Category: Cleveland Guardians

Friday roundup: Cleveland, Nashville keep throwing good stadium money after bad

access_time personNeil deMause

Running late today, let’s do a speed round:

  • Upkeep costs for the Cleveland Guardians stadium and Cavaliers arena continue to climb, with one estimate placing them at $261 million, and the county-run Gateway Economic Development Corp. still doesn’t have money identified to pay for them. “We need to figure this out,” said Gateway board chair Virginia “GiGi” Benjamin; given that the Guardians’ and Cavs’ leases only run though 2036 and 2034 respectively, Gateway could always just not spend the money and dare the teams to break their leases a few years early, or at least ask the team owners to kick in a bit more if they don’t want Gateway to default, but still nobody seems to be considering that option, or at least pricing out whether it would be cheaper than spending $261 million.
  • The Tennessee Titans owners are seeking another $75 million for a pedestrian bridge to their new stadium on top of $1.26 billion to build the stadium itself, part of $700 million in public spending set aside for the stadium area, move over, Indiana, there may be a new grift-that-keeps-on-giving champion.
  • Los Angeles Rams owner Stan Kroenke’s lawsuit to get the city of Inglewood to repay him for about $400 million in roads, sidewalks, utilities, and other “public services” for his otherwise privately funded stadium has ended in a judge confirming that the agreement for Inglewood to cover those costs was nullified in a previous court ruling, so sucks to be you, Stan Kroenke. Expect an appeal, and for the two sides to try to settle out of court for a smaller amount.
  • NBA commissioner Adam Silver said it is his “hope and belief that the Trail Blazers can be successful in Portland, Oregon” but that they “need a state-of-the-art arena” but that he’s talked to Blazers owner Tom Dundon and wants to “lower the temperature bit in these negotiations,” all of which are very Adam Silver things to say. It seems like Silver would like for Dundon to find a way to accept a very large taxpayer check while also ensuring that the check is as large as possible, which is why the owners pay him the big bucks.
  • The Kansas City Star says the key difference between K.C. giving Royals owner $600 million toward a new stadium and giving Current owners Angie and Chris Long $185 million toward an expanded stadium is that the Longs are the ones selling the bonds instead of the city, which will “protect the city in the case of shortfalls.” Except that the Longs will get to repay their bonds with city sales tax revenues, so if there’s no shortfall in those, city residents are still on the hook for $185 million. Maybe all of Kansas City journalists need remedial economics lessons?
  • The Washington Commanders parking garages are no longer set to be translucent, now they will just be set in a featureless void or way far in the distance instead.
  • Longshot recidivist Chicago mayoral candidate Willie Wilson (not that one) says he would resolve the Bears stadium battle by paying to build a dome atop Soldier Field and sell the Bears owners land for a new practice facility and give the team (and nearby homeowners) property tax breaks, at a cost of nobody has asked him, the media are just reprinting his campaign glurge, this is fine.
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Friday roundup: Tampa plans for Rays keep going sideways; new stadium funding demands in Orlando, D.C.

access_time personNeil deMause

Happy Friday to those of you who can see this through all the burning Canada! Everyone stay safe, mask up, and stay indoors to read the latest sports subsidy news, only most of which this week involves Florida men:

  • Hillsborough County Commission chair Ken Hagan said Wednesday that if the Tampa city council won’t go along with contributing tax money to a new Tampa Bay Rays stadium, maybe the county will just go ahead without them. Hagan did not go on to describe where he would find $180 million to replace the city’s planned contribution. Rather than object to being threatened with a good time, Tampa council chair Alan Clendenin warned his recalcitrant colleagues, “Unfortunately, there’ll be a cost of the city not having participated in the process.” He didn’t say what kind of cost he meant, but he gave his word that it was the case, and that’s good enough with old Clenny.
  • The chances of convincing Tampa elected officials to spend public dollars on a Rays stadium, meanwhile, could plummet if Florida voters adopt sweeping property tax cuts in November, which would decimate local budgets. On the bright side — sort of — that would at least make any property tax exemption for the Rays stadium project worth less, since there would be less in property taxes to exempt, though it still would leave Tampa in the same budget hole for the project.
  • And finally, MLB commissioner Rob Manfred also chimed in on the Rays stadium situation, saying at the All-Star Game, “Every delay just makes it more difficult to hit a timetable of when the stadium is going to open,” which, yes, that’s how time works. Maybe Manfred would like to impose a pitch clock on stadium talks?
  • The group of wannabe Orlando MLB expansion team owners say they have more than $2 billion in place combined for acquiring a team and building a stadium, and with MLB’s expansion fee expected to be more than $2 billion, they’re asking the state of Florida to kick in $975 million in tourist tax dollars toward a stadium. The prospective ownership group said this would 100% be worth it, as a new team in Orlando would generate $73 trillion dollars in new economic activity in the first week alone (or something like that, I didn’t write down the actual number, mine is equally likely to be accurate). It also raises the question of whether Orlando is really a move threat for the Rays if it would require state money too, meaning state officials would really be bidding against themselves.
  • Some rich people in Nashville would like an MLB expansion team too, but city officials there say that’ll only work if they can privately fund a stadium, good luck with that.
  • The Chicago city council, as expected, approved spending $425 million in property tax proceeds on roads and public plazas and stuff surrounding a new downtown Chicago Fire stadium. Alderman Anthony Beale called the project “what exactly TIF is supposed to be used for,” adding, “When you look at the jobs that are going to be created by this, when you look at the revenue that’s going to be brought into the city by this project, the restaurants, the parking, the ticket sales and all the things that go along with that, that’s how we make our economy grow.” Beale did not explain how moving the Fire from one part of Chicago to another was going to create all this new revenue — or, for that matter, how encouraging construction of new housing in one part of Chicago rather than another — but surely he knows what he’s talking about, no reason not to trust him just bceause he once attended a fundraiser in his honor held by the taxicab industry the week before before voting to water down taxicab regulations.
  • Washington, D.C. council chair Phil Mendelson has proposed spending $300 million in city money on expanding D.C. United‘s stadium to 28,000 seats and building a roof on it, with the team owners on the hook for the other $320 million. In exchange, the district would receive “stadium-generated revenues and economic activity,” which is to say no actual money, just “maybe it’ll host some more concerts and not everyone buying tickets would have been spending their money elsewhere in D.C. anyway.”
  • The city of Portland broke the stalemate in Portland Trail Blazers arena talks yesterday, sending team owner Tom Dundon a draft term sheet that doesn’t include rent payments but does include payments in lieu of property taxes starting at $3 million a year and escalating over time. This came after NBA commissioner Adam Silver griped that Dundon’s plan to get $600 million in public money for arena renovations while putting in nothing of his own money “seems to have gone off track,” then refused to promise that the Blazers would stay in Portland even if the $600 million was approved — which seems to be a violation of Extortion 101, but maybe you do catch more flies with vinegar than honey, who knew?
  • Cleveland’s Gateway Economic Development Corp. just got a $52 million bill for projected repair needs for the Guardians stadium and Cavaliers arena, and doesn’t have $52 million to pay it with. Surely nobody could have seen that coming when the city agreed to cover the teams’ future capital expenses as long as they played there! Live and learn, or in Cleveland’s case, just live.
  • More World Cup economic impact data points: Some businesses in Atlanta are doing well, others are not; Arlington businesses are only doing well if they sell tourists on Texas-y things like barbecue or access to cattle drives; New York’s bars made out better during the event than its hotels; bars in England are doing great, too, despite England not actually hosting any games; downtown Seattle got an extra 3 million visitors on World Cup hosting days, but the Downtown Seattle Association didn’t release figures on whether the rest of Seattle got fewer visitors than normal on those days; and Miami and Los Angeles and Arlington should all see massive economic impact, report news sites (mostly former news site CBS) that only cite FIFA’s numbers.
  • Economist Geoff Propheter decided to get into the vaportecture game with AI designs for a new Blazers arena, and after some online kibitzing it ended up here, 10/10, no notes.
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Friday roundup: Pelicans owner seeks deal for state-funded velour, ballot measure on Royals stadium could face court fight

access_time personNeil deMause

First off, a special note of thanks to all the FoS supporters who get daily posts by email for your patience while I’ve spent the last week or two figuring out how to make the formatting more readable on mobile devices. (The actual code took just a few minutes to write; figuring out where to insert it in the convoluted system that sends out notices as soon as posts are published was a much longer saga.) I hope this reduces your eyestrain, even at the risk of easier access to stadium news raising your blood pressure.

And speaking of stoking ire, here’s the rest of this week’s news items that didn’t make the daily cut:

  • New Orleans Pelicans owner Gayle Benson is reportedly working on a lease extension with the state of Louisiana to be signed by the end of this year, which could be a 10-year deal with additional five-year options like Benson’s Saints got. No one’s saying a word about the important stuff — how much the state would kick in for arena renovations as part of the deal, and whether Benson would pay any added rent or revenue sharing to help repay the state’s costs — but given that the Pelicans owner has previously said she wants more luxury suites with crushed velour furniture in order to boost the team’s profits, which are currently only about $77 million a year, don’t hold your breath on this “public-private partnership” including a ton of private.
  • A Kansas City labor organization has succeeded in getting enough signatures to put a vote on the November ballot on whether to use city money to fund a new Royals stadium. Mayor Quinton Lucas has declared “the train’s already left the station” and threatened to get the deal signed off on before November, to preclude the public from having a say; the group Missouri Workers Power has threatened to sue to block Lucas from doing so, citing legal precedents where courts struck down legislative actions taken on issues where voter initiatives were pending.
  • North Carolina house speaker Destin Hall is not so crazy about the idea of setting aside a pile of state money to build a Raleigh-area baseball stadium for a proposed MLB expansion team, saying, “Private companies should pay for their own facilities instead of relying on the General Assembly. However, if someone presents a proposal showing that North Carolina taxpayers would get a strong return on the investment, I am willing to consider it.” State senate leader Phil Berger, who lost his primary by 23 votes in March, has been the main advocate of a stadium funding bill; both Hall and Berger are Republicans, while Democratic Gov. Josh Stein said this week, “We’re eager for this opportunity to be considered, and we’ll do all we can to support it.”
  • Some Illinois state legislators don’t seem inclined to revisit tax subsidies for a Chicago Bears stadium no matter what Gov. JB Pritzker says: Comments this week (all from Pritzker’s fellow Democrats) included, “What the Bears wanted was a blank check We not only said no but, excuse my language, hell no,” “If you come to the table in Springfield and you are a liar, it doesn’t bode well for you,” and “The big issue that came about was, Are we going to give billionaires more taxpayer dollars?”
  • A Cuyahoga County councilmember is suggesting using part of the proceeds of a 0.25% sales tax surcharge meant to cover building a new jail and repairing a courthouse to instead pay for repairs and upgrades to the Cleveland Guardians stadium and Cavaliers arena, because surely there’s nothing else the county could use that money for. Just not paying for unlimited upgrades ad infinitum and daring the team owners to give up their sweetheart leases — or even threatening to do so in order to get the team owners to agree to a compromise solution — remains an option, guys.
  • Neighborhood leaders around the Chicago Fire‘s proposed stadium at the The 78 site say if the city is going to devote tax money to parking garages for the stadium, it should also kick in for a community benefits agreement to provide funding for transit access, affordable housing, anti-displacement protections, public infrastructure, and support for local businesses. Whether to view this as a vital instrument of democracy to ensure that regular citizens can get dealt into public spending priorities or just a way for developers to buy off local community leaders by cutting them in on the deal is, as always, a reasonable question.
  • Most of the news coverage of the economic impact of the World Cup has disappeared as coverage of the games themselves has taken over, but Seattle’s KUOW did check in on local businesses this week and found that food outlets near the stadium that sell drinks or quick grab-and-go food items are doing great while businesses farther away or those that sell things fans may not crave before or after a soccer match (Vietnamese cookies, vintage clothing) are having a miserable time of it. Yup, checks out!
  • Buffalo Bills ticket prices are too damn high, clearly we need to reduce red tape so the Bills can build more seats.
  • Yes, that Crain’s Chicago Business article claiming Bears tax subsidies weren’t public money was real bad, but as Geoffrey Propheter reminds us, it’s still no Bridge Detroit.
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Friday roundup: Rays stadium gets a yes vote that’s actually a no, Bears tax break talks get weird

access_time personNeil deMause

If any of you were wondering what happened to this year’s sports economics conference at University of Maryland Baltimore County, it moved from April to June, so it hasn’t happened yet. I just booked my trip, so FoS readers can expect a liveblog on the day of stadium-related papers, at least. And if you’ll be at the conference on Tuesday, June 9, please find me and say hi.

Before June we still need to get through May, which remains jam-packed with the exciting denouement to several team owners’ push for stadium and arena deals this legislative session, while (some) legislators resist demands for ever-higher public subsidies. How that’s currently going:

  • The Tampa city council followed in the steps of the Hillsborough County commission, voting 4-3 yesterday to approve the Tampa Bay Rays‘ nonbinding MOU for a Tampa stadium project. All eyes, though, are on the swing vote that secured passage, Bill Carlson, who said he’s only for it before being against it: Carlson said he voted yes on the MOU to “help the Rays get the state money” but would “definitely vote no” on a binding MOU because “I don’t believe in private sector subsidies.” Given that state legislators have said they’ll only approve state money for the Rays if the city and county are committed to their share of spending, Carlson may yet regret saying the quiet part loud here — it’ll be very interesting to see what happens when the legislature next takes up the state funding bill, which needs to happen in the next week as Florida wraps up its special budget session.
  • The Chicago Bears stadium tussle took a weird turn this week, as Chicago Mayor Brandon Johnson pitched a plan to keep the team in the city by giving Chicago more control over the Illinois Sports Facilities Authority, which Gov. JB Pritzker (pretty reasonably) declared to be “no plan at all.” Johnson then declared that city lawyers had met with Bears officials about a possible new lakefront stadium, which led the Bears to issue a statement that while team lawyers met with city lawyers, the Bears “have exhausted every opportunity to stay in Chicago.” All this would be a mere media sideshow, if not for the fact that some Chicago-area state legislators are reportedly holding off on approving tax breaks for an Arlington Heights stadium in hopes that the team can be kept in Chicago — though that’s according to state Sen, Bill Cunningham, the main sponsor of the tax break bill, so for all we know he has his own motivations for blaming the bill stalling on people with unwarranted dreams of the team staying put. On the third hand, Cunningham also said some legislators have expressed distaste for the size of the tax breaks themselves, as well as impatience that the Bears are demanding infrastructure money as well but haven’t put forward a traffic study for what would actually be needed. At this point there’s going to be no way for Bears officials to know just what they’ll be in line to get from Illinois by the end of this legislative session, which is going to make it very interesting to see what they decide about Indiana’s stadium subsidy offer, or if they’ll somehow try to put off Indiana for a few more months until they see just what Illinois is putting on the table.
  • Not to be left out of all the media shouting, Arlington Heights Mayor Jim Tinaglia says that an Indiana stadium is no good because it would be near a toxic waste site, while Hammond Mayor Thomas McDermott Jr. says not to worry because “the Bears know far more about environmental concerns in that area than any of us, because they’re spending millions of dollars on it.” Is that how that works? Pretty sure that’s not how that works.
  • Athletics vice chair Sandy Dean says the team has a contingency plan for still building a Las Vegas stadium even if Bally’s doesn’t move ahead with its proposed surrounding development, which could be tricky given that the Bally’s section was supposed to provide some of the entrance plazas to the A’s stadium. Dean says the team might try to replicate something similar to its Championship Plaza in Oakland, with food trucks and outdoor games, which sounds really hot for Vegas, but maybe. A’s owner John Fisher has still only spent about the first $400 million on the $2 billion project, meaning we still don’t know what will happen once he has burned through public funds and needs to come up with the rest from his family money.
  • Cuyahoga County will not be quadrupling its “sin tax” on alcohol and cigarettes to raise an estimated $56 million a year for additional upgrades for the Cleveland Guardians stadium and Cavaliers arena, after state legislators said they wouldn’t approve such a hike. The county could increase ticket taxes instead or add a 0.25% sales tax surcharge; it could also just stop funneling money to the teams and dare them to break their sweetheart leases, but nobody is putting that on the table for now.
  • Wondering how on earth the Philadelphia Phillies are finding $205 million worth of upgrades to their spring training facility, funded with the help of $115 million in city and county money, in addition to the previously mentioned addition of “batting cages with floor scales that track a player’s weight distribution through an entire swing”? This interview with Phillies Florida operations director John Timberlake won’t explain it, but you will learn that yes, he is Justin’s uncle.
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Friday roundup: Has Cleveland’s mayor actually found a way to make Guardians and Cavs owners help pay for own repair costs?

access_time personNeil deMause

No time for a lengthy roundup intro today, I’m too busy catching up with the latest problems resulting from sending Microsoft Outlook into space. Plenty of juicy bullet points, though, you can dig into those right now:

  • Cleveland Mayor Justin Bibb is proposing establishing sales tax surcharge of up to 5% in and around the Guardians‘ stadium and Cavaliers‘ arena to help fund what could be $400 million in ongoing repairs and upgrades at the venues, expenses the city’s sports authority is required to cover under the teams’ leases but which it has no money for. Cleveland.com describes this as “Cavs and Guardians fans footing the bill,” but actually a lot of this could fall on the team owners, as fans are unlikely to put up with higher prices on tickets (or, to a somewhat lesser degree, hot dogs or souvenirs) just because taxes went up. One catch: Any “New Community Authority” would require any property owners to agree to join and be subject to the tax; the stadium and arena are owned by the sports authority, though, so it’s at least possible Bibb could force this on the teams over their objections. Lots of team prepare for such backdoor funding attempts by inserting “no ticket tax surcharge” clauses into their leases — I’m not spotting any in the Cavs and Guardians leases on an initial look, but feel free to search for yourselves.
  • NFL Commissioner Roger Goodell turned up the heat on the Chicago Bears stadium situation on Tuesday, declaring: “They need to find a solution for a stadium. … I think it’s really important that they come to a resolution on this relatively soon. … This is an important time to get this resolved sooner rather than later.” Okay, that’s less “heat” than “typical commissioner whingeing,” no reason to report on this as upping the pressure in any real oh come on, NBC Chicago.
  • Predatory lending tycoon Tom Dundon has been approved as the new owner of the Portland Trail Blazers, and he was not pleased at all that one of the first questions he got was why he hasn’t committed any of his own money toward an arena renovation that the team is seeking $600 million in public subsidies for. “No one’s ever told me I didn’t have skin in the game before,” snapped Dundon. “We don’t know each other very well. So, look, we’re going to negotiate and do a market deal.” Easy for him to say since he’s already landed the first $365 million in state funding, but at least maybe this will give local legislators a bit more backbone as they negotiating the remaining $235 million — especially since minority owner and venture capital succubus Sheel Tyle declared, “I don’t want people to be concerned or scared. We are committed to Portland, 100 percent. Full stop.” Somebody please alert Ron Wyden.
  • The Maryland legislature has killed legislation for the 2026 session to spend $217 million in public money on a stadium to host new Baltimore men’s and women’s soccer teams, partly because there’s community opposition to building it atop a public golf course that was the site of some of the first integration of the city’s public facilities. “When we introduced the legislation, the purpose was not to get it funded,” bill sponsor state Sen. Antonio Hayes told the Baltimore Banner, “the purpose was to keep the conversation going” — so you can rest assured we’ll hear about this again in the 2027 session.
  • Denver Broncos owner Greg Penner says he won’t be able to meet an “ambitious” 2031 target date for opening a new stadium without help from “a lot of key partners at the city level [and] at state level.” In particular, Penner still needs to finish acquiring land for the stadium — he said if the new stadium isn’t ready by 2031 he could just extend his lease at the old one, so it’s not clear why anyone would feel pressured by this deadline other than him, but this is just how team owners roll.
  • The Missouri legislature is considering cutting $2 million from its stadium maintenance budget and redirecting it to a fire department program in retaliation for the Kansas City Chiefs announcing they’ll move to Kansas in 2031 — though in the meantime, it would also reduce maintenance spending on the Royals stadium as well, assuming the Royals stick around.
  • World Cup participant countries typically get tax exemptions during their teams’ time spent in the host nation, but because Trump administration is only extending that courtesy to nations that have signed specific double-taxation agreements with the U.S., “It’s going to cost most non-European countries a lot of money to go to the World Cup” this summer, says tax consultant Oriana Morrison. And that’s before visiting fans pony up for the inflated cost of train tickets to the games in Massachusetts. Props to both the federal and local governments for finding ways to claw back some of the costs of hosting the World Cup, I guess, though taking it from the pockets of Haitians seems just slightly cruel and unusual.
  • Inglewood is spending $8.5 million to “revitalize” its downtown so that it’s more lively in advance of the 2027 Super Bowl and 2028 Summer Olympics, hey wait, weren’t Super Bowls and Olympics supposed to revitalize their surroundings? U.S. news media, we await your corrections.
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Friday roundup: Bears battle drags on, Blazers subsidy heats up, 15 teams now angling for Ohio unclaimed funds cash

access_time personNeil deMause

It’s Friday! But because of other commitments, I’m writing this from Thursday evening! So if there’s any breaking Friday morning news, complain about it in comments, and we’ll get to it on Monday, which for me will probably be Sunday. You following all that? Doesn’t matter, just read your bullet points, they’re good for you:

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Friday roundup: Breaking down taxpayer costs of the proposed Indiana Bears deal, plus other stadium news

access_time personNeil deMause

The Indiana legislature’s amended bill for a Chicago Bears stadium project is finally up, and we can start to get a slightly better sense of what it would entail in terms of public costs. Tax expenditures would include: a city of Hammond admissions tax, Lake County and Porter County food and beverage tax surcharges, a Hammond food and beverage tax surcharge, a Lake County hotel tax surcharge, what looks like local income and sales taxes from a stadium district, and state sales taxes from a stadium district. The stadium authority would also own the stadium and lease it to the Bears (terms very much TBD), so it would presumably be exempt from property taxes.

That is a ton of moving parts, needless to say. There being no fiscal analysis attached to the bill to project how much each of these taxes will raise, it’s impossible to determine what the total public price tag would be, though something upwards of $1 billion seems likely given all the revenue streams involved. (WGN calls it $1 billion exactly, not sure where that number comes from, though Indiana house speaker Todd Huston did throw that number around as an estimate yesterday.)

The bill also says that “the stadium board is responsible for the operation and maintenance of the capital improvement upon completion of construction,” which sounds bad, and then two paragraphs later that “the authority has no responsibility to fund the ongoing maintenance and operations of the capital improvement,” which sounds good but also contradictory. (It’s possible this is just dividing up responsibilities between two state agencies, I need to keep going through the bill language to be sure; if so, it’s bad for taxpayers because it could end up a grift that keeps on giving.) Also “the stadium board will retain all revenues from operation of the capital mprovement,” which sounds very good for Indiana but also not likely something the Bears ownership would agree to if it really meant what it sounds like it does. So lots of questions still up in the air, we get another public hearing on this before the full Indiana house and senate votes next week, right? Right? Anyone?

Meanwhile, in other news this week:

  • The proposed Tampa Bay Rays stadium development at Hillsborough College’s Dale Mabry Campus would include relocating a middle school and some county offices to … somewhere, while the college’s buildings would be rebuilt in a compressed corner of the campus … somehow. The new Tampa Bay Times reporters on this story, one of whom was just promoted from intern and the other just graduated from college last summer, don’t appear to have actually asked anyone with the Rays or with Gov. Ron DeSantis’s office about how this is all expected to work, sure do miss Colleen Wright’s reporting on the Rays stadium saga.
  • The Cleveland Guardians and Cavaliers would like some of that sweet state unclaimed funds money that the Browns are using for their new stadium, please, to use for upgrades to their current homes. The state can get right on that just as soon as that little matter of the restraining order against the state using the funds at all is cleared up.
  • The estimated $750 million cost of renovations to the Arizona Diamondbacks stadium — which only cost $354 million to build in the first place in 1998, about $700 million in today’s dollars — is now expected to be “much higher,” according to team CEO Derrick Hall. Hall didn’t say exactly how much higher, or whether it will all fall on the state to increase its planned $500 million cut of the costs, or when the D-backs will get around to actually signing a new lease in exchange for the renovations.
  • Athletics team execs say $300 million has now been spent on construction of John Fisher’s Las Vegas stadium and $989 million contracted for, out of a total price tag of still figuring that out. This is either the biggest bluff in sports history or the biggest dog-catching-the-car-and-having-to-figure-out-what-to-do-with-it, honestly looking forward to the inevitable cataclysmic denouement either way.
  • The waiting to see if the state of Connecticut will provide $127 million to build and MLS Next Pro soccer stadium in Bridgeport is over, and the answer is: Nope, go kick rocks. State Economic Development Commissioner Daniel O’Keefe cited the need to reduce state spending and what the Connecticut Post termed the “mercurial nature of the sports industry,” noting that the Connecticut Sun may be about to move to Houston and the Bridgeport Islanders may be about to move to Hamilton, fool me three times, shame on me. Developers plan to instead use the planned stadium site for a project involving youth sports indoor and outdoor fields, which apparently don’t require hundreds of millions of dollars of state subsidies like pro sports do.
  • The video of my interview yesterday on whether Los Angeles should try to renegotiate its 2028 Olympics hosting deal is now up at Alissa Walker’s Torched site, go check it out if you like. Chris Tyler of Strategic Actions for a Just Economy, which commissioned me to do my Olympics report, joined as well, and the three of us spent a solid hour discussing what went wrong and options for trying to fix it — suffice to say that if former L.A. mayor Eric Garcetti’s ears are burning today, this is why.
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Cleveland still has no money for Cavs, Guardians upgrades, is resorting to stalling

access_time personNeil deMause

The controversy continues over the city of Cleveland and Cuyahoga County having to cover more than $400 million in upcoming repair costs for the Guardians stadium and Cavaliers arena despite having no money to do it with. And according to Cleveland.com, there’s nothing the local governments can do about it:

Under its lease agreements with the Cleveland Cavaliers and Cleveland Guardians, Gateway Economic Development Corporation of Greater Cleveland is responsible for paying for capital repairs over $500,000 at Rocket Arena and all repairs — big or small — at Progressive Field.

Worse yet, it’s not just genuine repairs that taxpayers are on the hook for; the Guardians leases also contains one of those dreaded state-of-the-art clauses that requires publicly funded upgrades if the Cleveland stadium has fallen behind three-quarters of other MLB ballparks, “as well as any changes required by television networks, the league, insurers or government regulations.” Most recently, this required the city and county to spend $1.3 million to install padded seats behind home place in 2023, on the grounds that all the other kids had them.

Gateway officials have responded by trying to stall on approving the payments, with one board member telling a Guardians official, “We are required to fund it. We are not required to fund it on the schedule that you’re asking.” But ultimately, according to the lease extensions approved by lawmakers in 2004 and extended in 2021, the leases require the city and county to cover these costs in exchange for the Cavs and Guardians staying put through 2034 and 2036, respectively.

The city and county do have a doomsday option, though. As I wrote last December:

The leases say the teams can sue Gateway for damages if they don’t get their repair money on time. However, if Gateway runs out of money — which it would if the city and county stopped giving it more cash — it doesn’t appear that the Guardians and Cavs owners can sue the city and county, so it’s within the governments’ power to shut off the money spigot and dare the teams to break their leases and try to find better ones elsewhere, if they wanted.

That doesn’t seem to be the plan so far: Gateway officials are griping to the city and county that they need a bailout — another bailout, following one for $20 million last year that raided funds for a minority business program and other projects — and Mayor Justin Bibb is muttering about creating tax surcharges in the stadium district to help cover costs. This all seems destined to end with the team owners negotiating another round of lease extensions in exchange for a lot more public cash, like how it’s been done one state to the west; you’d like to think that Ohio legislators could be better negotiators than Indiana ones, but if city and county officials had shown any ability before this to write leases that would protect taxpayers, they wouldn’t need the talcum powder.

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Friday roundup: Chiefs to ramp up Kansas saber-rattling, Bears’ Indiana move threat gets cool reception in Illinois

access_time personNeil deMause

Are people still flipping out about Chicago Bears management acknowledging that Indiana is next door to Illinois and they could try to build a stadium there if they wanted? Yep. Does that mostly come down to “fans in Indiana would be happy with a shorter drive and those in Chicago would be unhappy with a longer one”? Yep.

We’ll get back to the Bears in a sec, but first the latest in a more advanced cross-state NFL team location battle:

  • A Kansas legislator says the state’s Legislative Coordinating Council, a joint committee of leaders of the state house and senate, is set to meet on Monday to discuss a proposed agreement between the state and the Chiefs on a new stadium, though the state commerce department cautions that “no final agreement has been reached.” The Missouri Independent says the committee could start the process of approving state-backed STAR bonds at its Monday meeting, though the state already approved those in concept last year, and it doesn’t seem possible to actually sell specific bonds without a specific agreement in place, so not clear on what could actually get decided on Monday. Mostly, this seems to be a way for the legislature to declare that Chiefs owner Clark Hunt has met the required end-of-2025 deadline to be eligible for the bonds — as has Royals owner John Sherman, apparently, despite no concrete stadium plans at all, given that committee chair Ty Masterson’s office said he believes the Royals have met the deadline by being “fully committed” to Kansas. Some sort of announcement of a Chiefs deal on Monday seems likely, but it’s also likely that a lot of details will still need to be worked out, so let’s hold off on the “Chiefs are moving to Kansas” headlines for the — never mind, too late.
  • Back in Illinois, state officials are taking talk of a Bears stadium in Indiana in stride, with State Rep. Kam Buckner (district includes Soldier Field, is opposed to stadium subsidies) calling the team’s move threat “very predictable” and saying “in negotiations, what you do is you create leverage by saying you have more options,” while State Rep. Mary Beth Canty (has sponsored a bill to allow for stadium subsidies in Arlington Heights) asked that the Bears “engage with the General Assembly in good faith, without threats.” State Sen. Bill Cunningham, meanwhile, called giving the Bears a property tax break (but not necessarily all the infrastructure money team execs are asking for) “a good starting point” because it would only be local, not state, tax money, but said “we have more important things to tackle first.” It certainly sounds like the Bears owners can get something out of Illinois, even it not everything they’re demanding; dropping an Indiana move threat may help them get on the legislative agenda, which may be all they want, but there’s still a whole lot of haggling to go.
  • Cleveland’s Gateway sports authority is facing an estimated $150 million in imminent repair costs for the Guardians stadium and Cavaliers arena, plus another $261 million over the next decade, and has no money on hand to pay for these costs and no plans for how to raise it. Not great! The city and county cover capital repairs while the teams cover maintenance, so there’s still the possibility of haggling over which is which. The government taking on all capital repairs during the teams’ 2004 lease renegotiations still seems like a terrible idea, and Gateway just defaulting on this and daring the teams to break their leases (which expire in 2034 and 2036 anyway) early seems like a reasonable consideration compared to throwing $400 million in good money after bad, but nobody’s talking about that just yet.
  • The Dodger Stadium gondola project refuses to die, year after year after year. “NBC Los Angeles reports that during the meeting, project supporters waved signs reading ‘Build the gondola’ while opponents held signs saying ‘Stop the gondola’,” can’t we come to some sort of compromise?
  • Inter Miami‘s new stadium is finally set to open next spring, but the promised accompanying public park space won’t be ready yet, seen that one before.
  • And then there’s Germany, where when a pro women’s soccer team needs a bigger stadium, the team owners buy the one that a recently relegated men’s team is no longer using plays in. It was built way back in 1992, can you imagine how outdated the Getränkehalters must be?
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Friday roundup: What if schools got all the money they needed and sports teams had to hold bake sales to build stadiums?

access_time personNeil deMause

Yes, that story about nobody knowing how much the 1998 Nagano Winter Olympics cost because the Olympic committee literally set fire to its financial records is incredible, and yes, I really need to make a fridge magnet about it. This is more a note to myself than to you all, feel free to skip ahead to this week’s speed-round bullet points:

  • Cleveland mayor’s office chief of staff Bradford Davy said of the Guardians and Cavaliers owners’ insistence on more public money for venue upkeep and upgrades that “we are going to have to make sure that those relationships are strong and thoughtful,” but also that “the general revenue fund cannot be held accountable” and the city needs to look for other revenue sources that wouldn’t take away from spending on basic city services. I see where this is inevitably going, just be sure to say no to soufflés.
  • Also in Cleveland news, a federal judge has declined to issue an injunction against the state of Ohio’s use of unclaimed private funds to pay $600 million toward a Browns stadium plus more for other private sports projects, but is letting a lawsuit against the spending to move forward. It’s unclear what will happen if the Browns get their state check and the state then either loses its case or has its unclaimed private fund pool drained by state residents applying to get their money back — look for other revenue sources, I guess, it’s all the rage!
  • A consultant hired by the Wisconsin Professional Baseball Park District has issued a report concluding that the Milwaukee Brewers stadium parking lots could hold $700-800 million worth of development, which if fully built out and taxed would supply $18.8 million a year in property taxes. True, the land is owned by the state stadium authority and so is tax-exempt, but maybe the district could cut a deal for payments in lieu of property taxes with some as-yet-unidentified developer, despite “environmental issues” like the parking lots being partly in a flood zone? Anyway, the Brewers’ president of business operations called it a “good first step,” that’s enough to build an entire headline around, print it!
  • Ottawa Senators owner Michael Andlauer has hired a team of lobbyists to push for public money from the federal and provincial governments for the new arena that the team has been fighting for since before their old owner died. It’s not clear exactly how much the lobbyists are asking for beyond money for “infrastructure financing and other government programs,” but the Ontario government does have an $8 billion infrastructure fund sitting right there, which you know must get Andlauer salivating. The local media is also reporting that Andlauer wants a similar deal to the one the Calgary Flames owners got in which about $300 million is coming from the province of Alberta and $537 million from the city of Calgary, but also that the Sens owner “has publicly stated that the organization will not be asking the City of Ottawa for taxpayers’ money.” Say no to soufflés, Michael!
  • Springfield is still looking at building a pro soccer stadium. Which Springfield? All of them, probably?
  • Rhode Island officials have refinanced their Pawtucket soccer stadium bonds with the terrible interest rate and somehow managed to be both paying even more this time and also having the state treasury for the first time be the backstop for bond payments. GoLocalProv reports that “the Rhode Island Commerce Corporation and the Pawtucket Redevelopment Agency have refused to comment on the new financing scheme,” and can you really blame them?
  • If you’ve been craving a supercut of the Buffalo Bills-themed Hallmark movie (horrifyingly not the first NFL-team-themed Hallmark movie) only containing the parts where the male romantic lead talks about how great the new Bills stadium is, Defector has got you covered.
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