Showing posts with label Minnesota Vikings. Show all posts
Showing posts with label Minnesota Vikings. Show all posts

Thursday, February 17, 2011

The definition of insanity is doing the same thing over and over again and expecting different results

By Evan Weiner

February 17, 2011

http://www.examiner.com/business-of-sports-in-national/the-definition-of-insanity-is-doing-the-same-thing-over-and-over-again-and-expec

(New York, N. Y.) -- According to Albert Einstein, "." Einstein might have been thinking of politicians who apparently still think that approving public spending for stadium and or arena project is a prudent because sports facilities spur economic growth.

In the Los Angeles area, two football stadium proposals are on the table. In downtown Los Angeles, the Anschutz Entertainment Group (AEG) is promising to build a facility that won't cost the public a dime and will be built by private money. Of course there is the fine print in small letters that comes with the stadium. Someone will have to pay to replace the city-owned convention center that currently occupies the parcel of land that AEG wants for the proposed facility.

The cost to replace the convention center may be as much as $350 million. As usual, stadium proponents are claiming that building a stadium will create construction jobs (building a supermarket also creates jobs or repairing broken infrastructure creates construction jobs but the supermarket and infrastructure work as not as glamorous as working on a stadium) and lots of jobs once the stadium opens.

But a football stadium does not lend itself to creating good paying jobs. Because a football season features two pre-season and eight regular season games, there is a real possibility that an LA stadium might only be used 10 times a year. AEG wants California environmental regulations waived in the run up process to the start of construction just like the state did under Governor Arnold Schwarzenegger for Ed Roski's proposed football stadium east of LA in the City of Industry. Roski too is proposing building a facility where no public monies are used.

That sounds all well and good until the fine print is read. Instead of paying for the construction, the public ends up paying for the project on the back end in various ways whether it is a reduction of property taxes or other tax incentives.

Up the 101 from LA, Santa Clara officials have allocated money for a new football stadium for the San Francisco 49ers franchise. But the 49ers ownership has not raised any capital yet for the facility because the National Football League wants to get a committee from the National football league Players Association that the workers group will help pay for the York family’s dream facility. San Jose officials seem to want to entice Lew Wolff to find a way to San Jose and bring his A’s baseball team with him. But there is a pesky question of territorial rights that needs to seemingly be resolved. Apparently the San Francisco Giants own the territory and Wolff just cannot take his A’s from Oakland (which is significantly closely to San Francisco than San Jose is to the city by the bay) and deposit the team in San Jose. The city of Oakland is looking to somehow satisfy Wolff and also Oakland Raiders ownership by building new stadiums (plural) in the city.

Elected officials are trying to cut spending wherever they can including the public sector. (A note to newly elected officials who are trying to gut the public employment sector and to sports owners looking to push tickets---reduce the public workforce and it has a domino impact on the community. A fired worker has less money to spend in the community, the community loses out on taxes that are collected from items purchased and the economic recovery that people entrusted with your judgment fails. That seems to be missing from the thought process of elected officials who promise to lower taxes and to cut spending when they can't because of fixed costs because of obligations.) But stadium and arena building is still the thing to do.

In St. Paul, Minnesota Vikings officials are pushing to get a new stadium built and looking at the Minnesota state coffers to aid them in the cost of building a stadium loaded with gadgets such as in-stadium restaurants, luxury boxes, club seats and other toys that will put more revenue into owner Zygi Wilf's pockets.

Across the Mississippi River in Minneapolis, the city's mayor R. T. Rybak is seeking about $155 million in state funding from St. Paul lawmakers to upgrade the city's 21-year-old arena. The city of Minneapolis owns the building and it is managed by AEG. The Twin-Cities of Minneapolis and St. Paul have been spending public money for sports facilities for more than a half century. Since then, a baseball-football stadium was built and demolished in Bloomington along with an arena; the Minnesota Twins baseball franchise is operating in a third publicly financed facility. The National Hockey League's Minnesota Wild franchise set up stop in St. Paul in 2000 (St. Paul needs money to upgrade an 11-year-old building) and state money has gone to a new on campus football facility at the University of Minnesota in Minneapolis.

Minnesota has allocated more than a billion dollars on sports facility spending.

Florida Governor Rick Scott may have jettisoned a federally funded high speed rail but he may be involved at some point in the near future in the stadium game in the Tampa-St. Petersburg area. The Tampa Bay Rays ownership wants to leave the taxpayers funded domed St. Petersburg baseball park for a new facility, preferably in Tampa. Rays ownership has a lease on the St. Petersburg facility until 2027. By the way, Tampa Bay's baseball ownership might have lost some potential customers with Rick Scott saying no to the $2.4 billion for the high speed rail between Orlando and Tampa as someone would have had to build the rail and hire people to do just that who might have relocated in the area.

(Wisconsin Governor Scott Walker may have cost the owners of the Milwaukee Brewers and Milwaukee Bucks franchises customers by turning down high speed rail funding and costing Milwaukee a business headquarters for the company that was in line to build the railroad through Wisconsin.)

The North American Free Treaty Agreement between the United States and Canada may have produced one unwanted consequence that will be painful to Canadians. It seems local elected officials north of the 49th parallel have learned well from their American counterparts when it comes to stadium and arena building. Quebec City has decided that the people of that village and surrounding areas need a National Hockey League team and the best way to go about that is building a new arena and then finding an owner who wants to move his franchise there or sell the team to local owners.

The building will cost in 2011 Canadian dollars (which is about equal to the US dollar) about 400 million loonies and apparently the bill will be split between Quebec City and Quebec's provincial government. As always, the devil is in the details. What kind of lease can Quebec City present to an owner? In the United States, because of the 1986 Tax Act, as little as eight percent of revenues generated by a facility can go off to pay down the building's debt. The Quebec City arena revenues from naming rights, marketing revenues and operations are supposed to be kept by the government and that will not win over an owner’s heart.

From an owners standpoint, the Quebec City deal if all of those revenue streams are maintained by the city and province is a nonstarter.

The Quebec scheme for a building does not ask for federal money. The owners of the Edmonton Oilers franchise want a new arena in the city and perhaps they could follow Quebec City's lead and fund a building with public dollars but if they put the same sort of restrictions on revenues it is unlikely Oilers ownership would bite at the building.

How to pay for a building is becoming a problem in a northern New York City suburb. Ramapo Town Supervisor Chris St. Lawrence is failing in his bid to get necessary funding to complete a 3,500-seat baseball park after voters told him they were not interested in putting up more than $15 million for the facility last August. St. Lawrence decided that Ramapo voters didn't know what they were doing in the voting booth and is going ahead with building the park for a team in a league that has been fiscally-challenged. St. Lawrence was so eager to land a team in the CanAm League, an association that has problems finding teams to fill the schedule in a year-to-year basis, that he gave away the store to a group called Bottom 9 Baseball.

Bottom 9 Baseball will be throwing a million dollars or four percent of the estimated costs into the venue. The team will pay $175,000 a year in rent. It would take more than a century for Ramapo to get back the construction costs at that rate. The team threw a couple of bones to Ramapo. The municipality will get a dollar for each ticket sold (not including those seats in the stadium's 20 luxury boxes — the town will get some money from those seats and some money from the sale of the stadium's naming rights.

What are the odds that a Ramapo Stadium can get any money for naming rights when the New York Giants/Jets Meadowlands Stadium and the Dallas Cowboys Stadium are still unnamed? What may be disturbing to St. Lawrence is that the city of Jacksonville waived the 25 percent of an estimated $16 million naming rights deal at the city's stadium to help the Jacksonville Jaguars bottom line. The city is forfeiting $800,000 in revenues annually between 2010 and 2014).
The team (presently called the Rockland Boulders if it works out with a local hot dog vendor who owns the trademark to the name) will give Ramapo two dollars from each car parked in the stadium's lot for a game. The town will also get 10 percent of the concessions whether it is food, beverage or merchandise sold at the stadium. The team will keep signage rights in the building.
Based on Can-Am League attendance figures, the Town of Ramapo will get somewhere between $3,000 and $4,000 a game if the town and team is lucky.
The Ramapo paid financial consultant on the project thinks the stadium will bring in $1.4 million a year which would cover the $1.3 million annual debt service that St. Lawrence projects for the stadium. But someone who witnessed firsthand how much money a minor league baseball team can generate debunked St. Lawrence and his consultant's estimate of revenues.
"My brother used to have a piece of a minor league baseball team and there is no way the stadium will generate $900,000 for the town (probably less than half)," said the person who knew about his brother's operation. "00And if bondholders who will have to finance the construction are being told that, then there's another lawsuit coming down the pike."
Ramapo taxpayers better understand that this stadium will be a loss leader no matter what both sides say. Ramapo officials think the team will bring in $900,000 in stadium related revenues. The bad news, the revenues figure is grossly overstated, the good news for Ramapo is that at this point they are not being asked to pay the team's expenses like New Orleans and Indianapolis and Glendale, Arizona residents are doing for pro sports teams.
New Jersey, Indianapolis, Seattle, Pittsburgh and other cities and municipalities are paying off the debt on sports facilities that are no longer standing.
Stadiums and arenas were once thought to be economic engines that would revitalize or build up an area. That is not the case but municipalities are still spending. The only rational reason for that is to signal to investors that an area is open for business.
Einstein was right about elected officials who spend and spend and spend on money losing ventures like sports facilities for professional teams. "The definition of insanity is doing the same thing over and over again and expecting different results," said the noted genius. It is a lesson that has not been learned by elected officials who think spending for a luxurious stadium or arena gives their burgs unachievable relevance.

Evan Weiner, the winner of the United States Sports Academy's 2010 Ronald Reagan Media Award, is an author, radio-TV commentator and speaker on "The Politics of Sports Business." His book, "The Business and Politics of Sports, Second Edition is available at www.bickley.com, Barnes and Noble 's xplana.com, kobo's literati or amazonkindle. He can be reached at evanjweiner@yahoo.com

Tuesday, August 3, 2010

NFL’s concussion warning poster a small step for football

NFL’s concussion warning poster a small step for football
TUESDAY, 03 AUGUST 2010 15:47
http://www.newjerseynewsroom.com/professional/nfls-concussion-warning-poster-a-small-step-for-football
BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE POLITICS OF SPORTS BUSINESS
When Brent Boyd reported to the Minnesota Vikings training camp in 1980 after being selected in the third round of that year's draft, the last thing on his mind was testifying before a Congressional panel about the plight of former National Football League players who suffered head injuries doing their jobs as professional football players. Boyd was a guard and like a lot of rookies, he was eager to make a favorable impression of Vikings coach Bud Grant.
Twenty-seven Septembers later in 2007, Boyd was telling members of the United States Senate Commerce, Science and Transportation Committee that he suffered brain damage from concussions, and how a disability review board rejected the opinion of two doctors who said his health problems were caused by football and sided with a third doctor who didn't agree with the other two. Boyd testified that the NFL and NFLPA were battling links between long-term health problems and concussions in the same way tobacco companies once fought links between cancer and cigarettes.
Nearly three years later, a good number of retired players are frustrated and wondering whatever happened to NFL provided healthcare after they left the NFL and why the public — both football and non-football fans — is paying their healthcare.
Boyd is still battling for NFL — not public — health benefits.
Boyd has been one of the most vocal critics of the National Football League and the National Football League Players Association. He remembered the game that would ultimately change his life. It was the final pre-season game of the 1980 season, Boyd's Vikings took on the Miami Dolphins at the old Orange Bowl. Boyd was knocked out on a play and lost sight in his right eye. He was on the sidelines telling his coach that he could see out of his right eye, the coach said can you see out of your left eye, Boyd said yes and went back into the game.
He had his bell rung. It wasn't a concussion or anything serious, he was wobbly, dizzy and couldn't see out of his right eye but as soon as all of that went away, he would be fine. It was like hitting your funny bone. Boyd was a rookie hoping to make the team and would do anything not to be cut including staying in the game. It was the turning point of Boyd's life. He made the team but his health was severely compromised. It was the first of dozens or maybe even hundreds of concussions he suffered. The injury would eventually cost him his career, a possibility of going to law school, his marriage, his post career jobs and his house. It was not until 1989 he said that he found out that the constant dizziness and fatigue were caused by the head injuries.
Boyd was out of football by 1987 at the age of 30. "Guys who retire in their 20s and 30s have a regular life ahead of them. Careers, family, you have to pay mortgages. It took away my mind, my potential dreams and goals," he said. But Boyd because of the multiple concussions could not have that and became the "father of the new movement on concussions" instead.
Out of that Boyd founded "Dignity After Football" which is a group that is fighting for the "decent benefits and dignity" for former American and National Football League players who performed in the 1950s, 1960s, 1970s and 1980s before the explosion of salaries in the game. Boyd wants to get the message out to the people who fund the game, TV partners, marketing partners, the people who buy luxury boxes, club suites, park in valet parking and use in-stadium restaurants and buy merchandise along with just everyday football fans. The group that includes Roman Gabriel, Joe Kapp and Ed White wants people to know that "former players live out their lives above the poverty lines and did not know how playing on Astroturf, which was developed by Monsanto, (or polyturf) would impact their bodies and the players were never told about the dangers of 'getting your bell rung' which was a concussion with serious long term effects."
The National Football League has, at least, publicly posted a warning to players which will be posted in NFL locker rooms that comes complete with a warning which seems similar to the little blurbs on cigarette packs that say smoking can be harmful. The NFL's poster includes a warning — that concussions "can change your life and your family's life forever." The warning has slogans such as "Let's Take Brain Injuries Out of Play" and has information about concussions such as facts, symptoms, and poses questions such as "Why Should I Report My Symptoms" and "What Should I Do If I Think I've Had a Concussion."
The NFL seems to be willing to acknowledge there is a problem after years of denial but for former players like Boyd, the operative word here is seems. There is little movement to help the older players like the 53-year old Boyd who rely on government programs such as Social Security and Medicare for their health care.
"There is no health care," said Boyd. (The injuries) drains bank accounts, forces divorces. We (as football players) went in with the understanding that there was a safety net."
But there was no safety net and that leads to two questions. Were members of the National Football League Players Association underrepresented under their Executive Directors Ed Garvey and Gene Upshaw and should municipalities be liable for some of the injuries because ultimately municipalities ran stadiums that players knew were unsafe? Players would tell anyone who listened that the municipally owned stadiums in Philadelphia and Houston were the worst playing surfaces around and that the "artificial turf" under any name was taking a toll on the players well being.
Could the players go after the NFLPA in court for not getting benefits as part of the collective bargaining agreement with the owners? Could the players go after the municipalities or someone for installing Astroturf or polyturf or some other surface which was on top of a thin rubber pad on top of asphalt or cement? Is it too late to go after all the municipalities that had unsafe fields?
Boyd is not sure about a class action suit by the former players against their former association but the municipality liability is a question that might be worth pursuing.
The ersatz turf had bubbles and seems which players didn't think much about during the course of doing their jobs. Some players suffered knee injuries just hitting a seem, players that were knocked down hit the ground hard on a turf that the rug on top of the rubber on top of the asphalt or cement, the brain could not handle that type of impact.
In addition to his head injuries, Boyd has had knee replacements and has bad hips. The need replacements were paid by the United States government insurance programs, not the NFL.
Boyd has taken his case to Washington and is hoping that the United States Senate Majority Leader, Harry Reid of Nevada, and other members of the Senate and the House of Representatives will put pressure on the NFL and the NFLPA to take care of the older players.
A lot of the former players though are keeping quiet publicly. Privately there are e-mails from former players such as this one whose name will not be identified.
"I just had neck surgery and I am scheduled to have lumbar (L3 L4 L5) surgery in November. I am thinking about trying the Oxygen chambers for my recovery as well as, using the Oxygen chambers to reduce some of the pain in my lower back that I suffer with daily.
"Question: Will this treatment (Oxygen chamber) help me? How will it help? How often should I administer this treatment in order to see the benefits? However, it's $$Very Expensive. I am eager to hear your thoughts. Thank you for any assistance that you can provide on this matter and concern."
Some former players are pushing for the NFL to install hyperbaric oxygen chambers at training facilities and stadiums to help players (and former) players with head injuries and memory loss.
There is also a new collective bargaining agreement that needs to be negotiated between the owners and players. The present agreement ends shortly after the Super Bowl is played in February. So far there is no political pressure on the owners and players to address the old players needs however that could change if Congress decides to take a closer look at the NFL.
Why should Congress be involved? Congress created today's NFL. The Sports Broadcast Act of 1961 was Brooklyn Congressman Emanuel Cellar's gift to then NFL Commissioner Pete Rozelle and NFL owners. Cellar got the bill passed in the House, The Senate agreed and President John F. Kennedy signed it into law on September 30, 1961. The bill allowed the NFL to sell all 14 teams as one entity to a TV network. CBS beat out NBC with a major contract that was worth more than all 14 individual local NFL TV networks combined and started the NFL gold mine. The American Football League's 1964 agreement with NBC made it possible for the league to challenge the NFL financially and ultimately force a merger between the competitors in 1966.
Congress had to approve the merger. Both the House and Senate signed off on the merger and President Lyndon Johnson's signature in 1966 created a super football league and the Super Bowl.
Additionally two Congressional bills that were signed into law by President Ronald Reagan, the 1984 Cable TV Act and the Tax Act of 1986 greatly benefitted the NFL (and all major league sports in the United States). Owners were able to make billions because of the changes in the cable TV structure which a basic expanded tier and ruled out a la carte selections by consumers and the changes in the tax code changed the way municipalities funded stadiums. Municipalities could get as little as eight cents on the dollar from stadium revenues to pay off stadium debt. It is not a coincidence that most new or renovated stadium and arena facilities in the United States were built after 1986.
Boyd thinks the National Football League Players Association should have taken better care of the players but the players have never really looked after much except getting paid more money. Boyd was the Vikings player rep during the 1982 strike and said that the players had to be sold on paying union dues as it was voluntary in those days and that players just concentrated on ending the strike of 1982 and getting back on the field. An effort to include players who played before 1959 in a benefits package failed in 1982. These were the same players who formed the NFLPA back in 1956.
The players wanted more immediately and never thought about the future and the Garvey-Upshaw team always concentrated on getting more money but some players privately complained about making sure that someone took care of playing conditions and severance/health packages.
Money won out. A pension and disability plan lost. Twenty five years after the 1982 strike, pension and disability remained a problem that Congress wanted to know about.
"We fought for the salaries and benefits (today's players get); it would be a classy thing for today's players (to give some benefits). You are only allowed the benefits you negotiate," Boyd said.
Boyd is one of the few who is visibly out in the public talking about the old players. The old players do talk among themselves about injuries but there is a football mentality of suck it up. They know football is a violent game and that a player will get injured. But it is still for them, take one for the team or as the Giants defensive lineman Jim Burt said after the 1987 strike when the players folded like a cheap suit, "we are used to be hit over the head but its okay."
The mentality has not seemed to change much after retirement.
"There is a touch of machismo," said Boyd. "There is fatalism, an embarrassment. Why do it if nothing is going on?" The fatalism comes out. "I don't know how many years I have left but I don't feel robbed (by playing football). I made uninformed decisions, that's what you made. I feel robbed that I didn't have that information (on head injuries), there is an irony at the same time the NFL is being the good guy with the posters about concussions, they denied (Boyd's) disability."
The poster is up in NFL locker rooms on concussions. But the former players who have had life altering injuries have seen no real change. For a good many of them, they are out of sight and out of mind even though they were the guys immortalized by the voice of John Facenda on NFL Films, sportswriters and TV networks, and built the National Football League into the America's most popular game.
Evan Weiner is an author, radio and TV commentator and lecturer on "The Politics of Sports Business" and can be reached at evanjweiner@yahoo.com

Thursday, April 8, 2010

Minnesota and Glendale Lawmakers Inch Closer to New Sports Deals

Minnesota and Glendale Lawmakers Inch Closer to New Sports Deals


By Evan Weiner

April 8, 2010

http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m4d8-Minnesota-and-Glendale-lawmakers-inch-closer-to-new-sports-deals#



(New York, N. Y.) -- Local governments and sports teams have a partnership; there is no getting around that. In cash-strapped states like Arizona and Minnesota, elected officials are trying to figure out the best way to go in keeping local franchises put. Glendale, Arizona has a relatively new, publicly financed, arena that houses a bankrupt National Hockey League franchise, the Phoenix Coyotes.

Now Glendale is weighing two proposals from Coyotes suitors who would purchase the team and keep the franchise in Glendale.

In the St. Paul, Minnesota statehouses, it appears that lawmakers are warming up to some sort of deal to build the National Football League's Minnesota Vikings a new facility so that Vikings owner Zygi Wilf can utilize revenue streams that an unavailable from the Minneapolis-based Metrodome, to help fund the team.

Government support for athletic facilities stretches out over six decades with Oakland officials back in 1944 thinking of using public money to build a stadium. The real breakthrough in government support of professional sports franchises came in 1950 when Milwaukee elected officials decided to build a new stadium with public funding that they hoped would attract a Major League Baseball team and keep the Green Bay Packers playing a portion of the team's NFL schedule in town. The gambit paid off as Milwaukee officials enticed Boston Braves owner Lou Perini to move his Braves in March 1953 just a few weeks prior to the season. The stadium was enough of a lure to keep the Green Bay Packers.

Perini made a ton of money in Milwaukee and it got Brooklyn Dodgers owner Walter O’Malley to worry that Brooklyn would not be able to compete with Milwaukee financially. O’Malley would eventually take an offer from Los Angeles and move his team from Brooklyn even though O’Malley’s Dodgers led the National League in revenue in 1957, the final year O’Malley had a team in Brooklyn.

Perini's move started sports free agency long before an arbitrator gave Dave McNally and Andy Messersmith free agency in baseball in 1975. Owners decided to play city against city in an effort to get the best stadium or arena deal available, and the 1986 Tax Act poured gasoline on smoldering flames as the new law restricted the amount of revenue generated inside an athletic facility that went off to pay the public debt on a municipally funded stadium to just eight cents on every dollar.

Major League Baseball expanded to Denver, Miami, Phoenix and St. Petersburg and moved the Montreal Expos to Washington. Virtually every team in Major League Baseball got a new or renovated facility with the exception of Oakland.

Oakland A's owner Lew Wolff is looking to move his team with San Jose the object of his affection after flirting with Fremont, California near San Jose.

The National Football League got a publicly financed stadium in Jacksonville and expanded into that city while Jerry Richardson built a privately funded facility in Charlotte using personal seat licenses to fund the stadium.

Richardson's stadium created another monster. People had to buy a seat license and then buy a ticket to use the seat.

Wilf is one of the last of the NFL owners who has not taken advantage of government money to build a "factory" for his business. Wilf may have state legislators and Minnesota Governor Tim Pawlenty over a barrel in his quest for a new facility. The state has spent hundreds of millions of dollars in the past few years for a new baseball stadium for the Twins and a new facility for the University of Minnesota Golden Gophers using various taxes to fund the venues. Wilf's Metrodome deal with the state is up after the 2011 season and there is a possibility that Wilf could use the possible construction of a new stadium east of Los Angeles as leverage in his battle to get a new Vikings stadium somewhere in the Minneapolis-St. Paul area.

Wilf is not the only NFL owner looking for public funding. The York family, the owners of the San Francisco 49ers, is hoping that Santa Clara, California voters will look favorably at them and give them a new stadium in a June vote. Should that fail, look for both Oakland and San Francisco to start wooing the Yorks again and might ask Al Davis to join the Yorks and put his Oakland Raiders in a new stadium. The Buffalo Bills/New York State lease in Orchard Park is up after the 2012 season.

Wilf, the Yorks, Al Davis and possibly Wayne Weaver in Jacksonville have limited options though. Weaver’s Jaguars franchise is struggling to sell seats at Jacksonville’s stadium and there is no stadium available in LA equipped to handle the NFL's needs at this point. Ralph Wilson has sold a number of Bills home games to Toronto through the 2012 season. Toronto does not have a "suitable" NFL facility but there is a lot of money on Bay Street and the NFL knows that.

Meanwhile there seems to be action in Glendale regarding the sale of the Coyotes. Glendale has memoranda of understanding with two groups vying to but the bankrupt franchise, Ice Edge Holdings and the group led by Chicago White Sox and Bulls owner Jerry Reinsdorf. Although the National Hockey League has the final say on the future owner of the Coyotes, Glendale apparently feels uncomfortable that the city can go ahead with an agreement. Whatever the final deal is, Glendale will have to make major concessions to keep the team skating in the arena. Glendale plans to hold a public hearing on the matter on April 13.

Many cities, counties and state governments have used a variety of mechanisms to attract and keep sports teams including payment in lieu of taxes instead of full property tax payment or tax incremental funding or creating special tax districts around a facility whereby an owner keeps all of the taxes that would normally flow into municipal coffers. Cities, counties and states have assumed the responsibility of paying off the entire cost of a stadium and in one case, New Orleans Saints owner Tom Benson was given a cash payment in exchanging for keeping his Saints in the New Orleans Superdome. In July, Benson will get a $23 million check from Louisiana as a thank you for sticking around as part of a $186 million bailout between 2002 and 2010. Benson and the state crafted a new deal that substantially reduces Louisiana's annual payment but Benson gets to own an office building near the Superdome that will house state government offices and create an entertainment zone around the Superdome in exchange. Benson will get Louisiana money but not a straight handout starting in 2011.

New arenas do not mean success however. Memphis and Charlotte are prime examples of financial failures in the NBA despite new surroundings and the Phoenix Coyotes have a poor financial legacy.

But sports leagues are monopolies and city, county and state officials like being branded “Big League.” It takes a long time for a city to replace a team in most circumstances with Cleveland being a lone exception. The NFL got a municipally funded stadium agreement with Cleveland Mayor Michael White not long after Browns owner announced that he was taking his team to Baltimore for the 1996 season in the fall of 1995. Cleveland threatened to sue the NFL and by February 1996 a plan was worked out and the NFL "expanded" into Cleveland in 1999. Cities that lose teams seemingly are punished and eventually work their way back in but that is a long and expensive process which is why Glendale officials and lawmakers in Minnesota are looking to resolve their situations and keep the teams. It is cheaper to keep them now than going after replacement teams in the future.

Evan Weiner is an author, lecturer and radio-TV journalist on the "Politics of Sports Business."

Friday, February 12, 2010

Vikings Stadium Plan? Obama vs. Pawlenty

http://dailycaller.com/2010/02/12/vikings-stadium-plan-obama-vs-pawlenty/


Vikings Stadium Plan? Obama vs. Pawlenty
By Evan Weiner - The Daily Caller 02/12/10 at 9:36 am

Zygi Wilf’s National Football League’s Minnesota Vikings franchise didn’t win the big game this year, in fact Wilf’s team did not qualify for the big game in South Florida as Wilf’s Vikings lost to the finest team that Louisiana taxpayers could fund, Tom Benson’s New Orleans Saints.

Benson used some of the $23.5 million in state aid he got last July to, presumably, pay for players and could use some of the $23.5 million in state aid due next July to extend Drew Brees’ contract. The Louisiana handouts will be capped at $6 million starting in 2011.

Wilf is still in the hunt to play in the “Big Game” however. You see Wilf’s lease at the Metrodome in Minneapolis is done following the 2011 season and Wilf wants a new stadium somewhere in the Minneapolis-St. Paul market and is planning to pitch the Minnesota legislature in this session to get a stadium built or Wilf’s Vikings may have a new home out of state.

Wilf may come up big this time. Vikings ownership thinks the federal stimulus money might be available for the project, which would put Wilf at odds with Minnesota Governor Tim Pawlenty, a Republican who is not a stimulus fan. Minnesota’s capital St. Paul would become a battleground in a way, President Obama’s stimulus plan, the Recovery Act of 2009, versus a lame duck governor who has Presidential aspirations in 2012 and would like to be the Republican nominee.

In December 2009, Pawlenty said there would be no new taxes to pay for a new Vikings stadium. Yet in the past week, Pawlenty seems to have changed his tune. Pawlenty may not like stimulus money but he has another idea that does involve taxpayers’ money.

Pawlenty thinks funds generated from a new Minnesota lottery could generate enough money to fund construction for a new football stadium. Pawlenty has also thrown out another idea, tax increment financing, which allows developers to pay less money than normal property taxes as long as that money is funneled back into the development project.

There are no proposals on the table though at this point.

Minnesota legislators have seen this act before and have responded in kind by finding public money for stadiums and arenas for more than a half century. The city of Minneapolis put up some $8.5 million in mid-1950s dollars to build Metropolitan Stadium for the minor league baseball team, the Minneapolis Millers. The stadium opened in 1956 as a minor league park but was upgraded when Calvin Griffith moved his Washington Senators to Minnesota after the 1961 season. “The Met” was enough of a lure for Lamar Hunt’s new American Football League that Hunt and his partners awarded an AFL franchise to Minnesota, but somehow the National Football League got to the Minnesota ownership and convinced them to jump leagues and start in 1961.

The National Football League and the American Football League merged on June 8, 1966 and one of the merger conditions was that every NFL stadium had to have a seating capacity of more than 50,000. Congress approved the merger in October 1966 and that started the clock ticking to get a new football facility built for the Vikings as “the Met” had just 48,700 chairs.

Minnesota ownership decided not to renew the lease at “the Met” and actively looked at other options including a move to Los Angeles when the lease ended in 1981.

In December 1979, construction started on the $68 million domed stadium in downtown Minneapolis that would house the Minnesota Twins and Vikings although neither team seemed too happy with the building. Twins ownership was unhappy with revenues generated inside the building but Griffith negotiated a bad deal in the 1970s, which allowed the Vikings ownership to keep a lion share of luxury box money. Additionally, Griffith didn’t get enough concession money. In the late 1990s, Don Beaver attempted to move the Twins franchise to a publicly funded stadium in Greensboro, N. C., if voters said yes.

The voters rejected the stadium plan in 1998.

On May 26 2006, Minnesota Governor Tim Pawlenty signed legislation to build a new baseball park for the Twins. Hennepin County taxpayers would fund most of the costs for the new building through a 0.15 cent sales tax. The fiscally conservative Pawlenty gave the go ahead for the tax hike, which was designed to raise about $392 million; Minnesota’s ownership would pick up the rest of the tab which is about $140 million more.

On May 24, 2006, three days after the legislature said yes to spending $392 for a baseball park, Minnesota taxpayers were again asked to dig into their pockets to fund a football stadium for the University of Minnesota Golden Gophers. The university is picking up 52 percent of the costs of the $288 million stadium while the state is paying for the rest.

The state legislature also picked up the costs of Minneapolis’ arena that was constructed in the late 19880s through private money. The National Basketball Association gave Minneapolis a franchise in the late 1980s but the team owners, Marvin Wolfenson and Harvey Ratner could not swing the $32.5 million entry fee into the NBA and the cost of the building, which was over $100 million. The legislature gave the approval for the city of Minneapolis to take over the building in 1995.

In 1997, the National Hockey League was looking for expansion cities. St. Paul Mayor Norm Coleman got a franchise by promising to build a new taxpayers funded arena in the city. The NHL granted St/ Paul a franchise as long as the arena was built. Minnesota taxpayers put up about half of the $130 million cost of the building.

In 1965, Minnesota taxpayers put up money to build an arena in Bloomington next to “the Met” and got an NHL expansion teamin 1967. That team, the North Stars left in 1993 for Dallas. One of the reasons the North Stars franchise moved? The arena was not adequate for an NHL team.

Minnesota has spent an enormous amount of public funds on athletic facilities, probably more than a billion dollars when infrastructure and debt service costs are added. That is the price for being a major league area.

The Obama versus Pawlenty 2012 President race may never play out, but a mini version of the 2012 Presidential campaign could be taking place this winter and spring in the St. Paul statehouses and at the end of the day, Zygi Wilf’s Minnesota Vikings, a team that has never won the Super Bowl, may finally win the big game, which in this case is a new stadium with all of the bells and whistles of revenue producing luxury boxes, club seats, in-stadium restaurants and stores and lots of concession money.

That is better than winning a Super Bowl.

Sunday, January 24, 2010

Is Obama more important than Favre in the Minnesota Vikings future?

http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m1d24-Is-Obama-more-important-than-Favre-in-the-Minnesota-Vikings-future#


Is Obama more important than Favre in the Minnesota Vikings future?


By Evan Weiner

January 24, 2010

(New York, N. Y.) -- Will Brett Favre or Barack Obama, when all is said and done, be more important in both the short and long term future of Zygi Wilf’s Minnesota Vikings franchise? It is an intriguing question because Favre’s short term success with the Minneapolis-based team probably has no impact on the business of football and the business of football for Wilf and his predecessor Red McCombs (one of the people who owned the Clear Channel radio network in the halcyon days of that business that included among the stable of talent Rush Limbaugh, a carnival barker who stated publicly that he hoped Obama failed) whose goals is and were to get a new Vikings football stadium built.

So far, McCombs and now Wilf have struck out in their years of attempts in getting the Minnesota legislature to fund a football stadium project and what is more frustrating for both the Vikings ownership group and the National Football League is that the legislature has found more to build a new baseball park for the Twins in Minneapolis and a stadium for the University of Minnesota Golden Gophers football team.

The Golden Gophers new digs opened last fall.

The debt on the Twins park will be paid down by various taxes and some money from the Twins ownership. The park will open in the spring.

The Golden Gophers stadium is also taxpayers funded and students, whether they use the facility or not, have to pay a $25 fee as part of the legislature’s agreement to fund the stadium.

The Twins and Golden Gophers formerly played at the Hubert H. Humphrey Metrodome, a facility which caused about $68 million of taxpayers’ money to build. The stadium opened in 1982 and apparently no one was pleased with the facility as Twins and Vikings ownership spent years trying to get out of the building.

Wilf still has two years to go on his Metrodome lease.

On Friday, two days before the National Football League’s NFC Conference Championship game, Wilf’s representatives came out with a new stadium plan. The timing of the announcement may have been a coincidence as the Minnesota governing bodies start their session in two weeks but Wilf and the Vikings have sneaked a new play into the stadium playbook.

Use federal stimulus money as help build a suburban Minneapolis-St. Paul football facility. Apparently Wilf has heard from a number of developers who want in on the Viking stadium and the Vikings stadium-planning team has figured out that a two cent on a dollar rise on hospitality taxes, motel and hotel taxes and maybe car rentals, would be a good thing as that would hit tourists not the locals pocketbook, and the usage of Build America Bonds could help swing the financing. The there is the Recovery Act or the Obama stimulus plan.

The Recovery Act, which was passed by Congress in February 2009 and signed into law by President Obama on February 17 of that year, was a $787 billion plan to get the economy which broke in September 2008 moving. The Recovery Act was targeted at infrastructure development and enhancement. For instance, the Act plans investment in the domestic renewable energy industry and the weatherizing of 75 percent of federal buildings as well as more than one million private homes around the country.
Construction and repair of roads and bridges as well as scientific research and the expansion of broadband and wireless service are also included among the many projects that the Recovery Act will fund.
Apparently Wilf and the Vikings ownership feel that a stadium qualifies as part of infrastructure development and enhancement.

Whether a football stadium qualifies for the Obama stimulus plan is something that needs to be researched. Another problem that Wilf faces is that the Minnesota Governor Tim Pawlenty is a lame duck and is not running for re-election in the fall. Pawlenty, a Republican, has other ideas and may be running for President. Pawlenty is a critic of the Obama federal stimulus plan and that should make for an interesting time for Wilf knowing that Minnesota has a lame duck governor who seems more intent on running for President than working at his job which is at least look the Governor of the State of Minnesota.

The Minnesota legislature goes back to work on February 4, which is three days before the Super Bowl, a game that could feature Favre and the Vikings. In terms of being success on the field and whether that leads to politicians opening the coffers for sports teams to build new stadiums and arenas, there seems to be no linkage between the two. Bad teams also get new facilities.

Wilf’s real football season starts on February 4 as that is when he takes the field against Minnesota politicians with cash for a stadium on the line.


evanjweiner@yahoo