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February 09, 2009
Indianapolis: Stadiums out of money, send more
Hey, remember that $20-35 million a year operating deficit Indianapolis' stadium authority was projecting to run? Turns out it's now $43 million a year - and the city or county may have to consider new taxes to help stem the flow of red ink.
Among the options being considered, according to the Indianapolis Star, are a food and beverage tax hike, a hotel tax hike, a sales tax increment financing district (which would just divert sales taxes that would otherwise go to the state treasury), a ticket surcharge (which, contrary to what the Star claims, would mostly come out of the pockets of the Colts and other local teams, who would be limited how much they could raise ticket prices, not local fans), and lease concessions from the Colts and Pacers. Noting that the Pacers are expected to demand a sweetheart lease akin to the Colts', U of Indianapolis sports marketing professor Larry DeGaris remarked, "On one hand, the city has already played its hand by building the stadiums -- it would be a shame to have these two huge white elephants Downtown (if the teams, in particular the Pacers, opt to move to new cities). But the teams don't have the same leverage now, either. Where are the Pacers going to go that can help them?"
All this, on top of the $715 million that local taxpayers spent to build the Colts' new stadium in the first place, could leave the public on the hook for more than $1 billion in construction and operation costs. But then, it's not like anyone could have predicted that the stadium would lose money for its public owners once it opened - oh, wait...
Where do the Pacers go? Kansas City, anyone? Heck, we've been used by everyone else. Right, Neil?
Posted by Chris on February 10, 2009 02:22 PM
The Pacers play in a basketball hotbed in a brand-new arena and pay $1 a year rent. The notion of them moving anywhere just to get out of paying to clean their own bathrooms is, frankly, laughable.
Posted by Neil on February 10, 2009 08:01 PM
Mayor Ballard was elected by the people to represent the people. His election was a huge upset. All the moneyed elites in town were throwing their money behind the incumbent. No one thought Ballard would win except the activists who worked day and night for him.
Now, here it is a year later and he's surrounded himself with the elites and works (seemingly) as their puppet. The board that controls the stadium budget has all kinds of sports insider appointee lawyers.
Included on the sports' stadium board is THE #1 lawyer representing the owners of the Pacers.
Our mayor appointed not one single person to that board to watch out for the people's best interest.
There's a revolt brewing. One led by citizens against the new mayor we fought so hard for just a little more than one year ago.
We hold out hope that he won't forsake us, but plans are being made to unleash voter fury upon his administration.
He needs to appoint lawyers to the CIB board that represent the people's interests. We have two such lawyers in mind.
Posted by Melyssa on February 11, 2009 11:42 AM
Mayor Ballard was elected by the people to represent the people. His election was a huge upset. All the moneyed elites in town were throwing their money behind the incumbent. No one thought Ballard would win except the activists who worked day and night for him.
Now, here it is a year later and he's surrounded himself with the elites and works (seemingly) as their puppet. The board that controls the stadium budget has all kinds of sports insider appointee lawyers.
Included on the sports' stadium board is THE #1 lawyer representing the owners of the Pacers.
Our mayor appointed not one single person to that board to watch out for the people's best interest.
There's a revolt brewing. One led by citizens against the new mayor we fought so hard for just a little more than one year ago.
We hold out hope that he won't forsake us, but plans are being made to unleash voter fury upon his administration.
He needs to appoint lawyers to the CIB board that represent the people's interests. We have two such lawyers in mind.
Posted by Melyssa on February 11, 2009 11:45 AM
I know the Pacers already have a great deal but unfortunately all that is needed is the perception of an alternative for the deal to get even sweeter. Personally I think they should stay where they are at cause in Indiana basketball is king. KC is more of a college sports town with Kansas and Missouri dominating the talk. Not sure the NBA would work here long-term.
Posted by Chris on February 11, 2009 03:20 PM
Can you really believe this? Closing libraries and schools while handing over tax dollars to the wealthiest family in the state- in the name of entertainment?
I am a republican, the old non big spending type- not the types from the past decade, but the mayors corporate bailout hypocrisy has completely clouded any reasonable judgment he was supposed to have.
This corporate bailout is the worst republican bailouts yet!
I found a great symbolic Pacers Bailout sticker for my car: http://www.StickEmUpIndy.com
Posted by bailey on July 24, 2010 02:05 PM