Sports and the Law: The Marlins New Stadium; More Pork to the Fattest Pig in Town
While President Obama and a bipartisan Congress spent most of last weekend trying to recoup $165 million in taxpayer money that insurance giant AIG paid to its upper-level employees, the Miami-Dade County Commissioners were finalizing a plan to spend $359 million in taxpayer money to build a new baseball stadium for the Florida Marlins “bailout”-demanding owner Jeffrey Loria.
The Marlins new stadium, anticipated to open in 2012, will be neither the first baseball-oriented stadium built with public dollars (that distinction belongs to Milwaukee County Municipal Stadium), nor the most expensive subsidized baseball stadium (that distinction belongs to the Washington Nationals’ new $611 million facility). Yet, this new stadium may ultimately come to symbolize all that is wrong with the relationship between Major League Baseball and the American city.
From a taxpayer perspective, the Marlins new stadium deal epitomizes fiscal irresponsibility. First, the specific terms of the Marlins stadium agreement skew hugely in the Marlins’ favor (more so than many other recent stadium deals). Under the agreement, the local government will be responsible for covering approximately three quarters of stadium building costs, while the Marlins will get to keep all stadium revenues — even those revenues from events completely unrelated to baseball, and even those revenues derived from selling stadium naming rights.
And we haven’t even gotten to the worst part. More on that after the jump.
Another huge problem with the Marlins stadium deal is that current owner Jeffrey Loria has never been one to invest his own money into the team — not even in terms of paying for player salaries. The Marlins total payroll is currently just $22 million, which is $58 million below the league median, and by far the lowest in baseball. Of course, in almost any other industry, attempting to garner subsidies by threatening to otherwise provide an inferior product would seem preposterous. However, because Major League Baseball has a monopoly over the number of premier American baseball teams, Marlins ownership is able to do just that.
Finally, there is also the issue of the agreement’s most offensive timing. The Marlins’ new stadium deal marks the first stadium deal of its kind since the financial markets imploded last September. Yet, even though Miami-Dade’s unemployment rate has soared, county officials still have not acknowledged that now is the worst of all times to hand $359 million in pork to the already fattest pig in town.
So, no matter how you spin it, Marlins owner Jeffrey Loria is walking away with what Miami-Dade County Judge Jeri Cohen recently referred to as “a sweetheart deal,” even though Miami-Dade County taxpayers, probably more than any other time in the past 80 years, are struggling to make ends meet.
It seems only a matter of time before local taxpayers start screaming for an end to the great baseball owner “bailout.” And, when that time comes, the Marlins new ballpark deal will clearly be marked as “Exhibit One.”
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For more on this topic, see my recent law review article, Sports and the City: How to Curb Professional Sports Teams’ Demands for Free Public Stadiums. I most recently presented this paper on March 13 at the Harvard Sports Law Symposium.
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Marc Edelman is a Visiting Assistant Professor at Rutgers School of Law-Camden. He will be joining the faculty of Barry Law School in Fall 2009. His bio is available here, and his publications, here.
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Comments
Greenberg Traurig reduces summer program length and SALARY and not post yet?
I love inside jokes. I'd love to be a part of one someday.
Shouldn't this be in an ad for Mr. Edelman rather than an article?
The Marlins have won two World Series in 10 years. That success speaks for itself.
Plus, everybody in Miami is an idiot, anyway.
Miami is possibly the worst sports city in the United States (though Atlanta gives it a run for its money). They should move this team to somewhere that could really support it, like Rochester, Austin, or Wichita.
Loria and his son David Samson are no dummies. They were run out of town in Montreal but made money in the process. They'll get the stadium in Miami and then sell the team.
STUPID HUMANS, your planet has been slated for destruction in 2012 to build a new intergalactic off-ramp. Enjoy your sub-species whining between now and then.
Mr. Edelman, your intellectual dishonesty to push an agenda is just frightening. You omitted a very important part of the deal that will affect anyone's opinion about this deal, and for this, I must regard you as a low-class loser, as opposed to a sports law intellectual.
The money used for this deal was earmarked exclusively for the building of a convention center or similar, so the "taxpayer money" (which btw is exclusively from tourist taxes, and not actual resident taxes) used could have only gone to a rich developer making some javits center or another sports arena.
I don't think you're an idiot, and you just didn't understand that part of the deal, i just think you're a gunner loser trying to push your favorite agenda onto the masses, in this case your hate over the Major League monopolies, which i don't especially like myself.
But by omitting such an important fact from this legal commentary, you act not like a professor, but like a tobacco lobbyist.
Signed,
The only Marlins Fan in NY.
Marlins first to 190K!
I know something about using other people's money to own a baseball team, but this guy Loria makes me look like a piker. BTW - Barry Law School? When did Barry Obama find time to start a law school? Doesn't he have enough to do? Maybe this is the law school for Special Olympians.
"Yet, even though Miami-Dade's unemployment rate has soared, county officials still have not acknowledged that now is the worst of all times to hand $359 million in pork to the already fattest pig in town."
Building a stadium brings lots of construction jobs, like all that hippy stuff put in the stimulus plan. if you think that the unemployment rate is a reason not to initiate new development and construction, please note that it isn't any worse than the billions to be spent on the stimulus bill passed through congress.
wow edelman, you are so ttt, I don't know how you got that job at rutgers.
Mr. Edelman,
Barry University School of Law is a bigger scam than the stadium.
8: Your ire seems misdirected. You seem to be arguing that because the money was earmarked for building a convention center, the city should be happy with a deal that denies them the ability to recoup much of their investment?
Simply because money was earmarked in a certain way doesn't, for me, excuse spending it so wastefully.
Imagine this conversation:
"You aren't bringing in a ton of money right now, why are you going out for surf and turf?"
"Because I earmarked $60 for dinner tonight."
"Sure, but if you went somewhere else, you could have leftovers for tomorrow, or could have taken someone else out to eat with you."
(chewing, slurping)
"Oh, Elie, nevermind. Perhaps there will be a glitch in the service and your waiter will bring you the cake you ordered."
Hey Ben, it's Jeff. No, I did not post as "the only Marlins fan in NY," though I've often felt that way.
So apparently there are at least _two_ Marlins fans in NY.
Edelman, your intellectual dishonesty is staggering. I mean, seriously, I'm not going to repeat all the material facts you omitted from your ridiculous rant, but come the f-- on, man.
I'm not even a Rangers fan even though I live in Ft Worth, but this whole thing just makes me want to go back to my 3500 sq ft, wife, and lexis and bend something over a fence.
13: the money can't be moved elsewhere; earmarked wasn't accurate. unless the state legislature changes it's tax law, which was set a long time ago, that money is exclusively for this type of development. and the people (by representation) have chosen not to do so.
so why not use the money to bring in additional revenue through tourism (WBC and All-star game bring in lots of people, with money) and lots of construction jobs, in a state where all construction has halted.
Separately, i did enjoy you're conversation. keep it up.
one of a handful of marlins fans in NY.
Edelman, your intellectual dishonesty is staggering. I mean, seriously, I'm not going to repeat all the material facts you omitted from your ridiculous rant, but come the f-- on, man.
I'm not even a Rangers fan even though I live in Ft Worth, but this whole thing just makes me want to go back to my 3500 sq ft, wife, and lexis and bend something over a fence.
Edelman, your intellectual dishonesty is staggering. I mean, seriously, I'm not going to repeat all the material facts you omitted from your ridiculous rant, but come the f-- on, man.
I'm not even a Rangers fan even though I live in Ft Worth, but this whole thing just makes me want to go back to my 3500 sq ft, wife, and lexis and bend something over a fence.
Edelman, your intellectual dishonesty is staggering. I mean, seriously, I'm not going to repeat all the material facts you omitted from your ridiculous rant, but come the f-- on, man.
I'm not even a Rangers fan even though I live in Ft Worth, but this whole thing just makes me want to go back to my 3500 sq ft, wife, and lexis and bend something over a fence.
This is what happens when liberal tax and spenders are allowed to run government entities. No, let's not spend taxpayer money on roads, schools, police or firemen - no, let's spend it on a bunch of overpaid crybaby, HGH peddling boys playing a GAME!
...the function of government is to protect our freedom - PERIOD - any other use of taxpayer money is FRAUD!
Change we can believe in!
I read the whole thing and still don't know who gave Elie more pork.
Am I less prestigious if my Texan wife is only 2200 sq ft and I drive a Nissan?
Dubya for the win!
20 - I need the freedom to watch sports. Commie. Day Terk Err Jerrrrrbs!!!!!
Oh, can I say 'girls' now when referring to bitches in my office? Just wondering what the standards are.
While the deal may give too much away, some sort of deal should have happened 10 years ago. The Marlins play in the worst stadium in sports.
That said, the team really should have moved. Marlins' fans are the worst in baseball. The team has won two world series in the past ten years, and only 5000 people show up to home games. That's why they have the lowest payroll. There is no local fan loyalty. Everyone is a Yankees fan, so no one goes to the games. The team should have moved somewhere else.
22 -- Unfortunately, here in TX 2200 sq feet of wife is simply not considered prestigious. Your wife might be prestigious in a medium-sized state like Colorado, but everything is bigger in TX.
Too bad I've given up baseball or I'd electrify that place.
Good post. Bad stadium or not, the Marlins don't deserve a $359 million stadium. As the author said, the Marlins have the lowest payroll in the league; not to mention the worst attendance. Nobody goes to those games and I doubt a new stadium will help.
Further, the Florida courts' are in a budget crisis and could use a fraction of that money to hire prosecutors, pd's, judges, and speed up the docket. It's ridiculous. Just read the front page of Floridabar.org and you'll see an article on it.
25 - Ever been to a Marlins game?
The heat and humidity combination is fucking unbearable. Not surprisingly, their TV ratings are among the highest in the league, handily beating many larger-market teams.
It's not a great baseball park, but the facility itself isn't that big of a detriment. The weather and the inaccessibility to pedestrian traffic are the two biggest drawbacks. It's definitely better than the shithole they just tore down in Queens.
That said, nothing justifies massive public subsidies for a privately-owned ballpark while the team gets most of the spoils.
16: I agree that the money couldn't be moved elsewhere - by law, it had to be used for something touristy.
That doesn't mean that the terms of the deal need to be so unfavorable, though. Why should the Marlins get revenue from naming rights for a stadium they're paying so little for? Why should they get revenue from concerts held there?
My point is that, even within the realm of touristy spending, there are better ways to allocate those funds. I think building a stadium is fine (jobs creation, etc.), but that doesn't mean that the city should give up so much of the upside later. I think choosing to build is a good decision, giving up revenue is not.
The problem is that the city can't really negotiate with the team for terms. The team has no competition, thanks to the MLB monopoly, so it has no incentive to give up anything in negotiations. Miami either has a baseball team on the Marlins (unfavorable) terms or has none at all.
-13
Another NYC Marlins fan here. Was going to post a comment about the earmarking issue but saw it was already posted. Way to go Edelman.
Mr. Edelman-Thank you so so much for your unbiased views on the issue. As a resident of New Jersey, it's easy for all of us here in South Florida to understand your knowledge on the issue.
Above The Law-How about a disclaimer at the top of this post advising the reader of the biased opinions that follow?
Fake baseball team. Didn't read.
- UPenn St. Phillies Fan
Hmm, let's build a $359 million dollar stadium for a super-rich owner rather than use the money to lower tax burdens in one of the cities that has been hit the hardest by the recession. We can't let Jeffrey Loria, one of the worst owners all-time (and the single biggest reason why there is no longer a franchise in Montreal), take his inferior under-capitalized product somewhere else. This sounds like a good idea.
Signed,
Idiot that went to a TTT
13:
I totally agree with your comment on the unfair negotiations (give the marlins everything or no baseball), but i am a marlins fan, and i live in NY, so i don't really mind.
I hate how the mets and yankees also received favorable terms on their claims that they may leave, and then they jacked up their prices in their new stadiums, because that's more relevant to my pocket.
But in any event, Edelman did a terrible job here.
one of a multitude of NY Marlins fans.
If we have $50 million for the San Francisco swamp rat (not Pelosi, the actual rat), then we certainly have money for a baseball stadium.
marlins fans don't go to games because it's too hot & humid & the stadium sucks & it's like an hour & a half drive in rush-hour traffic rather than being in the middle of the city on public transportation like other stadia & there's no good food & the mermaids are a bunch of hos & every time we get attached to a player they sell him off, yet ticket & parking prices rise every year. a new retractable-roof stadium would help with some of those. of course, tropicana field didn't do much for tamps so they're building a NEW new stadium.
stadium employment is just minimum-wage miserable work. building new stadia diverts discretionary dollars from other entertainment options around the city, so doesn't benefit the city economically at all.
i'm a marlins fan, & i might go more when the stadium is built, mostly because it will be in miami instead of the middle of nowhere. but building a new stadium is a horrible, dumb, selfish thing to do.
and the fact the marlins won 2 world series in 10 years in the dump that is joe robbie/pro player/dolpin stadium just proves they don't need a nice stadium.
Lost in all this discussion is this....there WILL be immediate jobs created for the construction. The area where the stadium is going up is the site of the former orange bowl which was already vacat. It is better to have this new stadium there than a big vacant struckture will will attrack nothing but drugs and prostitution. I would have prefered the old Miami arena site due to it's greater access to public transportation but this is a good second choice. Miami is unique in the nation as so many of the residents came from other parts...yes we have many New Yorkers (affectionally refered to as the 6th borough sometimes) as well midwesterners etc....yet some how we found enough folks to pack 67,000 for each home game during both World Series appearances.....seems they all liked a winner. It also seems the Marlins with their small pay roll get a lot more value for their money....just ask the Mets what a $22 million team can do to a $150 million team
GO MARLINS!!
This is a bizarre way to self-promote a crappy law review article from a TTT law professor, headed to...well I don't even know what Barry is.
Is ATL the new law prof pimping ground for the trash of the law professoriate?
5, 25 -- sounds good; bring them to Austin. I'd buy season tickets.
I think the simple issue is this:
If the city gives you money for a new stadium, (a) the city should get SOMETHING out of it (at least the naming rights, etc.) to justify a net fiscal benefit to its citizens, and (b) the city will expect that the owner invest in the team. That means paying for some good players and/or paying some money to keep from losing some good players. It appears that neither (a) nor (b) is the case here, so there's some right to complain.
Once again, I vote for moving the Marlins to Austin. Biggest city in the U.S. without a major-league pro team in any sport. FB and Basketball are dominated by UT, but we sure could use a major league baseball team here.
34 -
Your comment makes no sense; Obama is president and the libs are running Congress too. Nobody's "tax burden" is going to be lightened.
41 -- "Austin. Biggest city in the U.S. without a major-league pro team in any sport"
Um, no. Try Las Vegas (see http://en.wikipedia.org/wiki/List_of_United_States_metropolitan_areas).
Look, Loria is a horses ass and probably the worst owner in baseball, but why is he being blamed for asking? The city and county could have said no.
Edelman, funny that you didn't say any of this to the Marlins GC at the Sports Law symposium at Harvard...
I laughed at Edelman's BS from the first line, but fell over when I read him complain about Miami's unemployment rate in the same sentence as calling a construction project "the worst timing." This is the ONLY project in the pipleine that will create thousands of jobs down there. What an amazing idiot you are.
I mean, a construction project is good for the unemployed, but the city's attorneys were clearly out of their league, so to speak.
46 - Can't you make your point without being a complete douche? The world should abort you. (what irony)