Why is a Tampa Law Firm Using a PR Service?

I'm always a little skeptical of law firms that tout lawsuits with PR firms, but a case to keep an eye on is Autography LLC's conspiracy/fraud suit against the Rays and top executives.

Here was the Tampa Bay Times coverage of the issue last week.

Foster, St. Pete Challenge Rays

They criticized the Tampa Bay Times, the Tampa Bay Rays, and Tampa Bay sports critics. But in the end, St. Petersburg city councilmembers voted to invite a developer to pitch his Gateway stadium concept at a future meeting.

The board, along with Mayor Bill Foster, also issued a challenge to the Rays to accept a 2010 offer that would allow consideration of possible stadium sites across Pinellas County, not just in the City of St. Pete.

The resolution, said St. Pete city attorney John Wolfe, would "protect the integrity of our use agreement."

Wolfe also criticized the Tampa Bay Times for pushing St. Petersburg to let the Rays break their contract. He said giving up leverage would "open the door for Rays to leave the region."

"We would love to have these discussions with our Major-Leauge partners," Foster said, "but that just hasn't been possible."

Continue reading here.

Glazers' IPO Flat but Family Still Richer

The Wall St. Journal called it"the equivalent of the game that ends in a goal-less draw."

Manchester United's IPO on the NYSE failed to excite...but it also failed to fail...which is a good thing if your last name is Glazer.

The shares of ManU, which came with virtually no voting power or expected short-term dividends, sold for $14 each. That valued the club, according to the AP, at $2.3 billion, "slightly higher than the record $2 billion paid for the Los Angeles Dodgers baseball team earlier this year."

It also meant the Glazers made about $110 million on the sale.

All-in-all, it has to be considered a successful day given how much power the family retained over the team and given the initial concerns about the IPO. And if any of the stockholders are unhappy, there's still the prospect of selling a whole bunch of new jerseys in Jamaica.

Rays Sink to 30th in Attendance

It's all the Red Sox' fault.

With four games against Boston and four strong showings at the turnstiles this weekend, the Cleveland Indians have climbed past the Tampa Bay Rays in the MLB attendance rankings.

The Rays fall to 30th out of 30 teams, despite averaging 20,572 fans per game this year, a 9% jump from last year's 18,872 per-game average.

Tampa Bay still sits just 76 fans per game behind last year's worst-draw, Oakland. The A's are enjoying a 13% increase in fans from last year's 18,232 average.

The good news for the Rays - besides their increased attendance and big jumps in TV viewership from last year - is of their seven remaining home series, three come on the weekend and two of their mid-week series come against the Red Sox and Yankees.

Economics of Olympics

This post isn't about the billions of dollars NBC will spend on US broadcasting rights for the Summer Games, but more on how politicians are trying to capitalize on the event as well.

When Florida Senator Marco Rubio suggested making the financial bonuses for athletes tax-deductable, President Obama indicated it was a good idea. Forbes did not agree:

Let’s not kid ourselves, the Olympics is big business. Paying athletes performance bonuses for winning medals is no less commercial than anything else the Olympic bosses do. But why this extra cash should be tax-free escapes me. At least hedge fund operators have to pay capital gains taxes on their bonuses.

As my colleague Eric Toder reminds me, there once was a time when this sort of special tax treatment was slipped into revenue bills by high-paid lobbyists in the dark of night. Now, the code has been so corrupted that pols propose this junk without even being asked. For that, I suppose, they deserve the gold medal of stupid tax tricks.

For what it's worth, Politifact ruled supporters' arguments for the exemption were based on fuzzy/misleading math. But it's a reminder no event is above politicizing these days.

There was also an interesting post on The Sports Economist blog refuting suggestions that US Olympic training should be subsidized by the government. I can't imagine the idea would go over terribly well in this climate anyway, but there may be no better argument than "The US has a vibrant private sports market that leads to a lessening of the national importance of the Olympics."

Times Editorial Forecasts Possible Doomsday

In a column designed to remind voters that elections matter, Tampa Bay Times Editor of Editorials Tim Nickens writes that a "worst-case" scenario could involve the Rays leaving Tampa Bay by 2015:

Tropicana Field is closed as well. (Mayor Bill) Foster refused to let the Tampa Bay Rays look for new stadium sites in both Pinellas and Hillsborough, so frustrated franchise owner Stuart Sternberg sold the Rays in 2014 and bought the New York Mets. The new Rays owner moved the team to Charlotte, and the resulting lawsuits are winding their way through the courts. So much for that lease requiring the Rays to play in the Trop until 2027.

First of all, there's no way Charlotte could possibly lure a team like the Rays by 2015...not to mention Charlotte has no money and the Rays are stuck in a seemingly-ironclad contract.

Second of all, everyone should know by now that Stu Sternberg doesn't want to buy the Mets. He's waiting for the Steinbrenners to sell the Yankees, of course!

12 Acres in Gateway

So in a week where none of the Stadium Saga news was really new, we saw the Mayor of St. Pete indicate he'd meet with both Pinellas County commissioners and a private developer who wants to build a stadium on the Pinellas side of the Howard Frankland Bridge (otherwise known as the "Gateway" region).

But haven't we heard this all before?

Aug '12: Tampa Bay Times editorial board rips Mayor Foster for not doing enough to negotiate with the Rays, while giving the team a free pass
Sep '11: Tampa Bay Times editorial board rips Mayor Foster while giving Rays owner Stu Sternberg a free pass

Aug '12: Plot of land made available in Gateway for baseball stadium, but officials admit financing it would be difficult
July '12: Plot of land made available in Downtown Tampa for baseball stadium, but officials admit financing it would be difficult
Feb '10: Plot of land made available in Downtown Tampa for baseball stadium, but officials admit financing it would be difficult
Feb' 10: Plot of land made available at state fairgrounds for baseball stadium, but officials admit financing it would be difficult
Feb' 10: Plot of land made available in Gateway for baseball stadium, but officials admit financing it would be difficult

Aug '12: Local TV stations interview fans (and bartenders) who love the idea of a stadium closer to them
June '11: Local TV stations interview fans who love the idea of a stadium closer to them

Aug '12: St. Pete councilwoman rips Mayor Foster for his handling of the situation
Aug '11: St. Pete councilwoman rips Mayor Foster for his handling of the situation


Sound familiar? It should. Even the Rays said, "Over the years, we've heard and read about many developers who would like to include a baseball stadium in their plans."

But also familiar is the silence when it comes to how a new stadium would be financed, since nobody wants to talk about the real issue right now, and that's how to pay for it.

Pinellas Jumps Into Stadium Saga

Pinellas County commissioners voted Tuesday to invite the Tampa Bay Rays, St. Petersburg Mayor Bill Foster, and the St. Petersburg City Council to a future meeting to discuss the ballclub's future plans. While not a party to the current use agreement between St. Pete and the Rays, Pinellas County is a stakeholder, paying off a portion of the stadium's bonds through tourist taxes.

Pinellas County - like Hillsborough County - had been respecting Foster's threat of legal action if any parties tried to interfere with the binding contract between St. Petersburg and the Rays. But just like Hillsborough commissioners decided, Pinellas commissioners figured the risk of legal action was low...especially if St. Petersburg is in on the discussion.

Read more from WTSP here.

You can also catch up on recent comments made by Rays' owner Stu Sternberg, including his encouragement over the Hillsborough developments and a call to local leaders to "step up to the plate" (my pun, not his).

Hillsborough Commissioners Shift on Rays

After Hillsborough Co. Commissioners voted 5-2 to invite the Rays to come discuss their future this fall, it appears several commissioners may have drifted from the stances they took during the 2010 campaign.

Victor Crist cast a vote to meet with the Rays despite saying in 2010 that trying to lure a resource from one Tampa Bay community to another is like "competing against yourself." He also said then that Hillsborough commissioners should strive to help keep the Rays in Pinellas Co.

Read more here.

Coverage of Hillsborough/Rays Discussions

Thursday brought the expected "invitation to talk" from Hillsborough Co., but the real news of the day was the Rays' indication they'd accept it, despite the threat of legal action from St. Petersburg.

While much of the Tampa Bay broadcast media covered the predictable, WTSP's Adam Freeman did a nice job explaining St. Pete's reaction and advancing the story to "what next?"

"Hopefully this will alow us to start to break the log jam that has not moved in over three years," Hillsborough County Commissioner Ken Hagan told Freeman, who also questioned Hagan how St. Pete's contract could be bought out when he said the Rays a "200- to 300-million dollar economic engine." Hagan said he only expected a buyout to cost in the "tens of millions," but didn't elaborate.

Hagan, who had previously told the Tampa Bay Times that he was willing to cause the "divorce" between the Rays and St. Petersburg, has now advanced the Stadium Saga to the regional conversation the Rays have so desperately longed for. But he has also given the team the leverage it needs to potentially pit one side of Tampa Bay against the other. The Times editorial board applauded the move as a "smart decision."

But nobody is willing to yet address the issue of how to pay for a $600 million stadium (St. Pete's mayor once said, "Am I worried about people assembling land in Hillsborough and Tampa?...no. I've seen their budgets."). The ABC Coalition already summarized years ago that the Rays would be better off playing near the Howard Frankland Bridge or Downtown Tampa.

Still, this could be an important step toward addressing the elephant in the room: that any new stadium in Tampa would likely have to be financed by some sort of a multi-county tax. Pinellas County, by comparison, has more funding available for a stadium, which is why Gateway remains very much in the mix.

Hillsborough County and the Rays are taking cautious steps toward a fall public meeting (with guidance from all of their attorneys), but as Field of Schemes' Neil deMause best summarizes, "is just looking OK?"

Ex-NBA Ref Tim Donaghy Ordered Out of Gambling Business; He Wants Back In

It's sort of a sports business story, so let's cover it here. Former NBA ref Tim Donaghy, who served time in the federal slammer for providing tips to gamblers, wants to keep earning a living in the gambling field. But a pesky judge wants him to knock it off...for at least the last three months of his probation.

You can continue reading the story here.

Hillsborough Ready to Talk Rays...and Media Mistakes

With Hillsborough County commissioners due to take up the Rays' Stadium Saga today, it's worth taking a look back at some media misfires the last few days:

The Tampa Bay Times editorial board chimed in again, commenting that the Hillsborough developments were long overdue.

But in-between some valid points, the editorial assumes that "The Rays want to talk." Yet, St. Pete Mayor Bill Foster has contended that if the team doesn't like it's contract, they should suggest a fix to him....and they haven't jumped at that opportunity. So aren't both parties just as much to blame?

Plus, am I the only one who realizes the Rays are still bound by the iron-clad contract and won't be able to accept Hillsborough's invitation to talk?

UPDATE: A day later, the Trib editorial board echoed the Times and blamed Foster for inaction. It's certainly not the first time the Tampa-based paper has lobbied for a move across the bay. But suggesting the Rays could be contracted or that the team doesn't owe it to the region to actually prove financial struggles is irresponsible.

The Trib even cites White Sox owner Jerry Reinsdorf as an influential leader who wants to contract teams - the same Jerry Reinsdorf who made St. Pete look foolish before admitting "a savvy negotiator creates leverage. People had to think we were going to leave Chicago."

Contraction ain't happening. Period.

Also worth pointing out: WTVT in Tampa took Hillsborough Commissioner Ken Hagan on his word that the Rays are "a $200 to $300 million a year economic engine."

Aside from the number being rather arbitrary, and aside from the fact that you'd never find a reputable economist to back up those numbers....I don't even think the Rays would agree with those numbers. If they did, and they one day broke their contract with St. Pete, the buyout and/or damages to the city would be in the billions.

Ken Hagan and the rest of the Hillsborough Co. commission will discuss the Rays Thursday morning at 10:30.

Attorney: Hillsborough Can Talk to Rays About a Tampa Stadium

Attorneys for Hillsborough County have given commissioners permission to talk to the Tampa Bay Rays about future stadium plans, despite the threat of legal action from the City of St. Petersburg.

The attorney reasoned the risk of lawsuit was low since Hillsborough Co. isn't a party to the Rays' use agreement. But since the franchise obviously is, there's no indication yet if they'll be willing to speak to outside municipalities about breaking the contract.

Also, none of the news addresses the single-biggest issue in the Stadium Saga, which is funding, but it does open the door for more dialogue between elected leaders and the franchise.

Read the opinion from the county attorney here, or continue reading more about the implications of the decision on WTSP.com.

Forbes: Glazers Get Richer off Updated ManU IPO

Just posted from Forbes:

The amended filing for Manchester United’s public offering is going to give more of the IPO’s proceeds to the Glazer Family and less to the English soccer club than the original offering.

This change has infuriated MUST (Manchester United Supporters Trust), a large group of the club’s supporters who have been critical of the way Malcolm Glazer has run the Red Devils since gaining control in 2005 for $1.47 billion.

In an email to Forbes, Duncan Drasdo, the chief executive of Manchester United Supporters Trust wrote: “In the original filing it was made absolutely clear that ALL of the proceeds of the IPO would go to paying down debt the Glazers have loaded onto Manchester United. The revised filing reveals they now plan to take HALF OF THE IPO PROCEEDS FOR THEMSELVES. Furthermore the amount raised to pay down debt will be relatively insignificant (£75m) leaving £350m of their debt still on our club. There is now no doubt that this IPO is bad for Manchester United supporters, Manchester United Football Club and any investors gullible enough to pay the inflated price they’ve attached to inferior shares which have just 1/10 of the voting rights of the Glazers shares and no dividends. Their bare faced cheek is almost unbelievable.”

Manchester United commenced its IPO yesterday, offering of 16,666,667 Class A Ordinary Shares. Those shares consist of the club offering 8,333,334 Class A Ordinary Shares and the Glazer family offering 8,333,333 Class A Ordinary Shares. The underwriters (Jeffries Co., Credit Suisse Securities, J.P. Morgan, BofA Merrill Lynch, Deutsche Bank Securities) have an option to purchase up to an additional 2,500,000 Class A Ordinary Shares from the selling shareholder. The Class A Ordinary Shares will be listed on the New York Stock Exchange and will trade under the symbol “MANU.”

You can read the amended filing at the bottom of the page here.

Odds & Ends: Dollars & Cents

It's belated, but a tip of the hat to the Glazer family for embracing the NFL's new 85% blackout threshhold. As I wrote before, it was hardly a concession to the fans from the league, but the Glazers made the right choice in making it as easy as possible for their games to be televised, instead of opting for a higher threshhold that might have encouraged a few more fans to buy tickets.

Meanwhile, the family's other team, Manchester United, remains the world's most valuable franchise at $2.23 billion, according to Forbes. Ho-hum. It makes the Bucs' sinking value (now $981 million) an easy pill to swallow.

As for the $12 million Hillsborough County wants back from the Bucs, you won't find any Glazer sympathizers in Daniel Ruth's family.

In baseball-land, the Yankees are the sport's most valuable team ($1.85 billion) and Derek Jeter is one of its richest stars. Which produces little surprise when his new Tampa home is valued at $12.3 million, nearly twice as much as any other home in the city.

Finally, one addition to the Stadium Subsidy post from Tuesday: the Cubbies are getting closer and closer to a little action too. Here's an update, free of opinion (well, my opinion at least).