how to remove errors on your credit report equifax credit report cost how to dispute inquiries on experian credit report can u view your credit report free credit report dispute addresses experian go get your free annual credit report sample letter remove charge off credit report reliable credit reports how long does a paid judgment stay on your credit report the fair credit reporting act applies to get free copy your report online annual credit dispute medical bill credit report all free credit report commercial lyrics how do you get rid of how to fix a bad credit rating credit scores range the earth rotates from what to what check credit reporting inc buffalo ny fact annual credit report affinity credit plus mn dispute your credit report 3 credit scores reports fico fair credit reporting act summary your rights how to clean up my credit report myself for free how to cancel my experian credit report free credit report and score without credit card can request credit report deceased spouse how to report tax credit fraud how to clean up a bad credit report service annual credit reports get your free can i dispute inquiries on my credit report credit report online without using a credit card free annual fdic credit report capital one free credit report free credit report annual experian personal statement examples credit report report credit card comprehensive credit reporting nz free background checks online without credit card free credit rating credit report south africa how long do negative items stay on my credit report dispute credit report experian address 8 credit bureau report instant credit shoe repair findlay ohio us government free credit reports credit score all 2 reporting agencies dispute inquiries credit report letter request free fico report denied credit equifax has access my credit report charge off credit report does mean request free credit report california fix my credit free creditors obtain free credit report after being denied credit experian business credit reports free own how to access your credit reports for free free credit report band wikipedia government website for free credit report how to check credit report for a minor reports judgments credit reporting agency where can i get my yearly free credit report free credit report without using credit card information checking where to find credit score on experian report get my free credit report all three how do i dispute an item on my credit report free credit report hurt my credit score dispute on credit report transunion who is the guy that does the free credit report commercials how how do i know if i freeze my report free credit global wealth report credit suisse 2010 get my free transunion credit report most secure site for credit report what is free credit report bankruptcy laws and credit reporting free credit report score government site annualcreditreport how can i obtain a free copy of my credit report credit report 1 time charge how can you get credit cards with bad credit authorization to pull credit report template credit report without credit card information union how long do collections stay on credit report how to challenge something on credit report consumer financial protection bureau credit reporting agencies monday top 3 free credit reports safe free credit report sites review how much does experian credit report cost fair credit reporting act credit cards order credit report equifax canada best report service landlords credit checks credit report lock credit appliance repair lawton ok how to get a free credit report without giving a credit card number free copy of your rental / credit report credit report info fair credit reporting act definition consumer complaints agency payday loans online no credit check ssi benefits online best site get free credit report score letter to remove paid items from credit report experian consumer credit report address credit report from government what shows up on a credit report read sarma credit report how to get your credit score from your credit report how to free credit reports online instantly actors in free credit report.com commercials credit suisse equity research reports bad credit cash advance direct lenders australia get free government credit report example of a good credit reporthow to repair my own credit report how to run credit report on renter consumer consumer report canada magazine free bureau report online credit scores credit report reporting deceased loan free credit report no cost how to report a judgement to credit report what are the top 10 best credit repair companies reviews natwest credit check experian fair credit reporting act consumer disputes free online credit report check three credit reports bad credit report repair official government website free credit reports how can i get myspace annual credit report free help reading credit report how to dispute my credit report order free credit reports phone 3 in 1 credit report with fico score best free credit report damages violations fair credit reporting act fcra global sovereign credit risk report copy credit report score free credit report from government once a year cbc innovis credit bureau reports how long does negative information remain on your credit report what does the kd mean on my credit report how do i get a free credit report for my business report all bureaus credit scores how to get a copy of your credit report australia my free credit report florida business reports uk credit check what is annual credit report request service national credit reporting agencies australia repair your credit report yourself 3 free government credit reports free credit report identity theft victim ordering credit reports phone checking my child us credit report get free credit report american express colorado credit report free annual maryland fair credit reporting act promotional inquiries my credit report where can i get a credit report free fix credit reports fast what is a good free credit report website fair debt collection practices act fair credit reporting act employment credit report illinois do utility companies report to credit bureaus does can credit repair help can i report to credit bureaus as a landlord free credit report federal laws remove chapter 13 bankruptcy credit report credit card balance update credit report credit reports from all 3 agencies how to obtain my credit report in canada why can;t i get my free credit report medical bill credit report long does chapter 7 bankruptcy remain your credit report what is credit reporting cdia credit reporting resource guide all 2 credit report and scores how to fix personal wrong information on credit reports bank of america credit reporting errors how long do collections remain on credit report in canada personal credit check registrar of companies - jamaica credit suisse global wealth report pdf sample letter dispute item credit report get free annual credit report experian free credit report canada no credit card loans online my free annual report transunion credit history how to correct a bad credit report free 3 bureau credit report and fico score how to quickly clean up credit report credit repair school miami can i pay off a personal loan with a credit card dispute information credit report experian remove collections from credit report canada official us government credit report how to dispute personal information on credit report how to get credit report from all 3 bureaus how can you correct errors on your credit report credit score moving companies three rivers mi experian credit report forum how to report positive credit to credit bureau hsbc free online credit report free credit report no credit card online loan security freeze on my credit report monthly credit reports updated secured credit cards reporting to credit bureaus get items removed your credit report when does capital one report to credit agency can;t get credit report from equifax three credit report score which credit report do apartments use anual credit report . com credit report texas report credit landlord reporting tenant to credit bureau how to remove inquiries off your credit report bad credit loan companies in wv credit report service for landlord dispute credit information credit report car loan not reporting credit bureau how do red clean up your credit report for free fcra credit report dispute credit report delinquency two most common errors on credit reports what is credit total check customer service phone number get all 3 bureau reports credit scores can you dispute a judgment on your credit report how do i correct something on my credit report how do i order my experian credit report how do you run a free credit report new york fair credit reporting act disclosure annual free credit report request free credit repair form letters put watch your credit report read credit report credit reporting agency does mortgage companies use trans canada credit ottawa what are the major credit reporting agencies entitled free annual credit report lawyers best credit cards for credit repair best credit report free how do you get rid of hard inquiries on credit report sovereign bank report lost credit card ftc free report video annual credit fair credit reporting act tenant screening what happens when i dispute my credit report fair credit reporting act july 2010 how often am i entitled to a free credit report paid credit report online how long are charge offs on credit report my yearly free credit report free how to get late payments off my credit report privacy act credit reporting code of conduct how to get my credit score free free credit report commercial predictions equifax annual credit report request form get your free credit report without credit card 3 credit report agencies numbers credit reporting law australia instant credit report hallmark australia free ecards my credit report online how to dispute bad credit reports what to say when disputing items on credit report trw free credit reporting experian equifax credit report request form free report usa online credit scores phone number for annual credit report request service pay chase health advance online application what sections does a credit report contain comparison of free credit report websites how do you obtain a freeware copy of your credit report does rels mean credit report what is poor credit scores equifax credit score report free how do i cancel my free credit report.com membership disputes on experian credit report free annual credit report 1 bank of america credit report monitoring how to get a collection account removed from your credit report all in 1 credit report credit report credit card settlement how long can a bankruptcy stay on your credit report how can i clean my credit report up find out your credit steelers score tday 3 one credit report fico online payday advance direct lenders denied credit report freeware experian disputing credit report experian sm4-4 please correct my credit report credit risk reporting tools fake best free credit report sites surname band does free credit report commercials free 3 bureau credit report credit union performance reports three major credit reporting legitimate site get free credit report how to report stolen credit card chase best way dispute items credit report free credit report and federal government how long does chapter 7 bankruptcy stay on credit report 3 credit reports scores free free credit report gov uk lenders how to get a free credit report from transunion pro credit free credit report one time only free credit report equifax how to remove inquiries on your credit report where can i get my annual credit report free how to dispute items on credit report online real credit repair agencies in houston experian average credit score credit report usa pdf credit rating agency care free credit report usa gov website government once a year credit report number of inquiries on credit bureau report how long does it take to dispute items on credit report consumer credit reporting agency credit bureau reporting requirements what is the best credit reporting agency to use dispute experian credit report by mail three nationwide credit reporting companies debt credit repair for dummies credit agencies working problems with tax credits free online credit report no credit card required obtain yearly free credit reports sample credit bureau report singapore does getting your credit report lower your score removing a charge off from your credit report get my free annual report online credit score how to clear judgements on credit report long term bad credit loans does collection account mean credit report how to remove a judgement from your credit report get three credit reports free how to find out what is on your credit report free credit report website federal trade state of massachusetts free credit report free canadian credit report score clean up my credit report myself letter to remove credit report inquiries rebuild credit after bankruptcy definition credit reporting company buy one off credit report how long does it take for a short sale to show up on your credit report which is the best free credit report site credit check reporting deceased the big three credit reporting agencies remove inaccurate credit report phone numbers for the credit reporting agencies free credit report 11 reporting agencies unsecured credit cards reporting to credit bureaus cibil credit report singapore credit report dispute samples free copy of credit report how to remove paid collections on credit report where can i print a free credit report fair credit reporting act consumer disclosure and general authorization statement how can i request a copy of my credit report annual credit report access how to dispute incorrect information on your credit report my credit report card info free credit report consumer credit report assistance pull credit report potential tenant getting a credit report uk experian free yearly credit report which credit report is best company restrict number inquiries credit report request free credit report from all three credit bureaus is it true after 7 years credit report is clear do landlords check credit report there free credit report without credit card information experian how long do 30 days past due stay on credit report how often is your credit report updated cheapest three bureau credit report credit union 5300 call reports how to get a medical collection removed from credit report equifax no longer selling credit reports employment can bankruptcy be removed from credit report what is the phone numbers to the credit bureau for credit reports guy sings free credit report commercials free transunion credit report by mail reputable 3 credit score companies free yearly credit report irs free credit report no strings attached lock all three credit reports 3 in 1 credit report with score trans union credit report score consumer credit report rights credit report no monthly fee advance speedy cash dickson tn top free credit report sites equifax number order credit report free annual credit report by law credit report tenant services background check credit report landlords consumer credit reporting agency india free annual credit report site transunion colorado free credit report can freeze my child;s credit report want view my credit report free what information does a credit report contain how do i dispute my transunion credit report can i get a copy of my credit report from my bank three in one free reports credit scores need free copy my credit report which of the following is true about credit reports example letters dispute credit reports free annual credit reports disputes on credit report redwood credit union credit report contest charge your credit report letter to creditor to remove late payment from credit report yearly free credit report all three bureaus experian how do i challenge my credit report when does capitalone report to credit agency how to remove freeze on equifax credit report letter for name change request on credit report free experian credit report how dog i get a free credit report from all three credit reporting agencies how do you obtain your free credit report bureaus how long does a serious delinquency stay on credit report understanding a credit report from transunion free tri merge credit reports how to get annual free credit report online annual credit report us gov ordering credit report prospective tenant all 3 credit reports scores free experian free credit report usaa credit report canada how to find out my credit report free report usa equifax personal solutions credit reports where can i get my credit score and report free does chase offer free credit reports address of credit reporting agencies does title max report to credit read credco credit report does my checking account show up on my credit report how to free credit report annual equifax run a credit report placing security freeze credit reports remove negative closed accounts credit report obtain credit report landlord how to remove a collections account from your credit report should get report all three companies free annual credit credit today credit summit 2013 credit report veda free unreliable credit reports interim report of the commission on credit unions nd on credit report bankruptcy chapter 13 credit report credit bureau report dispute letter victim of identity theft free credit report free credit report gove annual new credit reporting agency cheapest away to get your credit report free credit report ads lyrics pirate check credit report business statute limitations texas credit report experian credit report after denied credit what is the most widely used credit reporting agency how do you get your gone free credit report per year credit card company reports irs do you need credit report rent house sue violations fair credit reporting act bureau how can i dispute my transunion credit report difference between credit reporting agency consumer reporting agency example credit report after bankruptcy fair accurate credit reporting act section 312 dispute credit report online win how do youtube get your free credit report yearly best credit report monitoring website get tenant credit report get your three credit reports free free credit report oklahoma how to cancel free credit report membership joining national credit reporting bureau annual credit report credit freeze how can you get a new credit report addresses 3 credit reporting bureaus does checking my credit report affect my credit free credit report no credit card info bills free three one credit report security guard credit report get free credit report maryland which credit reporting bureau is used most get free credit report without giving credit card information where can you get a free credit report once a year free credit report ii reporting agencies free credit report authorized federal government guarantees what is a hard inquiry on my credit report where can i get my credit report and score for free why do insurance companies check credit reports prepaid credit card reports all 3 credit bureaus free three in one credit report experian three credit reporting agencies mailing addresses my fico free credit report download credit report software reporting agencies credit scores experian free credit report number contact credit report agencies the only true free credit report check free credit report colorado residents how to run a credit report on a prospective tenant free report uk experian credit rating how doo i get my free credit report from all three bureaus credit report lawyer free and credit report free credit report issues how to order a credit report from equifax new free credit report commercial
Home Pete Toms When Stadium Financing and the Recession Collide

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 833 guests online

Atom RSS

When Stadium Financing and the Recession Collide PDF Print E-mail
User Rating: / 41
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Tuesday, 20 January 2009 10:06

A Biz of Baseball OriginalThe following is a continuing series of articles by Business of Sports Network staff member Pete Toms on stadium financing. For more see Part I and Part II of this series.

Last month, CNBC Sports Business Reporter Darren Rovell offered up this prediction for 2009. “Can't call out which one it will be but stadium financing isn't going to be available for a while. Timetables on stadiums like the ones for the Nets, A's and Marlins will be thrown out of whack by at least a year. And one of the stadiums that is fully designed on paper will never make it to reality.” Frozen credit, the mostly dormant stadium naming rights market, difficulties in launching stadium centred “mixed use” developments and a political backlash against public funding of stadia for professional sports combine to make Mr. Rovell’s prediction believable.  Going forward, will the federal government’s new “ New Deal”, along with deflating construction costs, provide a boost to stadium construction? 

Biz of Baseball reported in March that the collapse of the auction rate bond market was having an inflationary impact on borrowing for stadium construction. Up until then, the ARS market was a primary source of stadium financing for state and local governments.  In November, the WSJ raised the question of stadium financing with sports investment banker Sal Galatioto, President of GSP;

WSJ: Is it safe to say the stadium building era is over for the foreseeable future?

Mr. Galatioto: It would be very difficult to finance a new building right now. There would be all sorts of issues with the banks and the bond market....

Sports Business Journal recently posed a similar question to Mitchell Ziets, President, CEO,MZ Sports.

SBJ: Where are you seeing the most pressure on sports facilities from the current economy and where do you see the arena/stadium construction market going from here?

Mr. Ziets: ... Lenders have significantly retrenched — in terms of availability of capital, cost of capital, covenants and collateral requirements — making project financing a much more difficult proposition. The market feels a bit like it did in the late 1980s and early 1990s, when the stadium project financing market was in its infancy — lack of liquidity, onerous terms, limited financial solutions, and the absence of bond insurers to bring ‘AAA’ buyers to the table.

Mixed use / ballpark village / entertainment district / developments have been effective in subsidizing  stadium construction but the economic crisis has stalled, scrapped or scaled back such plans in Arlington, St. Louis, San Francisco and Fremont.  A’s owner Lewis Wolff announced in November 2006 that he had agreed to purchase 143 acres in Fremont from Cisco Systems for mixed used development , with a new ballpark the centrepiece.  Mr. Wolff’s immediate plans are now for a ballpark only and he is considering alternate sites.  The San Jose Mercury News reported last month on Mr. Wolff’s purported interest in building a stadium at the “Warm Springs” site.

Owner Lew Wolff confirmed reports of the team's interest Wednesday, a decision spurred by two factors: a difficult economy that has tabled, for now, plans to also build a housing and retail "village" in the ballpark's currently proposed site....

Wolff had planned to use proceeds from those new homes and shops to fund stadium construction. But with that project on hold and the economy collapsing, questions are growing about how Wolff would finance a $400 million ballpark, especially without a public investment.

Future tax revenues generated from these developments are often funnelled back into the stadium construction in what is known as “tax increment financing”, or TIF.  Neil deMause wrote recently that  the “Warm Springs” site would not currently qualify for such public financing.  “...the Warm Springs site is not in a redevelopment zone and so would not be eligible for tax-increment financing (kicking back new tax revenues to help pay for construction costs)...   

Stadium naming rights are an important source of revenue for professional sports teams and are particularly lucrative for franchises launching new facilities.  While the selling of naming rights continues ( i.e. Target finalizing a deal with the Twins in September ), the demand for these sponsorships is currently diminished.  ( See Washington Nationals ) From an October AP report:

After a decade's worth of booming growth in naming rights deals, the stock market's dramatic slide has changed the landscape dramatically.

[...]

When the Astros bought their ballpark's good name back from Enron, owner Drayton McLane said there were seven companies with Houston ties that had expressed interest in the naming rights. These days, they might be lucky to get two or three.

[...]

Those that are looking for deals in the short-term might find they don't bring in as much as they might have a year or even six months ago.

"The value of naming rights have been taking off for the last 10 years at a pretty steady upward trajectory," Zimbalist said. "But everything goes in cycles. I think this is going to be a downturn that is likely to be significant." (Note: Andrew Zimbalist is a sports economist)

The distressed economy has not only impacted on the number of, and ability of, corporations to acquire naming rights, but has changed consumers perceptions of these deals.  Corporations are more sensitive to potential public reaction when considering attaching their brand to a sports facility.  The flashpoint was the November public bailout of Citigroup, which brought with it much negative reaction to their $400 million naming rights deal ( concluded in 2006 ) for the Mets new ballpark ( opening this spring ).  Terry Lefton wrote in SBJ of the backlash; “Fearing the same kind of flak, we’re told Bank of America’s plan is to never announce its non-title sponsorship with the Yankees’ new $1.3 billion home.”  Outrage that taxpayer dollars were being given to the wealthy Mets owners was widespread amongst media, bloggers, politicians and the public.  In a Biz of Baseball editorial, Maury Brown wrote:

...two New York City Council members believe that with the bailout, the name on the Mets new stadium should be reconsidered. Staten Island Republicans Vincent Ignizio and James Oddo say the ballpark's name should be changed to Citi/Taxpayer Field.

To add to the political fodder, Rep. Elijah Cummings (D-Md.) said, in a statement Monday, "This type of spending is indefensible and unacceptable to Citigroup's new partner and largest investor: the American taxpayer."

Darren Rovell wrote:

As far as the Mets are concerned, good for them. No other company, in this environment, would give them $20 million a year. I don't even think they could get $12 million at this point, to be frank. As far as Citi is concerned, it's definitely going to be uncomfortable.

Whether it's rational or not, they're going to hear people asking how many employees they could have had back for that $20 million annual investment. The right question to ask, and I don't know the answer to this is, what's a better investment for the company, the people you could have working for those dollars or the naming rights to the stadium?

The political backlash against public funding of stadiums for professional sports was not limited to the Citigroup naming rights sponsorship.  Kurt Badenhausen of Forbes predicted that in 2009;

Any sports team still seeking significant public funding for a new stadium or arena can forget about it. The money is gone, as cities and states are forced to tighten their belts. Politicians are not about to stick their necks out and push through a tax increase to build a venue that benefits a billionaire sports team owner.

If Mr. Badenhausen (and many share his opinion) is correct it will be a dramatic reversal in government behaviour compared to the past few decades. From “Public Dollars, Private Stadiums”: 

There has been an explosion in new stadium construction since the 1990s, and several things make this current boom very different from any other period in history. First, the breadth of new construction across the country and the amount of public contribution is unprecedented. In the decade since the opening of Baltimore's Oriole Park at Camden Yards in the early 1990s, fourteen new baseball stadiums have been built and an additional three are under construction. When the three stadiums currently under construction are completed, seventeen of the thirty major league baseball teams will be playing in stadiums built since 1992. ( Note, the book was published in 2003 ).....This is an unprecedented wave of stadium building, and one analyst has estimated that approximately $10 billion of public money has gone to all new sports stadiums since the mid-1980s (Keating 1999).

Since the publication of “Public Dollars, Private Stadiums”, overall, governments have been funding smaller percentages of stadium construction.  There remain exceptions however.  Tim Lemke recently reported that the final cost to Washington D.C. for constructing Nationals Park is $693 million. 

The political backlash against “public dollars for private stadiums” reached new heights ( and lows )  over public contributions/financing of the new Yankee Stadium.  In July the House Committee on Government Reform, Subcommittee on Domestic Policy, led by chairman Dennis Kucinich, began investigating the financing of the new Yankee Stadium.  The hearing continued into the fall, questioning if the public financing mechanism – PILOTS – served the public interest and if the value of the real estate where the stadium is being constructed was intentionally inflated by NYC officials to aid the financing.  Sports Economist Dennis Coates explained how PILOTS work;

PILOTS are a way by which state and local governments, or quasi-governmental agencies like the New York City Industrial Development Authority, borrow money which is used to finance essentially privately owned development projects which are "owned" by the public agency. Interest costs are about 25% lower this way than if the private company had borrowed directly. (PILOTS sprung up in response to restrictions on the use of state and local government debt for essentially private purposes, of which stadiums and arenas were a prime example. NY Senator Moynihan was instrumental in getting such legislation through Congress.) The new development does not pay property taxes, for instance, because the public agency owns the property. To offset the loss in taxes, the user of the facility makes payments in lieu of taxes, which are used by the agency to pay the principal and interest on the borrowing.

Media and public scrutiny leading up to a January 16 vote of the aforementioned IDA to approve an additional $430 million in bonds ( $259 million of that tax exempt ), on top of $940-million in tax-exempt bonds and $25-million in taxable bonds previously granted, was intense and emotional. (The Mets received lesser amounts of the same bonds but were largely ignored at the hearings and in the press)  The bonds were approved but not without an ugly confrontation at a January 14 IDA hearing when state Assemblyman Richard Brodsky challenged both Yankees President Randy Levine and IDA Chairman Seth Pinsky to a "civil, in-your-face fist fight"

The combination of job losses and declining tax revenues in NYC, the publishing of emails which revealed the mayors office had vigorously lobbied the Yankees for a luxury suite at the new stadium, the Yankees free agent spending spree and record ticket prices at the new stadium made public financing/funding of the stadium a hot political issue.  ( The mayors office eventually forfeited the luxury suite )  City Comptroller William Thompson was very public in his criticism of mayor Bloomberg’s role in the financing/funding of the stadium.  Mr. Thompons’ critics ( the mayor’s office and the Yankees ) pointed out that Mr. Thompson had voted in 2006 to issue approximately 1$ billion in bonds for the stadium and that his opposition to the latest round of financing might stem from his expected run for mayor of NYC this year. 

The unprecedented attention brought to the issue of “public dollars for private stadiums” in the political and media battle over the new Yankee Stadium might be remembered as the tipping point in this debate.  Is public financing/ funding of stadiums for billionaire owners and millionaire players now too politically contentious to risk?  ( There is much debate as to whether the new Yankee Stadium is publicly built or publicly financed )

Ironically, as professional sports in the US is negatively impacted by the floundering economy, public money for stadium development could flow from the federal government.  President Obama’s new “New Deal” is expected to include spending of $92 billion on infrastructure.  Will some of that investment flow to new sports stadiums (or renovate existing)?  Don Muret wrote in SBJ last week: “Sports projects still seeking public assistance are now trying to use the recession to their advantage, promoting their plans as a way to generate much-needed jobs.”  And in December the U.S. Conference of Mayors presented a list of 11,391 “ready to go” infrastructure projects which included a helping of “sports pork”.  Mr. Muret also reports that the “stagnant economy” has lowered construction costs ( steel, copper, aluminum and oil dropping in price ) and that; It's a great time to build if you have equity in hand.

Finally, I predicted here last month that difficulty in financing stadium construction could result in an increase in the usage of PSLs.  Ready, Cubs fans?  (HT Shysterball)


Pete Toms is a staff member of the Business of Sports Network. He can be contacted at \n This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?