order of $60 million in public subsidies — is supposed to seat 22,000, with room to expand (maybe they can put temporary seating in those gaps in the corners, though the landscaping is going to get in the way), which will make MLS commissioner Don “really our stadiums should hold 27,000 people even though the league average attendance is only 20,000 and that’s with teams papering the house” Garber happy. And since making Garber happy enough to give St. Louis owners a franchise — sorry, sell St. Louis owners a franchise, for an expansion fee of at least $200 million and maybe more — really that’s how we should be looking at all of these pretty pictures: They’re profile pics, nothing more, nothing less.

MLS is adding St. Louis and Sacramento franchises (maybe), demanding bigger stadiums (possibly)

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Eleven months after announcing its expansion to 28 teams, Major League Soccer has decided to expand to 30 teams with new franchises in St. Louis and Sacramento … okay, has decided to invite prospective owners in St. Louis and Sacramento to apply for franchises … okay, let’s let the Associated Press try to explain it:

St. Louis and Sacramento, California, have been invited to submit formal bids for franchises as Major League Soccer’s Board of Governors formally unveiled plans Thursday to expand to 30 teams.

Commissioner Don Garber made the announcement at the board’s meeting in Los Angeles, pointing to expansion as one of the key drivers of the league’s growth in North America in recent years.

“We continue to believe that there are many, many cities across the country that could support an MLS team, with a great stadium and a great fanbase and great local ownership that will invest in the sport in their community,” he told reporters following the meeting.

So that’s really just “St. Louis and Sacramento are front-runners for the next two MLS franchises, which we’re planning to award sometime this year.” Which is exactly what Garber said last month. So this is not actually news at all, just confirmation that those two cities will get teams if all their t’s are crossed — which mostly means having stadium deals in place. Both cities have given preliminary approval for new stadiums, with St. Louis promising about $60 million in subsidies and Sacramento about $33 million; these would not be the worst deals in sports history or even MLS history, but still, you know what Everett Dirksen may or may not have said about money adding up

In completely unrelated news but not really, F.C. Arizona, a team that currently plays at a high school field in Mesa in the fourth-tier National Premier Soccer League, has announced plans to build a 10,900-seat stadium at an unspecified location in the Phoenix area, saying they’ll pay for the unspecified costs with their own unspecified private money. That’s an awful lot of seats for a team in what’s essentially a semi-pro league — not all players are paid — so you have to figure this is an attempt to get on the radar of either MLS or the second-and-third-tier USL to get a franchise. U.S. soccer may not have promotion and relegation where teams can move up to higher leagues just by winning games, but it does have a clear path by which owners can buy their way into higher leagues, and it’s clearly leading to a land rush for owners hoping to find an angle by which to enter into the major-sports ownership club without shelling out a billion for a big-four league expansion team.

If you consider MLS a major sports league on par with the big four, that is, which remains an open question. Garber also took time out to say that Minnesota United‘s new stadium is too small, asserting, “I wish the stadium wasn’t 19,000 and that it was 27,000 because I think at some point we are going to be thinking of how do we make the stadium bigger. I think we are going to be dealing with that in a number of different markets.” This is the same week that the New York Red Bulls announced that they’d begin tarping over some seats in the upper deck because they couldn’t sell them; team GM Marc de Grandpre recently remarked, “If we were to build the stadium today…we’d have built the stadium with a flexible capacity system,” meaning a way to reduce capacity from its current 25,000 seats, not increase it. Clearly there are still some bugs to be worked out of the MLS business model — those $150 million expansion fees from St. Louis and Sacramento, or whoever steps in if St. Louis or Sacramento falter, should help buy some time to figure them out.