Inside the secrets of the Baltimore Orioles rent documents (don’t get your hopes up)

I don’t know how you spent your weekend, but part of mine was dedicated to going through 299 pages of documents I received from the Maryland Stadium Authority about how the state determined the Baltimore Orioles‘ annual lease payments for 2022. As you may recall, the O’s annual rent is calculated according to a complex formula — 7% of net ticket revenues, 7.5% of most concession revenues, 50% of net parking revenues, 25% of net ballpark ad revenues, 10% of suite revenues, and 7.5% of club seat revenues, among other things — and it’s been unclear how closely the state vets the team’s numbers for these items. So I filed a a public records request, and this is what I got back.

Let’s dive in and see what turned up:

The first 208 pages are just the Orioles’ lease at Camden Yards from 1992, much of which has nothing to do with rent payments. (Though it is fun in a way to learn things like that the Orioles had a separate agreement with Sony to provide “certain television and other video equipment” for the stadium.) Most of the good bits in that regard are in Article IV, which spells out that:

  • Net admissions revenues are after deducting ticket taxes and revenue sharing with the league and visiting team.
  • Concessions revenues are gross revenues paid to the team by its concessionaire.
  • Net ad revenues are after deducting agency fees and commissions, plus “reasonable and necessary expenses” for building and installing ad panels.
  • Net suite revenues are after deducting taxes and other suite payments like for tickets and parking that are covered elsewhere.

That’s all reasonable enough. The Orioles also have a state-of-the-art clause, though at least it’s limited to requiring that the stadium needs to be held to the “maintenance and repair standards” of the top 25% of baseball stadiums, not to have the amenities of the top 25%. Still, it does raise the question: If all stadiums have to be in the top 25%, what happens to the three-quarters of stadiums that are in the bottom three-quarters at any given time, given, you know, math? One would think that some stadium district lawyers might have thought of this, but then, knowing local government lawyers, maybe one doesn’t.

As for the reporting, the Orioles management has to provide the stadium authority with a written schedule showing how it calculated the team’s rent, prepared in accordance with generally accepted accounting principles. A sample report is included as Exhibit D, and looks like this:

Unfortunately, there are no examples of filled-out forms. And most of the rest of the documents are also from 1992, so aside from marveling at the one with signature spaces for both Larry Lucchino and Sargent Shriver, there’s not much else here. And the MSA’s cover letter probably explains why:

In connection with MSA’s 2022 rent audit, the Orioles provided numerous records that identify and document certain actual annual revenue streams generated from conducting games and events at Oriole Park in 2022. These records (e.g., admission gate receipts, concession revenues, audited financial statements, etc.) comprise confidential commercial and financial information of the Orioles, and accordingly, MSA is precluded from disclosing them pursuant to GP § 4-335.

So, the Orioles pay rent based on their revenues, but those are confidential. Meaning you’ll just have to trust that the stadium authority is keeping track of them accurately, just like the stadium authority trusts the Orioles to fill out their revenue forms accurately. Trust! It’s the basis of all human interaction, and why we have never had need of things like “contracts” or “laws” or “oversight.”

Sorry if this is disappointing in terms of revelations, but look at it this way: At least you didn’t have to look at 299 pages of documents before getting to it. “Explaining Lack of Transparent Government Since 1998,” that’s our motto, at least since the better one was already taken.

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Friday roundup: Oakland sends MLB owners gift boxes, personalized baseball cards to forestall A’s Vegas move

As we come to the end of another programming week, let’s pause briefly to wish a happy 25th birthday to Good Jobs First, the corporate subsidy watch group that Greg LeRoy founded the same year Field of Schemes launched. Neither this site nor our book would exist without LeRoy, whose 1994 report “No More Candy Store” was a constant reference as we got up to speed on the then-new phenomenon of companies, whether sports teams or auto plants or computer chip factories, demanding giant piles of public cash in exchange for relocating to or remaining in a city. Happy birthday, GJF, and I hope neither of us still needs to be doing this another 25 years from now.

And now, the news:

  • With MLB owners preparing to vote on whether to approve the Oakland A’s relocation to Las Vegas, opponents are turning up the pressure to try to get eight owners out of 30 to vote “no.” Oakland Mayor Sheng Thao sent a letter to 15 potentially swayable owners on Wednesday, pointing out that her city is offering more than $900 million in infrastructure money for a stadium project at Howard Terminal and pointing out that owners would be giving up a potential $2 billion expansion fee in Vegas if they let John Fisher move the A’s there for free. Also included were “Stay in Oakland” gift boxes provided by a local bar apparel company named for the Oakland Coliseum’s nickname of the Last Dive Bar, which include an A’s cap, a “Summer of Sell” DVD, a “Keep the Athletics in Oakland” postcard, and a personalized baseball card for each of the 15 owners. Meanwhile, the A’s released new renderings of their planned Vegas stadium, but apparently released them only to MGM Resorts International CEO Bill Hornbuckle, who described them on an investor call as “spectacular” and left it at that. Fisher’s agreement with Tropicana Las Vegas to buy their site for his stadium is only good if MLB votes for the relocation by the end of the month, so expect a lot of dueling fruit baskets when owners meet next week.
  • Bexar County Judge Peter Sakai, who holds sway over spending decisions in San Antonio because San Antonio is weird, says he’s open to the idea of the Spurs moving to a new downtown arena so long as team owners do something to boost job development in the East Side location of its old arena. “We will bring exciting new projects in this area and incentivize business developments to harness the potential that exists,” said Sakai, which is awfully handwavy, so we’ll just have to wait to see if he has anything in particular in mind or this will just end up with the Spurs buying local schools some new basketball nets.
  • Here’s a report by Kansas City’s NPR station claiming that it would cost as much to repair the Royals‘ Kauffman Stadium as to built a new one, based entirely on a 2022 report by Populous, the company that is hoping to design and build the new one, nope, no conflict of interest there.
  • The Las Vegas Sphere concert arena lost almost $100 million in its first three months, LOLDolan.
  • Would it be cheaper for Baltimore to condemn and buy the Orioles rather than give them possibly $1 billion to sign a new lease? Sure, say local activists Andy Ellis and — hey, it’s Bill Marker, he was another early interview for our book, hi, Bill! Anyway, even they say the condemnation route is a longshot, but it’s still worth noting that the city has other potential responses available to O’s owner John Angelos than “Sure, how much should we make the check out for?
  • And speaking of Baltimore, here’s me being interviewed by Nestor Aparicio yesterday about the whole Orioles (and Ravens) mess, and how they’re just following the playbook that other team owners have laid out, though given that John Angelos’s dad Peter helped get the ball rolling on stadium subsidies back in the late ’80s, they can probably lay a claim to intellectual property rights.
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Warehouse giveaway could bring total O’s subsidy to $750m? $1B? What do numbers even mean?

One of the big questions surrounding the Baltimore Oriolesnew sweetheart lease deal is how much the development rights to land surrounding the ballpark, which under the lease will be granted to the team owners for just $94 million of 99 years, is worth. Earlier this month I estimated that, along with absolving the O’s owners from paying rent in exchange for taking on maintenance costs, the land transfer could be worth more than $100 million — on top of the $600 million, and maybe even more than that in the future, that the Angelos family is getting in state cash.

But on Friday afternoon, the dead zone of the news week, the Baltimore Sun dropped an analysis that sheds more light on how much handing over Camden Yards’ famous warehouse to the team could end up costing taxpayers:

The stadium authority retained Crossroads Consulting and Entreken Associates Inc. in 2019 to provide economic advisory services regarding the historic, 430,000-square-foot building. The consultants’ report, obtained by The Baltimore Sun, said that if the warehouse is converted to a hybrid of retail, hotel, apartment, and/or office space — at a cost ranging between $16 million and $36 million — it could produce net operating income of $4.6 million to $7.1 million annually.

That’s a good bit more lost income than the $3.7 million the state got from renting out warehouse space in 2022. The Sun wasn’t clear if that projected net operating income would rise over time and if so how much, but even if it wouldn’t, we’re talking about between $70 million and $110 million worth of future revenue that the state is handing over to the Orioles. Add in maybe $40-50 million from the free-rent deal, and we’re suddenly looking at upwards of $150 million in lease revenue being transferred from the state to the Orioles on top of $600 million or more in state cash.

The Sun contacted a bunch of sports economists about what they thought of this deal, and none minced words:

  • The team’s $94 million in payments over 99 years come to “a trivial amount of revenue,” says Geoffrey Propheter of the University of Colorado.
  • It’s “a pitiful amount of money,” says Dennis Coates of the University of Maryland, Baltimore County.
  • The foregone development income, meanwhile, is “a lot of money,” says J.C. Bradbury of Kennesaw State University. “This is essentially gifting the land to the Orioles.”

So to recap: The Maryland legislature approved with no public notice $600 million in cash for the Orioles, then tacked on what could be a bottomless pool of additional future state money, and now has added about $150 million in rent breaks and development rights. Whatever else you want to say about it, that’s some astoundingly bad negotiating just to get a mere 30-year lease extension that Angelos hasn’t even formally agreed to yet. I’m not sure what else the Orioles owner could even ask for at this point — residuals on reruns of “The Wire,” maybe? — but if he comes up with something, it’s a good bet that the state of Maryland will be quick to provide it.

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Orioles’ development deal could cost state $100m+ in lost stadium and warehouse rent

The Baltimore Sun ran a long FAQ on the Oriolesnot-actually-a-new-lease-deal on Tuesday, covering a lot of the same ground we did here on Monday. However, there were a couple new twists:

  • Absolving the Orioles owners from paying rent on the stadium in exchange for the team taking on operating and management costs — the same deal as the Ravens currently have — is hard to calculate the exact costs of, because the team’s rent currently fluctuates year to year: “The baseball team’s stadium rent is tied to a formula reflecting the team’s attendance and other factors,” writes the Sun, and between COVID and the Orioles being godawful, “the rent paid by the Orioles had been relatively low.” But with the O’s now fielding a young, winning team, they “would benefit from stopping paying rent while they are drawing larger crowds.”
  • The team’s new development deal for land around Camden Yards — which pretty much just amounts to the historic B&O warehouse alongside the stadium, the air rights over Camden Station, a small parking lot to the north of the station and a small plaza between the south end of the warehouse and the stadium’s Lot A — would mean the state would no longer receive rent from the warehouse, something that currently amounts to “several million dollars a year.”

Neither of those reports is too specific about the actual numbers, so let’s see what we can find out. On the stadium rent front, Marquette University’s sports lease database reveals that the formula is indeed extremely complex, amounting to 7% of net ticket revenues, 7.5% of concession revenues (with a whole ton of exceptions, including “four and one-sixth percent (4-1/6%) of concession revenues from catering provided in the Private Suites” and “two and one-half percent (2-½%) of concession revenues from the sale of specialty novelties”), 50% of net parking revenues, 25% of net ballpark ad revenues, 10% of suite revenues, and 7.5% of club seat revenues. (Marquette doesn’t bother to define “net” of what, here.) Without a more detailed look into the O’s finances — which the Maryland Stadium Authority may have for purposes of making these calculations, feel free to file some FOIL requests, journalists out there — there’s no way to know exactly how much team owner John Angelos might save from being absolved from paying a share of revenues to the state while taking on about $3.2 million a year in maintenance and operating cost; given that the O’s paid $4.7 million in rent in 2022 even while barely drawing flies, though, Angelos’s savings are likely to be at least a few million dollars a year.

As for lost warehouse rent, the MSA financial report has that as well: The state took in $3.7 million from renting out space there in 2022, again a number that’s likely to rise in the future.

Even if we make a conservative estimate of future lost combined stadium and warehouse rent of about $7 million a year, that’s still present value of $100 million, pushing the total taxpayer price tag above $700 million. Plus we still don’t know what the development rights are actually worth that the team owners will only be paying a little under $1 million a year for, or any property tax breaks that may come with leasing the land from the state rather than owning it. It’s not impossible that this entire deal could end up costing Maryland taxpayers more than $1 billion, and it’s very likely to be close to that; enjoy having a winning team for all it’s worth, O’s fans, because the better the team is, the more this deal will end up costing you in tax dollars.

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Orioles release new lease deal that isn’t a lease deal at all, with unknown added public costs

Baltimore Orioles management and Maryland Gov. Wes Moore announced their new Camden Yards lease deal on Friday as promised, and … it turned out not to be a lease deal at all:

Instead of a lease that will keep the team in Baltimore, the Orioles, Gov. Wes Moore’s administration and the Maryland Stadium Authority said Friday they have agreed to a “memorandum of understanding” — essentially an agreement on some issues and a promise to continue working toward a long-term lease.

The “memo of understanding” is not binding, but the sides say it’s all in the lawyers’ hands now and the focus should be back on the diamond for the playoff push.

Oooookay. So what exactly is in this non-binding MOU that is all over except for the lawyers hashing out, you know, stuff? Neither the O’s nor Moore’s office released any of the actual language, either, instead resorting to a summary that included:

  • The lease extension, once it exists, will run for 30 years until 2054, with the option (on the team’s part, presumably, but this wasn’t specified) for two five-year extensions.
  • “A 99-year development rights agreement for the areas surrounding the ballpark, including the Warehouse and Camden Station, to energize and revitalize the Camden Yards complex.” The Orioles will pay $94 million in rent for this, over 99 years.
  • Shifting operations and management costs (currently about $6.5 million) from the state to the Orioles, though the state will make up part of this by paying the Orioles $3.3 million a year toward a “safety and repair fund.”
  • Though not mentioned in the press release, Orioles owners the Angelos family will presumably now get to unlock the $600 million and maybe more in the future from a “revolving fund” in renovation money that the state approved last year.

How bad a deal is this for the public? Who the hell knows! The acreage of the redevelopment area surrounding Camden Yards isn’t specifically spelled out, for one thing (though see below), so we have no idea if $950,000 a year in rent is a reasonable fee or an outright giveaway on par with the Los Angeles Angels‘ failed land grab. If the Angeloses will be paying “rent,” that implies that the land in question will be owned by the state, which further implies that the team owners will be absolved from paying property taxes on their new development whatever it is, but again, few actual details of what hasn’t actually been signed yet have been revealed.

The MOU itself was finally posted by the Baltimore Banner (whose tagline isn’t “The Last Remaining Baltimore News Source” but probably should be), and a few more details can be gleaned from that:

  • The Orioles owners will absolved of paying any rent on their stadium, though it’s unclear how much that currently amounts to.
  • In addition to the $3.3 million a year toward “safety and repair,” the state will kick in $1 million a year to a “capital improvements and repair reserve fund” as well as up to $1 million a year to a “emergency reserve fund,” depending on how fast that latter fund gets used up.
  • The development area around the stadium includes “all areas north of Lee Street currently owned by MSA on the Camden Yards site, except for Lot A,” for which the team owners will pay $1.5 million a year for the first five years, then $500,000 a year for the next 25, then an amount starting at $750,000 a year and escalating 1% a year for the last 69 years. I don’t have the math this morning to come up with a present value figure for that — maybe around $20-30 million? — but without a better sense of exactly how much acreage this represents or what development rights there are worth, there’s no way to know how much of a sweetheart deal this is.
  • The Maryland Stadium Authority, Baltimore mayor, and Maryland governor will still each get their own luxury suites for the course of the lease.

Announcing the upbeat bits while keeping the knotty details as secret as possible is a time-honored tradition in the stadium game, of course, but doing so with a non-announcement of a non-deal on the day after your team clinched its first division title in ten years is some next-level BS. All we really know for sure is that John Angelos and the state of Maryland have agreed to try to agree to a deal for the Orioles owner to receive somewhere between $600 million and who-knows-what in exchange for not threatening to move who-knows-where for at least the next 30 years — unless, of course, the eventual lease includes some kind of state-of-the-art out clause that would enable the O’s owners to break it early if future upgrades aren’t made. But surely Maryland state officials will be keeping a close eye on that

“Amazing news! Now lets celebrate with some playoff wins! #LetsGoOs” said Delegate Dana Jones.

Siiiiiigh.

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Friday roundup: O’s lease, Brewers doubletalk, A’s lawsuit, Bears gibberish

Today’s Friday where you are, right? I’ve completely lost track, honestly. Some things happened this week, or maybe last week, but they definitely happened, let’s talk about them:

  • The Baltimore Orioles owners announced a 30-year lease extension on Camden Yards last night by putting it up on the scoreboard between innings, that’s totally normal, yup. Actual details like what if anything the team got on top of the $600 million in state money approved last year will have to await a Friday news conference.
  • Wisconsin state representative Rob Brooks, who co-authored the bill to give Milwaukee Brewers owner Mark Attanasio even more money than he asked for, now says that he doesn’t want the city of Milwaukee to give Attanasio $7.5 million a year, but just $5 million a year. “If they come up with the things they’ve counted they can do and we think we can do, I do think it will be around $5 million,” said Brooks, which, sorry, what? You really gotta show us some actual legislative language, man, this trying to describe things using your words thing just isn’t going well at all.
  • “Representatives with ties to the A’s” have sued the teachers’ union–backed group Schools Over Stadiums over their proposed Las Vegas A’s stadium referendum “not fully describing the petition’s ‘substantive impacts’ on the project,” according to SOS. Who? What impacts? “This is a developing story. Check back for updates.” Pro journalism tip, Las Vegas Review-Journal: Try to answer at least some of the five W’s before hitting publish. (The Las Vegas Sun has a bit more info, adding that the suit is from registed lobbyists Danny Thompson and Thomas Morley and is objecting to the referendum petition trying to overturn just the funding part of the stadium bill and being “argumentative,” but doesn’t explain why either of those things would disqualify it from the ballot.)
  • Arlington Heights is still talking to Chicago Bears execs about a new stadium, and so is the mayor of Chicago, and that could mean that they’re about to approve a ton of subsidies or agree to a deal that doesn’t require a ton of subsidies or not agree to anything, really. “It’s what the people of Chicago elected me to do is to bring people together,” said Chicago Mayor Brandon Johnson. “Being collaborative, compassionate and competent, those are the hallmarks of my administration. It’s what I expect, quite frankly, all leaders to possess.” Is there some sort of brain worm they inject mayors with at their inaugurations that make them talk like this?
  • Michael Baumann of FanGraphs writes that the Tampa Bay Rays and Kansas City Royals owners are both trying to get new stadiums by claiming it would let them start spending money with the big boys, but “we all know this is bunk.” He also complains that new baseball stadiums are too disconnected from their neighborhoods and too tall and too generic (all true), and then headlines the whole thing “The Jewel Box Under End-Stage Capitalism,” to which I can only say promises, promises.
  • The Chicago Tribune is worried that if the Bears don’t win games, no one will want to give them stadium money, and WCPO is worried that if the Cincinnati Bengals don’t win games, no one will want to give them stadium money, and both are probably right, but is that really the part to be worried about?
  • Sports management professor Mark Rosentraub still thinks Saskatoon needs a new arena, this time to remain “competitive” for concerts, LOLRosentraub.
  • Los Angeles Rams owner Stan Kroenke may pull his stadium from consideration for hosting 2026 World Cup games because FIFA won’t let him have enough of a cut of the vig. Sometimes when elephants fight, we can just get an entertaining elephant fight, maybe?
  • The Athletic noticed that A’s owner John Fisher, during his recent interview with ESPN, said (in ESPN’s words) that his San Jose Earthquakes‘ stadium “is already outdated compared to newer MLS stadiums” and “lacks the capacity and premium seating that drives the kind of revenue needed to compete for championships.” The stadium is eight years old.
  • I don’t really like owning teams,” New York Knicks and Rangers LOLowner James Dolan told The New York Times, adding, “Being a professional sports owner in New York, you’re not beloved until you’re dead.” This may be overly optimistic, but sure, he’s welcome to try.
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Maryland will let O’s owner keep all concert revenue in violation of lease, because vibes

Feeling just enough better today to play everyone’s favorite game, “What’s Baltimore Orioles Owner John Angelos Seeking Public Money For Now?”

Last year, you’ll recall, just weeks after the state of Maryland approved $600 million in public funding for Orioles stadium upgrades if and when Angelos signed a new lease, the state stadium authority agreed to let Angelos keep all the money from a Paul McCartney concert, disregarding his existing lease that said 45% of the proceeds was supposed to go to the state treasury. Now, one of the other living gods of stadium rock, Bruce Springsteen, is playing at Camden Yards, and have they worked out that whole who-gets-the-money thing yet?

Rock icon Bruce Springsteen will play Saturday at Oriole Park. As landlord, the Maryland Stadium Authority could receive 45% of the profits (or suffer 45% of the losses) from the event, which is hosted by its tenant, the MLB team. However, the Orioles asked the state not to share in the revenues, which would allow the team to keep all profits from the concert, and the stadium authority board unanimously agreed Tuesday.

This may seem slightly weird for the stadium authority to just give in on, especially given that the state is in the middle of contentious negotiations with Angelos over signing a new lease already. But stadium authority director Michael Frenz told the Baltimore Sun yesterday that Angelos has said having to give the state its contractually mandated cut would be a “significant disincentive” to holding more concerts, and “from our perspective, we do want there to be more of these.” But, Michael, why exactly do you want there to be more concerts even at the expense of the state getting none of the reven — oops, sorry, you’re still talking:

Frenz said it’s “reasonable to conclude” that the Springsteen show will turn a profit, but because the current lease is expiring and the new lease is unlikely to have the same revenue-sharing provision, the authority thought it best to allow the club to keep the revenues.

“We did say [in 2019], yeah, we would look at it in the future,” Frenz said Tuesday. “But I really think that given where we are in the life of the current lease, given that we’ve opted out of the previous two [concerts], I think for us to opt into this one may have been — it’s possible it would send the wrong message to the team.”

So the message that the state stadium authority wants to send to its baseball owner tenant, who is refusing to sign a new lease despite more than $600 million in promised subsidies, is that he shouldn’t have to worry about sharing any concert revenues with his public landlord, either now or in the new lease that he’s refusing to negotiate. That is maybe a slightly odd negotiating tactic, but then letting the stadium authority have final say over whether the local team owner pays his rent is slightly odd as well. “A savvy negotiator creates good vibes by giving the other side whatever it wants and hoping this will lead to voluntary concessions,” as Jerry Reinsdorf never said.

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Friday roundup: It was the best of summers for team owners demanding stadiums, it was the worst of summers for the rest of us

The calendar on my screen says it’s September, which means we made it through another summer. (Not technically until the equinox on September 23, I guess, but if Labor Day weekend doesn’t mark the end of summer, I don’t want to be a part of your arbitrary seasonal delineation scheme.) And quite a summer it was, kicking off with Oakland A’s owner John Fisher fighting for (and getting) $600 million in public money for a new stadium in Las Vegas, then proceeding with Kansas City Royals owner John Sherman ramping up talk about a new $2 billion stadium project either in downtown K.C. or in the next county over, the mayor of Oklahoma City saying the Thunder need a new arena because their 22-year-old one “will keep getting older,” the San Antonio Spurs owners exploring a new arena to replace the one that they just had renovated for them a few years back, many anonymous people claiming that the Milwaukee Brewers will move somewhere without $400 million in publicly funded upgrades to their 22-year-old stadium, and of course the great New York City cricket stadium fiasco, which just gets more fiascoey by the day.  Plus the Chicago Bears are still shopping themselves around to every possible Chicago suburb, the Arizona Coyotes owners are doing the same with every town in the Phoenix area, and the mayor of San Francisco wants to build a soccer stadium without even knowing for what soccer team for some reason.

There are a bunch of possible reasons why we’re seeing this flurry of new sports subsidy demands: lots of stadiums built in the ’90s getting to a point where team owners aren’t embarrassed to ask for new ones, flush state budgets and the promise of federal infrastructure spending getting owners salivating, a rush particularly in MLB to secure new stadium deals before expansion maybe takes some cities off the potential move threat table. Or, you know, this is just the sort of hellscape we’re doomed to live in after our government decided to give all the money to the rich people and then let them spend it on buying elections. Either way, this site’s work clearly isn’t going to be done for a while yet, so I better get started on some fresh tchotchkes to keep you all interested in helping to support it.

And if you prefer news items to tchotchkes, we got you covered there too:

  • Lease extension talks between the state of Maryland and Baltimore Orioles owner John Angelos might still be going nowhere fast, but Gov. Wes Moore (pictured here wearing an Orioles uniform and here doing it again, because that’s how he rolls) says he’s confident of “being able to not just get the lease done, but also making sure that getting the lease done includes all the other lenses that I think are going to be important in this long-term deal.” “Lenses” here apparently means a plan to redevelop the area around Camden Yards, which Moore painted as a win-win for the city and state, and surely not just a giveaway of $300 million in state money plus public land to Angelos so that he can profit from the redevelopment, heaven forfend.
  • Los Angeles Angels owner Arte Moreno is still trying to get the city of Anaheim to pay him $5 million for costs associated with “processing the illegal cash sale of Angel Stadium,” as the Voice of OC puts it. That’s pretty ballsy, but keep in mind this is a guy who’s also trying to get out of paying MLB luxury tax by cutting all the players he just traded for in July and hoping someone else signs them, not to mention tried to push through an illegal stadium land purchase to begin with, so ballsy is pretty much par for his course.
  • Two New York City council committees have voted to give Madison Square Garden just a five-year extension on its operating permit, half the length of its previous permit and infinitely smaller than the perpetual permit that the owner of the Knicks and Rangers was seeking. While this could raise hopes of seeing the city’s Padlock Unit chain up the arena gates, more likely it’s just the council kicking the can down the road again; especially since, as the New York Times notes in classic Timesian we’re-not-saying-we’re-just-saying style, “the Dolan family has shown itself adept at bending the will of the government to advance its own interests, particularly when the various branches of government are not on the same page.”
  • The kerfuffle over the Philadelphia 76ers owners’ terrible “community info sessions” on their new Chinatown arena plans continues, with the first public Zoom meeting held in Mandarin criticized as “garbled” and lacking proper translation; no word yet on how this Tuesday’s meeting in Cantonese went.
  • The Charlotte Observer sent questionnaires to city council candidates asking how much the city should be contributing to upgrades on the Carolina Panthers‘ stadium, and if “any answer would be premature” is the kind of response you were hoping for, then you will be very pleased by the efficacy of candidate questionnaires. (To be fair, it is kind of dumb to ask about how much should be spent without taking into consideration things like whether the team owners would pay additional rent, say; to also be fair to the Observer, it really does sound like the candidates mostly used this argument as an excuse to duck the question entirely.)
  • Construction has finally begun on Inter Miami‘s cursed new permanent stadium! Or at least “earthwork and site work” has begun, according to a team press release, jeez, Miami Herald, you couldn’t even be bothered to drive over and confirm it? The stadium is now scheduled to open sometime in 2025, but we’ve been hearing similar predictions for, good lord, has it been five years already? At this rate Lionel Messi’s kids are more likely to play at a new Inter Miami stadium than he is.
  • If you thought what Congress needed was a Historic Stadium Caucus to work on ways to upgrade older college football stadiums, including possibly with federal infrastructure money, U.S. Rep. Garret Graves has some great news for you.
  • The promised housing construction that was supposed to be built as part of the Brooklyn Nets arena is set to miss a May 2025 deadline, and New York state is considering greasing the skids by restoring a tax break that expired last year, because of course it is.
  • There might be worse ways to frame a story about how the owners of the San Antonio Missions are trying to get city money for a new minor-league baseball stadium and city officials haven’t been returning their phone calls until the next day than “Missions can’t get to first base on downtown baseball stadium,” but between the what’s the holdup with approving subsidies? and the terrible baseball play on words, it’s hard to imagine one.
  • The company that owns the Boston Red Sox is buying the company that owns the TV rights to Pittsburgh Pirates games, which Marc Normandin points out means that going forward it’ll be easier for the Red Sox to outspend the Pirates if the Pirates make more TV money. Normandin calls this “just a weird sentence to type”; me, I’m reminded of syndicate ball, which was a fun time.
  • What do “Spring training season brought $418M to state’s economy in 2023” and “Beyoncé’s Renaissance Tour has a huge economic impact” have in common? If you guessed “They’re both as big a load of BS as that time people insisted LeBron James leaving the Cavs destroyed Cleveland’s economy,” you’re a winner!
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Freedom of the press belongs to those who own a baseball team

We already discussed yesterday the wave of new baseball stadium demands and the possible reasons why they’re all hitting right now. (If you need a refresher, Marc Normandin ran through them all yesterday.) But if MLB owners all seem to be working from the same playbook in much of this — issue renderings, threaten to move to Nashville — they also all seem to have hit on one common strategy: the “exclusive” media interview.

This week’s surge of owner Q&As started with that huge New York Times interview by longtime sportswriter Tyler Kepner with Baltimore Orioles owner John Angelos, which didn’t exactly start out with a hard-hitting headline:

A Great Team, an Ambitious Plan and an ‘Existential’ Issue
John Angelos wants to reimagine the way Baltimore approaches the business of baseball, but his team’s electric young core may not be around to see the result.

Though built around an interview, this was really a profile, and the formula for profiles is that they’re generally kind to their subjects. In this case, that meant some scenes of Angelos chatting with fans, discussion of the team’s recent history of on-field performance (bad, until this year) and controversy (even worse after the team suspended its play-by-play broadcaster for reading negative stats on the air, though Angelos was allowed to brush that off with “Nothing like that is going to happen again,” and then a whole lot of owner-speak about his stadium dreams, like:

“People will speak about Baltimore like, ‘Wow, Baltimore is cutting-edge,’ which is what they said about Camden Yards. If we develop it right, and we include that impactful community program module, we can change the whole brand of Baltimore.”

And:

“If big markets like Boston and Atlanta are doing it, it becomes existential — how are we going to compete and keep pace? Everybody won’t be able to do it. But I think because of what’s here — the brand of this ballpark, this piece of property of 60-odd acres with other land around it that could be accessed, maybe bolted on, with the mass transit you don’t even have in Atlanta, with the great highway systems — we think it’s existential.”

Those are assertions that demand a lot of followup questions: How is redeveloping the harborfront area that was already redeveloped once going to change Baltimore’s “brand,” what about the Atlanta Braves‘ real estate development makes him think the Orioles can’t “compete,” how much is all this going to cost and why should taxpayers pay for it? But Kepner didn’t ask any of those, observing, “There are many details to untangle, of course,” then launching into a discussion of whether Angelos would really try to raise ticket prices to pay for re-signing his young stars, as he’s threatened to do, though the discussion remained one-sided since Angelos was allowed to give his side without any rebuttal from, say, a sports economist who could point out how ticket pricing and player spending actually work.

The same day as the Angelos interview, the Kansas City Star ran a Q&A with Royals owner John Sherman that was somewhat better in that it at least asked some hard questions, like “What are the specific financial asks you’ll make of the city and the state?” and “You said private investment would pay for the bulk of the stadium? Is that properly stating that point?” And the Star reporters did manage to extract some actual news from Sherman, getting him to acknowledge that there could be some infrastructure costs on top of his estimated $2 billion for the stadium and a surrounding ballpark district.

But because this was just a straight Q&A, Sherman, like Angelos, got to control the narrative without fear of being contradicted by other people or other facts. Take, for example, this exchange:

McDowell: There is a concern about siphoning off the (business) traffic from Power & Light.

Sherman: Oh, I think we’d drive traffic to [the] Power & Light [entertainment district]. Particularly in baseball, it’s 81 nights a year, bringing all those people down there. We couldn’t create enough right around the ballpark. So I think that’s a benefit to the city.

That is complete gibberish: Moving Royals home games to downtown and building a bunch of shops and restaurants around it would somehow bring so many people to K.C. that they would be forced to travel to the city’s other entertainment district, the one built adjacent to its indoor arena, to find someplace to eat between getting out of work and the start of the game? And there was no mention of how the Power & Light District and the arena are working out, which last we checked was very poorly, with massive seas of red ink that had to be bailed out with public funds.

Finally, owner soapbox #3 was a two-parter yesterday, with the Las Vegas Review-Journal offering an “exclusive interview” with Oakland A’s owner John Fisher while NBC Bay Area presented a “Bay Area exclusive” with Fisher, which means neither was actually exclusive. The Review-Journal, which has been cheerleading for the A’s move all along, lobbed multiple softball questions (sample: “Baseball Commissioner Rob Manfred said that he believes you would field a competitive team in Las Vegas because you won’t be spending upward of $100 million on the stadium development process in Oakland any longer?”) and didn’t question Fisher’s claims that “I think all but four ballparks in baseball are new since the early ’80s” (actually six: Fenway Park, Wrigley Field, Dodger Stadium, Angel Stadium, the Oakland Coliseum, and Kauffman Stadium) and that “the building of a mostly privately financed stadium” will “be the largest amount contributed by a baseball team owner of any stadium built to date” (hard to say, since Fisher still hasn’t divulged exactly what he plans to spend himself after getting $600 million in public cash and tax breaks). The R-J then lifted its paywall for the Fisher story initially (it appears to be back now), giving the A’s owner’s statements even more reach.

As the NBC Bay Area Q&A, it was if anything even more softball, perhaps best summed up by news anchor Raj Mathai’s tweet that “wasn’t expecting him to be so candid/revealing,” which confuses openness with a staged media event where the TV station was forced to agree not to record any audio or video. The interview did manage to induce Fisher to say one quiet part loud — “I’m sorry it hasn’t worked out in Oakland” is getting roundly dragged on social media — but aside from that, Fisher and his handlers have to be happy with how the day worked out.

There are two problems with these kind of “exclusives,” really: One is the way that journalists usually allow sports team owners to control the narrative, giving them tons of space to give their rehearsed talking points without fear of contradiction. (It’s the same problem with much political coverage, actually, though at least there sometimes an opposition candidate will get equal time to spew a different unreliable spin.) But even when the questions are more pointed, as in the Star’s interview with Sherman, simply providing that many column inches to the local rich guy preferences his side of the story: Team owners are presented as newsmakers, which is a different category than mere citizens or even experts, who are relegated to occasional rejoinders when they make it into the story at all.

It’s a tough situation, since exclusive interviews (or even fake “exclusives”) draw readers, and traffic is the name of the game in today’s media economy. But allowing team owners to duck questions for months or years and then rushing to let them say whatever they want in a safe, controlled environment with no rebuttal or fact-checking isn’t journalism — that’s stenography. Billionaires’ control of elected government through lobbyists and campaign funding is a big part of the reason why subsidies to the rich are continuing to soar, but their control of the media by withholding access except on their terms, and most of the media’s acquiescence in that, is a huge factor as well.

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Maryland pols can’t stop holding gun to own head over possible $900m in Orioles lease subsidies

Add Maryland State Senate President Bill Ferguson to the list of Maryland officials who are getting impatient with Orioles ownership for not signing a lease extension already:

“If you look at what the Ravens did, they moved quickly because they understood what a great opportunity it is to continue to be in Baltimore and thrive in Baltimore. I’m hopeful that the Orioles will do the same thing,” Ferguson said. “I have confidence in Craig Thompson, who’s the state’s negotiator for the stadium authority. The sooner we get the deal done, the better,” he said.

This is, frankly, great political grandstanding — it’s not us elected officials’ fault the Orioles lease isn’t done, it’s the team owners’ — but lousy political negotiating. As we’ve covered here before, declaring the most important thing to be getting a deal done and not getting a good deal done risks playing right into the hands of those who are trying to wrangle more money out of the public purse, especially when the sticking point appears to be that O’s owner John Angelos hasn’t yet submitted his wish list for total taxpayer subsidies.

Those subsidies will definitely be at least $600 million–plus, since that’s what the state legislature approved for each of the Orioles and Ravens last year. The Baltimore Banner, one of those new nonprofit news outlets that are supposed to be the future of journalism, has a rundown of what Angelos could use the $600 million for, but it pretty much comes down to hell if we know:

  • The Ravens owners have submitted a list of about $450 million worth of immediate upgrades, including new ‘fan hospitality and retail areas,” upgraded luxury suites, moving the press box, upgrading video and sound systems, and “plenty of electrical, plumbing and ventilation upgrades.”
  • Angelos, meanwhile, has remained fixated on building out a stadium district similar to the Atlanta Braves — never mind that there’s no room around the Orioles’ stadium to build a Braves-style mixed-use project. Angelos wants either development rights to that state land or another $300 million to help build it, depending on whose anonymous sources you choose to believe. Someone, presumably Orioles management, has been polling Marylanders about their familiarity with a proposed district called “Camden Crossing,” which is likely a push poll since there’s been no announcement of a project by that name.

The past of journalism, meanwhile, in the form of the desiccated remains of the Baltimore Sun, reports that Ferguson merely said it was “too early to say” if the state should put additional money into a ballpark district, adding that “it’s premature to talk about investments around the facility when we don’t have a partner that is committing to be there for the next 20 to 30 years” — which definitely telegraphs that if Angelos would commit to staying 20-30 years, then Ferguson would be willing to discuss it.

If you want to put the comments by Ferguson and other state officials into the best possible light, they’re trying to subtly tell Angelos to quit whining about his development dreams and just take the damn $600 million that’s on the table already. (The Banner has previously reported that he “isn’t going to get his wish for development on the parking lots, nor will he receive an extra $300 million that he’s asking for from the state,” again cited to an anonymous “source who has knowledge of the lease negotiations.”) But the best leverage the state, or any landlord, has in this situation is that while baseball teams need a place to play, the governments that own the stadiums don’t really need to have games played there. “We’re not sure why John Angelos seems to want the Orioles to play in the street next year, but that’s where he’s headed if he doesn’t settle for the $600 million in public money our dumb ex-governor already approved” might not pander to O’s fans as well, but it would be much better fiscal watchdogging.

UPDATE: Right after posting this I spotted this morning’s long New York Times interview giving a soapbox to Angelos to talk about his stadium plans, though the best he could do with it was “If we develop it right, and we include that impactful community program module, we can change the whole brand of Baltimore,” which does not really make him sound less like a money-grubbing AI in a human flesh suit. Also, if this is what the Times has in mind for its former sports department, please let them go back to writing game stories already.

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