quibron-t rx lithium carbonate tablets wiki atarax from canada can you buy proventil canadian pharmacy glucophage 500mg side effects buy deltasone online amazon nome generico moduretic otc allegra cost where can i buy zoloft tablets minocycline dose for sinus infection purchase neurontin gabapentin buy tenormin 100mg online ranitidine no prescription atlantica online nitroglycerin one man one jar wikipedia overseas pharmacy no prescription tegretol nizoral pills online in the usa neurontin 100mg uses buy lady era with e check rosuvastatin calcium brands india vente de snovitra super power au quebec buy allegra capsules fast dipyridamole delivery what does generic lasix look like ordering lipitor canada comprar tofranil portugal purchase 1 rx accutane mg prilosec paypal what is aldactone prescribed for ordering kamagra gold here in canada buy aciclovir uk cream prescription haldol injection dosage metronidazole side effects nhs how to purchase desyrel online citalopram overdose how much birth control pills cleocin gel long term side effects of azulfidine cheap ciplox free delivery diflucan price walmart levitra plus medication side effects generic form of differin side effects of zofran pill citalopram drug class can you buy ethionamide over the counter cloridrato de amantadina mecanismo de ac,a~o diflucan thrush infant all types of viagra pills canali tv italiani in streaming live mircette retail price como comprar live buy biaxin cheap generic cost of skelaxin 800 mg nolvadex canada legal canadian pharmacy online northwest what is aspirin made of the plant what is arjuna question for krishna how to take brand amoxil mg drugstore buy deltasone dove posso comprare il ginseng xeloda tablets capecitabine pcos 100mg clomid success comprar famvir original cheap celebrex usa online generic biaxin alli pills online ireland clonidine medication overnight delivery brand viagra birth control online australia prednisone medication uses doxycycline acne treatment side effects propecia pas cher lille what is lisinopril for buy lasix online overnight what is chloroquine made of cialis versus viagra side effects lynoral order abilify maintena label viagra shoppers buy hoodia gordonii nz meclizine woldwide shipping buy hong kong generic zaditor fluoxetine 20mg capsules reviews how to take clomid uk side effects of vytorin 10-40 mg over the counter fertility pills canada noroxin women buy buying zaditor using paypal atorvastatin rosuvastatin dose best price for real luvox himalaya purim price in india donde puedo comprar benicar what are the side effects of taking too much ventolin methotrexate psoriasis how long order ethionamide cheap cheap prilosec zanaflex comprar where to find doxycycline cleocin cream reviews can you buy erythromycin in ireland amoxil left out overnight voveran buy online ireland schumacher ginseng llc shopping ordering alesse medication astelin for daily use canada brand trial erection packs 1 for sale purchase xbox live redeem code online best place to order brand levitra in us cafergot migraine price of augmentin without insurance carafate suspension price remeron spain where do i buy dutas generic cipro antibiotic $10...$100 where to buy prilosec drugs online online pharmacy no prescription needed cozaar cymbalta suppliers overseas illegal drug identifier pill betapace online in usa long term effects of prednisone psychosis three main types of drugs signs and symptoms of asthma in children the online drugstore retino-a cream 0,05 buy aciclovir prescription overnight citalopram 40 mg buy prometh with codeine cough syrup dosage buy amantadine overseas no rx cialis in canada us pharmacy online trandate best generic tofranil review cheap brand viagra buy online can order chloramphenicol online what is fml forte made of para sirve medicamento implicane cheapest isoniazid in the uk furosemide weight loss lexapro 10 mg anxiety donde comprar trimox does actos cause weight gain claritin ingredients antihistamine rx lotrisone cream seroquel from uk tadalafil 5mg para que serve increasing fertility in men naturally what is bupropion for medication viagra professional sale generic cheapest where can i buy primatene mist in canada yasmin alibhai-brown daily mail nizoral shampoo rxlist what is ciplox 500mg for doryx dr 100 mg where keppra female cialis online meds comprar tadapox original en madrid phenergan drugstore what is alavert d-12 is cleocin gel legal in uk etodolac pct buy mometasone furoate monohydrate nasal spray side effects purchase cheap zovirax cream acyclovir online most reliable place to buy micardis online cordarone western australia order free sample of viagra where can you buy zovirax cold sore online pharmacy uk geriforte para q se usa el atarax buy cialis mg online pharmacies colchicine buy sominex singapore donde puedo comprar snovitra super power buying zyrtec in manchester buy hydrochlorothiazide from mexico online floxin online overnight delivery view topic fincar supplier in uk free or low cost tinidazole micardis telmisartan tablets side effects motrin canada overnight delivery relafen 750 uses viagra super active ships from india lithium carbonate without rx indian generics online pletal astelin nasal spray uses prilosec price cvs free coupon for tenormin how come newhealthyman address doesnt work buy parlodel perth australia arimidex price canada vigrande forum doxycycl hyc 50 mg for acne ranitidine syrup india generic pills for lipitor buy atarax bulk buy celexa capsules speman forte price minocin shortage 2012 compazine australia can you buy benadryl over the counter in germany amoxil shortage 2012 what is doxycycline tablets for cytotec medication generic for phenergan premarin hrt side effects buy inderal 100 sumycin for dogs buy generic uk paypal zestoretic synthroid overnight shipping cheap what is a normal depakote blood level mestinon timespan rxlist cipro dose for gonorrhea tadacip cost canadian eldepryl without prescription miami what is arthritis what are owl pellets best place to buy amaryllis bulbs where to bystolic zithromax pills for sale bactrim ds prescription online can prevacid capsules be opened generic from anacin canadian health care mall phone number exelon pharmacy order safe buy terramycin online cipralex side effects nhs purchase chloromycetin lowest price phrmacia,mx.com what is cyklokapron tablets for purchase sustiva vermox brands india can a woman get a prescription for viagra what is himcolin pills used for boots medication training online careshield acyclovir dose encephalitis overseas pharmacy no prescription asacol what does kd stand for in adalat generic adalat mylan prices generic myambutol usa pharmacy onde comprar nootropil nexium weight gain viagra sublingual medication order generic claritin flomax generic names purchase lipitor in usa costco pharmacy sominex price rumalaya daily use reviews buy over the counter lynoral online buy kamagra cheap online generic viagra cytotec tablets from buy cheapest entocort tablets uk caverta 50 mg ranbaxy generic tadacip india canadian alliance of physiotherapy regulators address dapoxetine ukmi overseas pharmacy no prescription rosuvastatin nitrofurantoin capsules slow release metformin dosage generic sustiva no prescription half price mobic alli orlistat buy online accutane second course results buy combivent online amazon xenical vendita in italia why hoodia is illegal for sale in the uk how to buy cialis online from canada purchase propranolol on line in india buy female fertility drugs online keftab generic name what is nitrofurantoin mono/mac for retin-a ge no prescription compare prices where is rita ora from originally walgreens pharmacy propecia diclofenac gel now lesofat dosage seroflo overseas buy promethazine w codeine lotrisone rx diclofenac sr 100mg tablets topamax without a prescription isoptin retard 120 mg where to buy zoloft with visa celebrex delivery london online sale of tinidazole can you get pregnant while on depo provera shot amantadine looking for content and code jobs cost of celebrex at target reviews on lisinopril buy zenegra online usa zyban on line no script is there a shortage of lasix web based prescriptions levitra plus canada how much keflex for uti aciphex generic release date buy vasodilan online amazon lopid to buy from europe side effects of lamictal odt betnovate 40 mg dose baclofen refills best concetraption allegra strategies project cafe 11 cheap hydrochlorothiazide buy online generic tretinoin 0,05 inderal online pay paypal vytorin prescription coupon generic viramune no prescription finast pill shortage compare prices trandate female cialis coupon code methotrexate sale what are ciplox tablets used for zovirax lawsuit settlements can you only get flomax on prescription online sale of micronase side effects of avalide how expensive is clomid without insurance cialis online non prescription canadian pharmacy voltaren brand positioning generic name for aciclovir is lexapro generic medicine intrathecal clonidine mechanism of action buy cheap biaxin dosage pamelor dosage instructions tamoxifen citrate pills buy phenergan pills aristocort from canada purinethol delivery london fluoxetine order metformin pills online in the australia dosis de antiflu des jr comprare alligatore elimite discounted ciproxin dose children prednisone six day pack side effects ringworm medication for children best legal online site to buy viagra generic liv 52 no prescription cialis no brasil does generic cialis work reviews best generic prevacid sites requip xl side effects viagra in india for men risperdal legal us eutirox 50 prospecto www azithromycin tablets 250 mgs com nome generico do voltaren silagra for purchase without a prescription bupropion uk proscar medication what is the standard dose for levitra abana pharmacy requip australia price evecare overnight delivery we buy any car sales buy nitrofurantoin 80 mg online pharmacy has best price zocor yasmin boland libra where to buy accutane no prescription cheap leflunomide arava cost why did alli speed go to spain sinemet tablets from buy oregon state football schedule 2013 cyklokapron uk online flovent side effects toddlers grand order calanthe tenormin 25 mg dosage pharmaceutical sales jobs london trazodone recreational usage does thyroid medication make you gain weight order atrovent tablets compazine prescription coupon what does actos do for you cheap calan forcat holidays all inclusive bupron sr with paypal payment original celexa online order seroquel online without rx 80 mg of nexium zithromax dosage for uti how to take allopurinol for gout buy serevent capsules order xenical pills cheap lamisil prescription viagra jelly tablets uk cheap tinidazole sale uk fluoxetine generic vs prozac buy erexin-v new zealand online zolpidem tartrate buy online diamox rx difference between cialis and levitra to buy antabuse over the counter provera insurance checklist probalan price online pharmacy uk colospa clavamox antibiotic resources for benzac vpxl generic release date does buspar work for social anxiety ordering brand cialis online pharmacies buy vpxl what does haldol feel like to buy compazine buy proventil without prescription generic cialis trial pack pharmacy topical clindamycin pregnancy category buy viagra in dublin revatio for men in usa express care pharmacy phoenix lowest priced voltaren inderal 20mg tab vytorin side effects impotence there generic lopressor diovan tablets for purchase lukol cheap price speman order on web vasotec cost comparison where to buy viagra in london ontario is generic kytril effective clonidine prices at costco buy doxycycline without rx where to buy alligator clips canada show shuddha guggulu online forum resources for flovent has tegretol retard been discontinued purchase zenegra online buy quibron-t tablets online side effects of vytorin 10 80 buy mestinon 60 mg most reliable place to buy aldactone online himplasia cheap kroger pharmacy prices can you open exelon capsules buy minipress bulk can you order propranolol online pharmacy no script needed best place buy female viagra where can i buy serevent dosis pediatrica del aciclovir purchase amantadine erythromycin common cold buy midamor online no prescription united states where can i get olanzapine discount etodolac mg para que sirve el prednisone 20 mg diovan without prandin tablet sale nasal imitrex dose compare prices elocon online medicine store usa zestril paypal mometasone inhaler generic costco pharmacy urispas price online generic diflucan korean red panax ginseng reviews safe procardia buy natrol acai coupons bystolic to buy in the usa without a prescription levitra super active online overnight shipping effexor xr usa sale epivir-hbv online usa no prescription buy viagra jelly bulk zocor peak sales styplon mail order nexium side effects long term use femara medicine infertility danazol lawsuit order paroxetine on line canada penegra tablets uses side effects of prednisone for small dogs famvir for men in usa will there generic abilify prednisolone 5mg side effects in pregnancy sarafem drug schedule cafergot tablets 150 mg generic aygestin uk paypal serratiopeptidase with diclofenac sodium side effects effect clomid ovulation test buy medrol 16mg did generic levaquin become available phenamax suppositories buy can buy azulfidine online suppliers of chloromycetin in us get actos las vegas what family of drugs is lithium get cialis sublingual toronto how long does withdrawal from seroquel last list of banned drugs in india 2012 pdf can aspirin cause weight gain how to order vytorin online morning sickness drug thalidomide babies kamagra lawsuit canada buy generic hyzaar with bonus buy seroflo in india online nymphomax without rx order eldepryl tablets low cost actos cheap genuine viagra super active online what is beconase aq tablets asacol usa benzac drug oversea order brand cialis online no prescription order combivent inhaler wellbutrin xl side effects headaches what drug category is finpecia how to buy pain pills on the street why has cardura been discontinued can you buy propecia australia astelin drugstore.com buy seizure medication without prescription order doxazosin online no prescription with a amex arimidex com patient assistant cheap generic benicar phone in order for nootropil pulmicort flexhaler coupons petzl myo rxp lithium matrix blue pill red pill script diclofenac dose for adults generic diltiazem no prescription prilosec for sale online azithromycin tablets 250mg side effects buy tenormin in australia canadian terramycin tablet trental 20 mg roxithromycin from mexico over counter medicine similar nexium side effects of arimidex for breast cancer safe place order zebeta antivert dosage motion sickness paxil 40 mg generic arimidex coupons discounts content management system examples buy glucophage online with mastercard ephedraxin shop acquistare il viagra in farmacia senza ricetta prazosin buy on line buy lioresal inhaler canada gsk augmentin online snovitra super power comprar buy birth control pill over the counter colospa with american express discount code for liverpool fc store order acai berry max cleanse black and decker 20v lithium hedge trimmer reviews aciphex reviews side effects cefixime tablets for purchase moduretic order online how much will omnicef cost shallaki online in us getting eurax in australia side effects of procardia rx without prescription from usa cost of xenical uk sports direct clothing fexofenadine hydrochloride 180 mg side effects buy actoplus met inhaler canada lipitor side effects in men raloxifene hydrochloride tretinoin 0,025 max dose buy cheap norvasc propranolol and birth control pills cheap uk buy cephalexin ranbaxy lipitor recall gyne-lotrimin legal us meticorten prednisona efectos secundarios accutane pills sweat cialis pills for sale canada; cheapest trandate to buy flonase no prescription compare prices what allergies does allegra treat hives cialis 30 lu tablet tadalafil 100 mg cinsel gu"c, art?r?c? where to buy online abilify without abana non perscription countries generic actos drugs dosage buy dapoxetine in singapore when is the best time of day to take omeprazole ayurslim online order cheapest brand advair diskus generic dulcolax switzerland amoxil online ranitidine rx dose viagra for sale cheap cheapest eulexin tablets side effects bactrim ds not working for uti beconase aq online pay paypal tetracycline brands in india ventolin with no perscription health canada rumalaya liniment synthroid oral tablet 75 mcg information proventil generic albuterol where can you buy valtrex over the counter pharmacy genuine alligator skin wallet generic bystolic in usa is silagra a prescription drug order tadalis online without rx zestril dosage instructions cheap ampicillin mg prescription liquid pariet review wellbutrin sr dosage rx list buy procardia boots pharmacy generic name for altace buy accutane online canada free shipping order cialis super active on line uk where can i buy gasex how much atarax should i take to sleep cialis sublingual sale 5mg canadian novo-rabeprazole 10 mg buy dostinex online safely propecia costs propecia online pay paypal buy tinidazole mg online keflex uk next day delivery where to get clothes like alli simpson where to astelin avapro dose sizes valtrex buy online uk buy metformin for daily use buy viagra plus discount order elimite infestation normal results for clomiphene citrate challenge test canadian allied forces caf buy zovirax cream us buy brand levitra lowest price hyzaar drug info arimidex generic usa comprar zithromax en argentina how to get aristocort drug generic name for lisinopril naltrexone price comparison buy minocycline no prescription generic elimite for sale on line
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 1018 guests online

Atom RSS

When Stadium Financing and the Recession Collide PDF Print E-mail
User Rating: / 19
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?