How to threaten to leave town without threatening to leave town: San Antonio Spurs edition

Early voting has started in the San Antonio Spurs arena public funding ballot measure, and the local news media is on the job warning that the team could move so that its owners don’t have to. Today’s report from KSAT-TV report asks the question up front — “If the team doesn’t get the downtown arena it wants, could it leave San Antonio entirely?” — and then proceeds to answer it via an odd sequence of interview subjects:

  • A guy on his way to vote, who said he would “probably” vote for the Spurs funding, because “if they lose the Spurs, they’re going to lose a lot.”
  • The owner of a construction firm, interviewed at the Spurs’ practice facility, who said, “Say my valuation of my business is $1 billion, and I can move and double that valuation in a day … Be careful what you wish for, San Antonio.”
  • Spurs lawyer Bobby Perez, who refused to answer questions about whether the team would try to move if the ballot measures were rejected.
  • Finally, sports economist Geoffrey Propheter, who noted that “There has been no threat, direct or indirect, from the Holts, at least publicly, that says they are going to move,” and that lots of other teams, such as the San Francisco Giants, have had referendums shot down, multiple times even, and not moved.

It’s all factual enough reporting, and certainly readers are going to want to know if a move could be in the offing if voters turn down the $311 million over 30 years (about $150 million in present value) that Spurs owner Peter Holt is asking for. But it’s hard to miss that the framing ends up supporting owner Peter Holt’s attempts to make this into a vote on whether to keep the Spurs — notably reaching out to Austin’s mayor in recent weeks — while downplaying the public cost (which would likely total $750 million or more) or the fact that San Antonio just built the Spurs a new arena 23 years ago amid promises by Holt’s dad of neighborhood redevelopment that never came.

All this is very much part of what we dubbed the “non-threat threat,” where a team owner denies intending to move a team, but hints that you don’t want to push him and find out, and then leaves it to elected officials and the media to sound the alarm. (It is related to, though not exactly the same as, Jerry Reinsdorf’s edict that “a savvy negotiator creates leverage,” even if it’s leverage you have no intention of using.) If the KSAT story is any indication, Holt Jr.’s attempts at framing the story this way are having an impact; though if this set of person-on-the-street interviews is representative, most people are still weighing whether the promise of exciting new stuff is enough to outweigh giving money to “megamillionaires” instead of fixing “all of the stuff that needs to be fixed, that’s not fixed,” with no one mentioning the threat of losing the team at all.

The vote is likely going to be close, and as Propheter points out, almost exactly equal numbers of these referendums succeed or fail. The more interesting part may end up being what Holt’s Plan B is if he loses: As we’ve seen both in the early days of the public stadium boom and again more recently, megamillionaires tend not to take direct democracy lying down when there’s a group of legislators they can go to for a second opinion.

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Friday roundup: KC Star urges “no” vote on Royals/Chiefs sales tax; property tax breaks could cost KC schools, libraries $600m

Moving a little slow today as I head home from the Sports Economics Conference 2024, which hopefully can become a regular event. As a reward for your patience, here’s audio of yesterday’s journalism panel discussion with me, Ken Belson of the New York Times, and Pat Garofalo of the American Economic Liberties Project, plus lots of questions from the assembled luminaries of the sports economics field. (That’s our host, Dennis Coates of that meta-study fame, introducing us, and the other co-authors of that paper, J.C. Bradbury and Brad Humphreys, make cameos as well.)

And now, if the Amtrak wifi is willing and the creek don’t rise, let’s move on with this week’s news lightning round:

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“A savvy negotiator creates leverage”: That time the White Sox pretended to move to Florida to get stadium money from Illinois

One of the things I’ve been doing to keep myself occupied during our sports-deprived present has been watching old baseball games, especially those from the ’70s and ’80s with ridiculous uniforms. Most recently I landed on a Chicago White Sox vs. Detroit Tigers game from 1988 at Comiskey Park, which featured this:

…plus lots of discussion from Tigers announcers George Kell and Al Kaline about what a shame it would be if the White Sox moved to St. Petersburg, Florida.

Readers of Field of Schemes the book and Field of Schemes the website will be familiar with this as one of the most memorable move threats of the early modern stadium-grubbing era. To recap: Unhappy with their historic but insufficiently state-of-the-art stadium, White Sox owners Jerry Reinsdorf and Eddie Einhorn had asked the Illinois state legislature for a new one, at public expense. And since giving the local sports team owners $150 million to build a new stadium across the street from the old one wasn’t entirely popular — Illinois Gov. Jim Thompson, Reinsdorf later recalled, advised, “It’ll never happen unless people think you are going to leave” — Reinsdorf hopped on a plane to St. Petersburg, Florida, which was in the process of building its Florida Suncoast Dome (now known as Tropicana Field) in hopes of luring an MLB team, a trip that made headlines back in Chicago and helped prompt the banners at that Tigers-White Sox game in late May.

By June 30, the Illinois legislature was ready to vote, with a midnight deadline if proponents didn’t want to have to muster a three-fifths majority, likely an insurmountable obstacle. And thanks to arm-twisting by Thompson — plus a bit of subterfuge by house speaker Michael Madigan, who set his watch back by four minutes so that a 12:03 am vote could be recorded as being at 11:59 pm — the new stadium bill was approved, 30-29 in the state senate and 60-55 in the state house.

Reinsdorf’s Florida jaunt clearly had made an impact: The Chicago Tribune’s coverage of the vote flatly stated that rejection of the stadium subsidy bill would have “[left] the Sox no choice but to leave the South Side for St. Petersburg.” But was Reinsdorf serious, or just following Thompson’s advice to throw a scare into the Illinois populace? Seven years later, Cigar Aficionado magazine asked the Sox co-owner about it, and received a response for the ages:

“A savvy negotiator creates leverage. People had to think we were going to leave Chicago.”

As for St. Petersburg, city officials there kept shopping around for another team to lure to town, eventually helping the Baltimore Orioles, Cleveland Indians, and Texas Rangers create leverage to score new-stadium deals at home as well, as memorialized in a FoS magnet. Finally, it looked like the city had hit paydirt when San Francisco Giants owner Bob Lurie, frustrated at having failed four times to get stadium-subsidy referendums passed in the San Francisco Bay Area, announced he was selling the team to Tampa Bay businessman Vince Naimoli. The rest of the National League owners, however, voted to reject the sale and to tell Lurie to instead sell to local supermarket baron Peter Magowan, which he did, saving the Giants for San Francisco.

This time, though, Naimoli had actual evidence of MLB interference in St. Petersburg landing a team — since Lurie had actually announced a deal, unlike Reinsdorf and other earlier owners who’d merely played footsie with Tampa Bay. He sued MLB, and, with the league unwilling to risk its decades-old antitrust exemption in a court battle, within two years was awarded the Tampa Bay Devil Rays as an expansion franchise, setting the stage for another relocation-threat saga that continues to this day.

Anyway, go watch that Tigers-Sox game if you want an interesting glimpse at the origin story of the sports move-threat campaign. Those White Sox fans with the “Stay In Chicago” banner likely didn’t know that they were unwitting pawns in a political battle over hundreds of millions of dollars in public funds, and knowing baseball fans they might not have cared if they were. But they — and Reinsdorf’s “savvy negotiations” — have echoes in every sports stadium battle of the last 30 years, and likely will for the next 30 unless cities start calling owners’ bluffs. Not to mention setting their watches right.

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A’s, Rays celebrate Wild Card game with dueling move threats by proxy

The Oakland A’s and Tampa Bay Rays faced off in the American League Wild Card game last night, before a sold-out crowd at Oakland Coliseum who paid an average of $129 for tickets on the resale market. One might think this would make it harder for the teams’ owners to claim that they’re doomed to failure on and off the field without the new stadiums they’re seeking — which means it’s time to pull out everybody’s favorite entry in the stadium-grubbers’ playbook, the oblique move threat:

Now, you will notice that neither of these threats came explicitly from the teams’ owners: A’s president and de facto stadium campaign spokesperson Dave Kaval limited himself to saying he was “surprised” by the city lawsuit, while leaving the heavy threatmongering to Manfred. And Sternberg insisted that he wasn’t the one who revealed that he bought Wild Card game tickets for Bronfman (they wouldn’t be sitting together, he said), but rather a member of Bronfman’s executive team who tweeted about it.

Still, sports team owners have a long track record of levying move threats by proxy, since it allows them all the leverage benefits while avoiding the nasty bits about being burned in effigy by outraged fans. It’s particularly unlikely that Manfred would be dropping threats in interviews without the explicit permission of A’s ownership, since the 30 MLB owners pay his salary; as for Bronfman, it’s possible that Sternberg said, “Here’s some tickets, now keep it under your hat that I paid for them, it would look really bad if people thought I did this just to rattle sabers about moving to Montreal during my team’s first postseason appearance in six years” and someone in Bronfman’s crew got Twitter-happy and ignored this, but somehow that doesn’t seem the most likely scenario.

Anyway, the Rays drove the A’s out of the playoffs with a pile of home runs, which means now we’ll get to see how attendance at Tampa Bay’s much-maligned stadium looks for games that really matter. Tickets for the A.L. Division Series vs. the Houston Astros go on sale today at 4 pm, and I for one will be as glued to the SeatGeek resale prices as to the start of the N.L. Division Series that’s happening at the same time.

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