Category: New Orleans Pelicans

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.
Share this post:

Friday roundup: Rays blink on June 1 stadium deadline, Illinois residents don’t want to break the bank to keep Bears

access_time personNeil deMause

Time to catch up on what else has been going on this week while we’ve been doing wall-to-wall Tampa Bay Rays coverage. But first, the latest in Tampa Bay Rays news!

  • With elected officials in Tampa still insisting on asking pesky questions about whether giving Rays owner Patrick Zalupski $2.1 billion or more in total stadium subsidies would leave the city and county with a budget shortfall if tax revenues fall short (or even if they’re just diverted from other uses), Rays execs finally blinked: CEO Ken Babby has backed away from his June 1 deadline for a deal, saying the team is now just “focused” on getting a “nonbinding” memorandum of understanding that would send a signal to the state that “the county, the city and the Rays are committed to this partnership.” (Zalupski added that even an MOU by June 1 isn’t absolutely necessary, but he wants one “real soon” thereafter, even if “it’s purely symbolic.”) Translation: Let’s get at least the state part of the deal done before Ron DeSantis leaves office, then we can come back and haggle over financial details for the city’s and county’s portions. It’s not clear if Tampa and Hillsborough County will be able to push for a less spendy MOU — or be willing to reject the plan entirely if they can’t — but score at least one point for elected officials refusing to fall for the two-minute warning.
  • A new poll shows that most Illinois residents oppose throwing a lot of state money at a Chicago Bears stadium to ensure the team doesn’t move to Indiana — or at least, it does if you include the 36.9% who want to allow the team to break their Soldier Field lease and build a new stadium in Illinois without any taxpayer funds, as well as those who want to force the Bears to keep playing there through 2033, are those even real options, this is a weird poll. Other poll findings: Opposition to funding most of a stadium’s cost with public money is consistent across the political spectrum, and Illinois residents outside the immediate Chicago vicinity don’t give a crap where the Bears play, with those in the southern half of the state “downright apathetic.”
  • Meanwhile, it turns out the clause in Illinois’ proposed tax break bill that would add “property tax relief” to any subsidy for a Bears stadium or other “megaprojects” wouldn’t be much relief at all: An average Illinois homeowner would only get $1.29 off their property tax bill as a result. (And that’s even if their overall property tax bill didn’t go up by more than that to cover lost revenues from the megaproject tax break.) The total cost of the megaprojects bill in future tax expenditures has yet to be calculated — and may be uncalculatable, since we don’t know how many future developments would apply or how much of a tax break they’d negotiate with local governments, but that doesn’t mean nobody should give it a try before the Illinois legislature goes ahead and votes on this thing.
  • And also meanwhile, Chicago Mayor Brandon Johnson is trying to block a potential Bears move to the suburb of Arlington Heights by pressing Chicago-area state legislators to oppose the megaprojects tax break bill. State senate Legislative Black Caucus chair Willie Preston then said he’s on board to oppose it, then said he was misinterpreted, then said he would just like a megaprojeets tax subsidy that would let the Bears stay in Chicago somehow. Illinois Kremlinologists please report to the situation room, stat.
  • New Jersey has cut train fares to World Cup matches from $150 to $105, thanks to what Gov. Mikie Sherrill says are private companies that have “stepped up to lower the costs for ticket holders,” whatever that means exactly. (Sherrill has promised that New Jersey Transit’s $48 million in expected World Cup costs won’t come out of transit riders’ pockets, but the details of who’s donating what in exchange for what here are still very murky.) The price cut will be good for soccer fans, unless it ends up increasing the ticket prices that fans will accept now that they’ll be saving $45 on getting to the game, in which case it will only be good for FIFA.
  • A report by Oxford Economics says that World Cup cities should expect to see only a “modest bump” from fan spending this summer, says report author Barbara Denham, and no measurable impact at all on overall economic activity, noting “there’s a lot of displacement of tourism” as other visitors steer clear of cities that will be mobbed by World Cup fans. And that’s even if, of course, the World Cup mobs don’t steer clear as well: Add Seattle to the list of cities where fans are getting set to show up disguised as empty hotel rooms.
  • Houston Texans owner Cal McNair isn’t saying what kind of stadium renovations he’ll seek in advance of his team’s lease expiring at the end of 2032, but he did say he’s hoping they’ll be “transformative,” which is usually code for “a lot of zeroes after the dollar sign.”
  • A Minnesota legislator wants to apply the same ticket tax paid by Vikings ticket buyers to currently exempt buyers of luxury suites and earmark the proceeds to provide services to youth victims of sex trafficking. Bill opponents, clearly not eager to look like they’re siding with either luxury suite buyers or sex traffickers, have instead objected that she submitted her bill to the wrong committee.
  • Residents of Denver’s historic La Alma-Lincoln Park neighborhood are trying to work out a community benefits agreement with the Broncos owners to keep from being overwhelmed by traffic and displacement if the team builds a new stadium nearby. Community leaders say this will be the first legally binding CBA negotiated by an NFL team with a community group rather than a local government — something they might want to think carefully about, as history shows that it can be a problem if it comes time to enforce a CBA and none of the community group signatories are still around to do it.
  • New Orleans has just seized the lead in the race to be the first major sports city to be abandoned due to climate change.
  • And finally, RIP Gap cofounder Doris Fisher, who will now not be around to see if her middle son spends the family fortune on building a spherical armadillo.
Share this post:

Pelicans owner demands state arena subsidies so wealthy fans can have crushed velour seating

access_time personNeil deMause

It’s been a few years since New Orleans Pelicans owner Gayle Benson last talked about getting upgrades to the team’s arena, in part because she fell behind on making payments to the state on Superdome renovations for the Saints, which she also owns. The arena renovations are back on again now, and they include adding more seats, more VIP clubs, and refurbished luxury suites with “high-end furnishings like island bars, crushed velour furniture, brass light fixtures and wood floors” — all the better to distract you from the fact that you just paid premium prices to watch the Pelicans.

How much would all this cost? The New Orleans Times-Picayune, which got ahold of the team’s plans via a public records request, notes:

Cost estimates were not included in the report. The state and Pelicans are expected to pay for the project through a public-private partnership similar to the one used to fund the recent $560 million renovation of the Superdome.

The Times-Picayune doesn’t bother to go into detail about how the Saints deal works: It was in fact two-thirds state money, one-third Benson money that the owner dragged her feet on paying until she could get the state spending upped from $300 million to $380 million in exchange for a five-year lease extension until 2035. How much taxpayers would be on the hook for in a Pelicans deal, and how long Benson would be willing to extend her lease for — it currently expires in 2029 — remains unknown: Louisiana Stadium and Exposition District attorney Larry Roedel told the paper that the arena plans are “preliminary at best” and both renovation funding and a new lease are “subjects yet to be negotiated.”

The New Orleans arena, for those keeping score at home, turns 27 this year, and just got a state-funded $54 million renovation in 2014. It’s sadly lacking in crushed velour, however, as well as having too many upper-deck seats and not enough lower-deck seats, which the Times-Picayune informs us are “a prime revenue source for the Pelicans.” If the goal here is to have the state of Louisiana spend a pile of money so that the team can increase its profits, might it be simpler and cheaper to skip the whole renovation business and just have the state pay Benson directly? It is a local tradition, after all.

Share this post:

Friday roundup: Milwaukee County votes no on Brewers subsidy, Coyotes predicted to be moving everywhere and nowhere at once

access_time personNeil deMause

Happy May 26, the last day for stadium legislation to be introduced in the Nevada legislature, unless of course they wait till tomorrow. I’ll be keeping an eye out for any bills popping up, but in the meantime there’s lots of other news to occupy us:

Share this post:

Friday roundup: Fighting stadium ignorance is taking longer than we thought

access_time personNeil deMause

And so this brings to an end another programming year, and what a year it was: The Buffalo Bills owners got more than $1 billion in public money by doing an end run around democracy, the Tennessee Titans owners went down the middle of the legislative process but are now in position to score their own billion-dollar-plus taxpayer-funded payday, the Baltimore Ravens and Orioles got over a billion dollars in state money parked in a slush fund that doesn’t have an easy football metaphor to go with it, and the owners of the Cleveland Browns, Kansas City Royals, Philadelphia 76ers, NYC F.C. all launched campaigns for new buildings and the public checks that come with them. Sure, the Los Angeles Angels stadium deal fell apart after the mayor who negotiated it turned out to be under FBI investigation for fraud and bribery, but overall it’s still undeniably a great time to be a billionaire who owns a pro sports franchise, or, you know, owns pretty much anything else.

Oh yeah, and this happened:

As economist J.C. Bradbury said in May in an interview on this site — which I’ve just made free for all readers rather than a subscriber exclusive — “It is quite eye-opening to talk to … policymakers, elected officials, business executives. They absolutely do not want to hear that this is a bad idea. And they cling to it in ways that you cannot imagine: This has to be good because I want it to be good.” And as I said back to him: Even if fighting ignorance is taking longer than we thought, we can at least try to help readers laugh to keep from crying.

Here’s to another year of that ahead, and thanks in advance for your support of this site’s work. And now let’s wrap up the final news of 2022:

  • The New Orleans Pelicans owners don’t plan to demand a new arena when their initial 25-year lease expires in 2024, but rather will just be asking for state-funded renovations in exchange for a five-year lease extension while considering a “long-term plan.” This is yet another reminder that owning a sports venue is seldom a good thing for the public unless they actually own the rights to the venue revenue — if that all goes to the team owner, you’re just setting yourself up for a subsidy that keeps on subsidizing.
  • Dallas Cowboys fans are really upset that the team’s new-ish stadium lets the sun shine in the eyes of its players sometimes — and also opposing teams’ players, but nobody wants to mention that — but the most amusing part is how SB Nation reports that “designers essentially banked on AT&T Stadium leading to mass development in Arlington, with the belief that new construction would eventually be built up and block out the sun problem inside the stadium.” You’d think Jerry Jones of all people would have been around long enough to know that stadiums that only host eight or so football games a year aren’t going to do much to spur surrounding development, or at least could come up with a simpler solution.
  • Somebody noticed that Phoenix city council members who voted for Suns arena renovations are now getting use of free luxury boxes in the arena, but the city says elected officials bringing business friends to NBA games for free is all part of standard “economic development” policy, which isn’t actually all that reassuring.
  • The owners of the Kane County Cougars minor-league baseball team have been stiffing Kane County on rent and are now being threatened with eviction in 2024 if they don’t pay up; it is exceedingly unlikely that this will end up with a tractor being parked on home plate, but one can always hope.

Happy new year, and don’t forget to write off your ape NFTs as a business loss! Definitely a good time to be rich.

Share this post:

Friday roundup: Bills $1B subsidy not finalized yet, amid ridicule from pretty much every economist everywhere

access_time personNeil deMause

This was quite a week, bringing with it New York Gov. Kathy Hochul’s proposal of $1 billion (at least) in public money for a Buffalo Bills stadium and Tennessee Gov. Bill Lee’s proposal of $500 million (at least) in public money for a Tennessee Titans stadium and Kansas City Chiefs president Mark Donovan’s floating of a possible bidding war between Missouri and Kansas to give umpteen gazlllion dollars (at least) to his team for a new stadium. For readers who are visiting this site for the first time as a result, first of all, welcome, and second, this is our weekly rundown of all the other news that happened while we were goggling at the even bigger news. Please breathe deeply, and we shall begin:

  • Speaking of that Bills stadium, it probably isn’t getting passed by today’s budget deadline, as legislators are still debating both that proposed expenditure and scaling back bail reform. State Assembly Republican Leader Will Barclay decried the “Democrats’ dysfunction [that] has resulted in little more than needless gridlock,” which, good work, criticizing members of the opposing party for actually wanting to discuss things before voting on them is definitely a way to reduce dysfunction.
  • Also speaking of that Bills stadium, USA Today checked in with a couple more sports economists who weren’t part of Tuesday’s press conference, and got some choice quotes: Kennesaw State’s J.C. Bradbury said, “I think it just goes to show that policy decisions don’t seem to be tied to actual knowledge,” while University of San Francisco’s Nola Agha said, “It’s like saying the bakery down the street receives $100,000 a year from the city government, just so they can bake croissants every morning.” Add in Smith College’s Andy Zimbalist’s New York Daily News op-ed saying, “If the people of Erie County and New York State … believe that retaining the Bills will provide hefty economic benefits, then buyer beware,” and West Virginia University’s Brad Humphreys’ retweets, and it’s pretty much a clean sweep of every single economist who’s studied these things.
  • And also also speaking of the Bills stadium, Hochul’s proposed memorandum of understanding is out, and it includes an item that the announced “ironclad” deal to keep the team in Buffalo for 30 years would actually allow the team owners to skip town for lower and lower penalties starting in year 15. They really don’t make iron cladding like they used to.
  • Okay, moving on from the Bills: Arena developer Oak View Group says it wants to build a new $1 billion arena in Las Vegas that could host an NBA expansion team, because none of Vegas’ six other arenas could possibly be used for that. No public funding has been mentioned so far, so it’s possible this is just part of a land rush to grab prominence in the Vegas arena market; though given that another Vegas arena project announced its groundbreaking in 2014 and still hasn’t actually been built, it’s also possible this is just hot air.
  • Despite the New Orleans Pelicans‘ lease on their 23-year-old arena expiring in 2024, definitely aren’t looking for a new arena until “the future,” says owner Gayle Benson, adding, “I don’t want anyone to think we’re using that as any type of leverage over the state of Louisiana.” She definitely doesn’t want state legislators thinking that, who would do a thing like that?
  • Cincinnati USA Convention and Visitors Bureau chair Jeff Berding says, “It’s time we have a modern arena in Cincinnati.” Berding is also co-CEO of F.C. Cincinnati, who already got a giant pile of public money for their own new stadium, maybe it’s not such a big mystery why these things keep happening.
  • Wait, Ottawa Senators owner Eugene Melnyk died? Ottawa Senators owner Eugene Melnyk died! Now it will be up to his college-age daughters, Anna and Olivia Melnyk, our sympathies to them, to decide whether to carry forward with his never-ending arena subsidy demands, our sympathies to them on that as well.
  • A Virginia state senator told WUSA-TV anonymously that legislation to spend as much as a billion dollars on a Washington Commanders stadium is moving slowly because “public reaction to this project has been underwhelming” and “the team lacks gravity,” and mostly it makes me wonder what about the Virginia legislature requires members to demand anonymity so they can “speak freely.” Anyway, team owner/accused toxic workplace enabler Dan Snyder has turned over direct control of the team to his wife, Tanya Snyder, that should take care of everything.
  • The Toronto Blue Jays are moving ahead with a “significant renovation” of the SkyDome or whatever it’s called these days, promising to “modernize the fan experience.” No public money request was attached to the announcement, or price tag on the renovations at all, but team president Mark Shapiro did say that the renovations are “probably for the next 10 or 15 years but we’ll probably still have a stadium issue,” so this ain’t over by any means.
  • A Nebraska bill would increase the amount on sales tax kickbacks to the state’s arenas and convention centers because, and I swear this is not an April Fools joke, they have hosted such important economic and cultural events as “a recent concert by the legendary Elton John, the U.S. Olympic Swim Trials and the Berkshire Hathaway annual shareholders meetings.” No economists were consulted by the Omaha World-Herald for this story, though it’s always possible they were laughing too hard to comment coherently.
Share this post:

Louisiana is paying Pelicans owner $3.65m a year to “create” basketball player jobs

access_time personNeil deMause

If there’s one thing I’ve learned in all my years of covering sports subsidy shenanigans, it’s that no team owner — and, really, no owner of any American business — will pass up a chance at free public money. Which isn’t especially surprising, as which of us would, if we had the connections and the lobbyists to request large checks from the government? Not like, if we were in that position, we would really need another yacht, but then, another yacht would be nice, wouldn’t it, especially if some nice legislators were offering to pay for it?

Anyway, all this is to say that even if this story in the Louisiana Illuminator about the New Orleans Pelicans isn’t entirely surprising, it’s pretty depressing:

The New Orleans Pelicans receive a $3.65 million cash rebate every year from Louisiana — more than any other company — by counting its professional basketball players’ positions as newly-created direct jobs under the state’s Quality Jobs program, an economic incentive that’s supposed to encourage companies to create well-paid, full-time jobs for residents.

In 2020, the Pelicans reported creating a total of 183 jobs with salaries averaging $608 per hour, according to documents from the Louisiana Economic Development agency received through a public records request. The wage rate is so high because it includes NBA players’ salaries in the Pelicans’ average wage.

Yep, that’s right: In order to encourage local companies to hire people at decent wages, the state of Louisiana offers to cover up to 6% of their payroll costs for up to 10 years. The program has been in place since 1995, and according to a recent audit has generated about $5 billion a year in household income in the state — though the same audit says that “the majority of that amount would have been generated even if the Quality Jobs program had not been available,” which must be a new meaning of the word “generated.” (The audit also reported that the state only gets back between 1 and 10 cents in new tax revenue for every dollar it spends on the program, which is a pretty awful ratio.)

I know what you’re wondering at this point, or at least I know what I’m wondering: How do NBA roster spots count as “new jobs,” since there are only 15 of them, same as there have been since 2005, when the roster limit went up from 12? The answer appears to be that the state legislature passed a law in 2002 saying that they would, in order to lure the team to New Orleans from Charlotte:

The state offered up the Quality Jobs incentive during its negotiations to bring the team to Louisiana in 2002. Pelicans spokesman Greg Bensel said the state included the 5% payroll rebate from the Quality Jobs program as a provision in its lease agreement with the team.

The Louisiana Legislature has amended the program many times over the years. In 2002 — the same year the state was trying to lure the basketball franchise to New Orleans — lawmakers passed a bill that allowed the team to qualify for the program.

The bill itself is hilarious: It only adds one item with three bullet points to the law, stating that it will now cover “a National Basketball Association team which relocates to Louisiana and enters into a contract provided for in this Chapter prior to November 1, 2003,” that the subsidy is capped at $3.65 million a year, and that owners can’t pay themselves a salary and include that in their “job creation” calculations. At least somebody in the 2002 Louisiana legislature thought to close one obvious loophole! Not that it would have mattered, as the Pelicans soon enough maxed out their subsidy even without owner Gayle Benson, who the Illuminator informs us is Louisiana’s single wealthiest resident, including herself as a job created, because there’s plenty of money to be made by crediting herself with creating Brandon Ingram’s $29 million a year wage.

Louisiana has “a long history of enormous corporate giveaways,” according to the subsidy watchdog Good Jobs First, including film production subsidies and industrial property tax breaks as well as the payroll-rebate program; it was also one of the first states to offer to pay a sports team to play there, when it agreed to give Saints owner Tom Benson (Gayle is his widow) more than $18 million a year in cash grants to keep his NFL team in town. Compared to that, $3.65 million a year is a bargain, I guess, but given that it’s a subsidy that will never expire, it adds up over time: The New York Knicks and Rangers tax break didn’t seem huge when it was passed in 1982, but look where it’s gotten to now.

Share this post:

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.
Share this post:

Friday roundup: Tons of news, but you’ll forget it all once you see that Houston is spending public money on a pro rugby stadium

access_time personNeil deMause

And in other news that doesn’t involve proposed Tampa Bay Rays stadium sites:

  • United Airlines is spending $69 million on naming rights to the Los Angeles Coliseum in advance of the 2028 Olympics, but IOC rules prohibit corporate names during the Olympics, oops. Hope you enjoy the most expensive college-football naming rights deal in history, United!
  • Hotel revenue fell 16% in San Diego last year after the Chargers left town, but went up 0.2% in St. Louis after the Rams left. I’m not honestly sure what if anything this means — you’d really have to look at hotel revenue on football weekends to do this right, and it doesn’t look like this study did — but feel free to speculate wildly.
  • Did I mention the Yahoo Finance article yet that compares the Amazon HQ2 chase to the competition to host the Super Bowl, and cites me saying that while Amazon will bring more jobs, “that said, there’s almost no way it’s worth the kind of money that cities are talking about”? Well, now I have, enjoy!
  • AL.com has recalculated the public costs of a proposed University of Alabama-Birmingham football stadium and come up with a total of $18.2 million a year — $10.7 million from a bunch of county taxes, $3.5 million from a new car rental tax surcharge, $1 million from other county funds, and $3 million from city funds — not the $15.7 million I had previously reported. UAB and a naming rights sponsor and other private contributors, meanwhile, would only put in $4 million a year, and only for the first ten years. Out of his goddamn mind, I tell you.
  • Norman Oder of Atlantic Yards Report filed a Freedom of Information Law request to see the competing bids for the Belmont Park site that eventually got awarded to the New York Islanders, and was shot down on the grounds that it would “impair present or imminent contract awards.” Wait, wasn’t the contract already awarded? Will it be okay to ask again once it’s too late to do anything about it?
  • The WNBA’s Chicago Sky are moving to the new DePaul basketball arena that the city of Chicago helped pay for, which I guess is marginally good for Chicago in that it gets to steal a tiny sliver of economic activity from Rosemont, screw those guys, right? (Actually, Rosemont is apparently a gated community, so maybe screw those guys.)
  • A New Orleans Pelicans game was delayed because the arena roof leaked. No one is demanding that a new arena be built just yet that I’ve heard, but given that the current one is 19 whole years old, it’s gotta to be a matter of time, even if this one does have a fire fountain.
  • The Pittsburgh Pirates are threatening to sue the city-county sports authority over who’ll pay how much for $10 million in improvements to their stadium, because apparently the people who write these stadium leases are idiots.
  • If you enjoy this site but were thinking, “Wouldn’t this be better as a YouTube video with lots of animated charts?”, Vox has got you covered.
  • The Houston city council has approved spending $3.2 million in tax dollars on a pro rugby stadium for the Houston SaberCats, who are a pro rugby team that is going to play in a pro rugby league, which councilmember Jack Christie calls “a beautiful example of public-private partnerships that we ought to look at in the future, because as far as I have heard, there’s not been one city tax dollar used for this development.” I’m done. Have a good weekend.
Share this post:

Shreveport, Pensacola duking it out to throw $30m or so at minor-league Pelicans affiliate

access_time personNeil deMause

I have a pretty good system of Google alerts (and helpful readers who send me links — thanks, helpful readers!) to let me know about stadium and arena battles large and small, but somehow the New Orleans Pelicans‘ bid to start an NBA D-League* team somewhere in the south in 2018 slipped through my net. Fortunately, Deadspin’s Patrick Redford has the scoop, courtesy of the Shreveport Times:

The Pelicans will apparently announce the winner in September, which is also when Shreveport will decide whether or not to go forward with one of the saddest and dumbest arena financing deals in recent memory.

As the Shreveport Times reported, Mayor Ollie Tyler announced plans to move forward with a $100 million complex in downtown Shreveport. More details will be revealed at a city council meeting tonight, but the complex is a mixed-use deal, which will include a 3,000-seat arena as well as condos, shops, and a sports complex. Tyler’s plan calls for the city to kick in $30 million of public money.

The plan actually calls for the city to sell $30 million in revenue bonds, with the revenue to come from … hang on, I’m sure it’s in the proposal somewhere … scroll, scroll … okay, it doesn’t actually indicate that at all. Maybe the team will pay lots of rent! Or maybe, considering that the Pelicans are owned by the guy who has a 13-foot statue of himself outside the stadium that he successfully got the state of Louisiana to both pay to renovate and to pay his team an annual fee to play in, it’ll just be tax revenue that the city would get anyway.

From what I can tell from this very uninformative TV report, the Shreveport city council voted 5-2 last night to approve … something, though whether it actually commits the city to go through with it if the Pelicans select it as a D-League site isn’t entirely clear. Meanwhile, Pensacola is pitching its own $80-100 million arena and mixed-use complex, with a “not specified” amount of public money. This is the problem with minor-league sports venue deals: With no shortage of small cities thinking this is just what they need to put them on the map, but a minuscule economic impact even by the usual not-very-impressive sports standards, it’s a perfect recipe for a costly bidding war. C’mon, Shreveport and Pensacola councilmembers, be like Nashville and read Deadspin before discussing your local sports venue deal!

Meanwhile, here’s an image of the Shreveport arena rendering. Do we think that there’s some kind of sports-pedestrian clip art that renderers use for these? If not, why is that woman in the sunglasses chewing her fingernails?

*Yeah, I know the D-League has a new name thanks to a corporate naming-rights deal, but neither Deadspin nor I play that game.

Share this post: