Friday roundup: St. Pete gives initial okay to Rays’ record $1.6B stadium subsidy, final vote set for July

Happy Friday, everybody — we’ve made it to the end of another week again, which seems to keep taking longer and longer, I blame the Moon.

And on to the news briefs, starting with a not-so-brief to cover what would get its own item if this were any other day of the week:

  • The St. Petersburg city council took its first vote on the proposed Tampa Bay Rays stadium project yesterday — St. Pete is one of those cities where the council has to vote on things twice, just to be sure — and as expected, it narrowly passed, with five out of eight councilmembers in favor. The official city expense is $212.5 million in property-tax kickbacks on the stadium site plus $130 million in infrastructure spending, but this leaves out a ton of hidden subsidies that Rays owner Stuart Sternberg would be getting:
    • About $300 million (present value) in future tax money from Pinellas County
    • $320 million worth of future property-tax reductions from the city and county
    • $700 million worth of land in exchange for payments worth just $80 million, making for a $620 million public gift

    That comes to a public subsidy of roughly $1.6 billion, which would shatter the Tennessee Titansrecord of $1.26 billion, at least until the next stadium project comes along. There’s still a final council vote to be taken on July 11, before which the city still needs to provide final documents — a local Sierra Club organizer called the process a “runaway train,” while Southern Poverty Law Center lawyers asked the city to “reconsider this rushed and chaotic timeline” — but the writing does seem to be on the wall. MLB commissioner Rob Manfred said, “I think they’ve done a phenomenal job in Tampa Bay, competing, and I think enhanced revenue streams just provides flexibility that can only make things better,” which I think means he’s happy, my universal translator doesn’t do Manfredese.

  • A consulting report for Washington, D.C. estimates that a new Commanders stadium in the district could create $1.26 billion in “yearly economic output,” and while I haven’t read the full document yet, economist J.C. Bradbury has the best response anyway: “I fear going into the details grants some legitimacy to the idea that there is some debate over the economic impact of stadiums. If the consultants feel the decades of economic research on the subject is in error, they are free to submit their challenges to peer review.” (The city also commissioned a second report on how to finance said stadium, but has no plans to release it, so you know it’s got to be juicy — fire off the FOIA requests!)
  • Charlotte Mayor Vi Lyles spoke yesterday about why she thinks a $650 million Carolina Panthers stadium renovation subsidy in exchange for just a 15-year lease extension would be good deal despite Charlotte residents apparently thinking otherwise, and one thing she said was: “This is an investment in our future. That’s why is strongly support what we’re doing with Tepper Sports. Yes, I wish we had the ability to do this on our own. But we have to partner with Tepper Sports and our hospitality industry.” We wish we could pay for the whole stadium renovation, but sadly we have to let the team owner who would benefit from it chip in is certainly a choice, let’s just say that.
  • MLB is apparently requiring all teams’ new nonrelocation agreements to allow playoffs games at a neutral site, and Athletics stadium czar Dave Kaval says that’d be great for Las Vegas, which could be in line to host a neutral-site World Series if baseball ever decides to do like the NFL does with the Super Bowl. Given that it’s going to take decades for every team’s nonrelocation agreement to expire and be rewritten, and that Las Vegas could be uninhabitable by then, that’s maybe not the most convincing argument, but Kavals gonna Kaval, especially when he needs to distract from the mess that is the team’s Vegas stadium plans.
  • R.J. Anderson wrote a super-long look at the public ownership model for pro sports teams for CBS Sports this week, and while I have some quibbles — in particular, it tends to conflate community ownership by fans (the Green Bay Packers, German soccer teams) with public ownerships by municipalities (several Canadian Football League teams and minor-league baseball teams) — it’s a good, in-depth overview. Whether either fan ownership or public ownership would necessarily put an end to stadium subsidy demands is an open question: The Packers did demand money to upgrade Lambeau Field, and sports leagues have leaned on municipally owned teams to build new stadiums. But as Anderson notes, at least fans and municipal officials have other priorities than just squeezing every last penny of profit out of teams, so there would be some benefits like cheaper tickets and fewer move threats, which would at least be a start.
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Instead of stadiums, should cities be buying teams?

There’s other stadium reporting today, but it’s all non-news: MLS still needs to pick which Minneapolis ownership group, if either, will get picked for an expansion franchise; Ottawa Senators owner Eugene Melnyk still wants a new downtown arena to replace his 19-year-old non-downtown one; David Beckham still hasn’t gotten an MLS stadium in Miami. It’s what you write about when you’re a sports journalist and it’s a holiday week: Big “explainers” recapping everything everybody already knew, except in one place.

Or, if you’re me, you take the lull in breaking news to write about bigger questions, like why cities are putting up so much money for stadium and arena cosntruction when often they could buy the team outright for less. That’s a link there, to Vice Sports; go read it now before something important happens and we don’t have time to think about such matters.

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The week that Newt Gingrich called for non-profit sports team ownership

And then there’s this:

Yes, that’s the Newt Gingrich, not Fake Newt Gingrich or The Real Newt Gingrich or any of those. Apparently the Donald Sterling scandal was enough to get the guy who thinks that the solution to corporate tax dodging is to lower corporate taxes to a rate they won’t cheat on to decide that for-profit ownership is wrong for the Los Angeles Clippers, because hoops belongs to the people, man. (Though given Gingrich’s past history with not-for-profits, maybe he just means a shell corporation that would pay a local rich guy to run the team.)

Anyway, it all gave ThinkProgress’s Travis Waldron a good opportunity to go on about the benefits of public and not-for-profit ownership of sports teams, which can only be a good thing:

Even if you don’t care how many games the Clippers or any other privately-owned team wins, even if you hate sports, there are benefits to fan ownership. A fan-owned team has direct ties to its community, and so it’s next to impossible that the team could pick up and move to a new city if its current home decides not to give it massive public subsidies for a new stadium. That both avoids the ugly problems that occur whenever cities fork over hundreds of millions of dollars in subsidies and keeps teams from playing hop-scotch to new cities. A private owner would have moved the Packers out of Green Bay decades ago. Instead, they remain in a tiny town in Middle-of-Nowhere, Wisconsin.

Of course, the Packers did manage to get Green Bay (actually Brown County) to fork over $295 million in subsidies in 2000 by threatening to play hopscotch to a new city (or to have the NFL force them to move, or something — the threat was never quite clear), so it’s not a perfect point. But still, public ownership does have its benefits.

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