Friday roundup: Miami Heat park 26 years overdue, Virginia Commanders stadium plan rises slightly from dead

Sorry to keep you waiting this morning — let’s just blame “the holidays” and leave it at that. Getting straight to the news:

  • The Miami Herald editorial board would like to remind everyone that Miami Heat owner Micky Arison promised to build a waterfront park as part of his arena deal with the city … in 1996. “But there was a loophole,” notes the Herald. “The ballot language didn’t actually specify that the park would be built.” Whoops! Too bad there aren’t such things as legal proofreaders to check over ballot language to be sure that it does what it says it does! Or, you know, newspapers like the Herald to check that people are voting on what team owners have promised they are.
  • Virginia Gov. Glenn Youngkin has proposed spending $500,000 for a study of how to lure the Washington Commanders to his state with a new stadium, which is a drop in the bucket in stadium spending terms, but as the first sign of life since the Virginia legislature killed a Commanders stadium bill in June, it’s worth watching.
  • Here’s a long article by CNBC about how “since 2000, public funds diverted to helping build professional sports stadiums and arenas have cost taxpayers $4.3 billion” (no source provided, but that is almost certainly a massive undercount) that says “the reason cities end up paying for stadiums begins with the issuance of tax-exempt bonds from state and local governments that the federal government has signed off on for decades,” which isn’t really true at all, so I’d probably recommend not reading it unless you want to risk being confused by spaghetti logic. (There’s also a video piece that I haven’t watched, please report back in comments if it’s any better.)
  • The MSG Sphere in Las Vegas, which is technically not an arena since it will only host concerts and such and not sports, has now reached $2.17 billion in estimated cost, which is mind-boggling. MSG is set to pay the entire cost, at least, but I can’t help but wonder if this had any impact on MSG owner James Dolan’s announced plan to spin off the Sphere and his regional sports networks into a new company — not that I’m saying cable channels have as dubious a future business plan as a $2 billion concert theater, but I’m not not saying it, either.
  • New York Mets owner Steve Cohen wants to seek a state license to build a casino … somewhere. In his parking lot? Across the street next to the proposed new NYC F.C. stadium? Either of those places are owned by the city, and the former is technically parkland so this could get interesting.

Okay, I have lots to do and so do you, only two shopping days before Christmas/the last day of Hanukkah/the first day of Kwanzaa! Happy holidays if you observe any, and see you on Tuesday.

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NYC will hand out $344m in tax breaks to the Nets, Knicks, Rangers, Mets, and Yanks in 2022 alone

The hits keep on coming from the new NYC news site Hell Gate, which I wrote for last week about how Gov. Kathy Hochul’s $1 billion Buffalo Bills subsidy was eased by the fact that New York state hates letting voters have input into actual budget decisions. On Monday, it was Doug Turetsky, former chief of staff of the city Independent Budget Office and a journalist before that, reporting on how much money New York City’s sports teams saved last year via not having to pay property taxes on their teams’ homes. How much, you ask? How much:

Take Barclays Center. The arena hasn’t paid property taxes since it opened in 2012. It’s a tax expenditure that will cost the city $85 million this year alone, according to the City’s Department of Finance Annual Tax Expenditure Report

Madison Square Garden, the home of the Knicks and the Rangers, which are each estimated to be the most valuable teams in their respective leagues, benefits from politicians’ largesse too. MSG’s tax break is worth about $42 million this year, according to the Finance Department report…

The city will forgo about $111 million for Yankee Stadium this year and $106 million for the Mets’ Citi Field, according to the tax expenditure report.

That’s a total of $344 million that the NetsKnicksRangersMets, and Yankees would normally be paying to the city in 2022, but aren’t because they don’t wanna. For the Knicks and Rangers, it’s because Mayor Ed Koch accidentally (he swore) gave them a special tax break in 1982 with no end date; for the Nets, Mets, and Yankees, it’s because they arranged to build on city- or state-owned land, then arranged to direct all payments in lieu of property taxes back into their own pockets to pay off their own construction costs, a gambit that helped them qualify for tax-exempt bonds that privately funded stadiums normally aren’t eligible for. (The IRS later closed that loophole, but not before the three NYC teams walked through it.)

None of this is unusual — as Turetsky points out, each and every year New York City forgoes about $7 billion in tax revenue via various and sundry tax breaks. Three years ago, I reported for Gothamist on a pair of 20-year-old tax breaks that the IBO had found to be utterly useless at creating jobs or reducing office vacancies, costing the city $400 million over that time. The two programs, the Commercial Revitalization Program and the Commercial Expansion Program, had been launched in 1995 and 2000 with exactly the sort of public oversight you would imagine:

“I have asked, ‘Show me one study, one survey that will prove or at least indicate that if we put this amount of money into commercial modernization and residential conversion that we’re actually going to create the jobs that are being claimed, that we’re going to get a good return for the public investment,'” [state senator Franz] Leichter said during the brief senate debate over the bill. “You know what? There isn’t one survey. They haven’t made one market study.”

True, no studies had been done, admitted bill sponsor Martin Connor. But, he asserted, none were needed.

“Senator Leichter says, ‘Where is the study?’ Well, we’ve all seen studies and reports and false promises in paper. The people in this business, in this real estate market, got together with their consultants and devised this because they believe it works, and they are the people that have to go out and sell. They’re the people who have to go out and sign those leases, sign up those tenants with these employees, and they believe it will work, and I say give them a chance.”

In 2019, I wrote that thanks to a newly attentive city council and that IBO report, “all signs are that [the CRP and CEP] will soon be gone.” Hey, how’s that going, anyway? Doug?

Together, [the Commercial Revitalization and Commercial Expansion Programs will] cost about $22 million in lost revenue this year…

So where’s Mayor [Eric] Adams on reviewing the dozens of tax expenditures made by the city? The executive budget he released last month reiterates the need for “staying focused on the efficient use of government resources.”…

The mayor’s press office did not respond to a request for comments on the administration’s plans for evaluating the array of city tax breaks.

Always remember: Only the little people pay taxes.

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Cuomo allows sports venues to reopen on February 23, because money

New York Gov. Andrew Cuomo declared yesterday that sports and music venues that hold more than 10,000 people — both outdoor stadiums and indoor arenas — will be allowed to reopen to fans at 10% capacity starting February 23. Each building will first have to have its ventilation systems approved by the state department of health, but once that’s complete, the New York Knicks, Brooklyn Nets, New York Rangers, Buffalo Sabres, New York Mets, and New York Yankees could all soon be playing before paying crowds.

The announcement came as a bit of a surprise in a state that, even with falling coronavirus rates, still has the fifth-highest positive test rate in the country, as new more transmissible variants threaten to create a renewed surge in coming weeks. But Cuomo said that with reduced capacities, improved ventilation, requiring mask wearing, and requiring a negative test result in the previous 72 hours, he could “get this economy open intelligently and in a balanced way.”

All that is well enough — if you’re going to start putting fans back in seats, it’s clear, keeping them masked and distanced is key. But the negative test certification — which Cuomo called “the key” to reopening — is what begins to paint this as hygiene theater: As we learned last year during the Miami Marlins fiasco, 40% of people will still test negative four days after being exposed to the virus, and 20% will test negative even three days after symptoms have started. Plus there’s the problem of people who get tested on a Monday and then contract the virus by Thursday. As one infectious disease expert put it to the New York Times:

“A test 72 hours prior to a game will help identify some cases, but that’s also three days in which an individual can become infectious,” [Saskia Popescu, an epidemiologist from George Mason University,] wrote in an email.

Coming just one week after Cuomo announced that restaurants would be allowed to open to indoor dining, something that can’t be done while masked until chefs develop food that can be absorbed through diners’ skin, the sports reopening is a clear signal that New York state is prioritizing “getting the economy open” over actual safety concerns. As the Times editorial board wrote just hours before Cuomo’s sports announcement:

Too many leaders — not just Mr. Cuomo — are ignoring that call. Massachusetts and New Jersey are allowing businesses, including restaurants, to expand capacity for indoor services, and Iowa just lifted its mask mandate. The impulse behind these moves is understandable. Restaurants and the people who earn their living through them are in dire straits because they have not received sufficient government assistance. State and local economies are hanging by a thread, and everyone is exhausted by restrictions and desperate to return to some semblance of normal life.

But the number of people who get sick or die from Covid-19 in the coming year will depend on the outcome of a desperate race that’s underway, between human vaccination and viral mutation. … By relaxing restrictions now, state and local leaders are undermining their own vaccination efforts. To get a sense of what this looks like to scientists and public health experts, imagine a military general leading the fight against a foreign enemy — and then selling that enemy deadly weapons on the side.

Meanwhile, food critic Ryan Sutton of Eater came out against the restaurant reopening, noting that choosing Valentine’s Day weekend to resume indoor dining “feels chosen less for any health milestones and more for the fact that it is historically one of the biggest nights for restaurants.” While restaurant workers will soon be allowed to sign up for vaccinations, the slow pace of vaccine production means they could be waiting for appointments well into the spring or summer. (Cuomo didn’t say whether stadium and arena workers will be added to the vaccine priority list.)

Speaking as a New Yorker and a Mets fan eager to see how the team will screw up its winter of big-name acquisitions, I’m dying to get to a ballgame as much as anyone. But “dying” only metaphorically: If allowing a couple thousand lucky fans to witness the Knicks and Nets firsthand leads to an uptick in cases that allows new viral variants to take off, sickening and killing people across the city who have no interest in basketball, Cuomo’s sports reopening move could go down as one of the most poorly timed decisions in governmental history. And even if we get lucky and limited-capacity indoor sports turn out not to become superspreader events, seeking a “balanced” reopening — presumably between the full reopening many businesses would want and the continued shutdown of indoor activities that scientists recommend, meaning between profits and deaths — is, let’s just say, a telling reminder of how most elected officials see where their bread is buttered.

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NYC Mayor de Blasio: Sure, wealthy sports owners should pay their taxes, I guess

As I mentioned in my Gothamist article last week, a group of New York city councilmembers have called on Mayor Bill de Blasio and Gov. Andrew Cuomo to start making the city’s sports teams pay property taxes on their stadiums and arenas, which none of them currently do. (The Yankees and Mets and Brooklyn Nets all pay “payments in lieu of taxes” that are really their own construction debt payments, funneled through the city as a tax dodge; the Knicks and Rangers don’t pay taxes on Madison Square Garden because somebody accidentally gave them an eternal tax break in 1982 and no one can be bothered to repeal it.) And the campaign got a boost yesterday when de Blasio sorta kinda endorsed its call for team owners to pay their fair tax share:

De Blasio, a Democrat, was asked at his daily press briefing to respond to a letter last month from nine lawmakers on the New York City Council who called for the Garden, Yankee Stadium, the Barclays Center and Citi Field to pay property taxes. The mayor said he hasn’t seen the letter and was unfamiliar with the legal specifics, but supported the concept of requiring New York’s local teams to increase their contributions.

“Let’s be clear – sports franchises have gained incredible value over the years,” de Blasio said. “They clearly have the resources. I think the history in this city and pretty much all over the country was stadium deals were not good deals for the public, by and large. Some of the more recent ones have been better, but mostly they haven’t been that good. Everything should be reevaluated especially at a point when the city is going to need resources for our recovery.”

That phrasing puts the “blah” in de Blasio, but “everything should be reevaluated” is fightin’ words compared to the usual approach to sports tax breaks, which is for elected officials to shrug their shoulders and say whatchagonnado? And the mayor also responded to a call by 161st Street Business Improvement Director Cary Goodman that the Yankees be forced to pay property taxes just as other businesses in the neighborhood do:

“We all hope and pray that next year baseball will resume in person at some point in the year and the fans will come back and the businesses will thrive, but of course the Yankees should help them through and I assure you they have the money.”

Okay, so none of this is exactly laying down the law, and de Blasio has previously called for Madison Square Garden to pay taxes before shrugging his shoulders and saying whatchagonnado? But it’s still more than we’ve seen before, and is certain to encourage both the councilmembers and Goodman and his South Bronx business owners. The latter has a rally outside Yankee Stadium coming up this Thursday at noon, plus a Change.org petition, and with that and a long enough lever you never know what can happen.

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Friday roundup: 49ers stadium squabble, Richmond nixes arena plan (for now), Mets’ $55m taxpayer-funded sofas off-limits to mere minor-leaguers because “status”

A glacier in Antarctica just lost a chunk of ice bigger than Seattle twice the size of Washington, D.C. nearly the size of Atlanta almost as big as Las Vegas a third the size of Dublin, maybe it’s time to quit driving an SUV? Or maybe it’s just time to focus on some more human-scale disasters that involve small groups of people enriching themselves to the detriment of humanity:

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Bloomberg wins Mr. Met’s endorsement after $380m gift of public money

I know the big New York Mets news is supposed to be whether one rich guy is going to buy a controlling interest in the team from some other rich guys, but I’m more interested in another news item: Michael Bloomberg’s apparent presidential campaign endorsement by Mr. Met.

Mr. Met will be on hand to pitch the opening of the Bloomberg campaign’s new office at 39-36 Bay Boulevard in Bayside, Queens Thursday night.
While not an official endorsement from the Mets organization, Mr. Met is a beloved good luck charm who knows that Amazin’ things can happen in a political campaign as well as on the baseball diamond.

The New York Post didn’t comment much more on this, but it’s curious for several reasons. First off, “good luck charm” or no, getting the support of a giant baseball-headed homunculus who’s possibly best known right now for giving fans the finger seems like a dubious benefit, though I suppose it’ll get the attention of sports fans who otherwise wouldn’t be paying attention to the opening of a campaign office. But also, it’s unusual for sports teams (or sports team mascots) to be weighing in on presidential politics at all.

But then, the Mets and Bloomberg share a special relationship. In 2005, New York’s then-mayor shocked the city by announcing the construction of new stadiums for the Mets and Yankees less than four years after declaring them unaffordable, as part of his doomed bid for the 2012 Olympics. The eventual benefit to the Mets owners was more than $600 million, with $380 million of that coming out of city coffers via property-tax breaks, forgone parking revenues, free land and infrastructure, and other goodies. (The Yankees ended up with more than $1 billion in benefits, with nearly $700 million coming from the city.)

It’s probably a bit much to consider this a direct quid pro quo — after all, anybody can rent Mr. Met for the low (?) price of $600 an hour. Still, there’s something unseemly about a politician making a nine-figure gift of public funds to a business, then getting the support of that business when staging his next campaign. Not unusual, mind you, but still unseemly.

Campaign finance records show that Mets owners Fred and Jeff Wilpon have given out donations to lots of national and local pols, though not much lately. (They also show that neither lives in New York City — Fred lives on Long Island, and Jeff in Connecticut — so they’re not even among the taxpayers who were billed the most for the new stadiums.) Maybe this is all best taken as a sign of the casual cronyism between politicians and wealthy business owners that is pretty much the defining characteristic of American democracy. It’s just sad that Mr. Met is getting dragged into this under orders from his employer, though that’s not unusual these days either.

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Friday roundup: Nashville saves (?) $75m by giving Predators $103m, South Carolina offers to give $125m to Panthers practice facility (?!), Oakland A’s shipping cranes are multiplying (?!?)

Since last week I went off-topic to discuss a review (kindly) poking fun at some of the ridiculousness of Marvel movies, I should note that there’s a TV series that manages to create a fun, exciting superhero universe while simultaneously poking fun at the entire genre in ways that expose not just its ridiculousness but also its fundamentally Manichean politics, and which has now been canceled by Amazon, a company that has been at the forefront of scheming to shake down cities for subsidies in exchange for building its own facilities. Coincidence?!?!?!? Well, okay, yes, almost certainly, but here’s hoping The Tick ends up picked up by a less ethically compromised corporate entertainment giant, if that’s even a thing.

Where was I? Oh right, stadiums, what’s up with those this week that we didn’t get to already?

  • The Nashville Predators have indeed agreed to a 30-year lease extension as first reported last week, and how good or bad a deal it is depends on your perspective: The team’s $8.4 million a year in tax kickbacks and operating subsidies will be reduced to just $4.9 million a year in tax kickbacks, which would be $75 million in taxpayer savings but on the other hand the tax kickbacks will be extended to 2049 now instead of 2028, so that’s $102.9 million in additional taxpayer costs. (Neither figure translated into present value.)
  • A South Carolina legislative conference committee has approved $115 million in tax breaks for a Carolina Panthers practice facility in Rock Hill. Yes, you read that right, a practice facility. State officials say that the 15-year tax kickbacks of all state income taxes will pay for themselves, a conclusion that state senator Dick Harpootlian determined was based on, in the words of the Associated Press, “every Panthers player and coach moving to South Carolina and spending their entire paychecks here and the team buying all the material for the new facility from companies in the state.”
  • Speaking of practice facilities, the Washington Wizards‘ new one is costing $1 million more a year for D.C. to run than anticipated, which is not good after the city already spent $50 million to build the thing for the team’s billionaire owner. D.C. officials recently booked three new concerts for the arena, but expects to lose money on each of them; an Events D.C. board member said they would let “people know that they have a place to go, that this is a fun place,” which I guess is another way of saying they’ll make it up in volume.
  • Omaha is spending $750,000 on hosting an Olympic swim meet, which on the one hand is a lot cheaper than $115 million for an NFL practice facility, and on the other is for a one-time Olympic swim meet.
  • Two unnamed sources tell The Athletic’s Sam Stejskal that New England Revolution owner Robert Kraft is “on the brink of securing a stadium site,” which tells us nothing about the state of the Revolution’s actual stadium plans since this could be a planted rumor to try to gain momentum, but does tell us lots about The Athletic’s poor grasp of the Society of Professional Journalists’ ethics policy on use of unnamed sources.
  • I wrote a thing for Gothamist about how the New York Mets banned backpacks because they have too many pockets to easily search, but not other bags with lots of pockets, pretty much on the grounds of “the light’s better over here.” The best argument either of the security experts could come up with for the policy is that fewer bags means faster lines which means less time queued up outside stadiums as a stationary target for any theoretical terrorists, which is frankly mostly an argument for staying home and watching on TV.
  • Journalist Taylor C. Noakes notes in an op-ed for CBC News that bringing back the Expos might be nice for Montreal baseball fans, but probably won’t do much for the Montreal economy since “the economic impact of a professional baseball team on a given city [is] roughly equivalent to that of a mid-sized department store,” which, yup.
  • The latest Oakland A’s renderings show it still oddly glowing amid a darkened rest of the city. Plus now there are shipping cranes on both corners of the site! I am about to start working on a theory that this entire stadium plan is just a dodge for John Fisher to build lots of shipping cranes.
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Friday roundup: Calgary residents demand say on Flames arena, Indy Eleven asked to only accept public funding of 80% of stadium, Raiders could re-up in Oakland this week

Happy Friday! Here is your weekly fact dump of news that I didn’t get to earlier in the week, because I only got two hands, man:

  • Calgary residents who went to speak their minds at yesterday’s town hall on a new Flames arena say they want to be able to speak their minds on a new Flames arena. The city council is set to vote on an arena term sheet on Monday without public input — or even revealing to the public first what’s in the term sheet — though I suppose some councillors might read the press coverage of the town hall and learn how angry the public is. It’s worked before in Phoenix, for a few weeks at least!
  • The Indy Eleven stadium subsidy proposal has made it into a state senate bill, but “with some hefty strings attached,” reports the Indianapolis Star: the team’s owner would need to put up $30 million of his own money before getting to access $200 million in public tax money (more like $112 million in present value) for stadium costs. This does not actually sound like a big ask, but hey, Star sports columnist Gregg Doyel says it’s worth any price to keep the city’s sports teams (even if they’re not threatening to move) because, and I quote, “my job could depend on it,” so why quibble over a mere $112 million, right?
  • The city of Anaheim has hired a real estate consultant to conduct an appraisal of the value of the Los Angeles Angels‘ stadium site, as it first authorized last month, which is slightly weird in that they just did an appraisal in 2014 that found that the stadium parking lots sought by team owner Arte Moreno for $1 were worth $245 million, but whatever. It’s at least good that the city is apparently committing to ask something based on actual market value for the land, especially coupled with talk of basing any land deal on the Anaheim Ducks deal, which was a decently fair price for development rights to city land. Maybe this will not be awful, despite the new mayor talking about how eager he is to cut a deal even though Angels owner Arte Moreno has no real leverage? I’m almost afraid to hope — we’ll just have to see what happens when the assessment comes in, presumably a couple of months from now.
  • Oakland officials could vote soon to approve a new lease for the Raiders for 2019, with an additional option for 2020, which would put an end to talk of the team playing everywhere else on the planet this fall. Apparently Raiders owner Mark Davis is willing to let bygones be bygones and overlook that antitrust lawsuit the city filed that led him to insist he wouldn’t play in Oakland this season. Good successful bluff-calling, Oakland officials!
  • The New York Mets will not be moving their spring training home out of Port St. Lucie, after threatening to in order to secure a revised deal for $57 million in renovations to their stadium, $55 million of which will come from taxpayers. Bad bluff-calling, Port St. Lucie officials!
  • A rival developer is seeking the same land in Montreal that would-be Expos revivers want for a baseball stadium, to use for a “new smart development of office towers, housing, hotels and public space.” Looks like a fight is in the offing, and these guys have “smart” right there in the name, so watch out!
  • Brooklyn’s Barclays Center is hoping to save some money when the New York Islanders move out for their own arena eventually — the arena is losing about $12 million on guaranteed revenue payments to the team, and without hockey will be able to book more concerts — but more interesting to me from this article is that the building lost $21 million on operations in the 2017-18 season, plus another $33 million in debt and other expenses. Maybe the Nets owners are soaking up any profits, or the arena’s builders are earning their money on all the high-priced housing that went up next door, but still the whole project seems a bit like a waste of everyone’s time and money and eminent domain takings.
  • Also, work on the Islanders’ new planned arena by Belmont Park won’t begin this spring as planned, because the environmental impact statement required for the project won’t be ready until June at the earliest, but “state officials insist the project remains on schedule.” Hmmm.
  • And finally, your regularly scheduled Tottenham Hotspur stadium updates: It won’t be open until April at the earliest, it won’t have a VIP cheese room, and team officials are catching wild foxes and shooting them in the head with pistols. Exactly one of those things was something I expected to type this week.
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That crazy idea to put a minor-league soccer stadium next to the Mets park is probably just a crazy idea

Back when news broke last month of a possible USL franchise called Queensboro F.C. building (or having built for it, or god knows what) a 25,000-seat minor league soccer stadium next door to the New York Mets‘ ballpark, on a plot of land originally cleared for affordable housing, I promised a more in-depth report. And now my report is up, at Gothamist, and it is way more loopy than even I could have expected:

Queens borough president Melinda Katz — one of the two task force co-chairs — has begun stepping up talk of what could be the least likely endgame of all for Willets Point: a professional soccer stadium that would take up as much as 17 acres of the redevelopment site, to be built with uncertain funds, for a minor-league soccer team called Queensboro F.C. that does not, strictly speaking, exist…

“The city spent approximately $200 million in acquiring these properties. I don’t think they did that to build a soccer stadium,” says Hiram Monserrate, the disgraced former state senator turned district leader who is affiliated with the new coalition Nos Quedamos Queens. (Nos Quedamos Queens, in turn, is unaffiliated with the older Bronx group Nos Quedamos, best known for its successful advocacy for the Melrose Commons project, by all accounts the most effective project in city history at constructing affordable housing without displacing existing residents.) “I’m a soccer fan. But you can’t build a sports coliseum at the expense of meeting the needs of the people, and the people need housing.”

If you can’t get into a story that pits a former city councilperson–turned–borough president–turned district attorney candidate (and also baby mama to Guardian Angels founder Curtis Sliwa) against a city councilperson–turned–state senator–turned–jailbird for misuse of campaign funds–turned–community activist, all over whether to devote public land that was cleared of small businesses at great city expense (said businesses immediately going bankrupt at their new location) to a stadium for a soccer team that doesn’t exist yet or even have an identified owner, then, well, I don’t know why you’re reading this site.

The upshot, for those of you who are in a hurry, seems to be that Katz and her allies are grandstanding on this soccer idea for unknown reasons, but nobody else seems super-psyched about it, so it probably won’t happen. But it could happen, maybe, if the Mets owners want it to happen, which they probably don’t care that much about, but they might. Hopefully I will get a chance to revisit this story, because it exactly the kind of batshit that is incredibly fun to write about, not to mention a great cautionary tale of the dangers of farming out public policy to quasi-public agencies and secret task forces and the like.

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Friday roundup: More MLS expansion drum beating, more wasteful non-sports subsidies, more bonkers Tottenham stadium delay stories

Getting a late start this morning after being out last night seeing Neko Case, so let’s get to this:

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