Liveblogging that giant Crain’s Chicago prize-bait package on public stadium funding

Crain’s Chicago Business dropped a giant package on publicly funded sports stadium projects this morning, replete with Snow Fall-style animations because that’s what wins awards even if it makes articles largely unreadable, and I only got as far as it asking the question “Is publicly financing stadiums and arenas good for a city?” and then answering itself “It depends” before I wanted to give up and go back to bed. But I feel an obligation to Read This Crap So You Don’t Have To, so let’s do a quick annotated spin throught the highlights, at least:

Teams asking for public funds often argue that building a stadium will lead to greater economic growth for the community, but is that the case? Good data is hard to come by and recent history suggests that sometimes it does spur growth, but other times it does not. Let’s look at two examples.

This is followed by a graphic comparing the Atlanta Braves‘ Truist Park to the Golden State Warriors‘ Chase Center, the latter of which didn’t actually use any public funds. And no information at all is provided for either example on whether it has “spurred growth,” so we’re off to a great start here.

Because stadium-building booms happen about every 25-30 years, it stands to reason that those with terms of more than two decades will still have debt on the books when they start to strategize for the next upgrade.

Uhhh, no, it’s not that stadium-building booms happen about every 25-30 years because of sunspot cycles or something, it’s that team owners typically only sign 30-year leases, so they start strategizing for new or renovated venues once they figure they have leverage to do so. (And quite often well before that.) Not that it really matters whether there’s debt remaining on old buildings when new ones start getting planned, because that’s just bookkeeping, but at least get your facts right.

The overwhelming majority of the 36 stadiums that have been built or had major renovations since 2003 with price tags of more than $575 million (the original budgeted cost of the 2003 Soldier Field renovation) have done so with at least some public funding, based on Crain’s research.

The slideshow of the 36 stadiums shows that the ten listed as “team did not use public funds” include the Dallas Cowboys and Atlanta Falcons stadiums, which used $350 million and $700 million in public funds respectively, so I have some questions about that Crain’s research (which doesn’t provide its sources).

The structure of stadium deals varies so significantly that experts say it’s impossible to categorically state whether public funding is “good” or “bad.”

Really? You just cited J.C. Bradbury, who is one of several sports economists whose Twitter feeds are just endless streams of saying that evidence is overwhelming that public funding for stadium deals is unrelentingly bad — what “experts” disagree?

[Chicago Alderman Scott] Waguespack believes there are possible deals that could be beneficial for taxpayers, with such infrastructure as train stations, sidewalks and green spaces for public use in The 78, or bridges and sidewalks on the lakefront near the Museum Campus.

Waguespack 1) is not a stadium expert and 2) actually opposes Chicago Mayor Brandon Johnson’s White Sox stadium subsidy plan, citing Field of Schemes’ description of the proposal as “crazytown.”

There’s more, but I just can’t today, sorry — suffice to say you’re not missing much. There are also some accompanying articles that are more worth reading, including an essay by University of Chicago economist Allen Sanderson that resurfaces his quip that “There are only two things you never want to put on valuable property: a cemetery or a football field. Everything else is negotiable,” and a story on fresh poll numbers that show that 72% of Chicagoans want the Bears owners to pay for most or all of any new stadium. There’s still occasional good journalism out there in the world, but friends shouldn’t let friends read those giant stadium think pieces, life is way too short.

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Friday roundup: OKC mayor wants new Thunder arena because 22-year-old one is “getting older,” and other things to sigh deeply over

Before we even get to the bullet points, we need to start with this: Oklahoma City Mayor David Holt announced yesterday in his State of the City speech that he wants to build a new arena for the Thunder to replace their current one, which just turned 22 years old and is receiving a $100 million upgrade begun in 2011. The present building is “simply not what it used to be,” according to Holt, and  “will keep getting older,” which, yep, that’s how time works. “Seats get old, scoreboards get old, elevators break,” said Holt. Everything breaks, dunnit?

To help pay for a new arena, Holt wants to extend the 1% sales tax surcharge that paid for the old one and which is currently set to expire in 2028. Holt described this as “no tax increase will be necessary,” which is true if you mean that Oklahoma City residents won’t have to pay any more in taxes than they do now, but not true if you mean whether they’d have to pay more than they would if the Thunder were forced to continue to play in their aging more-than-two-decade-old arena instead of an aging new one.

The tax extension would at least require a public vote, as the original one did. Still, J.C. Bradbury has a point:

Nothing wrong with getting a new arena every year, so long as you’re not the one paying for it. And now, on to the week in bullet points:

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Friday roundup: Jays plan $¯\_(ツ)_/¯ in SkyDome renovations, figure it out yourself, journalism can’t help you

Happy Friday! I don’t know about you, but for me this was a great week: I got a new coffee mug, and also it’s now almost over! The week, I mean, not the mug. You’re smart, you probably figured that out already.

And now, how’s about some news:

  • The Toronto Blue Jays owners are planning $230 million in renovations to the stadium formerly known as SkyDome but now named for the team’s corporate owners, or maybe it’s $300 million in renovations, what is money, anyway, especially Canadian money? The CBC’s report says that the redo will include saying “goodbye to the nosebleeds,” as the top 500 level deck will be “completely removed and replaced with non-ticketed spaces,” and oh, here’s a rendering with the 500 level still very much visible, hmm. The stadium is owned by the Jays after Ontario built it and took a huge bath on it, so presumably the renovations will be funded by the team, though Jays president Mark Shapiro called this just a “medium-term solution,” so there’ll still be plenty of time to demand a new stadium later, don’t worry.
  • WPRI in Providence breaks down why Pawtucket’s new USL soccer stadium will cost taxpayers $60 milllion and not $45.5 million like its developers claim, which is helpful and all, except when you add up all the numbers it actually looks more like $80 million? ($46.2 million in state tax breaks, $10 million from the city, plus $27 million in additional money redirected from state infrastructure spending — yup, that’d be more than $80 million.) The fog of stadium wars is soupy indeed.
  • If the Philadelphia 76ers owners succeed in building their own Center City arena and no longer renting from the Flyers, “The companies that would benefit are Live Nation and AEG, because they would have two buildings in Philly to play off each other, so the rent expense would go down,” former Spectrum manager Ed Rubinstein tells Venues Now. “That’s the reason why we never wanted another arena built.” This would be the Sixers owners’ problem, on the one hand, but also Philly taxpayers’ problem if the idea of giving the Sixers arena a giant tax break would be to help the local economy when it would only end up shuffling concert spending around from one part of town to another.
  • There are new Tennessee Smokies stadium renderings, and — oh, come on, you’re not even trying! I get that the plans need to be downscaled some because the stadium is over budget, but at least you can afford some clip art fireworks or people playing random sports. Show some self-respect.
  • Somebody dug up this consulting report that everyone’s favorite economist-for-team-hire Andy Zimbalist did on mixed martial arts — okay, sure — and I must report that previous reporting that Zimbalist earns $225 an hour for his services is out of date: His “customary rate,” he wrote in the 2017 document, is actually $850 an hour. And that’s before any surcharges Zimbalist now imposes for supply-chain issues. Please draw your own conclusions as to whether that rate could be an incentive to report the findings that your client is hoping for, or at least look really hard for them.
  • Your occasional reminder that sports team owners don’t have a monopoly on getting billions of dollars in public money for no damn reason: Here’s a report on Kansas giving Panasonic $800 million in subsidies for a battery factory in exchange for a commitment of zero new jobs, and here’s Bernie Sanders talking about how a new bipartisan bill to compete with China on electronics somehow involves giving $76 billion to microchip companies. The New York Times called the latter “a remarkable and rare consensus in a polarized Congress,” which is both true and all too telling about what our elected representatives (and major newspapers) can agree on.
  • “It’s morally corrupt that new arenas for professional teams worth billions of dollars are majorly publicly funded — especially when the tax dollars could be going to other areas in the city in actual need of the money,” writes Norman Transcript sports reporter intern Clemente Almanza of devoting public dollars to a new Oklahoma City Thunder arena like the team’s owners want, “but” — you knew there was a “but” coming — “that comes with the territory of having a franchise. 18 of the 29 NBA arenas are owned by a government multiplicity” — he’s an intern, he can’t be expected to own a dictionary — and “losing the Thunder would cause catastrophic levels of damage that the state would never recover.” Um, you don’t want to recover the damage … hey, Norman Transcript, don’t you have any copy editors? No? I guess “let the intern sit down and keyboard out a column on why a new arena is necessary” is just how journalism goes these days — that coffee mug gets righter and righter every day.
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Poll of Americans on reopening stadiums shows why not to reopen stadiums based on polls

There is a very dumb journalistic tradition that will not die of “Let’s poll people about what they believe about purely factual things.” So you take a question that should be answered with reporting — say, whether climate change is an imminent crisis, or whether Saddam Hussein really had weapons of mass destruction — and then parse the responses as if they mean anything more than just a reification of the ideas that the media itself has been telling people. It is truly very, very dumb.

Today is Major League Baseball opening day, and so the question the Washington Post chose to ask random Americans is whether they would feel comfortable attending a live sporting event. The answer is a resounding “it depends”:

About two-thirds say they would feel comfortable attending an outdoor event such as baseball (66 percent), but fewer than half as many (32 percent) feel comfortable attending an indoor event such as basketball. Nearly 2 in 3 people (64 percent) say they would feel comfortable if all attendees were required to wear masks, compared with 22 percent who would feel comfortable if there was no mask requirement…

More say they would be comfortable attending a stadium limited to 20 percent capacity (69 percent “comfortable”) than 50 percent capacity (50 percent).

That is simultaneously unsurprising — being outdoors, masked, and distanced makes people feel safer — and utterly meaningless, for a couple of reasons. First off, the questions were all asked separately, so it was either “Do you feel safe at an outdoor event?” or “Do you feel safe if people are wearing masks?” or “Do you feel safe if you’ve been vaccinated?”, with no way to respond “Only if these other conditions are met as well.” If a Washington Post pollster had been unlucky enough to get me on the phone, for example, I would have said, “I feel pretty safe at outdoor, masked, and distanced events right now, and once I’m fully vaccinated would consider indoor events, but not if people are unmasked, unless maybe the case rate is really low by then because so many other people are vaccinated — are you getting all this? Should I talk more slowly? Are you crying?” (This answer would be very hard to fit into a “data visualization,” as fancy journalism types these days call bar charts.)

The poll results are also meaningless, though, because the most reasonable answer would be “You’re the ones with the resources of a giant journalistic enterprise here, you tell me whether I should feel safe.” Doing that would require asking people who actually know things — fancy journalism types call these “experts” — what is and isn’t safe, and then reporting their answers. For example, here’s Anthony Fauci telling the New York Times for its baseball opening day story what he expects to transpire over the coming weeks:

“I would expect that as we get through the summer — late spring, early summer — there’s going to be a relaxation where you’re going to have more and more people allowed into baseball parks, very likely separated with seating, very likely continue to wear masks,” he said.

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Very bad article predicts where Sixers arena will go without discussing who would pay for it, this is just how journalism works now

Want to read a really bad article about Philadelphia 76ers owner Josh Harris’s quest for a new arena? Sure, who wouldn’t! But, you may be asking yourself, how do I know that I am identifying every possible bit of badness, for maximum schadenfreude action? Fret no longer, for here is a step-by-step guide:

  • Start by looking at the URL to see if it’s from a legitimate news source, or whatever passes for one these days. “Play Pennsylvania” appears to be a site about gambling in Pennsylvania, but all of its domain registration contacts are in Malta. This, it turns out, is because it’s owned by a Maltese lead generation company, “lead generation” being corporate jargon for “getting people interested in things.” The author of the article is at least an award-winning freelance journalist and former standup comic, but we’re not off to a great start.
  • On to the article itself: “The Sixers have made it clear they do not intend to rent the Wells Fargo Center (owned by Comcast Spectacor) beyond the expiration of their lease in 2031.” Sure, and I don’t intend to still be driving a 2013 car in 2031, but you know what? Unless I find one that saves me so much on operating costs that it’s a better deal, or someone buys me one, I probably will be.
  • “When you own a venue, you own the development rights and collect rent from every concert promoter, trade show and college team to whom you lease the space.” You also own the debt from building the place, and the additional revenues from renting it out are seldom enough to pay that off, especially in a city that would then have two similar-sized arena competing for concerts and trade shows. (Remember concerts and trade shows? Those were good times.)
  • “They have options. Of course, matters like ‘who pays for it/tax incentives’ and infrastructure will ultimately drive the decision.” Yes, matters like that! Now let’s never speak of who’ll pay for it again, because this is not that kind of article!
  • “Building another arena next to the existing one doesn’t make economic sense. … A new arena will need to be somewhat removed geographically from the existing Sports Complex and have the opportunity to develop other uses with it.” This is a worthwhile nod to the above point about arena glut, but also completely misses the point about how arenas compete: Being across town from another arena isn’t sufficient to avoid conflicts. That’s why New Jersey’s Izod Center shut down in 2015 after competition from Newark’s Prudential Center ten miles away (and also Brooklyn’s Barclays Center across two rivers) when it was paid to shut down by, hey look, it’s Josh Harris!
  • “Here are three locations the Sixers should consider for their new home.” This is the real point of the article, and look, I get it, the Sixers are in the news, and you write for a somewhat sports-adjacent sort-of publication, and “Where else could the Sixers go?” is the kind of thing that might get you a few clicks, and you’re probably being paid based on your traffic numbers. But “Where will the local team owner build his inevitable arena?” is a tired bad-journalism cliche at this point, especially if you’re not looking at how it would be paid for or if he would even want one if somebody else weren’t helping to foot the bill. Especially if you’re just speculating wildly without any apparent sources for where Harris might actually be looking. (Top three wild speculations, if you’re wondering: Camden, on the Schuylkill River near 30th Street Station, and “I dunno, maybe the suburbs somewhere?”)

To be fair, this post actually isn’t much worse than the kind of thing one frequently reads in the actual daily news media — but that’s more an indictment of the actual news media than an endorsement of this. Coverage of sports stadium demands has been pretty bad for decades, and now that reporting is being left to overworked, underpaid writers working for shadowy offshore gambling-promotion companies, it’s only going in the wrong direction. Media literacy is the only real solution at this point, so as long as there’s still money for quality schooling instead of it being siphoned off to pay for private development projects … oh. I see what you’re doing, sports barons — well played!

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Friday roundup: Drumming clowns, vaporgondolas, and the XFL rises shambling from its dusty grave

The magnets have shipped! Repeat: The magnets have shipped! If you want to get in on this, act now, or you might have to wait until I make my second trip to the post office.

This was an extra-busy news week, which felt like a bit of a return to normalcy after several months of sports team owners mostly focusing more on getting back on the field than on getting money to pay for new fields. But life can’t be put on hold forever, and by “life” I mean “grubbing for someone else’s cash,” because what is life if not that? (Answers may differ if you are not a sports team owner.)

Here’s a bunch more stuff that happened than what already made FoS this week:

  • That protest to call for the New York Yankees to pay their fair share of taxes or maybe just bail out local struggling businesses only drew about 10-15 people, according to NJ.com, but also “clowns playing a drum on stilts.” The site’s accompanying video features less than two seconds of drum-playing stilt clowns, and a whole lot of 161st Street BID director Cary Goodman talking about the plight of local businesses, and while I know Cary and he apparently paid for the clowns, I still say that this is a dereliction of journalistic duty.
  • Along those same lines, the gondola company owned by former Los Angeles Dodgers owner Frank McCourt has reportedly released new renderings of its proposed gondola to Dodger Stadium, but does NBC Los Angeles show us any of them? No, it does not. (I so yearn to see Cab-Hailing Purse Woman cast off her foam finger and hail a gondola.) We do learn that “the gondola system could move up to 5,500 people per hour in each direction, meaning more than 10,000 fans could be transported to Dodger Stadium in the two hours before the start of a game or event,” which seems to misunderstand how people arrive at baseball games, which at Dodger Stadium is mostly all at once in the third inning, and even more misunderstand how people leave baseball games, which is all at once when they’re over, at which point there would suddenly be a two-hour-long line for the gondola. McCourt’s L.A. Aerial Rapid Transit company says it will pay the project’s $125 million cost, but even if true — and you know I’m always skeptical when people ask for public-private partnerships but promise there will be no public money — that doesn’t make this much less of a crazy idea.
  • The XFL’s Los Angeles Wildcats might have to share their stadium this spring with a college football team, and, wait, didn’t the XFL fold? I swear the XFL folded. Oh, I see now that The Rock bought it, so: In the unlikely event that the XFL gets going again, its L.A. team will have to share digs with a college football team playing in the spring. Honestly having to use a football stadium more than 10 days a year just seems like efficient use of space to me, but sports leagues do get gripey about scheduling, even sports leagues that barely exist.
  • That Palm Springs arena being built by AEG now won’t be built in Palm Springs after all, but rather nearby Palm Desert, because the Agua Caliente Band of Cahuilla Indians, whose land was going to be used for the project, decided after Covid hit to “reevaluate what was going on just like most other businesses because they had so many other projects,” whatever that means. Given that the Palm Springs police and fire departments said they’d need tens of millions of dollars to provide services for the new arena, I think it’s safe to say that Palm Springs just dodged a bullet here.
  • The San Francisco 49ers are finally paying rent again to the city of Santa Clara, after initially trying to get out of it because their two exhibition games at home were canceled.
  • This Athletic article about the attempts in the 1980s and ’90s to save Tiger Stadium is paywalled and is not nearly as comprehensive as the entire chapter about the same subject in Field of Schemes, but it does have some nice quotes from Tiger Stadium Fan Club organizers Frank Rashid and Judy Davids (the latter of whom worked on a renovation plan for the stadium that would have cost a fraction of a new one, a scale model for which I once slept in the same room with when she and her husband/co-designer John put me up at their house during a FoS book tour), so by all means give it a read if you can.
  • If you’re wondering how $5.6 billion in subsidies for a new high-end residential/office/mall development in Manhattan is working out now that Covid has both residents and offices moving out of Manhattan, I reported on it for Gothamist and discovered the unsurprising answer: really not well at all.
  • The KFC Yum! Center in Louisville’s naming rights are about to expire, but KFC is talking about signing an extension, so with any luck we have many more years ahead of us to make fun of the name “KFC Yum! Center.”
  • That’s not how you spell “ESPN,” Minneapolis-St.Paul Business Journal.
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Friday roundup: I, for one, support our new dancing robot overlords

Happy Friday, everybody! Let’s see what’s going on:

While I’m sorely tempted to stop right there, we do have some other news this week to cover, so let’s continue:

  • Oak View Group, the operator of the New York Islanders‘ new Belmont Park arena currently under construction for a planned opening next year, is reportedly interested in taking over operations of the Nassau Coliseum as well, according to Newsday “sources.” I mean, so would I if the price were right, and given that current operator Mikhail Prokhorov is $2 million behind in rent and threatened with eviction, OVG probably thinks it can get a good deal here, but still it’s hard to see this as anything other than throwing a few pennies at shutting down a rival so as not to risk any competitors making a go of it.
  • Kennesaw State University economist J.C. Bradbury has looked at the impact of the new Atlanta Braves stadium that “was intended to serve as an anchor for further economic development in the suburban business district of Cumberland that would ripple throughout the county,” and found that local commercial property values actually went down relative to similar properties elsewhere in the Atlanta metro area. Bradbury theorizes that businesses may not want to locate near all the traffic congestion of a sports stadium, or be scared off by the tax surcharges put in place to help fund the $300 million public cost. “This finding is consistent with the vast literature on the economic impact of sports venues and events,” concludes Bradbury, which is economistese for “We told you so, over and over and over again, but you wouldn’t listen.”
  • Restaurant owners in Edmonton are so desperate for business that one declared himself “super-excited” at the prospect that visiting NHL teams might place some takeout orders, and the Edmonton Journal sports section is so desperate for hockey news that it ran a whole article about it. Wait, that was in the business section? These are not glorious times for journalism.
  • The National Women’s Soccer League used a forgivable loan from the federal government’s Paycheck Protection Program to help pay players when its season shut down, which sounds like (and is) a subsidy but is also exactly how the PPP is supposed to work: covering salaries to keep people from being laid off during a pandemic, thus keeping the economy from collapsing even more than it is otherwise. Sure, it would have been nice if the program hadn’t run out of money before most businesses could access it, but given that the maximum player salary in the NWSL is $50,000 a year, it’s hard to complain too much about them being less deserving than anyone else.
  • The way the PPP was not supposed to work was for companies to hold onto employees and then lay them off as soon as they’d certified for the forgivable loans, but that’s what New Era did in Buffalo, and now Erie County Executive Mark Poloncarz is so mad that he’s refusing to call the Buffalo Bills stadium by its New Era-branded name, which will totally show them.
  • Lots of NFL teams are planning for reduced capacities at games this fall, while the head coach of the Tampa Bay Buccaneers is preparing for his players to “all get sick, that’s for sure.” And that’s the state of the NFL in a nutshell right now.
  • Hawaii can’t spend $350 million on replacing Aloha Stadium with a new stadium and redeveloping the area around it because somebody made a typo in the legislation and wrote 99-year leases instead of 65-year leases, everybody laugh and point!
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Friday roundup: Ohio could cut stadium funds, A’s could delay stadium plans, sports could return, world could end, anything’s possible

A little distracted this morning with a new work project and the usual pandemic stuff and the not-so-usual riots on TV, but there’s a passel of stadium and arena news I didn’t get to, so let’s get to ’em:

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Friday roundup: Sacramento faces cuts to pay arena debt, Henderson approves arena debt, music festival to be held in phantom Yankee Stadium parking lot

Sorry, getting a late start today, let’s get straight to the news without delay:

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Your morning great big ball of stadium stupid

I’ve never actually heard of Pacific Standard magazine — apparently until recently it was called Miller-McCune, which I’ve also never heard of — but if this infographic is what it has to offer, then I hope I never heard of it again. Ostensibly an explanation of how to “help a Los Angeles [NFL] stadium buck the trend” of stadium projects, you know, sucking for the cities that build them, it ends up combining the interactivity of a bad Flash game with the informativeness of a USA Today charticle. Among the things readers will learn from PS:

  • On the “best to worst subsidies” graph (most of which consists of a graphic that looks to have been lifted from one of these), it says that “Public financing accounted for 50 percent of the new Lucas Oil Stadium [in Indianapolis], offset by taxes on hotels, rental cars, restaurants, and sales of Colts license plates.” Um, no.
  • The “Making It Work” chart, once you’ve scrolled over little gratuitous circles to see what the chart actually says, suggests “folding in concessions and entertainment” uses for a sports facility, pointing to the “apartments and office space” of Brooklyn’s Barclays Center as an example. Exempt that none of the apartments have broken ground yet, and the office tower was scrapped four years ago.
  • There’s a map of the U.S. with little colored markers indicating how much public funding various stadiums have received, which would be cute, except that tons of buildings are left out (where’s the Seattle Seahawks‘ stadium, for one?) and that the figures are drawn from some wildly inaccurate source (Citi Field, for example, is listed as 19% publicly funded, which really, not.)

On the marginally less stupid front, meanwhile, let’s turn to Bill Parker of DRays Bay, who has penned an essay about the Tampa Bay Rays‘ stadium campaign that, like Pacific Standard’s infographic, starts by acknowledging that stadium deals are almost always terrible for the public before asking, gee, can we get one of them here?

I think that on some level, by now, virtually every governor, city council and county board of commissioners recognizes that it’s a bad deal. Yet, they continue to happen because there’s the fear that the team will bolt to another location, and no politician wants to be the one who was stuck in office when the team left town (which is a bad thing for real-world reasons, too; the teams do provide jobs, even if it’s a low number for their revenue brackets, and tend to have pretty active local charity arms). It’s in everyone’s collective interest to simply agree to stop doing these deals, but individual actors (cities, in this case) often have their own reasons to ignore the common good and do it anyway.

And so this keeps happening. But can it happen in Tampa or St. Pete?

Parker actually kind of punts on whether he’s rooting for it to happen there (he says as a Minnesotan, he loves the Twins’ new ballpark, but hates its public subsidies), but the upshot of the article remains the same: Stadium deals are almost always ripoffs, but never mind that, what are the odds of this one going through? Which neatly achieves the goal of stadium seekers: shift the terms of the debate from “Should we build a stadium?” to “How should we build a stadium?” Because everyone agrees that whatever it costs, the Rays totally neeeeeeeeeeeed a new stadium. (Quiet, you.)

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