February 08, 2010
Cactus League teams balk at helping fund Cubs stadium
The city council of Mesa, Arizona, agreed last month to put a vote on the November ballot on building a new $84 million spring-training home for the Chicago Cubs, who otherwise were threatening to move to Florida. This isn't that unusual: Baseball teams move their spring facilities all the time, which makes for lots of opportunities to set up bidding wars for stadium subsidies.
Where it gets interesting is in how Mesa has proposed to fund this one: Partly with a rental-car surcharge, but partly with a leaguewide ticket tax on Cactus League games, on the argument that since the Cubs are the league's biggest draw, the other teams in the league should chip in to keep them around. (Most economists will tell you that ticket taxes generally come out of team owner pockets, as they're prevented from raising prices as high as they would otherwise.) The rest of the league, unsurprisingly, is not too thrilled, and several teams are openly opposing a ticket tax to help the Cubs — including Jerry Reinsdorf, owner of the rival Chicago White Sox, who play in Glendale.
Mesa Mayor Scott Smith replied: "Is this the same Jerry Reinsdorf that skipped out on Pima County taxpayers who had spent tens of millions of dollars to provide him with a taxpayer-funded stadium, to come to Glendale, where Maricopa County taxpayers provided him a Taj Mahal spring-training facility?" Noting that Reinsdorf also has a publicly subsidized stadium in Chicago — one that he got by threatening to move to Florida — Smith added, "The irony is delicious."
The Arizona Diamondbacks are opposed to the Mesa deal as well, and baseball blogger Brandon Larrabee can't help but note that they're "an interesting addition to the Arizona anti-tax crowd, given that their own stadium tax was so controversial it got a Maricopa County Supervisor shot." By a crazy guy, admittedly, but if you want to take it as a cautionary tale, be my guest.
October 27, 2009
Stossel gets stadium swindle half-right
Libertarian commentator John Stossel has a bit of a fact-challenged record, but he mostly gets it right in a blog post for Fox Business on the new New York Yankees stadium fiasco, noting that federal taxpayers (including Red Sox fans) helped pay for it, and the often-overlooked opportunity cost of what else could have been done with the tax money. That is, until he gets up to this part:
Years ago, when I did a TV special called "Freeloaders," Chicago White Sox owner Jerry Reinsdorf said I shouldn't blame him for taking the handout:"You mean, if somebody walks up to you and hands you money, you shouldn't take it? The fact is — I was offered this stadium by elected officials."Bingo. It's like Robin Hood in reverse.
What Stossel didn't ask Reinsdorf: Does it still count as an "offer" when it comes after you threatened to move the team to Tampa Bay if you didn't get the cash? As Reinsdorf later explained, "A savvy negotiator creates leverage. People had to think we were going to leave Chicago."
But then, you'd kind of expect that Stossel would pin the blame on wasteful government rather than greedy sports team owners, given that this is a guy who's on the record as saying that greed is good.