Friday roundup: Throw another $75m on the Rays subsidy fire, Phoenix mayor opposes neo-Coyotes arena tax

It’s Friday again! I tried asking Google AI some stadium questions to see if it would return entertainingly daft answers, but I didn’t get much, so just eat your rocks and let’s get on with the week’s news remainders:

  • If an estimated $1.5 billion in cash, tax kickbacks, and land breaks for the Tampa Bay Rays didn’t sound like a lot already, turns out the $155 million that Rays owner Stu Sternberg wants to pay for 65 acres of land isn’t really $155 million, because he’d be making the payments in installments over 30 years. (St. Pete Assistant City Administrator Tom Greene estimates that this would knock about one-third off the value of the payments, making them worth $103 million; I get more like $80 million, but it depends on the exact payment schedule.) “I think that if you are not accounting for inflation in the agreement, we’re not getting the value that it says there,” said city councilmember Lisset Hanewicz, and, nope, inflation is not quite the same as devaluation for present value, but good enough for government work.
  • Phoenix Mayor Kate Gallego says she “does not support using taxpayer funds, including property tax abatement, for sports arenas,” which is a blow to once-and-wannabe-future Arizona Coyotes owner Alex Meruelo’s plan to build a new arena in Phoenix using a “theme park” sales tax surcharge. “Tax abatement is essentially what establishing a theme park district does — so per the statement, she is opposed,” a Gallego spokesperson clarified — I’m still not 100% convinced that’s what it does, but either way, it’s going to make it tough for Meruelo to pursue his arena plans, at least unless the state legislature passes its bill to block city officials from having any say in such matters.
  • The city of Santa Clara and the San Francisco 49ers owners have resolved their lease dispute after, as the San Francisco Chronicle put it, “the five-member City Council majority, which was elected with the help of millions in campaign contributions from 49ers CEO Jed York, approved the deal 5-2 in a closed session Monday night.” The details are too detailed to figure out exactly who came out how far ahead in the agreement, but given the above you can probably make an educated guess.
  • Voters in Eugene, Oregon have overwhelmingly rejected spending $15 million toward a new stadium for the minor-league baseball Emeralds, who have to move from their current stadium, which is only 14 years old, because MLB is making them as part of its “force all minor-league cities to build new stadiums” plan. Team officials had previously said they would move the team if the stadium measure didn’t pass; General Manager Allan Benavides said following the vote results that he didn’t know what the team owners’ next steps would be: “We’ll have to get really creative if we want to stay here, or find a new home.” Or maybe MLB could give them a waiver to keep playing in their current stadium, though that would only help the Emeralds and their fans, not MLB, so don’t hold your breath there.
  • John Mozena of the Center for Economic Accountability (the makers of these stickers) wrote an op-ed for the Tampa Bay Times yesterday on why stadium subsidies in St. Petersburg or anywhere are a bad idea, which provides a good overview of the economic arguments and more than a few bon mots — I’m partial to “stadiums don’t create more economic activity in a city any more than cutting a pizza into more slices creates more dinner for everyone,” but feel free to choose your own favorite.
  • The St. Louis Cardinals suck, which means it’s time for a news report about how hot dog trucks outside the stadium aren’t seeing as much business. Are hot dog trucks on the other side of town doing better business as a result? That’s too hard to report, you’ll have to do your own research, apparently.
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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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Study “proving” 49ers stadium is a huge win for the public says nothing of the sort

The sports business site Front Office Sports — originally founded by a sports management student with no journalism experience as a way to interview sports execs in hopes of landing a job with them — has a well-deserved reputation for having its head so far up the butts of team owners that it can see what they had for lunch, so I tend not to link to too many of its “articles.” But it’s hard not to take notice of one with the headline “49ers Proving Not All Criticism of Public-Funded Stadiums Is Warranted.” Oh, does it now, Front Office Sports, do tell?

Sitting in his sunlit office, Al Guido, President of the San Francisco 49ers, felt vindicated.

“We’ve proven our business case here,” Guido told Front Office Sports. “From a mathematical perspective, I don’t think you can look at this stadium as it relates to the 49ers or the city or, frankly, the larger region and say that this wasn’t a tremendous success in the first 10 years.”

This data was detailed in a study released on Monday, demonstrating that Levi’s Stadium has not only generated more than $2 billion for the local economy but has also contributed nearly $469 million in tax revenue since its opening in 2014.

So we’ve already taken a step back from the claims of the headline, where instead of the 49ers‘ stadium proving that public stadium subsidies aren’t as bad as they’re cracked up to be, we have a 49ers exec asserting that it proves it. From a mathematical perspective even! And with eye-popping numbers of $2 billion in economic impact and $469 million in new taxes over nine years, according to a study that … where does that link lead, anyway?

Head over to sportseconomics.com and we learn that “SportsEconomics is a full-service marketing research and economic consulting firm. Industry-leading Economist oversees all analysis.” Said economist is Daniel Rascher, who unlike in the case of some economic impact study consultants actually has a PhD in economics; SportsEconomics appears to be the shingle he’s been operating his consultancy under since way back in 1998, which explains how he was able to land the domain name.

As for those glowing impact findings, let’s dig into them some more:

“Projected” direct spending is an interesting term to use for the year 2022 in a report prepared in 2023. Where did that $251 million figure for projected non-stadium economic impact — in other words, spending in Santa Clara outside the stadium that can be credited to the stadium — come from?

This Report utilizes primary research (surveys and direct data gathering during the events) to estimate spending, as well as secondary research (the assimilation of data/information that already existed and was created for purposes other than this report) for non-survey based spending categories.

That’s a whole lot of passive voice there: Who’s gathering data from whom exactly, and how? It looks like somebody, probably the 49ers themselves, just asked fans to estimate how much they were spending during their visits to the stadium and then wishcasted that into solid economic projections, which — oh, look, while I was on a plane, J.C. Bradbury already made this point for me:

Stanford University sports economist Roger Noll was almost as harsh when asked about the report by the San Jose Mercury News, saying that while it’s “more carefully done than a typical impact study” it still “does not measure the net benefits to Santa Clara, city or county, from having the stadium.”

There’s also a weird disclaimer stuck in toward the end of Rascher’s report:

So the estimates of how much of the spending is incremental — i.e., how much is genuinely new, not just people who would have been in the area spending money anyway — is or isn’t included in the impact projections? It’s hard to tell whether Rascher here means “I acknowledge that some of this money isn’t really new, but I don’t know how much” or “This is just the new spending, there’s also non-new spending but I don’t know how much.” And if the latter, it’s hard to say how he knew, if his only data source is 49ers fans filling out surveys sent to them by the team.

Finally, Rascher also claims that the stadium created “approximately 11,840 [full-time equivalent] jobs,” which would be remarkable for a stadium that’s only in use a couple of dozen days a year; unfortunately no source at all is cited for the jobs number, so we have no clue at all what if anything that means.

I’ve reached out to Rascher to see if he can clarify some of the numbers he’s presented and where he got them, and will update this post if I hear back. In the meantime, any last words, J.C.?

#micdrop

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49ers and Santa Clara declare end to lease fight after team-sponsored councilmember flips bird, mayor calls cops

Let’s see, what else happened this week? Oh, looks like the city of Santa Clara and the San Francisco 49ers owners finally settled their long-running squabble over the team’s management of the city-owned and -financed but team-funded (sorta, more or less, mostly) stadium. That can probably wait for the Friday roundup, let’s see if there any especially interesting details—

That’s when Becker yelled “F— you!” at Watanabe and made an obscene gesture, according to both Gillmor and Watanabe. Gillmor remained in the room after Watanabe left.

Um.

“I called the police because it was obvious he was having huge anger issues. I’m always very careful if it appears anyone is getting out of control. But he was so emotional and I wanted to protect myself.”

Um.

Okay, some background: Gillmor is Lisa Gillmor, Santa Clara’s mayor, who has been fighting with the 49ers owners over the stadium lease terms for years. Becker is Anthony Becker, who was elected in 2020 along with two other councilmembers with the financial backing of 49ers owner Jed York and who is running for mayor this fall against Gillmor. Watanabe is Kathy Watanabe, who along with Gillmor tried to get the settlement discussed in open session, only to see that vote fail, leading to a closed session — which is where the cursing, flipping the bird, and police-calling all happened.

The settlement offer is worth $13 million, according to team execs, but that includes only $1.35 million in actual cash, according to a previous Chronicle report, with the rest including theoretical benefits, including some funds the city already controls, including $1.3 million shifted from the stadium authority’s discretionary funds to general and operating funds, and the 49ers waiving accrued interest they were demanding, leading Thomas Shanks, former executive director of Santa Clara University’s Markkula Center for Applied Ethics, to call it “funny money.”

Topping it all off, it’s not clear whether the council actually approved the settlement, with interim city attorney Steven Ngo first saying nothing had been agreed on, then later saying an agreement had been reached. The Chronicle, however, notes that if a vote was taken, it must have been in closed session while Gillmor and Watanabe were both out of the room, and councilmember Raj Chahal also absent, leaving only four of seven councilmembers there.

Gillmor already wants to reconsider the deal, or at least have it explained in open session so everyone can see what happened while she was out of the room calling the police on one of her fellow lawmakers:

“If this settlement is indeed final, I want the staff to put it on the agenda for next City Council meeting, so we can let the public know exactly what this council accepted and bring some transparency. … I’m very concerned they didn’t report the action out of closed session. There’s been no explanation, and it lends to a lot more suspicions of a back-room deal.”

Gillmor is also considering filing a police report on Becker, and definitely plans to file a complaint with the city’s human resources department. This fall’s Santa Clara mayoral debates are going to be really interesting, let’s just leave it at that.

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Friday roundup: More Jaguars move threats, more bad convention center spending, time is an endless loop of human folly

It’s Friday again! And December, how did that happen? “Passage of time,” what manner of witchcraft are you speaking of? Time is an eternal, unchanging present of toil and suffering under the grip of unending plagues! Thus has it ever been!

This notwithstanding, there was some news this week, though in keeping with the theme, it looks an awful lot like the news every week:

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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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49ers owner spends $3m to unseat Santa Clara politicians who crossed him, says he’s promoting “diversity”

San Francisco 49ers owners the York family successfully won approval in 2012 to build a $1.2 billion stadium in Santa Clara with the city taking on much of the risk, but ever since then has butted heads continually with local government, clashing over insufficient team financial reports and how much taxes the team would pay and whether the Rolling Stones could set off fireworks and who gets to manage the stadium and whether the team could withhold rent when two exhibition games were canceled thanks to Covid. What’s a poor sports billionaire family to do? Buy a new local government, of course!

[Jed] York has contributed $3 million to Citizens for Efficient Government and Full Voting Rights, a PAC whose stated mission is to bring diversity to the city council​…

”It would be unusual for a sports franchise owner or let’s just say any corporation or business to spend this kind of money even in a mayor’s race,” John Pelissero, the senior scholar at the Markkula Center for Applied Ethics, said​ Thursday​. “Instead this has all the appearance of attempting to buy four city council seats just to improve the private interests of the 49ers.”

While the PAC is organized to promote diversity, the candidates it’s supporting this year go extremely white guy, Indian-American guy, Indian-American woman, Korean-American guy; they’re looking to unseat a white woman and a woman so white she has a Celtic knot in her campaign page banner design, plus capture two open seats. So that’s either a plus or a minus depending on whether you’re looking at racial or gender diversity, and of course assuming by “diversity” you mean “access to just enough power for non-white-guys to not make white guys uncomfortable,” but that’s a battle that was lost decades ago.

Anyway, the issue here is less whether York is backing diverse (or good) candidates than whether he’s trying to unseat elected officials who are a pain in his butt by throwing money around. Three million dollars may not be a lot to an NFL owner, but it’s a fortune in small-city political circles: SFist notes that one of the incumbents (it links to a dead campaign finance page, so we can’t tell which one) has only raised a total of $6,234 this year. And whether or not York is successful — and whether or not the challengers he’s supporting would necessarily be beholden to his interests — he’s certainly making a public statement that anyone who clashes with him will be firmly in the crosshairs of his wealth come election time. If that’s enough to get current or future local pols antsy enough to get them looking to cut deals with him rather than taking a hard line, that should prove money well spent.

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Friday roundup: World still on fire, let’s remember 1989 when the greatest sports horror imaginable was Alan Thicke in a tuxedo

Very busy week here at FoS HQ, so let’s dispense with any introductory chitchat and get right to the news we didn’t already get to this week:

That’s all for now, see you all Monday!

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Friday roundup: Drumming clowns, vaporgondolas, and the XFL rises shambling from its dusty grave

The magnets have shipped! Repeat: The magnets have shipped! If you want to get in on this, act now, or you might have to wait until I make my second trip to the post office.

This was an extra-busy news week, which felt like a bit of a return to normalcy after several months of sports team owners mostly focusing more on getting back on the field than on getting money to pay for new fields. But life can’t be put on hold forever, and by “life” I mean “grubbing for someone else’s cash,” because what is life if not that? (Answers may differ if you are not a sports team owner.)

Here’s a bunch more stuff that happened than what already made FoS this week:

  • That protest to call for the New York Yankees to pay their fair share of taxes or maybe just bail out local struggling businesses only drew about 10-15 people, according to NJ.com, but also “clowns playing a drum on stilts.” The site’s accompanying video features less than two seconds of drum-playing stilt clowns, and a whole lot of 161st Street BID director Cary Goodman talking about the plight of local businesses, and while I know Cary and he apparently paid for the clowns, I still say that this is a dereliction of journalistic duty.
  • Along those same lines, the gondola company owned by former Los Angeles Dodgers owner Frank McCourt has reportedly released new renderings of its proposed gondola to Dodger Stadium, but does NBC Los Angeles show us any of them? No, it does not. (I so yearn to see Cab-Hailing Purse Woman cast off her foam finger and hail a gondola.) We do learn that “the gondola system could move up to 5,500 people per hour in each direction, meaning more than 10,000 fans could be transported to Dodger Stadium in the two hours before the start of a game or event,” which seems to misunderstand how people arrive at baseball games, which at Dodger Stadium is mostly all at once in the third inning, and even more misunderstand how people leave baseball games, which is all at once when they’re over, at which point there would suddenly be a two-hour-long line for the gondola. McCourt’s L.A. Aerial Rapid Transit company says it will pay the project’s $125 million cost, but even if true — and you know I’m always skeptical when people ask for public-private partnerships but promise there will be no public money — that doesn’t make this much less of a crazy idea.
  • The XFL’s Los Angeles Wildcats might have to share their stadium this spring with a college football team, and, wait, didn’t the XFL fold? I swear the XFL folded. Oh, I see now that The Rock bought it, so: In the unlikely event that the XFL gets going again, its L.A. team will have to share digs with a college football team playing in the spring. Honestly having to use a football stadium more than 10 days a year just seems like efficient use of space to me, but sports leagues do get gripey about scheduling, even sports leagues that barely exist.
  • That Palm Springs arena being built by AEG now won’t be built in Palm Springs after all, but rather nearby Palm Desert, because the Agua Caliente Band of Cahuilla Indians, whose land was going to be used for the project, decided after Covid hit to “reevaluate what was going on just like most other businesses because they had so many other projects,” whatever that means. Given that the Palm Springs police and fire departments said they’d need tens of millions of dollars to provide services for the new arena, I think it’s safe to say that Palm Springs just dodged a bullet here.
  • The San Francisco 49ers are finally paying rent again to the city of Santa Clara, after initially trying to get out of it because their two exhibition games at home were canceled.
  • This Athletic article about the attempts in the 1980s and ’90s to save Tiger Stadium is paywalled and is not nearly as comprehensive as the entire chapter about the same subject in Field of Schemes, but it does have some nice quotes from Tiger Stadium Fan Club organizers Frank Rashid and Judy Davids (the latter of whom worked on a renovation plan for the stadium that would have cost a fraction of a new one, a scale model for which I once slept in the same room with when she and her husband/co-designer John put me up at their house during a FoS book tour), so by all means give it a read if you can.
  • If you’re wondering how $5.6 billion in subsidies for a new high-end residential/office/mall development in Manhattan is working out now that Covid has both residents and offices moving out of Manhattan, I reported on it for Gothamist and discovered the unsurprising answer: really not well at all.
  • The KFC Yum! Center in Louisville’s naming rights are about to expire, but KFC is talking about signing an extension, so with any luck we have many more years ahead of us to make fun of the name “KFC Yum! Center.”
  • That’s not how you spell “ESPN,” Minneapolis-St.Paul Business Journal.
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Friday roundup: 49ers stadium squabble, Richmond nixes arena plan (for now), Mets’ $55m taxpayer-funded sofas off-limits to mere minor-leaguers because “status”

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

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