Next in Line for Spring Training Funds: Houston Astros

If you offer it, they will come.

It's not just the Toronto Blue Jays anxious to tap into Governor Scott's new spring training retention funds;  now, according to TCPalm.com, the Houston Astros are saying they'll start shopping around too:

“I have been looking at an area in southeast Florida for about a year now, and have also been exploring options in Arizona,” said Giles Kibbe, general counsel for the Astros.

Of course, the Astros suggested they might move to Arizona to create the required leverage to land a new spring training stadium.  But they apparently want to end up in Palm Beach County:

"We are interested in making something happen there (Palm Beach Gardens), but we are a long way from getting that done.”

"A long way from getting that done" means the Astros are waiting for someone else to figure out the financing.  And in the meantime, the team may shop around other cities to create leverage and expedite the process.  It's hardly a secret; it's simply the blueprint.

It may also help expedite the spring training financing bill, which hasn't even been signed into law yet.  TCPalm continues:

In an amendment to a larger economic incentives bill, a Senate budget subcommittee voted Wednesday to offer cash for upgrading or building spring training facilities. Stadiums that host one team could apply for up to $20 million over a 30-year span. Facilities with two teams could receive $40 million. Local governments would have to match the state money, and payouts would start in 2015-16.

As SaintPetersblog.com points out, the Astros want to be first in line in Tallahassee; they just hired uber-lobbyist Brian Ballard to grease the legislative wheels.

Blue Jays First in Line for Florida Spring Training Funds

It didn't take long after Governor Scott announced new state money for spring training parks that MLB teams started to line up at the teller window.

First up: the Toronto Blue Jays, who have five years left on their contract in Dunedin, Fla., and just a few weeks ago were quoted as saying, "we love Dunedin," and they aren't looking for a new home because they're not "on the low end of the totem pole as far as facilities were concerned."

But now that more public money is on the table, it could be a different story.  Toronto's Globe and Mail is reporting the Blue Jays' "situation in Dunedin no longer up to par (and the team) will use the next 12 months to shop for a new spring training home, and may consider sharing a facility with the Washington Nationals or Houston Astros."

"Possible destinations," the article continues, "could include Naples, Fort Myers and Pasco County on the Gulf Coast; Vero Beach, Daytona Beach and Palm City on the East Coast."

Spring Training is a huge economic driver in Florida and plenty of stadium subsidy advocates will say "this is exactly why we need to commit state funds to stadiums."

But the cart came before the horse on this one; the Governor's mere suggestion of committing more money to spring training stadiums is going to open the floodgates of Florida cities bidding against other Florida cities with stadium subsidies.  And even though the Blue Jays show no indication of possibly moving to Arizona, they are about to cost Florida taxpayers a lot of money.

Times Hates Corporate Welfare; Except for Maybe Pro Sports Teams

The Tampa Bay Times editorial board penned another piece this week calling for a "Crack Down on Corporate Welfare."  The paper suggested an end to tax-exempt bonds for private corporations, which provide companies low-interest loans at the expense of the government tax rolls:

For instance, Chevron Corp., a company that made $26 billion in profits last year, has been the biggest single beneficiary since 2003. And it is far from alone. Tax-exempt bonds have been used to fund a golf resort in Puerto Rico, the construction of the Goldman Sachs Group offices and the Bank of America Tower in New York and even a winery in North Carolina.

The piece follows another Times editorial last month criticizing the soon-to-be-approved Bass Pro Shops subsidies.  The February editorial criticized a $6.25 million subsidy to lure the outdoor retailer to Hillsborough County:

Bass could indeed be a welcome addition. But there is nothing here that cries out for special treatment. Bass should be held to the same standard as others in the business world who pay their own way to compete in the private market, and the County Commission should reject this one-sided deal.

So how does any of this relate to the Stadium Saga?

In January, Shadow of the Stadium pointed out that tax-exempt bonds are one of the leading mechanisms to fund baseball stadiums.  So of course, you would think the Times - against "corporate welfare" and "special treatment" - is against public subsidies for private sports teams.

Except the editorial board has been nothing but a cheerleader for the Rays' efforts, even after a group of local businessmen analyzed stadium funding options in Tampa Bay and said the region would need to rely on tax-exempt bonds and other government help.

In fact, the Times has done very little to explain why it supports the attempt by a private corporation (the Rays) to escape its contract with the City of St. Pete, presumably, so other municipalities could help build it a new stadium.  The paper even celebrated the Marlins' controversially-funded new stadium.

Yes, pro teams provide a civic boost to the communities that support them, And yes, MLB's $7.5 billion in revenues pale in comparison to Chevron's $26 billion in profits.  And no, neither the Rays nor MLB have officially asked for public dollars since the waterfront stadium plan blew up in 2008. 

But while the Times hasn't officially supported public dollars for a new Rays stadium yet, either, there seems to be a disconnect in their editorial logic.  Since it's pretty clear to everyone this side of the Floribama line that public dollars would be required to build a new Rays stadium, it's surprising the paper has taken such a different approach to a professional sports corporation.

The Trib's Inexcusable Mistake on Spring Training

The Tampa Tribune really should know better.

Trust me, in these days of shrinking media budgets, I understand the fact-checker/researcher has gone the way of the evening paper.  But there's no excuse for the Trib's lead editorial this morning to feature a giant fib - one that could have easily been corrected with a Google search or visit to Wikipedia.  Or heck, even reading Shadow of the Stadium.

In support of state funds rehabbing Florida's spring training facilities, the Trib writes:

As (State Sen. Jack) Latvala, a Pinellas County Republican, points out, 15 years ago every MLB team held its spring training in Florida.  Now, Arizona, which has aggressively sought to take teams from Florida, hosts half of the majors' 30 teams for spring training.

Except as this blog pointed out last month, not every MLB team was training in Florida 15 years ago.  In fact, in 1998, only 20 of the league's 30 teams trained in Florida.

In fact, six teams have never trained in Florida.  In fact, the Trib carelessly lifted the claim from an incorrect press release and based part of its pro-subsidy argument on it.  It's a mistake that needs fixing.

The Times isn't afraid to post corrections based on Shadow of the Stadium discoveries.  Is the Trib?

Update: Maybe the Rays Can Afford David Price?

While the chic speculation amongst sportswriters these days is how the Rays may have to trade away David Price, it's been the contention of this blog that the team's financial future may not be as grim as some paint it.

In fact, Rays' owner Stu Sternberg was quoted today saying, "there is no question that we can handle a contract like David's, but what are you able to put around him?

"We haven't had (thoughts of trading Price)," Sternberg continued.  "Others have speculated. There's been speculation but we haven't had those thoughts at all."

According to Roger Mooney at the Tampa Tribune, Sternberg added that he's "optimistic" about the stadium situation after his February meeting with St. Pete Mayor Bill Foster.  And the team offsets "higher-than-expected" payrolls (such as 2013's expected $60+ million figure) with years where it's "lower than expected."

Not Enough Room for New Aquarium & Stadium in Pinellas County (Budget)

Two years ago, Pinellas County Commissioners made the controversial decision to extend tourist taxes past 2016 when Tropicana Field is paid off.  Now, a battle could be brewing over what to do with those available dollars. 

Those of us in the Tampa Bay media have been covering the recent $160 million expansion push from the Clearwater Marine Aquarium, which assumes the availability of bed tax dollars.  But few people outside the newsrooms have discussed how funding an aqaurium would eliminate Pinellas County's advantage over Hillsborough County when it comes to financing a stadium.

Now, the Tampa Bay Times puts it in the mainstream:

Aquarium officials note that the construction bonds for Tropicana Field that are backed by bed taxes will be paid off in 2015, potentially freeing up millions of dollars for other projects.

However, the Tampa Bay Rays want a new stadium sometime in the next decade, an endeavor that could top $600 million.

With the team and St. Petersburg Mayor Bill Foster at loggerheads, nothing concrete is in the works. But stadium backers have always counted on the bed tax as a bedrock starting point if Pinellas County has any shot at cobbling together new stadium financing.
...
"We want the Rays to stay. I hope they do," said former Clearwater Mayor Frank Hibbard, who's on the aquarium's board and is a former TDC member. "But if no progress is made on a stadium, is that money just going to sit there in perpetuity? At some point you're going to move forward." 

There's also the need for more beach renourishment money too, since Pinellas County's beaches will draw more people than an aquarium or stadium ever could, but that's a discussion for another day.

The bigger takeaway is how the aquarium's request could expedite the baseball stadium discussion.  Last November, the St. Pete and Tampa chambers of commerce said "we don't have a lot of time":

"In this environment, when the economy is tight (and) nobody wants to increase taxes," chamber spokesman Chuck Sykes said, "when that debt is paid off, (available money) is not going to sit there. It's going to be claimed."

There's probably not enough room in the Pinellas County budget for a new aquarium and a new stadium....unless, of course, Pinellas and Hillsborough cooperated and pooled their resources to help the Rays.

Odds & Ends: Stadium Subsidies for Falcons, Dolphins, & Spring Training

While Atlanta fans celebrate "only" paying $200 million for a $1 billion stadium (that isn't necessary), Neil deMaus from Field of Schemes rains on the parade with news that it will likely cost taxpayers $400 million or more.  Local media outlets may have championed using bed taxes to pay for up-front construction costs, but deMaus identifies a number of other concessions the city/state will have to make.

Oh, and almost falling under the radar - more leaked financials from Deadspin.  Much like the Marlins' leaked financials, the Carolina Panthers appear to have been raking in the cash ($112 million over two years) while crying poor.

Meanwhile, in Florida's capital, legislators tacked a controversial amendment onto the Dolphins' bill to land subsidies for stadium improvements.  According to the Miami Herald, foreign banks in Florida could lose a long-standing tax break to pay for the stadium.  No indication if that would help or hurt a referendum's odds, which at this point, appear long.

Read more here: http://www.miamiherald.com/2013/03/07/3273089/banks-versus-dolphins-in-the-florida.html#storylink=cpy

As for Florida's spring training stadium subsidies, which could grow in the next few years, Deadspin argues the Sunshine State shouldn't fall for the MLB "hustle":  "With big-league stadiums, teams can plausibly pretend to need new event technology to catch up...But with spring training games, fans are content, literally, to plop themselves down on the outfield grass. All they want is baseball and warm weather, the same old things they've found in Florida, every March, for more than 100 years."

Finally, the Tampa Tribune reports the Tampa City Council wants Mayor Bob Buckhorn to pursue foreign EB-5 investors.  The program has been used to help jump-start stadium financing in other cities.  But its bonding capacity is usually limited, and Buckhorn - citing SEC investigations into EB-5 in other cities - pushed back against council, saying, "I'm not going to put the city at risk in any form or fashion...we've got to make sure we safeguard the city's reputation and protect it against litigation."

Grass-Roots Tampa Stadium Group Calling for Commitments

Build it Downtown Tampa, the grass-roots group advocating for a Rays stadium in Tampa the last three-plus years, is stepping up its effort a bit, calling for "commitment cards" from new stadium supporters.

The group's website asks Rays fans, "When the Tampa Bay Ray’s move the stadium to downtown Tampa, I will commit to purchasing?"  The options are various full- and partial-season ticket packages.

The commitment is non-binding of course, but could be used to argue Tampa residents are much more willing to support a stadium than their counterparts in St. Petersburg.

Rays Land State Contract to Promote Children's Nutrition

According to my WTSP colleague Andre Senior, the Tampa Bay Rays are getting a $160,000 Florida Department of Agriculture contract to promote children's nutrition locally:

The team would use professional baseball talent, the team mascot and other representatives to help promote food nutrition and wellness among children and families within the Bay Area.

But the Rays team is not the only one getting a healthy dose of government cash from the state organization, which exists on tax dollars.
...
Miami Dolphins Limited was paid $135,724.60 for its partnership in the "Eat to Compete" initiative to promote food, nutrition and wellness, while the Miami Heat was offered $129,999 for similar services.

According to document, the Jacksonville Jaguars received $133,917 for contributions to a similar partnership.

But couldn't the Ag department just give the money to local schools instead of private business?

A Florida Department of Agriculture spokesperson told 10 News that they have a budget of $10 million to spend on educating children to eat better, and what is being spent now to hire sport celebrities to spread the message is only a fraction.

And- while a half million dollars is a lot of money to use, not everyone thinks it's a bad thing.

"With the way kids eat nowadays; they got too much junk food, the vending machines in the schools- I definitely think are wrong," said St. Petersburg resident Jeff Gbur.

Cal Ripken Jr. tries to explain seemingly-failed promises in Sarasota

Cal Ripken Jr. spent Thursday afternoon delighting Orioles fans and autograph seekers at Ed Smith Stadium, but he still had no answer for Sarasota residents who wonder when his namesake youth baseball academy will expand to Southwest Florida.

When the Orioles agreed to move their spring training to Sarasota in 2009, part of their promise - in exchange for a $31 million stadium subsidy - was a youth baseball academy.

Ripken even issued a statement - read to commissioners - expressing excitement over the development. When a deal was struck, the Orioles touted the academy in a press release.

But somehow, the promise, which was in the initial Memorandum of Understanding (MOU), disappeared prior to signing the final lease. Four years later, there is no sign of any progress on the youth academy.

Ripken told 10 News that the economy, which has hampered donations for a youth complex, is partially to blame for the lack of progress. Ripken has also spent the last year talking to Sarasota's neighboring Charlotte County.

Sarasota County officials tell 10 News that the Orioles' deal was a win-win since the refurbished Ed Smith Stadium is breaking attendance records and the county is reaping the economic benefits. And while commissioners say they had to drop the youth baseball requirement during final negotiations of a stadium deal, they're confident they can build some sort of youth baseball development in the near future.

The Orioles had no comment on the story, but Sarasota officials acknowledge they are still talking to the team about a new facility, even if Ripken builds his own in a different county.

For more on this story, including the WTSP video report, click here.

Forbes: Glazers Now Worth $4.4 Billion

Thanks to a $3 billion valuation of Manchester United, Malcolm Glazer & family are now the 286th-richest billionaires in the world, according to Forbes.  Their $4.4 billion value is second in the state of Florida, as well as second among NFL team owners.

Seattle Seahawks owner (and Microsoft co-founder) Paul Allen (worth $15 billion) is keeping the Glazers from the top of the NFL list, while Miami Heat owner (and Carnival Cruise Line chairman) Mickey Arison tops the list of Sunshine State residents at $5.7 billion.

It's good financial news for the Glazers after a few years of less-than-stellar headlines, but as loyal reader Scott Myers points out, the family could have avoided all of their 2012 Buccaneers blackouts by spending a paltry sum of $750,000.  That's less than .01% of how much the family's value grew since September, according to Forbes.

Mets Want Spring Training Company in Port St. Lucie

Paging Rick Scott, Paging Rick Scott....

Florida's governor doesn't love newspapers, but hopefully he read today's New York Times article on the Mets' desire for some spring training company near Port St. Lucie:

(T)he Mets could end up more isolated if the Washington Nationals and the Houston Astros, which are nearing the ends of their leases in their current stadiums, move their training camps to other parts of Florida or to Arizona, where there are more teams.

...

The Mets, who are celebrating their 25th anniversary here, are seeking a second team to share their facility because it would generate more revenue and ensure another team does not depart the region. St. Lucie County spent $2.5 million last year to update and expand Tradition Field, the Mets’ spring training home, including space for a second clubhouse.

...

To keep teams from leaving, Gov. Rick Scott announced last week that he would ask the Florida legislature for $5 million a year to improve Major League Baseball facilities in the state.

You can read more about Governor Scott's baseball re-investment plan here.

WBC Underway; Not in St. Pete

The World Baseball Classic is underway and there are exactly zero WBC games scheduled for Tampa Bay.  This isn't a huge surprise - especially given Major League Baseball's relationship with the region - but two years ago, Mayor Bill Foster thought the introduction of international teams training in St. Pete might lead to hosting some WBC games.

2013 WBC venues include Phoenix, Miami, and San Francisco.  Roger Dean Stadium in Jupiter, Fla., got six play-in games last fall.

Times Explores Trop Redevelopment; But Major Question Lingers

The Times' Stephen Nohlgren reported today on prospects and ideas for redeveloping Tropicana Field.  Rays' VP Michael Kalt told Pinellas Commissioners in January that they were basically sitting on a goldmine by shackling baseball to the 85-acre piece of land that's "lying fallow."

Nohlgren spoke to business leader and former ABC Coalition member Craig Sher, who was excited about the redevelopment possibilities.  And acknowledged - as Mayor Bill Foster confessed recently - that redeveloping in today's economy may not be as easy as the Rays imply.

But one important question remains, as this blog pointed out a month ago: If St. Pete is foolish to house baseball on a piece of downtown land that could be used for other uses, why would Tampa want to do the same thing in its booming downtown?

Rays-to-Orlando Chatter Fired Back Up

Major League Baseball and the players' union doesn't always see eye-to-eye, but when it comes to getting the Rays out of the Trop, they're on the same page.  According to the Times' Marc Topkin:

"I think everybody is curious what would happen or could happen if you had a stadium that was on the other side of Tampa that is accessible to Orlando residents as well as Tampa residents," (MLBPA chief Michael) Weiner said. "I guess the bet was that going south would expand the market. It hasn't really worked as expected."

Weiner went on to share this blog's view of contraction (not on the table at all) and said he wished the Rays drew more fans (b/c more revenue for the league is good for the players!)

But what was Weiner trying to suggest?  Not a stadium in Orlando, which would be a bad, bad idea.  Obviously not stadium in Lakeland, halfway between Tampa and Orlando.  So he meant near Tampa's Fairgrounds, where Orange County fans would still have to drive 60+ minutes to get to the game.

Tampa Mayor Bob Buckhorn told me recently the Fairgrouds/I-4 area is a non-starter and a new stadium would have to be downtown.  Especially since all the Rays talk about is how important a 30-minute commute is to attendance.  Is hard to imagine slightly better proximity to Orlando - in a state without high-speed rail or modern transit - would help the Rays that much.