June 14, 2005
Meanwhile, in the world beyond New York
New York's stadium turmoil has taken center stage in recent days, but there have been some developments beyond the five boroughs as well:
- Polls in Utah show that while most residents would like to see a new major-league soccer stadium there, 69% oppose using public funds to pay for one. Real Salt Lake has asked the public to pay for land and half of construction costs.
- Three Indiana county councils have now voted to approve restaurant-tax hikes to help fund a new Indianapolis Colts stadium. Another five counties must vote on the plan before it's scheduled to be enacted on July 1.
- Pennsylvania Gov. Ed Rendell says he's "skeptical" that public funding could be found for a new Pittsburgh Penguins arena. Penguins star Mario Lemieux, who bought the team promising to keep it in Pittsburgh, is in the process of selling it to a California investor named William "Boots" Del Biaggio III - no, you really can't make this stuff up - prompting rumors that the team would be moved if a new arena isn't forthcoming.
- The Oakland A's are reportedly giving up on building a stadium in the Oakland Coliseum parking lot (yeah, I know it has a corporate name now, but I can't be bothered to remember it), with city council president Ignacio De La Fuente instead proposing building on city-owned land on the Oakland waterfront. Still no word on who would pay for any of this.
- A pair of Kentucky sports economists have attempted to measure the "civic pride" benefits of sports facilities by using surveys that ask residents how much they would spend to lure or retain a pro sports franchise. Their conclusion, says Centre College professor Bruce Johnson: While they expected "really big numbers," they discovered that "nobody was willing to pay anywhere near what cities were routinely spending on stadiums and arenas."
COMMENTS
How about the case of the Blues in St. Louis? Their owners are bailing out because the city and state will not unilaterally assume debt obligations on their arena, and even have the temerity to charge sales taxes on the tickets, just like a movie theater (Yes, Tom Cruise is also overpaid, but at least he's not panhandling at the legislature for new, tax-funded multiplexes). The present holder of arena naming rights is also bailing, most likely let out in anticipation of future bankruptcy (the value of their stock has dropped 90% since the agreement was initiated). Current ownership is acknowledging likely continued unprofitability even assuming a favorable outcome to the labor dispute. Can it be time to hold a funeral for this absurd little enterprise called the NHL?
Posted by: Abe at June 17, 2005 04:45 PM
Posted by: Abe at June 17, 2005 04:45 PM
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