July 17, 2007

Aberdeen: How not to build a stadium deal

For those of you wondering about the plight of Aberdeen, Maryland and its money-losing stadium, the Baltimore Sun ran an excellent feature this weekend detailing how the fault lies not in the ballpark, but in the elected officials who negotiated a lease that gave away all the building's revenue to Cal Ripken's IronBirds. Among the highlights:

"People who come to the games don't realize what we're dealing with," said Betsy Campion, head of the city's stadium management board, from her seat behind home plate during the June 19 home opener. "They see the stadium full, they buy food at prices in line with big league ballparks, and they think the city is a part of that."

S. Fred Simmons, Aberdeen's mayor, expressed concerns while he was a member of the board that oversees the stadium. ... "We do not control either the income or the direction of marketing at the stadium. ... We have [a] dysfunctional relationship with our 'partners' at the stadium." Simmons concluded, "Municipalities, especially this one, shouldn't be in this type of business."

At a Nov. 13, 2000, council meeting, Dacey, the city manager, outlined the project in a slide presentation that, unlike the deal, was quick and simple. Members were assured that they wouldn't have to dip into the general fund. They weren't provided the contract documents, which would be finalized and signed three weeks later. ... The council - Hansen, Myra Fender, Franklin "Mac" Bradley and Macon Tucker - asked no questions, according to minutes.

For all the gruesome details, read the whole article. It's an outstanding reminder that when it comes to stadium finance, it's increasingly less about who pays the initial bills than about who reaps the revenues down the road.