Friday roundup: Everyone’s building soccer stadiums, no one’s sure how to pay for them

This was a rough week for anyone in the U.S. who is an immigrant or looks like they might be, is trans, might ever need an abortion, is Palestinian, is a federal government employee, is a local government employee, is an employee of anything that depends on international trade, lives near sea level or in places that get hot or are at risk of hurricanes, likes democracy, or cares about a relative, friend, or neighbor who does. Not that it would have been an amazing week for most of those people if the presidential election results had gone another way, but a whole lot of folks are somewhere on the spectrum from anxious to terrified right now, so if you need to check in with each other right now before getting back to life as we know it, that’s not only reasonable, it’s a fine tradition.

And now, whenever you’re ready, back to sports stadium and arena life as we know it:

  • The owners of Sacramento Republic F.C., who now include the Wilton Rancheria Native American tribe by are still led by minority owner Kevin Nagle, announced plans for a new stadium, and almost none of the news coverage bothered to provide details of how it would be paid for, even those that reported on how it was announced to the tune of “Don’t Stop Believin’.” Finally, way at the bottom of a KCRA-TV report, we learn that the city of Sacramento is expected to put up $92 million in infrastructure money from property taxes on 220 acres surrounding the stadium, plus provide free police, fire, EMS, traffic, and other services for the next ten years. The city council is set to vote on the plan Tuesday, so that leaves three whole days to gather feedback, two of which are weekend days and the third is a holiday when city offices are closed, this is fine.
  • Bridgeport is considering a minor-league soccer stadium that would cost at least $75 million and which would likely include public funds, and Baltimore is considering a minor-league soccer stadium with no known price tag or details on how to pay for it, and Fort Wayne is considering a minor-league soccer stadium that is promised will be “100% privately financed” but we’ve heard that before.
  • Cleveland and Cuyahogo County are continuing to look for ways to fill their budget gap for paying for future upgrades for the Guardians and Cavaliers, and county executive Chris Ronayne says options are “not yet concrete” because “it’s a conversation that’s probably also going to have to include the public.” Signal Cleveland speculates that this could include going back to voters to approve another tax increase, unless Clevelanders go back to drinking and smoking at their old rates, which might not be as likely as you would think.
  • Nearly 95% of campaign donations by U.S. sports team owners went to Republican candidates or causes, according to a Guardian review of donor filings, which, duh, Charles Barkley could have told you that.
  • How are Inglewood business owners around the Los Angeles Rams‘ new stadium and Los Angeles Clippers‘ new arena loving all the new foot traffic? Not so much! “One of my lowest sales days was on Super Bowl Sunday” because of street closures, said a local bakery owner at a press conference this week. “I literally made under $600 for the day. I had to send employees home, and you’re just looking around like, ‘What in the world?'” Checks out!
  • Did a major news site just run an item reporting wild economic impact projections for a proposed Buffalo soccer stadium without saying who conducted the study, while the byline partly credits a City Hall press release? Sure did! Please give to support your independent nonprofit or collectively owned news media, we might just be needing them the next year or four.
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Plague of minor-league soccer stadium subsidy demands reaches pandemic proportions

Oh hey, USL press release about the ill-fated Pawtucket soccer stadium project, which utterly fails to mention either the metastasizing public costs or the fact that Rhode Island voters now oppose funding it by a 44-35% margin. Anything else in there of actual interest?

Tidewater Landing becomes one of five current stadium projects that are under construction in the USL Championship and USL League One, including one for a future USL Championship club in Des Moines, Iowa. There are another 11 stadium projects approved or in development across USL Championship and League One, following clubs such as Colorado Springs Switchbacks FC, Louisville City FC, Monterey Bay F.C., and Chattanooga Red Wolves SC, whose new homes have opened in recent years.

So, five stadiums under construction (or at least having had a groundbreaking, which lets Pawtucket qualify even though funding hasn’t gotten final approval) and 11 others “in development” — that’s rather a lot, even for a league that currently sports 38 teams across two levels in an attempt to take over the U.S. soccer world by sheer volume. The press release doesn’t specify which cities the USL is currently getting or seeking stadiums in, so with the help of the Field of Schemes archives and Reddit, let’s attempt a rundown in rough order of approvalness:

That’s 19 potential projects, though only maybe ten of them could be considered in progress, and for some of those you’d have to squint really hard. John Mozena of the Center for Economic Accountability, the people behind those excellent stickers, has a Twitter thread about this whole kerfuffle, in which he points out that sports stadiums, thanks to being closed and empty most of the time, have less economic impact than your typical supermarket or chain food store:

If there’s a silver lining to all this, it’s that most of the USL stadium campaigns appear to be spinning their wheels to various degrees. If there’s whatever is the opposite of a silver lining, it’s that none of the potential team owners are giving up, because why stop grabbing for that brass subsidy ring if you can maybe get tens of millions of dollars if you get lucky? Not sure if the USL qualifies as a Ponzi scheme yet, but it’s certainly striving to head in that direction.

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Friday roundup: More crazy stadium subsidy demands than can fit in one headline, you call this a lull?

Every couple of weeks, it seems, someone in the comments predicts that we are about to see the end of sports’ 30-year surge in stadium and arena subsidies, either because of Covid-depleted budgets or legislators smartening up or just everybody already having a new place. To which I say: If the stadium scam is slowing, why are my Friday mornings still so #$@&%*! busy?

Ahem. And now, the news:

  • A lawyer for the South Bend Cubs, saying the team owners were “shocked” to discover that a law allowing them to siphon off up to $650,000 a year in sales and income taxes for their own purposes had expired in 2018, has asked the state legislature to renew it. Oh, and also increase the cap to $2 million a year. You know, while they have the document open on their screens. “South Bend and every other city that has retained their relationship with Major League Baseball have to get to a certain level by 2025,” said attorney Richard Nussbaum. “If they don’t, they risk losing the team.” It’s an epidemic, I tells ya.
  • Speaking of which, Hudson Valley Renegades owner Jeff Goldklang got his $1.4 million in stadium renovation cash from Dutchess County, after emailing residents and fans warning them that the team could move if it was denied the subsidy.
  • Fort Wayne F.C., which I had to look up to be sure it actually exists and which turns out to be a “pre-professional” (much in the way that kids are “pre-adults”) USL League Two club, is seeking to move up to League One in 2023 and wants a $150 million soccer-stadium-plus-other-stuff project, to be paid for by mumble mumble hey look over there! It also features an instant classic in the field of fans-throwing-their-hands-skyward-while-fireworks-go-off-over-soccer-players-not-playing-anything-recognizable-as-soccer renderings, which is worth $150 million if it’s worth a dime:
  • The Oakland A’s owners (not the Oakland A’s, I still remember when I was an intern at The Nation Christopher Hitchens lecturing us on how one should always say “the U.S. government” and not “the U.S.” because just because the government approved something didn’t mean the populace did, but anyway) won their lawsuit to allow their Howard Terminal stadium project to have challenges to environmental impact reviews reviewed on a fast track, which is a big thing in California. “This is a critically important decision,” said A’s president Dave Kaval, who indicated he hopes the Oakland city council will be able to vote on a stadium bill this year, presumably after it’s figured out who the hell would pay for what.
  • Raleigh Mayor Mary-Ann Baldwin wants to talk about building a new hockey arena to keep the Carolina Hurricanes in town long-term — their “old” one opened just over 21 years ago — and Sougata Mukherjee, the editor-in-chief of the Triangle Business Journal, points out that maybe now is not the best time what with 7% of the state not having enough to eat, small businesses on the brink, and, oh yeah, a pandemic still going on. Cue Hurricanes execs or their political talking about how a new arena will mean “jobs” in three, two…
  • While we wait, here’s San Diego Union-Tribune sports columnist Bryce Miller saying that San Diego should build a new arena to lure a nonexistent NBA expansion franchise because it would be “catalytic.” In the sense of the Oxford dictionary’s sample sentence for meaning 1.1, maybe?
  • Twenty years ago this week, the Pittsburgh Pirates‘ and Steelers‘ Three Rivers Stadium was blowed up real good, only a little over 30 years after it was first opened. I went to a couple of games at Three Rivers over the years, and I agree with former Pirate Richie Hebner’s review that “the graveyard I work in during the offseason has more life than this place,” and the Pirates’ new stadium is one of my favorites. Still, it and the Steelers’ new stadium deserve the blame for popularizing tax kickbacks in the stadium financing world, after Pittsburgh voters passed a referendum barring any new tax money from going to new stadiums, and the state legislature responded by “loaning” the teams stadium money that would be “repaid” by taxes the state would be collecting anyway — prompting Pittsburgh state rep Thomas Petrone’s timeless comment: “It’s not a grant. It’s not a loan. It’s a groan.”
  • Phoenix restaurants are hoping that having partial attendance at Suns games will provide more happy hour customers, something that seems not only ambitious given the proven not-so-robust spinoff effects of sports stadiums, but also slightly heedless of whether it’s such a great idea to encourage basketball fans to congregate indoors and take their masks off to drink and then go directly to congregating indoors to watch the Suns. In entirely unrelated news, restaurants around the new Los Angeles Rams and Chargers stadium in Inglewood are afraid of being driven out of business by new high-priced options gravitating to serve well-heeled football fans.
  • Finally a partial explanation of how funding for that new Des Moines Menace soccer stadium would work: In addition to city funds, it would be up for state hotel-tax funds designated for projects that “improve the quality of life for Iowa residents.” Other projects proposed to dip into the hotel-tax pool include a Des Moines Buccaneers junior hockey arena, a private indoor amateur sports facility, and a new mall; is it just me, or does “quality of life” seem to have been interpreted as “ways to put money in the pockets of Iowa business barons”?
  • Hey, remember the $200 million highway interchange that Las Vegas is building, totally coincidentally, near the Raiders‘ new stadium? It is now a $273 million highway interchange. But the city needed to build it anyway, because traffic was too bad at the old interchange and, shh, don’t tell them.
  • Okay, here’s one way in which maybe the pandemic has delayed some stadium spending: The Baltimore Orioles owners have signed a two-year lease extension on Camden Yards, while also working with the Maryland Stadium Authority “to establish a new long-term agreement that includes upgrades to the facility,” according to WJZ-TV. So it’s possible some 2021 and 2022 sports subsidies will end up getting pushed back to 2023 or so — yay?
  • If you wanted a live webcam of construction on the new Knoxville stadium for the Tennessee Smokies that hasn’t even been approved yet, let alone started construction, the team’s new stadium promotion website has got you covered.
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