Category: Los Angeles Clippers

Friday roundup: Everyone’s building soccer stadiums, no one’s sure how to pay for them

access_time personNeil deMause

This was a rough week for anyone in the U.S. who is an immigrant or looks like they might be, is trans, might ever need an abortion, is Palestinian, is a federal government employee, is a local government employee, is an employee of anything that depends on international trade, lives near sea level or in places that get hot or are at risk of hurricanes, likes democracy, or cares about a relative, friend, or neighbor who does. Not that it would have been an amazing week for most of those people if the presidential election results had gone another way, but a whole lot of folks are somewhere on the spectrum from anxious to terrified right now, so if you need to check in with each other right now before getting back to life as we know it, that’s not only reasonable, it’s a fine tradition.

And now, whenever you’re ready, back to sports stadium and arena life as we know it:

  • The owners of Sacramento Republic F.C., who now include the Wilton Rancheria Native American tribe by are still led by minority owner Kevin Nagle, announced plans for a new stadium, and almost none of the news coverage bothered to provide details of how it would be paid for, even those that reported on how it was announced to the tune of “Don’t Stop Believin’.” Finally, way at the bottom of a KCRA-TV report, we learn that the city of Sacramento is expected to put up $92 million in infrastructure money from property taxes on 220 acres surrounding the stadium, plus provide free police, fire, EMS, traffic, and other services for the next ten years. The city council is set to vote on the plan Tuesday, so that leaves three whole days to gather feedback, two of which are weekend days and the third is a holiday when city offices are closed, this is fine.
  • Bridgeport is considering a minor-league soccer stadium that would cost at least $75 million and which would likely include public funds, and Baltimore is considering a minor-league soccer stadium with no known price tag or details on how to pay for it, and Fort Wayne is considering a minor-league soccer stadium that is promised will be “100% privately financed” but we’ve heard that before.
  • Cleveland and Cuyahogo County are continuing to look for ways to fill their budget gap for paying for future upgrades for the Guardians and Cavaliers, and county executive Chris Ronayne says options are “not yet concrete” because “it’s a conversation that’s probably also going to have to include the public.” Signal Cleveland speculates that this could include going back to voters to approve another tax increase, unless Clevelanders go back to drinking and smoking at their old rates, which might not be as likely as you would think.
  • Nearly 95% of campaign donations by U.S. sports team owners went to Republican candidates or causes, according to a Guardian review of donor filings, which, duh, Charles Barkley could have told you that.
  • How are Inglewood business owners around the Los Angeles Rams‘ new stadium and Los Angeles Clippers‘ new arena loving all the new foot traffic? Not so much! “One of my lowest sales days was on Super Bowl Sunday” because of street closures, said a local bakery owner at a press conference this week. “I literally made under $600 for the day. I had to send employees home, and you’re just looking around like, ‘What in the world?'” Checks out!
  • Did a major news site just run an item reporting wild economic impact projections for a proposed Buffalo soccer stadium without saying who conducted the study, while the byline partly credits a City Hall press release? Sure did! Please give to support your independent nonprofit or collectively owned news media, we might just be needing them the next year or four.
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Friday roundup: A’s exec says Fisher really does have Vegas stadium money (no, you can’t see it)

access_time personNeil deMause

Before we get to the bullet points, and I know how much you all love the bullet points, there is pressing news we have to discuss first, which is that Athletics owner John Fisher has the billion-dollars-plus he needs to build a stadium in Las Vegas. Sort of. Maybe. According to a guy:

Athletics owner John Fisher and his family will invest $1 billion into the construction of a stadium in Las Vegas and U.S. Bank and Goldman Sachs will offer a $300 million loan, club executive Sandy Dean said Thursday.

Dean made his remarks to a special meeting of the Las Vegas Stadium Authority board.

Dean said four letters will be presented at the Dec. 5 authority meeting asserting construction details and financing will be in place. Final approvals are expected to be made at that meeting to allow construction of the $1.5 billion, 30,000-seat domed ballpark with a capacity for up to 33,000 fans.

So it’s official: Fisher has financing in place for his Vegas stadium … well, no, he will have financing in place by December … or he’ll have a letter (or four) stating that financing is in place?

[One] letter, Dean said, asserts the Fisher and his family have the ability to meet their financial commitment. Dean said [another] letter from U.S. Bank will show that through a review of the owner’s finances that it “concludes the Fisher family has more than sufficient resources to fund the equity investment that’s required to build the stadium.”

Except! Here’s video of Dean saying that one of the letters will be “from John Fisher indicating that his family will invest a billion dollars in support of the project here in Las Vegas.” So which is it: Is the Fisher family committing to spend $1 billion on a Vegas stadium, or just avowing that it  is worth $1 billion? We already knew the latter — Vegas convention center authority chief and unregistered A’s lobbyist Steve Hill keeps saying it, among other things — but that’s not the same as actually figuring out what the family would liquidate to pay for the stadium: the San Jose Earthquakes? The Gap?.

(Dean also said Fisher is still looking to sell minority shares of the team at inflated prices because “it would be good coming to Las Vegas to have outside partners from Las Vegas,” but not because he needs the money, oh no: “The ability to finance the stadium is independent of that.”)

The question all this keeps coming back to isn’t “Where can a billionaire find a billion dollars?” but rather “Is the Fisher family ready to throw a billion dollars of its own money down a stadium hole?” The number of stadiums that can cover their own construction costs is slim; the number that have done so that are in their leagues’ smallest market and include a pricey dome is zero. Which is why people are eager to see Fisher put actual money on the table; promises of a letter next month that will maybe describe actual money on the table is not quite the same thing.

Sorry if all that was anticlimactic. And now, this week’s bullet points:

  • Ohio Attorney General Dave Yost wants to intervene in the Cleveland Browns‘ lawsuit against the city of Cleveland seeking to block the use of the Art Modell Law to block the team from moving to a new stadium in Brook Park. Yost says the team’s claim that the law, which requires that teams be offered up for sale to local owners before being relocated from their current home city, is “unconstitutionally vague” is “wrong,” and since Browns owners Jimmy and Dee Haslam only sued the city, he needed to file a motion to intervene on behalf of the state. Feel the excitement!
  • Philadelphia councilmember Mark Squilla may have come down in favor of letting the 76ers owners build an arena next door to Chinatown, but he has an idea for ensuring that the neighborhood isn’t disrupted: a zoning overlay to “require affordable housing, restrictions on types of businesses, and limits on the size of new storefronts to discourage chain restaurants from crowding out traditional Chinatown retail,” in the words of the Philadelphia Inquirer. Adds the Inquirer: “The precise language mandating how any of this would work has yet to be added to the bill.” This is on top of proposing a tax increment financing district to kick taxes collected in Chinatown back to local businesses to offset any rise in rents as the result of increased property values — pretty sure that would only risk encouraging landlords to increase rents more knowing businesses would be getting subsidies to help pay them, need to go back and check my Intro to Economics textbook chapter on microeconomics.
  • The World Series is over and I didn’t get around to discussing the New York City Economic Development Corporation’s claim that each Yankees and Mets home playoff game generated $20-25 million in economic activity, but suffice to say I talked to an EDC spokesperson who told me (on background, so I’m not supposed to quote them directly so I’m not) that the analysis was based off a previous model from 2022 that puts together assumptions from the city tourism board plus assumptions from the Yankees and then applies a multiplier. Also, they look at “anonymized cell phone data”? No, you and I are not allowed to see the actual model, so no further details about WTF this means will be available.
  • Spotlight on America has a piece on how Tempe, Arizona said no to funding an Arizona Coyotes arena and how other cities could follow its lead, which is all well and good until it concludes by lauding late Seattle Seahawks owner Paul Allen for his commitment to Seattle, when Allen actually paid the city to hold a referendum so he could get $300 million in public money for a football stadium, then refused to open his books like he promised in exchange for the money, seriously, what?
  • Perhaps you would prefer a deep dive into the toilets at the Los Angeles Clippers‘ new arena? Perhaps you would prefer I hadn’t phrased it that way? Sorry, you’re getting both!

 

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Friday roundup: Pelicans, T-Wolves arena demands floated by sportswriters whether owners are talking about them or not

access_time personNeil deMause

Hey, remember just a few months ago when people could legitimately argue that the age of sports stadium and arena subsidy demands was coming to an end? That was before the Buffalo Bills, Arizona Coyotes, Chicago Bears, and Cleveland Guardians all joined the Oakland A’s and Tampa Bay Rays in seeking government money for new or renovated buildings, and now you can barely turn around without some new team joining the chase for the public purse:

  • The New Orleans Pelicans suck, and the New Orleans Times-Picayune asks: Maybe a new arena would help? The resulting billion-word article doesn’t really answer the question, but it does reveal that owner Gayle Benson (who also owns the Saints) says she needs “some big arena investments to stay competitive,” meaning either a renovation of their 22-year-old arena or a brand-new one, and the team’s lease expires in 2024, and Benson is 74 years old and her succession plan is for the Pelicans (and Saints) to be sold on her death with the proceeds given to a charitable foundation, and she says one requirement will be that the teams stay in New Orleans, but you know they could potentially leave, so isn’t it better to be safe than sorry? (Why a billionaire who says she’s giving away her wealth to charity because “I don’t need any more money” needs more revenue to “stay competitive” is another question the Times-Picayune article doesn’t answer.)
  • Meanwhile in Minneapolis, Minnesota Timberwolves and Lynx owners Marc Lore and Alex Rodriguez say they have “have no plans to move” the teams without a new arena, but that isn’t stopping the Minneapolis Star Tribune from reporting that they’ll move the teams without a new arena, because it’s been five whole years since their current arena got a $145 million renovation, and “I can vacuum the floor of my Chevy and repair the cigar burns on the seats. At the end of the day, it’s still a Chevy.” Also, Lore said that adding “augmented reality,” which apparently means fans wearing Google Glass-type glasses so watching in real life can be more like watching on TV, could be “incredible,” so this is totally something to dedicate an entire sports column to, how could anyone possibly think otherwise?
  • On the Bears front, Illinois Gov. J.B. Pritzker has declared that “I have not had any discussions, haven’t been approached by anybody, neither the city nor the Bears themselves, so it’s not something we’re currently looking at, like I said we’re focused on our own fiscal situation.” The headline that WLS-TV put on this was “New Chicago Bears stadium in Arlington Heights won’t be paid for by IL taxpayers, Gov. Pritzker says,” which isn’t quite what he said, but I guess “New Chicago Bears stadium in Arlington Heights won’t be paid for by IL taxpayers yet, Gov. Pritzker says” didn’t rank as high in SEO.
  • Tampa Bay Rays owner Stuart Sternberg isn’t putting up a sign inside his stadium for the postseason promoting his plan to move the team to Montreal half the year after all. “I made a big mistake, a real mistake in trying to promote our Sister City plan with a sign right now in our home ballpark. I absolutely should have known better, and really, I’m sorry for that,” said Sternberg. “I knew that a sign would bring us attention. And we do want the attention. I just didn’t completely process that now isn’t the moment for it.” Of course, one could argue that he’s already gotten the attention, so why does he need the sign, but that would be churlish, right?
  • Orange County Superior Court Judge David Hoffer has ruled that Anaheim city officials need to look harder for records on how they decided to sell 150 acres of land to Los Angeles Angels owner Arte Moreno for a cut-rate price of $150 million. The ruling was part of a now-18-month-old lawsuit seeking to overturn the deal as being in violation of open-meetings laws.
  • Los Angeles Clippers owner Steve Ballmer says he’s “become a real obsessive about toilets,” adding: “Toilets, toilets, toilets.” The Clippers’ new arena will have a record number of toilets per fan, and Ballmer says, “The architects keep getting on me. You’re supposed to call them ‘fixtures’ instead of toilets. But it’s the same thing. We’re putting a whole lot more toilets than anyone else in the NBA.” Also: toilets.
  • Hey, remember this crazy $1.7 billion lotus-blossom-shaped stadium for the Guangzhou Evergrande soccer team? You will be sad to learn that Evergrande is close to bankruptcy and doesn’t even have naming rights to the team anymore, and the stadium now looks like this and may never look like anything more. Unfinished, half-built stadiums are becoming quite the rage in international soccer, which if nothing else is making for some great vaportecture.
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Friday roundup: Bills still have other people making their threats for them, plus this week’s cavalcade of terrible journalism

access_time personNeil deMause

That Arizona Coyotes news really laid waste to my planned writing schedule this morning, so I’m afraid the Friday roundup is going to be extra-brief and extra-late today:

  • NBC Sports’ Mike Florio, clearly not satisfied with having twisted Buffalo Bills move-threat leverage into being a real threat, doubled down yesterday with a column saying the “clock is ticking” because the Bills’ lease is up in 2023 and if they start talking to other cities they won’t “want other cities to sense that they’re being used in an effort to get a better deal in Buffalo” but instead will only be seriously looking to move. Florio has been doing this for a long time and presumably is familiar with the history of team move threats, which have nothing to do with when leases expire or not wanting to toy with other cities’ emotions and everything to do with ego and the search for greater profits, but also Florio has been doing this for a long time and pretty much sees everything through NFL-ownership-colored glasses, so none of this is surprising, except maybe that NBC Sports continues to employ him.
  • Speaking of the Bills, New York Sen. Chuck Schumer declared this week that he’s “confident the Bills will stay in Buffalo” now that the state has “a new governor from Western New York who’s a Bills fan” who can “work with the team” and the NFL on shoveling public money at a new stadium. He didn’t actually say that last part out loud, but what else could he mean, right? That Kathy Hochul will show up at negotiations in a Bills jersey and the NFL will say, “You’re our kind of people, forget that whole $1.4 billion thing”?
  • The Regina Red Sox owners still want a new $20-25 million stadium, and still are willing to put up $5 million while “the rest would have to come from the city or other funds the city could access.” I, too, am willing to put up 20% of the cost of a new home; anyone who would like to cover the other 80%, I take Paypal.
  • The Los Angeles Clippers‘ new arena in Inglewood could break ground this month, according to a Sports Illustrated article based on a Substack post by disgraced-for-plagiarism-and-cronyism former L.A. Times writer Arash Markazi, in turn based entirely on a statement by Inglewood Mayor James Butts that he “hopes” the team will break ground this month, never mind, nothing to see here, just another game of journalistic telephone.
  • Speaking of lazy stenography journalism, here’s an entire Tampa Bay Times article on how Tampa city officials are convinced the Rays are going to build a stadium in their city, because, um, they just are, okay? The TB Times ran a great op-ed this week by a Covid expert laying out clearly and with simple math the risks of the Delta variant and the efficacy of vaccines, maybe go read that instead and skip their sports coverage.
  • The Cleveland Plain Dealer wants you to subscribe to their newspaper in order to read their terrible article on how the NFL Draft supposedly brought in $42 million in economic activity to the city, based entirely on a press release by the local sports authority, don’t click on the PD at all, you’ll only encourage them.
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Friday roundup: Inglewood to seize land for Clippers arena, half-assed Rays stadium renderings, plus maybe an MLS lockout!

access_time personNeil deMause

I should probably have something to say about a week in which hedge-fund operators and day traders went to war over who could outgrift each other, but you know, I think let’s just leave that right there. On to the news!

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Friday roundup: Everything old is new again

access_time personNeil deMause

What a week! In addition to the new site design and new magnets and new sports subsidy demands rising and falling almost before you could even register them, this week featured the long-awaited debut of Defector, the independent sports (but not only sports) site launched by the former staff of Deadspin. Read it for free, subscribe if you want to post comments and, you know, help support journalism for our uncertain future. I am a charter subscriber, needless to say, and am currently trying to decide which color t-shirt to buy.

On the down side, the entire West Coast has been set aflame by the deadly mix of climate change and gender-reveal parties and looks like a post-apocalyptic movie. The year 2020 comes at you fast. Let’s get to some more news:

  • The owners of the New York Islanders are angling to downsize the Nassau Coliseum so that it doesn’t compete with their new Belmont Park arena for sports and the largest concerts, which is problematic in that they don’t actually hold the lease on the Coliseum, and already ironic in that the Coliseum was already just downsized once so as not to compete with the Islanders’ previous new arena in Brooklyn. Maybe this whole arena glut problem is something New York Gov. Andrew Cuomo might have considered before giving the Belmont project a whole bunch of land price breaks and a new train station? Meh, probably not necessary, we’re all friends here.
  • Hey look, we’re already calling the Los Angeles Angels stadium purchase a $320 million deal even though it’s really only $150 million plus a whole lot of “thanks for some building affordable housing and parks,” that was fast, Spectrum News 1.
  • Some rare actual good news from the pandemic: Somebody in Arlington was smart enough to include a clause in the Texas Rangers‘ lease on their new stadium that requires the team owners to triple their rent payments if parking and ticket tax revenue fell short of projections, which obviously they’re doing what with nobody buying tickets or parking this year. Sure, it’s still only another $4 million, which won’t go far toward paying off the city’s roughly half a billion dollars in stadium costs, but it’s better than a kick in the head. (Also, what on earth is going on in that photo of the Rangers’ stadium that D Magazine used as its illustration?)
  • The Inglewood city council approved the sale of 22 acres of public land to Los Angeles Clippers owner Steve Ballmer for $66 million, which I don’t even know how to determine whether it’s a fair deal or not anymore, but given the city mayor’s idea of appropriate oversight, I’m not super-optimistic.
  • University of Texas-Austin will have about 18,000 fans in attendance for its season-opening college football game tomorrow, but rest assured that it will be keeping everyone safe by … requiring student season ticket holders to test negative for Covid before being allowed into the game, but not requiring the same of anyone else? (Also fun: They’re supposed to all go get tested today, and get their results back tomorrow, which is not how Covid testing works right now at all.) Clearly the desire to look where the light is better is strong.
  • The Las Vegas Sun has a loooooong article about the process by which the Raiders got their new stadium in Las Vegas that pretty much comes down to “Mark Davis was the sincerest pumpkin patch of all,” but by all means go ahead and read it if you like sentences like “The first major obstacle was how to get both projects done in what most in the resort corridor would feel was a reasonable [tax increase]. That took time to overcome.”
  • Marc Normandin took a great look back at that time the owner of the San Diego Padres tried to gift the team to the city of San Diego for free and MLB said no. It’s subscriber-only, so I’ll quote my favorite section: “There is a reason Mark Cuban will never own an MLB franchise, and that reason is that he’s the kind of owner who might shake things up in a way that forces other owners to have to spend money they don’t want to. On clubhouse comforts, on minor-league players Cuban might try to increase the pay and better the living conditions of in order to produce happier, healthier future MLB players: there is no guarantee Cuban would do those things, necessarily, but his actions and spending helped shape the way the current NBA locker rooms look, so the possibility exists, and that possibility is too big of a risk for MLB’s current 30 owners to take. So, instead, they aim for safe options, like a minority owner in Cleveland becoming the majority owner in Kansas City, as he’s already proven he understands the game and how to play it.”
  • First Dave Dombrowski and Dave Stewart, now Justin Timberlake — if building 1990s star power is the way to get an MLB franchise, Nashville is a shoo-in. Though as Normandin notes, they’d probably be better off finding a minority owner from Cleveland.

Okay, I have to go pick up my computer from its trip to the computer mechanic so I can go back to typing these updates on a keyboard I can actually see the letters on. (Yet another thing that happened this week.) Try to have a good weekend, and see you all on Monday.

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Friday roundup: The baseball gods are very, very angry

access_time personNeil deMause

Happy baseball season, everybody! Last night the New York Yankees were leading the Washington Nationals 4-1 when MLB commissioner Rob Manfred came out to explain the new playoff system in which 16 teams will make the postseason and the only advantage you’ll get from winning your division is home-field advantage in empty stadiums, at which point the baseball gods tried to kill Manfred by hurling lightning bolts at him and the game had to be called. This really could not be a more auspicious beginning.

Anyway, stadium and arena news, that’s what you’re here for:

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Friday roundup: Sports remains mostly dead, but train subsidies and bizarre vaportecture live on

access_time personNeil deMause

It’s been a long, long week for many reasons, so let’s get straight to the news if that’s okay:

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Ballmer buys Forum for 1600% markup to get MSG to stop opposing Clippers arena

access_time personNeil deMause

Just three weeks after it was first reported that Los Angeles Clippers owner Steve Ballmer was considering buying the Forum from Madison Square Garden to clear away MSG’s legal objections to a new Clippers arena, Ballmer has pulled the trigger, paying $400 million in cash to buy the 53-year-old arena:

The deal is expected to close during the 2020 second quarter. The new ownership group has no plans to tear down the Forum, which was added to the National Register of Historic Places in 2014, and will keep it operating as a concert venue.

If $400 million sounds like an awful lot to pay for a half-century-old (albeit recently renovated) arena with no sports tenants, that’s because it is: MSG bought the Forum in 2012 for just $23.5 million, though they later spent another $100 million on renovations to convert it into a concert-only space. There are no public figures that I can find on how much money the Forum makes — it’s by far the busiest concert venue in the L.A. area, but as we’ve seen before, busy doesn’t always mean profitable — but it seems inconceivable that it’s really worth $400 million, especially in a world where it will soon face competition from a new arena two miles away. (Not to mention a world where no one knows when people will be allowed to go to concerts again.)

File this one, then, under “multibillionaire spends whatever he wants to get his new toy, because he can.” This is nothing new — Ballmer way overpaid to get the Clippers in the first place — and not necessarily a bad thing, unless you really care how the insanely rich decide how to shuffle their money around between them. But it is a reminder that when development deals are decided less by public oversight than by whether there’s some other billionaire willing to foot the legal bills to block them, it’s always possible for sports team owners to simply buy off the opposition.

 

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Clippers owner may buy Forum to get MSG to quit suing him over new arena

access_time personNeil deMause

Los Angeles Clippers owner Steve Ballmer, in the midst of a legal and political battle with Madison Square Garden over his plans for a new arena in Inglewood, has reportedly come up with a new plan to eliminate his most deep-pocketed opponent: Buy the L.A. Forum from MSG, giving the arena company no reason to keep fighting his arena plans.

ESPN’s Kevin Arnovitz cites this news only to “league sources,” and neither Ballmer nor MSG would comment, so it’s hard to say for sure how serious these talks are. (The Los Angeles Times had a similar story this weekend, citing “a person familiar with the talks who is not authorized to speak publicly.”) But it’s certainly a clever way to clear away opposition: Even if Ballmer had to pay a premium for the Forum, that still might be cheaper than continuing to do battle with MSG in court, especially when you consider that he’d then have future revenues from the Forum, assuming there still were any once his new arena opened.

There would still be the matter of lawsuits by local residents over such things as whether it’s legal to sell public land to Ballmer for an arena when state law requires that governments first seek developers who’ll build affordable housing to ease the state’s insane housing crunch, but without MSG around to foot the legal bills, Ballmer would have a much easier time of it. The bajillionaire would still be paying almost all of the cost of the arena, so this isn’t so much a subsidy issue — but it is a “who can afford to participate in the democratic and legal process” issue, and a worthy reminder about that thing about the grass and the elephants.

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