Happy Friday! Before we get to the new stadium news, here’s some hot-off-the-presses old stadium news from me for City Limits magazine, for which I took a hard look at the enforcement problems around the community benefits agreements surrounding the Brooklyn Nets and New York Yankees development deals. The nut graf, as we say in the biz:
One big problem with CBAs: They’re not laws, but rather private contracts between a developer and community groups—in the case of the arena project, groups that were not only hand-picked by the developer but in some cases funded by him. And if those groups aren’t around to hold a developer accountable—or the developer isn’t around and there’s no successor clause—there’s little anyone else can do to enforce an agreement.
That was certainly the problem with the Nets deal, where most of the signatories to the CBA are now long-defunct. And for the Yankees deal, it was even worse: The only people to sign the agreement were elected officials who are now long out of office, and promised regular reports on the community fund’s spending have been withheld from the public on the grounds that no one is authorized to see them — though the fund’s initial administrator says there’s a simpler reason for why no reports have been issued: “During my time, no reports were written.”
Well, lesson learned! Or not, given that the rest of the nation seems intent on repeating the same mistakes over and over and over and…
- MLB commissioner Rob Manfred said for the umpteenth time this weekend regarding the Oakland A’s and Tampa Bay Rays stadium demands that “we need a solution in both those markets and the time has come for that solution,” which is both some of his typical awkward-as-possible wording and also an excellent example of how sports team owners love to define their not-as-high-as-they’d-like profits as a problem in need of a solution, preferably with someone else’s money. Manfred added re the Rays: “We are getting to the point where wherever it is in the region that has an interest in having 162 baseball games, they need to get to it, get with the club.” Um, the region has 162 baseball games now (really 81, but let’s not bother Manfred with concepts like “road games”), and the Rays don’t exactly have an offer on the table from another city with a stadium, or even the promise of a stadium, so it’s not like if their lease expired today they would be gone. But when you’ve got one move and it’s vague threats, you’ve got to make the most of it, I suppose.
- Sports economist Andy Zimbalist has fired back at critics of his criticism of sports economist J.C. Bradbury’s study of the Atlanta Braves stadium deal in an interview with Sportico (which didn’t bother to interview Bradbury that I can tell [CORRECTION: it did, it just didn’t quote him much]), saying among other things that getting paid by a team owner to conduct a study of the team’s nine-figure stadium subsidy isn’t a conflict of interest because “If I didn’t get paid there is an element in it that says I am not a professional, I am doing it for some other reasons. The payment thing is, ‘damned if you do, damned if you don’t.’” I am pretty sure that phrase does not mean what you think it means, Andy.
- Speaking of paid consultants, Nashville Mayor John Cooper and the metro area council are considering hiring one to analyze whether it would really cost taxpayers $1.8 billion to maintain and upgrade the Tennessee Titans‘ stadium for the six-year remainder of the team’s lease, a key cog in the team’s argument that the public should just build a new stadium instead. This is an excellent idea, but may I just suggest that one particular person not be hired for the job?
- And speaking of Bradbury, he has an excellent rundown in Global Sport Matters (for which I also write) of what every city should know before publicly funding a stadium or arena deal, which pretty much comes down to “don’t.”
- NYC F.C. fan site The Outfield, which has done an excellent job following the bouncing ball of the MLS team’s never-ending search for a site on which to build a stadium of its own, reports that the club’s owners are reopening talks on building at a site on railyards along the Harlem River, completing a memorandum of understanding with the state Department of Transportation to lease the site. This is still likely just kicking-the-tires stage — The Outfield also notes that “NYCFC still seems to be engaged to a degree in feeling out development in Willets Point,” across the street from the New York Mets‘ stadium — but as a reminder, here are some pictures of what the Harlem River Yards stadium was supposed to look like in 2018, and here’s a projection from the time of how the deal would involve possibly $400 million in state land subsidies, and here’s the team itself backing away from the plan at the time as fast as possible.
- If Anaheim tries to sell Angel Stadium land to Los Angeles Angels owner Arte Moreno again after the stench of the bribe-solicitation scandal that forced the resignation of the old mayor wears off, a new bill in the California state legislature is seeking to require that the city open it up to competitive bidding first. This is another excellent idea, if only to find out what the land is actually worth, which has been a bit of a point of contention.
- “Arizona Coyotes plan to privately finance new arena, entertainment district, team president/CEO says” reads the ESPN headline, but the story itself reports that Coyotes CEO Xavier Gutierrez actually said, “It’s going to be privately financed. … And then we have made a request to have the city issue bonds whose sole collateral would only be the land and the real estate, so the taxpayers would never be at risk.” Which is not how “privately financed” or “not at risk” actually work — regardless of the collateral, Tempe taxpayers would be out at least $200 million — but “[person with a fancy title] says” allows for a lot of non-reporting by news outlets like ESPN, the better to move on to writing the next six posts of the day. (An even better time saver: Just make quotes up! Those articles about McDonald’s employees leaping out drive-through windows to save people choking on chicken nuggets aren’t going to write themselves!)
- And speaking of journalism with room for improvement, here’s GOPHNX reporter Craig Morgan’s opening sentences in his article this week on the arena plans: “Before the special Tempe City Council meeting on June 2, there was genuine concern about the fate of the Coyotes’ proposed arena and entertainment district along the south bank of the Salt River. Some insiders worried that the opposition was too strong, that the issues were too numerous and that the council was lacking the votes necessary to push the project forward.” Or, you know, some people, that aforementioned opposition, did not “worry” those things but presumably “hoped” them. Can someone please tell Craig that there’s no cheering in the press box?
9 20 is supposedly the date the Oskland city council will vote on HT. 3 weeks after the bcdc votes the council goes into break until september. The date was leaked at an alemeda county meeting
Seems like the a’s will get a new stadium in Oakland but Tampa bay will not. I guess Las Vegas could target the rays or maybe Montreal is back in the picture
Listen, I work hard on these press releases. Well, what I mean is I have some people who work really hard on them. And I don’t appreciate people making fun of those people and their efforts. Or me. Especially me. Mostly. But still. I mean, you can’t argue that we have given Oakland and Tampa multiple final deadlines and they just don’t seem to understand what final deadline means.
Look people, Don’t Make Me Strike Another Blue Ribbon Panel, ok?
You don’t wanna go there. You just don’t. Trust me on that. I hate to go all nuclear on you, but if I have the power to create a blue ribbon panel people have to believe I’m going to use it, right? I mean I’m trying to be nice here. I could have used all capitals in that imperative, but I didn’t. See. I didn’t. You can even check.
But if I don’t use this panel power, it’ll just seem like an empty threat that no-one takes seriously and a guy with my level of power and command just can’t have that. Got it?
So, understand this: You have no idea how close you are to having another Blue Ribbon Panel struck to deal with these two markets.
I’ve been really patient with all of you.
But you mess with the Bull, you get the horns people…
Jim Brockmire would be a better commish.
The quote about 162 games suggests he’s hoping the Tampa Bay region will have two MLB teams.
That makes about as much sense as the Tampotreal idea.
Coyotes fans are quick to respond to any well-reported skepticism by telling everyone to listen to Craig Morgan and only Craig Morgan. But, as far as I can tell, he is cheering from the press box, as you say.
It’s understandable. If the Coyotes leave, then either he has to find a new job or a new city to live in.
“It is difficult to get a man to understand something when his salary depends upon his not understanding it.” – Sinclair Lewis (I think).
That genuinely sucks for him and other people in the same boat and our society should do more to support people displaced or screwed over by the whims of capitalism. But I suspect the Houston Coyotes or, God-winning, Quebec Nordiques Nouveau would create even more media jobs than those lost in Arizona.
But the evil part of me wants this to fail – well, it already has failed. It might manage to fail upwards, however – just because I find Arizona Zealots so insufferable. They genuinely believe the rest of the world is jealous that they get to live in a pizza oven.
That is not, however, the right attitude for me to have.
Upton Sinclair
Goddamnit. Yes.
So… the new Arizona Coyotes arena plan is pretty much exactly like the old Glendale arena plan in that the team is probably not going to put any money in and the entire development will be based on no collateral whatsoever and funded by bonds issued by the city.
This should work out great for Tempe as it avoids all those pesky “unknowns” surrounding the development. Just take a drive to Glendale and see how essentially the same thing worked out for them. Hint: They spent more money paying the team to play in the arena than they spent building the arena in the first place.
Tempe is not Glendale, as I’m sure someone is about to say, but the demand for the product the Coyotes sell in the region has never really changed much. It has always been too low to maintain an NHL team even on life support level.
There used to be a couple of reporters (for azcentral? PBJ?) who did real work on the Coyotes… Mike Sunnucks was one as I recall.
The more I hear from Meruelo and Guttierez the more they sound like the shadiest owners the Dogs have ever had… and THAT is saying something considering who the other competitors for that title are.
So the Coyotes are going to get a third arena that they don’t have to pay for. Here’s a prediction: I’m old but I will live to see the fourth Coyotes arena.
And one more: The fourth arena will be at the northeast corner of Frank Lloyd Wright and Shea Boulevard, which is exactly where the Coyotes “fan base” lives.
It really wouldn’t surprise me Dave. They are only really going to be “locked in” to this new development (assuming it ever gets built – any of it) if they build the ancillary developments. If they just build the arena (using public money, natch) and nothing else, what do they have to walk away from?
Exactly what they walked away from in Glendale.
I guess it’s just his job… but hearing Bettman implying/suggesting Phx fans and sponsors are ‘committing to the team’ when they’ve literally been telling the NHL they have no interest in the product at all for a quarter century… well, it’s grating.
I don’t think the current stated plan is to use public money for all of the arena construction. Though there are a lot of moving parts, and nothing is really set in stone, so “current” and “stated” and “plan” may not mean much.
Did I misread their claim then?
I understood it was all to be “privately financed” using bonds sold by the city secured against the buildings/development that don’t yet exist.
What exactly are the Coyotes’ ownership group paying for themselves?
No, it’s “privately financed” but will use the proceeds of some public bonds. But the bonds won’t cover anything close to the full cost.
Zimbalist is winning=
https://www.theguardian.com/football/2022/jun/16/fifa-2026-world-cup-sites-cities-funding
“Confusion” or “Misunderstanding”?
Coyotes’ modifications to ASU arena won’t be complete until well after NHL season starts
https://www.bizjournals.com/phoenix/news/2022/06/21/coyotes-modifications-to-asu-arena-nhl.html
I think that the only “confusion” is the thinking by the City of Tempe council that this sham of a proposal will be a money maker.
Whatever the commissioners say they will get attacked