Oregon officials mull upping state tax kickbacks to lure the Rays (or somebody) to Portland

With the Tampa Bay Rays‘ new stadium plans dead or mostly dead or pining for the fjords or whatever pop culture reference you prefer, it’s time to speculate wildly on other cities that might want to take St. Petersburg’s place to offer up a steaming pile of money for a new stadium. Up first: Portland, Oregon, where would-be team owners the Portland Diamond Project (led by retired not-even-close-to-billionaire Nike executive Craig Cheek) want to revisit the $150 million in player-income-tax kickbacks that were approved two decades ago to try to lure the Montreal Expos, and invited over a ton of city and state elected officials, as one does, to discuss upping that dollar amount for bring an expansion or existing team to town. How’d that go over?

  • State Sen. Lew Frederick: “How would people respond? The present state treasurer and the incoming treasurer were there—she [Elizabeth Steiner] will have a lot of say. If there’s a bill, the argument will be the same as it was in the past. Could we be leveraging the tax money for something else other than baseball?”
  • Incoming state treasurer Elizabeth Steiner: “Selling bonds backed by the new salaries—that’s revenue we wouldn’t get if we didn’t get the team. In principle, I’m supportive but I’m not willing to commit until I see all the details.”
  • State Sen. Mark Meek “I can’t wait.”

Feel the excitement! The initial $150 million cap on stadium bonds was in 2003 dollars, to be fair, so expanding it would make a kind of sense in that player salaries have gone up since then; on the other hand, state budget analysts at the time said player income taxes would only be enough to pay off about half of a $150 million bond, so maybe it wouldn’t actually make sense at all. A lot of the “revenue we wouldn’t get if we didn’t get the team” calculation would depend on whether the entire roster could be encouraged to live in Oregon and pay its 9.9% state income tax rate or if the state would only be able to charge income tax for days when the team was playing at home.

Plus, as always, there’s the substitution effect problem: How much of that income would be earned, and have taxes paid on it, somewhere else in the state if MLB never arrived? Part of players’ salaries are paid from out-of-state sources like national TV contracts, obviously, but part comes from local fan spending. If even some Oregonians fund their baseball ticket purchases by cutting back on other sporting events, or going out to eat as much, or some other local entertainment option, then the state loses income tax proceeds from Trailblazers players or sous chefs or pumpkin boat mechanics, which has to be factored in.

All this math will need to be hashed out in the state legislature, and even then it needs to be seen how much money a stadium would cost and how much of the tab Cheek and company would pick up themselves. The proposed site, the Zidell Yards south of downtown, is in a tax increment financing district, so it could get potentially get property tax kickbacks as well. (Here are some images of what the stadium could look like, or at least could have looked like when it was slated for an entirely different site in 2018.)

Portland mayor-elect Keith Wilson, at least, is apparently unworried about where to find a billion dollars or so, and already thinks his city is neck-and-neck at the finish line:

“I’d say this is as close as we’ve come. We feel confident it’s down to us and one other city. And we’re making a solid play.”

One other city? Give us a hint — does it rhyme with Schmeensboro?

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Friday roundup: Houston readies stadium upgrade cash, Oakland Coliseum buyers seek new payment plan

Thanks for your patience while I’ve been traveling this week (and watching Mets playoff games at 3 am), though honestly it’s been a pretty slow news week as well. Not completely dead, though, so let’s get to the weekly roundup:

  • The Houston city council is refinancing its bonds for the Astros and Texans stadiums and Rockets arena, which will let it spend an additional $150 million on renovations. The Houston Chronicle says the money is expected to be allocated as part of lease negotiations — the Texans’ is up in 2031, the Rockets’ is up in 2033, and the Astros’ not until 2050 — but also that the bond money is expected to “be split between the three venues evenly,” so maybe the city plans to set aside $50 million for each team, then see what it can get in lease extensions for that? The Houston Business Journal also reports that the Astros and Rockets leases require “renovations to maintain the first-class status of the venues” — the Astros can terminate their lease in 2035 if the additional spending isn’t made, though there’s no estimate provided of how much maintaining “first-class status” is expected to cost. Friends don’t let friends sign state-of-the-art clauses, let’s just leave it at that.
  • The city of Oakland has rearranged the payment schedule for the African American Sports and Entertainment Group to supply $105 million for the city’s half of the Oakland Coliseum, and the Oakland police union wants answers, calling the change in timetable “strange and weird.” Apparently the new payment schedule also still needs to be approved by the city council before it’s final, so I’m going to go ahead and say that the whole thing is strange, though “weird” will have to wait until we have further information.
  • Destruction from Hurricane Helene is expected to cut into hotel tax revenues earmarked for paying off the Tampa Bay Rays‘ new $1.3 billion stadium, though it’s too soon to predict by how much. Sports economist Geoffrey Propheter notes that if bond buyers balk at purchasing bonds because the tax revenues don’t seem sufficient, Pinellas County could have to allocate more public money to reassure them and keep interest rates from soaring, this should be fun.
  • If the prospective owners who want to get an expansion franchise in Portland, Oregon are successful, and if they then are able to build a stadium where they want, it could have the side benefit of shoring up the approach ramps to a neighboring bridge so they don’t collapse in an earthquake. Neither the earthquake nor the expansion team appears imminent, but this is still news, apparently, so consider yourself informed.

If there’s anything else up, it can get discussed in the comments, or else wait till Monday when I’m back on a normal schedule. See you then!

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Friday roundup: More shouting about Virginia arena traffic, plus rumors of A’s (temporary) death and Coyotes-to-Utah

Happy Friday! (Happiness provided separately.) While I have you here, is it a good time to remind you that Field of Schemes is on Facebook, Bluesky, Mastodon, Post, and whatever Elon Musk is calling his thing these days? And that by following FoS in any or all of those places, you can get notifications of new posts as soon as they happen — and not only that, by reacting to posts on those sites, you can help get more attention for Field of Schemes, because that’s how social media likes work, it’s a popularity contest where your votes make the things you like more popular? No, that isn’t what you want to hear right now, you just to read the weekly news recap? Okay, ignore all that for now, you can always come back to it later.

 

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Friday roundup: D-Backs owners sad no one is throwing money at them like in Milwaukee

The tchotchkes are in the mail! Repeat: The tchotchkes are in the mail! If you don’t get yours by the end of next week, please drop me a line and I’ll look into it.

And speaking of next week, I’m going to be traveling then, so expect to get your news updates somewhat irregularly and possibly at odd hours. In the meantime, here’s a pile of rounded-up news to slake your thirst for stadium and arena knowledge:

  • The Arizona Republic reports that the Diamondbacks owners still want to renovate Chase Field, but that “the organization thus far has been unable to find the sort of public/private partnership to make that happen,” which is a very creative way of saying “we keep waiting for somebody to leave a suitcase full of unmarked twenties on our doorstep, but it hasn’t happened.” Team CEO Derrick Hall told the paper: “We don’t have our hand out, but if you look at some of the other situations very similar to ours — like Milwaukee, Cleveland, Pittsburgh, Baltimore — in each case they are getting strong investments from the public, from a mixture of city/county/state, and we just aren’t.” Hall added: “I’m starting to get concerned with the timing. I don’t think the city officials in particular understand the urgency of our lease, which expires in 2027.” That’s urgent for someone, clearly, but it’s not the city of Phoenix that would face having to go play in the street. Hall did say that the team would put in “more than” 75% of a potential $500 million price tag, though he also said he’d be interested in getting “land we can develop,” so be sure to read the fine print of any eventual proposal.
  • The state of Wisconsin and city of Milwaukee are now looking at spending $600 million in public money over 20 years to upgrade the Brewers stadium that a 2018 study found needed a maximum of $84.5 million in improvements, reports Urban Milwaukee’s Bruce Murphy. Milwaukee residents overwhelmingly oppose the plan, but the Republican leadership in the legislature is currently looking at just taking tax money away from the city and giving it to Brewers owner Mark Attanasio, which is exactly how democracy is supposed to work, A+ work there guys.
  • The House Oversight Committee approved a bill to let Washington, D.C. keep control over the RFK Stadium site, while defeating an amendment that would have prevented D.C. from using public funds to build a new Commanders stadium there. The politics is a little complex here, though, with some Congressmembers arguing against using public money while defending D.C.’s right to use public money, so there’s a lot more haggling to go where this came from.
  • The development team behind the Philadelphia 76ers arena plans released a report it commissioned on the economic impact of the project; please pick a random three-digit number and add six zeroes to it and you’ll be as close to accurate as the report. In related news, the 76ers’ developer partner is apparently kind of a dick.
  • Missed this one last week: The New York city council has approved a new operating permit for Madison Square Garden, but only for another five years. This can will apparently be kicked down the road until Penn Station gets renovated, or the sun burns out, whichever comes first.
  • The temporary cricket stadium in a Bronx public park is dead, with the 2024 men’s T-20 Cricket World Cup matches now to be held in a temporary cricket stadium in a Long Island public park instead.
  • The Associated Press declares the four front-runners for eventual MLB expansion to be Charlotte, Nashville, Portland, and Montreal, though then also mentions Salt Lake City and Austin, so it looks like they’re mostly going by Googling “baseball expansion cities” and taking whatever’s on the first page of hits.
  • Local tourism agency releases PowerPoint on how cool a new sports arena would be” is exactly the kind of journalism I expect from 2023, deep sigh.
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A’s owner to visit Portland, someone check if the Oakland city council is panicking yet

Last week Vegas, this week Portland:

“Faking a Move” is, of course, Step 2 in the stadium-grubbers’ handbook, aka Chapter 4 of Field of Schemes, aka “The Art of the Steal.” University of San Francisco sports economics researcher Nola Agha tells KTVU-TV that “they are putting pressure on the city of Oakland to pass any legislation that’s necessary to continue to build at Howard Terminal,” but also “at the same time, it’s tradition for professional teams in the United States to move where the owners get the best deal.”

Which, yes, I know what Agha means, team owners definitely do sometimes move in search of a better stadium deal. But they far more often don’t move after seeking a better stadium deal, and it’s not always because they’re offered a better deal by their current hometown: As just one example, see the New England Patriots not moving to Hartford in 1999 despite a sweeter stadium pot there. (Pats owner Robert Kraft did get the NFL to create its G-3 stadium funding program by making the threat, but the cash on offer from Connecticut was still more.) As I said last week, this is almost certainly A’s owner John Fisher both doing due diligence on his other options, while simultaneously gaining ammunition to convince Oakland officials to hold their noses and approve something close to his $855 million infrastructure demand — he doesn’t have to decide how serious he is about moving until after everyone has laid their cards on the table.

Anyway, if you’re an A’s fan, gird yourself for more headlines like this over the coming weeks and months, as Fisher jets off on fact-finding trips to Nashville, Vancouver, Monterrey, and Perth, because how far is too far to go to escape a stadium whose lights literally won’t stay on? (Yes, A’s president Dave Kaval said that “we can barely keep the lights on some nights” at the Oakland Coliseum, apparently a reference to a game where a bank of lights went out and they delayed the game briefly until they realized they could see okay by the other lights.) There’s a vote in the Oakland city council on the A’s plan tentatively scheduled for July 20; if carbon emissions shoot up in early July thanks to all the air traffic flying in and out of Oakland, that’s surely a small price to pay for ensuring that democracy works to achieve the right outcome for the local billionaire.

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Friday roundup: Newspapers love stadium propaganda, like really love it, like would marry it if they could

One thing that both cheers and puzzles me is all the comments that surely elected officials are about to start saying no to stadium and arena shakedowns, even as they keep on saying yes. I’m not entirely sure whether it’s a dedication to optimism or a commitment to burn down the system and start anew, but I’ll just say what I’ve been saying in this situation for 20-odd years now: I hope you’re right and I’m wrong, but I’m not holding my breath.

And now that I’ve put the Neil back in nihilism, on with the news:

  • Two guys in Oregon want to build a Major League Baseball stadium in the Portland suburb or Gresham, and build it entirely out of wood, and I’m sorry, I kind of stopped reading after “iconic all-wood stadium,” but I did see there’s a rendering of people petting dogs and roller blading outside a stadium, because who doesn’t like dogs and roller blading?
  • Sports columnist Mike DiMauro of The Day, which I know is a newspaper in Connecticut but which always just makes me think of this, has written one of those “What’s taking so long to throw public money at a sports project, dagnabit?” columns, complaining of the “tediousness” of inaction on renovating Hartford’s arena, which is “creaky” and “squeaky,” and that the problem is the “fundamental moral outrage” of the “Chorus Of Aggrieved Taxpayers” that is leaving renovations “moving forward with the acceleration of an arthritic snail.” (Snails, of course, are invertebrates, so wouldn’t be affected by arthritis. Lucky snails!) Asks DiMauro, “What other Hartford-area project is of more benefit to a wider range of people than a bustling downtown arena?” Try not to answer all at once.
  • Construction of F.C. Cincinnati‘s new stadium is complete, and the team’s press release includes a photo of it empty that is a bit drab with no lens flare or people pointing at the sky, but makes up for that with some impressively purple prose about such things as how “the back shelving of the club’s bar was inspired by the jaw-dropping five-story stacks of the Old Cincinnati Library. If that’s not worth $97 million in taxpayer money, what is? (Try not to answer all at once.)
  • Still not random enough stadium cheerleading for you? How about a local TV news exclusive video of St. Louis stadium construction workers doing stretches in unison?
  • The Palm Springs Desert Sun reports that Oak View Group wants its proposed $250 million arena in Palm Desert to be powered by solar energy and entirely carbon neutral, but complains it’s being stymied by the local power company, which is … sorry, no room for a comment from the power company, need to leave space for the note about the Desert Sun’s upcoming “informational webinar series” in partnership with Oak View Group about its new arena, something that is no doubt entirely unrelated to the four different OVG execs and architects quoted in the story.
  • The Calgary Flames arena project may require chopping down a 125-year-old elm tree, but it’s okay because someone took a 3D photo of it first.
  • Two Arlington Heights–area state lawmakers say they wouldn’t want to use public funds for a new Chicago Bears stadium in the suburban city, while one says he “probably” would. Given that “no public funds” can be defined pretty much however elected officials like these days, not to mention that no one is actually proposing to build a stadium in Arlington Heights, this maybe seems like a waste of a reporter’s time, but … oh, never mind, they just let the intern whose Twitter bio brags about their “bad sports opinions” write it, it’s all good.
  • And finally, we have the Sacramento Bee’s report that Sacramento Republic FC is showing it’s serious about moving up to MLS by … changing the name of its stadium from one corporation to another? That’s what it says in the team’s press release, anyway, gotta get that right into print, that’s what journalism is all about!
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Friday roundup: San Diego okays $1B arena complex, Manfred floats neutral-site World Series, and that time the Twins ran stadium ads featuring a kid who’d died from cancer

I am way too tired this morning from waiting for tranches of vote counts to drop to write an amusing intro, so let’s get straight to the news:

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Friday roundup: Congress gets riled up over minor-league contraction, Calgary official proposes redirecting Flames cash, plus what’s the deal with that Star Trek redevelopment bomb anyway?

Happy Thanksgiving to our U.S. readers, who if they haven’t yet may want to read the New Yorker’s thoughtful takedown of the myths that the holiday was built on. Or there’s always the movie version, which has fewer historical details but is shorter and features a singing turkey.

And speaking of turkeys, how are our favorite stadium and arena deals faring this holiday week?

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Friday roundup: Developer dreams, MLB expansion dreams, and stadiums that only exist on your TV

Still traveling, so super-brief Friday roundup this week:

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Friday roundup: Indiana and Missouri rack up another $390m in team subsidies, and other dog-bites-man news

Sadly, there’s another loss to report this week: Rob McQuown, who for the past decade has been one of the core tech and admin guys at Baseball Prospectus, passed away on Tuesday. I never met Rob personally, but in my days writing and editing for BP we exchanged emails a ton, and he was always a sharp and good-humored presence keeping the site running behind the scenes. (He wrote some excellent fantasy baseball coverage for a while, too.) I haven’t heard the details of his death, but I do know it was way too soon, and my sympathies go out to all his friends and family and colleagues who are mourning him this week. Here’s a lovely podcast tribute by Ben Lindbergh to Rob’s multifarious and too-often underappreciated gifts.

And now, to the news:

  • The Indianapolis City-County Council gave final signoff to $290 million in subsidies for the Indiana Pacers, which along with new and past operating subsidies brings team owner Herb Simon’s total haul to more than a billion dollars. The team’s new lease lasts until 2044, but I’d wager that Simon won’t wait that long before going back to what’s been an insanely lucrative taxpayer well.
  • The state of Missouri has reportedly approved $3 million a year for 20 years, coming to a total of $70 million, for upgrades for the St. Louis Blues, Kansas City Royals, and Kansas City Chiefs stadiums — yeah, I don’t get how that math works either, especially when this was previously reported as $70 million for the Blues plus $30 million for the K.C. teams, and has elsewhere been reported as $70 million for the Blues and $60 million for the K.C. teams, but I’m sure it was copied from a press release somewhere, and that’s what passes for fact-checking these days, right? This brings the teams’ total haul to … let’s see, the K.C. teams got $250 million previously, and the Blues owners got $67 million in city money, so let’s go with “around $400 million,” about which you can say that it’s at least cheaper than what Indiana taxpayers are on the hook for, and that is pretty much all you can say.
  • The city of Anaheim is still waiting on its now-overdue appraisal of the Los Angeles Angels‘ stadium land so it can open talks with team owner Arte Moreno on how much he should pay for development rights on the stadium parking lots. Mayor Harry Sidhu has appointed a negotiating team, though, which includes Sidhu himself, something that has drawn criticism since Angels execs donated to his election campaign. Sidhu also stated that “our theme parks, sports venues and convention center are a matter of pride, but their real purpose is to serve residents by generating revenue for public safety, parks, libraries and community centers and by helping us keep taxes and fees low,” which is not likely to help convince anyone that he understands sports economics like his predecessor did and isn’t just repeating what his funders tell him.
  • Oak View Group’s Tim Leiweke is trying to build a 10,000-seat arena in Palm Springs, and economists point out that this won’t help the local economy much because “you’re crazy if you think I’m flying to Palm Springs to see your minor league hockey team,” and Leiweke says Palm Springs is just different, okay, because so many attendees will be people who are already coming to town to play golf, gamble, or stay at local resorts. How this makes it a major economic plus when those people also see a concert when they’re in town Leiweke didn’t say, but who’re you going to believe, a bunch of people who study economics for a living or a guy who was once the youngest GM in indoor soccer?
  • A Cincinnati nonprofit is trying to raise $2 million to preserve affordable housing around F.C. Cincinnati‘s new stadium, and the Port of Greater Cincinnati Development Authority says that maybe building more market-rate housing will allow low-income residents of existing buildings to stay put. Yeah, that’s really not going to work.
  • Nobody in Miami-Dade County has studied the impact of building a new Inter Miami stadium right next to the city’s airport, and some county commissioners think that maybe that might be a thing they’d want to study.
  • Here’s a good, long R.J. Anderson article on three cities vying for MLB expansion teams (Portland, Montreal, and Raleigh) that should provide reading material for the inevitable endless wait for MLB to actually expand. (I’m also quoted in it, right before Jim Bouton.)
  • And here’s another long article that quotes me, this one by Bill Shea of The Athletic on how stadium subsidies have changed since the Great Recession (some sports economists say it’s tougher to get public money now, I say “Bah!”).
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