Category: Pawtucket USL team

Friday roundup: Opposition builds (somewhat) to sports subsidy plans in Virginia, Kansas City, elsewhere

access_time personNeil deMause

It’s been a rough week, what with new stadium demands dropping every couple of hours, half of them from Jerry Reinsdorf. But there have also been signs of new organized opposition from all corners, some of them involving heavy hitters:

  • The Northern Virginia AFL-CIO came out against the proposed Washington Capitals and Wizards arena in Alexandria after being unable to reach an agreement with the teams and the state on whether a hotel that would be part of the $2 billion project would employ union workers. “If they’re against it, then the arena deal is probably going to have a very difficult time,” remarked Virginia House Speaker Don L. Scott Jr. afterwards, as the arena bill heads for reconciliation talks between the house, which passed it, and the senate, which didn’t even give it a hearing. “If it dies, it dies.”
  • Virginia state Sen. Louise Lucas, meanwhile, upped the ante on her opposition to Alexandria arena plans, challenging D.C. Mayor Muriel Bowser on Twitter to “compete by both offering $0 in taxpayer dollars to these teams and let them decide where they want to pay to build their own arena.” (Bowser’s account did not respond, unless this counts.) Former Alexandria mayor Allison Silberberg, who is part of the Coalition to Stop the Potomac Yard Arena campaign, was so pleased that she brought Lucas a cake.
  • After the Kansas City renters’ group KC Tenants came out against the upcoming April 2 referendum to renew Jackson County’s 0.375% sales tax surcharge and give the money to Royals owner John Sherman as part of a potential $1 billion in public money for a new downtown stadium, calling it “$167 per household, per year, all to pay for a playground for the wealthy and for tourists,” a group of city residents have formed the Committee Against New Royals Stadium Taxes to likewise oppose the tax hike. The group has “little to no money in its bank account,” according to the Kansas City Star’s account of campaign manager Tim Smith’s characterization, but it does have a parked domain name and its organizers are members of the extremely active Save Kauffman (Royals) Stadium at Truman Sports Complex Facebook group, which is a recommended follow if you want to see how extremely angry many Kansas City residents, and Royals fans, are about this whole state of affairs.
  • Arthur Acolin, a real estate economics professor at the University of Washington, released a three-page report on the proposed downtown Philadelphia 76ers arena that found that disruptions to existing businesses during construction and operation could cost the city and state between $260 million and $1 billion in lost tax revenues. The math is a little rough — it looks like Acolin just added up all the economic activity in the area of the proposed arena and calculated what would happen if it fell by sample round numbers — but as he writes, “the 76ers have provided nowhere near this level of details nor any of the analysis behind their figures.” It was enough to get the 76ers to respond by calling the report “fatally flawed” and “another attempt by those who oppose the project to obfuscate the truth by pumping out misinformation and half-baked theories instead of engaging in productive dialogue,” in a CBS News article that repeatedly refers to Acolin as “Albert Alcoin,” which should get all their copy editors immediately fired, if they had copy editors, which they probably don’t.
  • Arizona Republic sportswriter Greg Moore wrote a column about Diamondbacks owner Ken Kendrick’s threat to leave town if he doesn’t get public stadium money that includes the subhead “I don’t like bullies,” and really the rest of the column is just icing on that four-word cake.
  • I brought my mighty rhetorical weight to the airwaves, or at least the internetwaves, by going on the Sox Machine podcast to talk about why giving Reinsdorf $1.7 billion in tax money for a new Chicago White Sox stadium development (since upped to $2 billion) would be crazytown.

So that’s it, then, the tide is finally turning, and maybe soon we can all stop pushing this damn rock back up this damn hill day after day? Hahaha of course not, the forces of vacuuming up money and giving it to rich people so they can have more money (because that’s what makes them rich people) continue unabated:

  • The Utah legislature advanced a bill to hike sales taxes in Salt Lake City by 0.5% to generate $1 billion for an arena for a nonexistent NHL team, with the backing of Mayor Erin Mendenhall. This would be on top of $600 million or more in proposed hotel tax hikes to help pay for a stadium for a nonexistent MLB team. Hockey bill sponsor state Sen. Dan McCay denied that this was giving in to threats by the Jazz ownership that they could move out of the city limits without a new subsidized arena, then added, “you’d hate to see downtown lose the sporting opportunities they have now,” so, yeah.
  • Chicago Mayor Brandon Johnson delivered up a fresh bowl of word salad about whether he’ll endorse city money being used for a new White Sox stadium: “As far as public dollars, we haven’t gotten into any of those specifics just yet. But I will say that we’re gonna explore all options. … Everything is on the table here. But again, I want to make sure that there’s a real commitment to public use and public benefit. … There’s no guarantee that they’ll get it from the city. What I’ve said repeatedly is that we need to make sure that our investments have real public benefit and that there has to be a commitment to public use. Those conversations are being had, and there are some promising developments that eventually we’ll be able to talk about out loud.” He has it right here on this list…
  • The new $27 million Rhode Island F.C. soccer stadium in Pawtucket will now cost state taxpayers $132 million over 30 years, because the Pawtucket Redevelopment Agency got a terrible bond rate. State commerce secretary Liz Tanner defended the pricey borrowing by pointing out that even though the state legislature could have just appropriated the money and saved taxpayers a ton of interest payments, “there would’ve been a level of uncertainty without knowing whether the legislature was going to pass those dollars or not,” and we can’t have that, now can we?
  • The Dodger Stadium gondola project — surely you remember the Dodger Stadium gondola project — lurched forward again on Thursday when the Metro Board of Directors signed off on its environmental impact report. The gondola still needs approval from the city of Los Angeles and parks and transit officials, plus to figure out who exactly will pay for its potential $500 million price tag, but if nothing else it lives to gondola another day.
  • Oakland A’s owner John Fisher is reportedly focused on staying in Oakland until a new Las Vegas stadium is open in 2028, and also Sacramento is the frontrunner to be the temporary home of the A’s, this is way too blind-men-and-the-elephant for me, maybe let’s all calm down about the latest rumors you heard, guys.
  • And in non-sports news, Louisiana Gov. Jeff Landry defended signing a bill to remove the requirement that recipients of state development subsidies report how many jobs they’ll be creating, because “this program is about capital investment. It is not about job creating.” Just gonna sit here and let that roll around in my brain for a while, have a great weekend and see you back here Monday!

 

Share this post:

Friday roundup: Bears set arbitrary stadium deadline, A’s now have three different sets of stadium renderings they won’t show you

access_time personNeil deMause

A reporter asked me this week if I thought there was one particular thing driving the current wave of stadium and arena demands, and I said not really, though there are a few factors influencing it — lots of ’90s stadiums hitting the end of 30-year leases, local governments feeling a little more flush thanks to federal infrastructure and COVID relief money, baseball teams rushing to get deals in place before expansion takes move threat targets out of play. But at the same time, man is the sports subsidy news ever a firehose right now: This site is seeing multiple posts a day right now, and still I feel like I’m leaving more news than ever for the Friday roundups.

Which is all fine and good and I’m happy to do it, it can just be a little exhausting to write. If it’s not too exhausting to read as well, and you want to throw some additional coins in the tip jar to help me shoulder this increased workload, that’s always appreciated. I’m sure things will die down some once we get to the end of various legislative sessions in the spring and early summer, but right now we should all be taking our vitamins to keep our stamina up.

And speaking of the firehose, let’s turn it on and get blasted:

  • Chicago Bears CEO Kevin Warren says as far as a new stadium goes, “the timeline has to be in 2024,” adding, “Time is money. It takes probably three years once you put a shovel in the ground. ’24 should be the focal point.” Oh hey, it’s our old friend the Two-Minute Warning from the standard stadium playbook! As is de rigueur, Warren did not indicate what would happen if his team didn’t get a new stadium approved in 2024, but given that right now he doesn’t have a lot of viable alternatives, I’d wager that holding his breath until he turns blue is not off the table.
  • And speaking of arbitrary deadlines, St. Petersburg is pushing back a council vote on Tampa Bay Rays stadium funding until May, so there’s enough time for committee meetings first. Rays president Brian Auld warned back in October that “any delay is going to fundamentally alter the entire agreement”; nothing yet from Auld on whether he has a problem with this delay now, but given that it looks like relatively smooth sailing right now for Rays owner Stuart Sternberg to get a potential $1.5 billion in public cash, I’m expecting he won’t complain too much about waiting a few extra weeks for the check to arrive.
  • MGM Resorts International CEO Bill Hornbuckle, who previously said he had seen the mythical Oakland A’s Las Vegas stadium renderings and that they were “spectacular,” now says he’s seen three different versions of where the stadium would go on the current Tropicana resort site, and it’s holding up his plans to renovate his resort across the street until he sees the final design. “I have to believe, in the next 30 to 60 days, we should find out more,” Hornbuckle said; maybe he has to believe it in order to sleep at night, but with the stadium renderings now overdue by two and a half months and counting, we are under no such obligation.
  • The meeting between A’s execs and Oakland officials about a potential short-term lease extension at the Coliseum were “really positive” according to an unnamed team official and “very open and frank” according to Alameda County supervisor David Haubert, who added, “No food fights.” I read somewhere that I can’t find now that the whole thing only lasted about 30 minutes; more meetings are expected, at which there should be plenty of time for food fights.
  • For the many of you expecting Joe Lacob to ride to the rescue and buy the A’s from Fisher and keep them in Oakland, Lacob has an update of sorts: “I’ve not checked in recently. It’s his team. If he decides he wants to sell, he knows who to call, that’s all I’ll say. We might be interested, obviously. We’ve said we were interested in the past. But I don’t think he’s doing that. I think he’s very committed to continue to own the franchise. Looks like he’s committed to Las Vegas. We’re always there. But I’m not calling anybody, it’s his team. I want to stay out of the way. We’ll cross that bridge if it or another team comes available.” Read those tea leaves as you prefer.
  • Jacksonville mayor’s office lead negotiator Mike Weinstein says Mayor Donna Deegan is considering paying the public’s share of $2 billion in Jaguars stadium upgrades by using money in the city’s pension funds, which would be repaid by (scroll, scroll) nope, he didn’t say how, so this is very much the equivalent of explaining how you’ll afford a new purchase to your spouse with “I’ll put it on our credit card.” Note to First Coast News headline writers: This is not what “paying for” means.
  • Virginia state Sen. Louise Lucas says her finance and appropriations committee will “absolutely” strip funding for the proposed Alexandria arena for the Washington Wizards and Capitals from a 2024 budget bill: “I’m not changing my mind.” We certainly seem headed for a scenario where the state house approves an arena bill while the state senate does not, though there’s still lots of speculation that Senate Democrats are just haggling over their price, possibly for cannabis legalization, an increased minimum wage, more affordable housing, or possibly a pony.
  • An analysis of the Virginia arena deal by the D.C. city council, which obviously isn’t impartial, estimates that it would actually cost taxpayers more than $5 billion counting maintenance and debt service. That’s not entirely fair since a bunch of that money would be paid out in the far future — it’s the old fallacy of calculating how much your house costs by adding up all your mortgage payments over 30 years — but the report does note that the arena plan includes a publicly covered $12 million a year repairs slush fund that would grow at 2% a year, so that’s maybe another $250 million in cost that hasn’t been accounted for by the first $1 billion or so in public money, add it to the list.
  • Another stadium playbook standard is the Home Field Disadvantage, claiming that the old place is just too decrepit ever to stack up with modern buildings, and the Kansas City Royals deployed that one this week, having Populous stadium designer Earl Santee say it’s “just not feasible” and “not realistic” to renovate the team’s current stadium, on account of it having what’s called “concrete cancer.” Oh, really, Earl? This didn’t come up when the Royals stadium was just renovated last decade? Do you have an engineering report to show us, or a price tag on what it would cost to subject Kauffman Stadium to concrete chemotherapy? Hello, Earl, we have followup questions! Earl!
  • Buffalo Bills execs say that their new stadium will have a steeper upper deck that will allow it to bring fans closer to the field, so that, in WGRZ-TV’s words, “fans who sit in the last row of the general concourse will be 54 feet closer to the field than they are at the current stadium.” Yes, that’s how geometry works, and yay for them for applying it — except that the old stadium holds 71,608 fans and the new one will hold only 62,000, so really a lot of the improvement is just from lopping off the farthest 10,000 seats, so not so yay after all.
  • The city of Pawtucket sold $54 million worth of bonds last week to fund a new Rhode Island F.C. stadium, and while that’s a lot for a minor-league soccer stadium and double what taxpayers were supposed to be on the hook for less than a year ago, perhaps most alarming is the news that the bonds were sold at “a yield of 8.24%, equivalent to almost 14% on taxable securities.” Nothing tops off massive public cost overruns like the worst interest rate imaginable, that’s what I always say!
  • I was on the radio in Chicago this week to talk about the new White Sox and Bears stadium proposals, and props to WBBM’s Rick Gregg for leading with my juiciest quote: “I think we went in fairly skeptical, and we came out of our research horrified.” Click the link above to give it a listen, and have a good long weekend for those who celebrate!
Share this post:

Friday roundup: O’s owner still wants land atop $600m in state cash, Chuck Schumer lurves the Bills, plus fresh bonkers Titans renderings

access_time personNeil deMause

And here we arrive again at the end of another programming week. It’s a bit demoralizing that this is the slow season for stadium and arena news — no legislatures in session, lots of people on vacation — and yet the news watch is as busy as ever. I’m a little afraid of what’ll happen in September, but we’ll cross that bridge when we come to it.

Meanwhile, here’s what else has been happening:

  • Maryland Gov. Wes Moore, while visiting Baltimore Ravens training camp and wearing a Ravens jersey, because that’s how elected officials roll, announced that he and Baltimore Orioles owner John Angelos have resumed talks over a lease extension. The Athletic’s Ken Rosenthal says the remaining sticking point is that Angelos wants, in addition to $600 million in state renovation money that was already approved, development rights to land around Camden Yards, even though there isn’t really much undeveloped land available. (Which we’ve known since February, really, but it’s nice to get confirmation from The New York Times’ proposed scab sports section.) And Angelos might not get away with it, too, if only because he keeps stepping on rakes.
  • New Tennessee Titans stadium renderings! And it’s a video! Set to a pop cover of Johnny Cash’s “Ring of Fire” for some reason! With children playing jumprope and computer animated people doing rock guitar moves in the concession concourses? USA Today’s Titans Wire, which is no doubt an unbiased source, calls it “just well done overall”; it certainly burns, burns, burns, so the soundtrack was well chosen in that way.
  • U.S. Sen. Chuck Schumer tells the Daily News of Batavia that he has told Buffalo Bills co-owner Terry Pegula to call him whenever he needs something, and “every so often they do, about one thing or another,” and also that he has confidence the new Bills stadium will be built despite cost overruns and “it’s got to be built soon because, you know, the existing stadium is old,” and also he was “furious and frantic” when he thought the Bills might move and “did everything I could to keep the Bills in Buffalo.” The Daily News of Batavia does not appear to have asked Schumer if he thought $1 billion in public money was a fair price to pay for this, and Schumer ran unopposed in last year’s Democratic primary, so democracy is just working well all around.
  • The developers behind Pawtucket’s stalled Rhode Island F.C. soccer stadium say they have finally found money to finish the project, and will restart construction “in the near future.” The city and state still need to sign off on resuming the plan.
  • Don’t like the Philadelphia 76ers owners’ plans to build an arena on a failing mall next to the city’s Chinatown? What if they added a 20-story apartment building with 20% of the units “affordable” (no specifics provided on to which income group), or at least pictures of one?
  • Bronx cricket leagues officially hate the proposed temporary T20 World Cup stadium that would displace their public cricket fields for next year. “You know, you don’t want to come into a community and just throw things down their throat,” said Curtis Clarke, president of the New York Masters Cricket Association, who clearly doesn’t have a good handle on what sports leagues very much do want.
  • No, it won’t.
  • I have not yet had time to read Brad Humphreys and Jane Ruseski’s paper that found that flu deaths rise when a city gets a new major-league sports team, but the fact that the NHL saw the largest effect — a 24.6% increase — checks out when you consider that the league plays in indoor arenas during flu season in disproportionately cold parts of North America. Good thing we all learned from the Atalanta superspreader event and put in place protocols to reduce viral spread at sporting events by … no? Well, maybe next pandemic.
Share this post:

Friday roundup: Commanders buyers’ $500m tax writeoff, SF soccer stadium surprise, commissioners gonna commissioner

access_time personNeil deMause

Can you believe we got through almost an entire week without talking about the Oakland A’s and their planned Las Vegas stadium and its path through the Nevada legislature? I already miss that crazy cast of characters: For-the-Record Jeremy Aguero, the relentless tweeters of the Nevada Independent, the blue recess screen. Yes, they botched the ending, but we’ll always have the memories.

And we’ll always have the future, where we’re going to spend the rest of our lives. Which will be the next stadium drama to become a breakout hit? You make the call:

  • Josh Harris and his friends will get a potential half-billion-dollar tax writeoff for their $6 billion purchase of the Washington Commanders, and while I don’t totally understand Mike Ozanian’s explanation of how it will work — something about amortizing part of the purchase price as being for “intangible assets” — I hope it has something to do with the Bill Veeck depreciation dodge, because that’s a great story worth revisiting.
  • San Francisco Mayor London Breed, in the middle of answering a question of whether her city is in the midst of an urban “doom loop” (spoiler: it’s not) by saying, “we could even tear down the whole [Westfield Mall] and build a whole new soccer stadium,” which is an interesting idea not least because San Francisco doesn’t have a soccer team in need of a stadium (it has the lower-division San Francisco F.C., but its owners haven’t been pushing for a new home), while nearby San Jose already does. Mayor Breed, I have some followup questions, oh crap, she’s gone already.
  • NHL commissioner Gary Bettman “provided an update” on the Arizona Coyotes’ arena situation yesterday, and it is: “They’re in the process of exploring the alternatives that they have in the Greater Phoenix Area.” Does it actually count as an update when you’re just saying the same thing everyone already knew? Discuss.
  • Time magazine asked MLB commissioner Rob Manfred about why a Las Vegas A’s stadium should get public financing, and the faux-pas-missioner replied, “I have read obviously peoples’ arguments about public financing. There’s an equal number of scholars on the opposite side of that issue,” which, I’m sorry, what? Is this one of those dark matter things, where there are thousands of economists who think that public stadium funding is a good idea, they’re just invisible? Mr. Manfred, I have some followup — oh crap.
  • Nashville journalist Justin Hayes unearthed some emails between the Nashville mayor’s office and the Tennessean over the paper’s coverage of the Titans stadium deal, and they’re a gold mine of showing how the media sausages are made: My favorite bit is where the mayor’s communications chief asks for “two half sentences” to be inserted into an article to counter “the vocal echo-chamber of folks who are reflexively negative,” which it’s fair to say he eventually got and then some.
  • Construction has stopped on Pawtucket’s half-finished Rhode Island F.C. soccer stadium after developers ran out of money, and one can only hope that the city will be left with a ruin half as impressive as Valencia’s.
  • More on U.S. Rep. Barbara Lee’s proposed Moneyball Act, which would apparently require any baseball team that moves more than 25 miles to pay its former host city and state “not less than the State, local and or Tribal tax revenue levied in the ten years prior to the date of relocation,” or else baseball would lose its antitrust exemption. That’s a kind of arbitrary and vaguely defined price to hold over MLB’s head, but arbitrary and vaguely defined is probably good enough for government work that is never, ever going to pass anyway.
  • If you’re really jonesing to hear me go on and on about the A’s again, check out my appearance yesterday on KPFA, which should ease your withdrawal symptoms. I did not provide any updates, but we did cover a lot of ground, including the enduring question of what John Fisher is thinking spending $1 billion to move his team to what would be MLB’s smallest stadium in its smallest TV market.
Share this post:

Friday roundup: Milwaukee County votes no on Brewers subsidy, Coyotes predicted to be moving everywhere and nowhere at once

access_time personNeil deMause

Happy May 26, the last day for stadium legislation to be introduced in the Nevada legislature, unless of course they wait till tomorrow. I’ll be keeping an eye out for any bills popping up, but in the meantime there’s lots of other news to occupy us:

Share this post:

Friday roundup: More funny numbers on A’s-to-Vegas, Browns stadium renovations, and the economic impact of Peanuts

access_time personNeil deMause

I don’t know what got into this week, but it seems like everything at once suffered rapid unscheduled disassembly: We had Wisconsin elected officials squabbling over which exact $350 million to give to the owner of the Milwaukee Brewers, an endless back-and-forth between economic analysts over whether a new Arizona Coyotes arena would be a revenue boon to Tempe or a money pit, a car dealer announcing he was going to build a $2 billion hockey arena on Atlanta’s far northern outskirts for an NHL team that doesn’t exist, Nashville rolling back a rent hike it had just approved for the Tennessee Titans because “competitive potential,” Erie County giving the Buffalo Bills owners total control over their community benefits spending so they could earn a tax break for it, and, last but by no means least, Oakland A’s execs declaring that the team was now fully focused on a new stadium in Las Vegas that would involve more than $500 million in public money, burning (maybe unintentionally?) its bridges in Oakland in the process when Mayor Sheng Thao immediately cut off talks for a new stadium there, declaring, “I am not interested in continuing to play that game.”

With a news week like that, surely nothing else happened of note, right? I wish — then I could have slept in this morning. But events just keep on occurring, so let’s get to the rest of the list before anything else blows up:

  • Speaking of the Las Vegas A’s plans, A’s president/registered Nevada lobbyist Dave Kaval declared that 70% of ticket sales would be expected to be locals, while hired economist (ed. note: not actually an economist) Jeremy Aguero of Applied Analysis said the A’s would draw about 400,000 new visitors to Vegas each year. Let’s see how the math checks out on that: If a new A’s stadium were to hold 35,000 people as planned, that’s a maximum of 2,835,000 attendees a year even if they sell out every game. If 30% of those are out-of-towners, that’s 850,000 people — meaning the A’s would have to produce perpetual sellouts and have half their tourist fans come to Vegas specifically to see baseball for those numbers to make any sense at all. Given that there’s no sign that Florida spring training, to pick one example, brings any measurable number of new visitors, and that Vegas is an even bigger tourist draw already than Florida in March, this might just be a slight overestimate — the first of many in the coming campaign for public stadium funds in Vegas, I’m sure!
  • If the A’s do leave Oakland, the owner of the USL Oakland Roots and USL W Oakland Soul wants to build a temporary soccer stadium in the Oakland Coliseum parking lot. No details on size or cost or funding, but it is projected to last ten years, at which point the Roots and Soul will presumably threaten to move to Las Vegas.
  • Cleveland Mayor Justin Bibb says he won’t use “general new fund dollars” for renovations to the Cleveland Browns stadium but rather will “be creative.” Will this mean tax kickbacks that are diverted before they ever hit the general fund, on the Casino Night Principle? Will it mean asking the county and state for money from their general funds instead? Bibb didn’t provide spoilers, but we’ve all seen this movie before.
  • If you were worried that the Memphis Grizzlies owners would really lose state subsidies because Memphis reinstated a state legislator who the state legislature had tried to throw out, nope, the state legislature went and approved the subsidies anyway. How much of the $350 million in state money will go to Grizzlies arena upgrades and how much to the University of Memphis’ stadium will be “released by the city at a later date.”
  • Charlie Brown should’ve demanded a new stadium for his baseball team.
  • And finally, I’m going to be on WPRO radio in Rhode Island tomorrow at noon to discuss none of the above (well, maybe Charlie Brown), but rather the Pawtucket USL stadium plans that are rapidly falling apart. Listen in here, and learn whether I sound energized or half-dead or just Weltschmertzig after a week like this.

 

 

Share this post:

Pawtucket may nix $124m USL stadium after it turns out money does not in fact grow on trees

access_time personNeil deMause

Some news about the $124 million USL soccer stadium that Pawtucket is putting more than $80 million into after being jilted by its minor-league baseball team when Worcester came calling with plans to build a $160 million stadium that looks like a shipping container: It now may not be built at all. And while you might hope that’s because Rhode Island officials came to their senses that trying to pay off $2.1 million a year in construction debt payments with $565,000 a year in tax revenues was a terrible idea, it’s actually more boring reasons like rising interest rates and the private developer partners turning out not to have the money they said they would have:

City officials are hitting the pause button on issuing $27 million in public bonds to help fund the 10,000-seat stadium, saying uncertain financial conditions have so far prevented them from pulling the trigger.

There is currently no timeline for when the deal will close, city officials said.

“The city’s top priority has always been protecting taxpayers,” Pawtucket spokesperson Grace Voll said in a statement, confirming the initial goal was to issue the bonds by February.

“Given the market challenges of the last year, including a global pandemic, rising interest rates, tighter market conditions, and a looming banking crisis, the state financing and private debt components of the capital stack have not made fiscal sense to close to the date,” she added.

That’s a long list of financial things, so let’s break it down a little. Interest rates are indeed soaring, because the Federal Reserve is trying to bring down the price of eggs by getting more people laid off. A bigger problem, though, appears to be that it turns out twin brothers Grant and Brett Johnson, the private developers who are supposed to put $50 million into the project, don’t actually have $50 million: As of last month they were still pitching potential investors on putting money into the project, and they just missed a deadline for ordering $25 million in steel that was needed to have the stadium open by next spring. (The developers issued a statement saying, “Like any startup venture, this project is in a perpetual investor raise,” which was presumably meant to be reassuring.) The Johnsons also have yet to propose what the project’s housing portion would look like, or how it would be paid for.

The Johnsons have put $25 million of their own money into the project, and have broken ground (which, according to WPRI-TV footage, mostly seems to involve moving lots of gravel around), so there is some momentum for something to get built, anyway. But bigger projects have been left started but unfinished, so one never knows. The traditional fallback, in the U.S. anyway, when private partners run short of cash is for the government to bail them out with even more public money, so it’s encouraging that Rhode Island and Pawtucket seem to be slamming on the brakes — it still won’t make up for all the work that has gone into backing this screwy project in the first place, but at least it’s better than throwing good money after bad.

Share this post:

Friday roundup: Half-price books make great holiday presents for elected officials who can’t math

access_time personNeil deMause

For those of you who actually spend your Thanksgiving Fridays reading Field of Schemes, here’s a special bonus: If Rob Neyer’s Facebook page can be believed (and it’s never lied to me before), University of Nebraska Press is having a 50% off sale through the end of the year. That means that by entering the discount code 6HLW22 you can get Field of Schemes the book for just $11.48, or lots of other great sports (and non-sports) books for yourself, your family and friends, or that special city councilmember in your life. Buy now and buy often!

And if you just want the usual free weekly content, there’s plenty of that as well:

  • Nashville held its first of four public hearings on the Tennessee Titans‘ proposed $2.1 billion stadium deal on Monday, with the Tennessean reporting that speakers were about evenly split on whether they were opposed or in favor. (Advocates on both sides called for residents to come out and testify, so it was hardly an unscientific poll.) Also, according to WZTV-TV, Metro Nashville councilmember Courtney Johnston said the team owners still haven’t revealed how much it would cost for the city to maintain the current stadium to the terms of its lease instead of building new, but “it’s time to move forward” and “I’m not going to waste any more energy trying to find out what are we obligated to because we can’t afford it.” Just to be clear: Yes, she’s saying Nashville can’t afford renovation expenses that could be around $350 million, so instead must spend $1.2 billion for a new stadium. And no, cannabis isn’t legal yet in Tennessee, that can’t be the explanation.
  • In related news, let’s enjoy this guy taking to the smoking ruins of Twitter to attack sports economist J.C. Bradbury for critiquing the Titans deal without revealing his “sources of funding” and “the masters you serve that hate all Stadium deals.” Then let’s enjoy that said guy doesn’t mention that his school sports funding nonprofit gets money from the Titans. It’s not irony, it’s the other one.
  • With Pawtucket running short of local tax money to pay for its proposed USL soccer stadium as construction costs rise, local elected officials have come up with a new idea: use federal COVID relief money instead. Dylan Zelazo, the city’s chief of director of administration, told the Pawtucket city council on Tuesday that using American Rescue Plan Act and Community Development Block Grant funds to pay for $10 million in new public costs would allow stadium taxes to instead be used for the money from the stadium taxes can go directly into the city’s general fund to be spent on “relief for taxpayers [or] other city services,” which, uh, couldn’t the federal money have been used for that otherwise? Or been used to pay for other things that the city then wouldn’t have to spend local tax dollars on, which it could then use for tax cuts or city services? Anyway, expect lots more cities to take their federal windfall dollars and pour them into private sports projects so long as the feds don’t pay too close attention to how they spend it, and it sure seems like the feds aren’t keeping too close a watch.
  • Kansas City Chiefs president Mark Donovan says the team hasn’t yet decided how the Royals moving to a new downtown stadium would affect his team’s stadium plans for when their lease expires in 2031, but did say he’ll be “starting work [on stadium plans] in ‘24, if not before,” so there’s something to look forward to.
  • Pat Garofalo has collected a set of dumb headlines about how much the World Cup helps the economies of host cities and the economic evidence that those headlines are dumb so we don’t have to, thanks, Pat!
  • St. Louis area government bodies have agreed on how to split the $790 million from Los Angeles Rams owner Stan Kroenke and the NFL for skipping town with the Rams without going through the required league relocation process: The city will get $250 million, the county will get $169 million, the local sports authority will get $70 million, and the convention board will get $30 million. No, you are correct, that’s not $790 million, but it’s what’s left after $275 million in attorney’s fees, file this under “a lot better than nothing.”
  • The former Meadowlands Arena, driven out of business by arena glut in the New York-New Jersey area, has apparently found a second life as a film production studio. That’s encouraging that it can be reused without anyone demanding more public subsidies — or would be if New Jersey Gov. Phil Murphy didn’t just provide a huge pile of new tax kickbacks for film production, sigh. Did New Jersey Sports & Exposition Authority president Vincent Prieto argue that it’s worth it because the film production “really helps the economy with the local businesses” around an arena literally named for being built in the middle of a swamp? Do you even have to ask?
Share this post:

Plague of minor-league soccer stadium subsidy demands reaches pandemic proportions

access_time personNeil deMause

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.

Share this post:

Rhode Island reveals Pawtucket soccer TIF would leave taxpayers with ocean of unpaid stadium debt

access_time personNeil deMause

Rhode Island’s plan to replace the departed Pawtucket Red Sox with a USL soccer team has gotten a fair bit of attention for its soaring costs, which led the state to take money intended for surrounding development and spend it on stadium construction instead. But what about the revenue side of things? How sure are state officials that projected tax revenue streams from a tax increment financing district will pay off the public’s $2.1 million in annual construction debt payments?

Welp:

Initially, Commerce also said an economic and financial report put together by a sports stadium consulting firm, CLS, wouldn’t be released without an Access to Public Records Act review. But amid growing criticism last week, state officials reversed course and released the document, which among other details showed for the first time how much state revenue the stadium is projected to generate. (Year one will net $565,000; year 30 will net $1.4 million).

I don’t have my calculator open, but I’m pretty sure $565,000 and $1.4 million are both considerably less than $2.1 million. Meaning that extra money will have to come from somewhere, which WPRI reveals would be:

The shortfall in stadium-specific revenue means officials will need to use existing tax revenue generated in the TIF district to cover the rest of the bond payment for the project. Consultants for Pawtucket officials say that shouldn’t be a problem, since the TIF district currently generates about $6 million in state revenue each year without the stadium.

That’s right: The TIF district, whose entire selling point is that it only uses the tax increment that is attributable (in theory, at least) to the new construction, would also get to use tax revenues that the state is already getting. And a whole lot of tax revenues, given that the TIF district is set to cover an area way, way, larger than just the immediate vicinity of the soccer stadium:

Former state commerce secretary and current state treasurer candidate Stefan Pryor, who promised in 2019 that  the stadium project “will pay for itself,” said in a debate on WPRI that it still might, maybe, if additional phases of development are added — though those would likely require more public subsidies.

There’s still a chance Rhode Island could pull the plug on this whole project depending on who wins the gubernatorial election this fall, which may not be current Gov. Dan McKee, given that he currently has the lowest approval rating of any U.S. governor. Though his leading challengers, Nellie Gorbea and Helena Foulkes, both say they support the project but just want to figure out a different way to pay for it, which, good luck with that. Pete Townshend did warn us.

Share this post: