I’ve been trying to write about this all week, but stuff kept happening: Broward County commissioners agreed to a term sheet that would give the Florida Panthers a five-year lease extension through 2033, and the money part is so convoluted that it calls for its own set of bullet points:
- Panthers owner Vincent Viola will give the county $51.5 million to pay off the remaining debt on the arena where the team plays, which cost the county $185 million to build in 1998.
- The county will continue to spend $25 million a year in hotel tax money on operations, maintenance, and upgrades to the arena, for the life of the lease extension.
- The county has two five-year options to extend the lease. If it doesn’t do so, it has to return some or all of Viola’s $51.5 million debt payment.
- Viola gets development rights to land around the arena, which he had given up as part of a 2015 deal to get access to the hotel tax funding and get the out clause in his lease that is the whole reason why the county is renegotiating his lease now instead of waiting until 2028.
I’m hesitant to put a dollar figure on the whole thing, but it looks like if Broward County picks up the two five-year lease extensions it gets the $51.5 million while spending $25 million a year over 15 years, which comes to around $250 million in present value, plus gives up development rights to 140 acres of land, which is worth who knows — let’s guesstimate it as $250-300 million in subsidies from the county to Viola. On the other hand, if Broward doesn’t do the extensions, it doesn’t get the $51.5 million, but also its annual arena subsidies go down to more like $100 million, so that’d be more like a $150-200 million subsidy — but also it would need to redo the Panthers’ lease a decade sooner.
So on a per-year basis — math’s almost done, I promise! — that’s either $17-20 million a year for a 15-year extension, or $30-40 million a year for a 5-year extension. That would still be less than the current record $43 million a year lease extension that Charlotte gave the Carolina Panthers (no relation), but it’s a chunk of change regardless.
The Broward County Board of Commissioners still needs to give final approval to the deal, so maybe if we’re lucky we’ll get some hearings or something that will shed more light on the bouncing dollar signs. In the meantime, we had more news this week, let’s get to that:
- Illinois House Speaker Emanuel “Chris” Welch says if Chicago White Sox owner Jerry Reinsdorf wants a new stadium, he should mostly pay for it with private money. Welch also revealed that the White Sox greats at that private ballfield event Reinsdorf held this week for elected officials included Bo Jackson, Ron Kittle, Harold Baines, and Ozzie Guillen, and they didn’t even play catch — though given Kittle’s career –7.5 defensive wins above replacement, you probably don’t want to let him throw many baseballs your direction anyway.
- Frisco, Texas approved that $141 million-plus renovation for the F.C. Dallas stadium that it was set to vote on Tuesday, as expected. At least the new sun roof looks cool, even if the provided rendering shows lots of fans still sitting in the sun.
- My former employer Gothamist, continuing its race away from quality journalism that saw it earlier this week write about New York police shooting a bystander on a subway car in the head by only asking former cops whether it was justified, opines that the Philadelphia 76ers not moving to Camden is a loss for New Jersey officials who proposed the idea. Not mentioned: All the other things New Jersey can do with $400 million if it doesn’t give it to Sixers owner Josh Harris. Guess this is what happens when keep laying off your news staff.
- The design of the Oakland Athletics‘ proposed Las Vegas stadium is 50% complete, and no, I don’t know what that means either. It would only have 30,000 seats, with another 3,000 in standing room. If you don’t count the Tampa Bay Rays stadium, which only holds 25,000 because its upper deck has been closed since 2019, this would be the smallest MLB ballpark since the 1969 Seattle Pilots played at 25,000-seat Sick’s Stadium, which went so well that the Pilots moved to Milwaukee the next spring.
- Cleveland.com asked some sports economists if a new Cleveland Browns stadium would be good for local jobs or tax revenue, and got the expected answer. It’s a good overview of the existing economic findings, though, and worth reading if you want to dive into the details of why sports subsidies don’t pay off for taxpayers, not even if you count the value of keeping a team from leaving town.
