ROLDO on pro sports teams - pay the costs themselves

The best answer, of course, is to tell the very, very rich sports owners and their many wealthy plays to pay the costs themselves. No more sin taxes or any other.

The football stadium is financed by the taxes you mentioned - sin tax, 8% parking tax, $2 on every vehicle rental plus an additional 2 percent on the admission tax.

We've paid much too much for sports in this town.

Here are some figures from the county that were compiled for me and give somewhat of a real picture of the costs, though not all, since the city is losing huge amounts on garages, having given the teams so many free parking spots, and huge amounts on forgiven property taxes.

Here is that list:

Here are some figures of the tax outlay for Gateway and the Browns stadium. Not mine. Most 2012 from the current County Auditor's department:

Yeah, that much.

Total Cost thus far: $460.2 Million. This is the most comprehensive accounting of the public cost of Cleveland's sports venues anyone has produced.

(I wonder if the IRS ever thinks of totting all this free stuff for income tax purposes. They seem ready to do it for Jimmy Dimora.)

Let's stop this madness.

It's not over. Some payments continue to 2023. So it will be more than $460 million. (Note: Much more).

The tab is even still higher. We could add $37 million from State of Ohio; $3 million RTA; $2.24 million Cleveland Sewer Dept.; $1/2 million City Water Dept. That's just for Browns stadium.

I don't have current figures for what Clevelanders are paying on bonds for the football stadium. However, by May 2009 the city had paid $102,823,947 and still owed $160,367,109 for bonds. Payments extend to 2027.

In addition to the sin tax money, the city - to pay for Browns stadium - added an 8 percent tax on all parking in the city; raised the admission tax on all events by 2 per cent; and added a $2 a car rental fee. All dedicated to pay Lerner's bills. (A full discussion of the Browns funding is here: How Good it Gets for the Lerner Family).

Best and thanks for your work Brian,

Roldo Bartimole

Roldo Bartimole has been reporting since 1959. He came to Cleveland in 1965 to report for the Plain Dealer where he worked twice in the 1960s, left for the Wall Street Journal in 1967. He started publishing his newsletter Point of View in 1968 and ended it in 2000.

In 1991 he was awarded the Second Annual Joe Callaway Award for Civic Courage in Washington, D.C. He received the Distinguished Service Award of the Society of Professional Journalists, Cleveland chapter, in 2002, and was named to the Cleveland Journalism Hall of Fame, 2004.
[Photo by Todd Bartimole.]

Pro Sports Player Salaries & Anticipated NFL TV/Media Revenue come 2014

On our facebook conversation, someone suggested - 

"Pay the players a little less. I know this will not be popular. But, alot of people take paycuts."

Pro-sports players make a lot of money so I can understand her sentiment of hey, let them kick in some money! Some make more in one year than an average person would earn in their life time. But of all the pro sports, people have commented that the NFL is the league where players can get beat-up and injured the most and the risk of their careers being cut short is high.

Here are the average salaries per player per year for the 2010-11 seasons; number of players in each league and amount of money they make for each game played:

1. NBA, $5.5 million (450 players, $61k per game)
2. MLB $3.3 million (750 players, $20k per game)
3. NFL $1.9 million (1,606 players, $119k per game)

Overall, NFL players get a 47% cut of total NFL revenues (4.6 billion of $9.7 billion) and apart from their salaries, a good size chunk is used for benefits, former players pensions and care etc...

For those curious to know what their favorate player is making see the following links:

1. Cleveland Indians Player Salaries 2012-2013 - $74 million
2. Cleveland Browns Player Salaries 2012-2013 - $69 million
3. Cleveland Cavaliers Player Salaries 2012-2013 - $63 million

Team owners get 53% of Total NFL revenues, or $5.1 billion, and these owners are who the City, County and Gateway Econ. Dvlp. Corp have agreements with.

NFL TV/Media Revenue

The NFL negotiated most of their TV/Media contracts in 2011 for contracts that will expire this year.  For the new contract period 2014 - 2022 the NFL is expected to collect about $6 billion per year, or $187.5 million per year per team.  This represents a 173% increase in annual team TV/Media revenues from the 1998 - 2005 period.

To compare, here are the approximate figures for TV/Media revenue generated for the years beginning the time the new Cleveland Browns Stadium was opened (1999)

1998 - 2005; $2.2 billion ($68.8 million per team)

2006 - 2012; $3.1 billion ($96.9 million per team)

To be fair to the players, here is a cartoon depicting the NFL team owners money problems:

What to do when the sin tax for the sports facilities ends in 2015?

Jason Russell of the Civic Commons, in his piece “Let he who is without sin cast the first stone”, suggests spreading the dirty deed of the sin tax and to, "extend the sin tax to all counties that touch Cuyahoga County". He points out that the facilities draw spectators from the region so why shouldn't the expense of the facilities be shared by the region?

What should we consider in terms of the 2015 expiration of the sin tax?

 

Currently the Browns have the best deal of the three teams.  The City’s responsible for the debt and financing for construction and capital repairs and they keep all of the revenue generated except some fees paid to the NFL and a share of NFL media revenue.

The Indians and Cavaliers renegotiated their leases with the Gateway Economic Development Corporation in 2004 so the teams cover the debt.  But, there are major capital repairs and improvements anticipated that are not covered under agreements. The City is stuck with expenses for the parking lot.

The main considerations are what are the revenues needed by the teams to be successful and what payments can the City and County, and possibly the region afford?  So what are our options?

1. Do nothing - the City of Cleveland will be on the hook for hundreds of millions of dollars for the debt, financing cost, capital repair requirements, and property taxes associated with the stadium and property. 
        The Gateway Economic Development Corporation and Cuyahoga County will need to come up with funding for capital repairs and improvements that are being considered.  The debts for construction of the gateway facilities have been reported as being taken care of by rents from the teams that were renegotiated in 2004.  They include approximately $70 million for arena not including finance cost, with payments through 2023 and, a remaining $6 million in ballpark debt is anticipated to be paid-off by 2014.
2. Ask voters to renew the sin-tax - Continue applying what is generally accepted as a regressive tax – has a greater impact on lower-income persons than higher.  The current sin taxes being levied for the sports facilities are:
     - 4.5 cents per pack of cigarettes;   - 6.0 cents per gallon of beer, or 3 cents per 12 ounce bottle; and,   - 12.7 cents per 740 ml bottle of wine
3. Ask sports teams to pay more under their lease agreements – an unlikely scenario due to existing contract terms, although the Indians and Cavaliers renegotiate their lease terms in 2004.  Would the Browns be willing to do the same?  And, what about the capital expenses anticipated but not covered for the Gateway arena and ballpark?
4. Increase the admission tax for all three sports teams – The City would have the authority to carry this out.  How much money would be needed?  The three teams and facilities have different needs in terms of the liabilities, costs and revenue requirements.  The Browns are reported to have one of the lowest seat pricings in the league.  Would they accept a higher admission tax on seats that would then limit their own ability to raise admission taxes?  And, what about premium, club seating and loge revenues?
5. Better utilize revenue potential for City sponsored events – The City of Cleveland has the rights under the lease to use the Browns Stadium eight times per year.  What is the net-revenue potential for using all eight days, and how could the stadium be better utilized by the City?
6. Other revenue generating resources - At the time the deals were made for the facilities there were increases to parking and rental car taxes.  The new Cleveland Convention Center and Medical Mart are being funded by a Cuyahoga County sales Tax  (.25 cents – another regressive tax).  Property taxes just took a hit in Cleveland via the CMSD (15 mill school levy).  What other sources are there?
7. What am I missing?

REF: 

Cleveland Browns Stadium gets new name as old sin tax expires in 2015

Call for increased private investment by sports teams to balance large public subsidies that will need to continue through 2028.  1.18.2013

Poverty Tour 2.0 with Tavis Smiley and Cornel West featuring Green Party members Councilman Brian Cummins and Presidential Candidate Jill Stein as well as Congress Representatives Marcy Kaptur, Dennis Kucinich, George C. Fraser and more

The first stop of The Poverty Tour 2.0 with Tavis Smiley and Cornel West in the Westfield Insurance Studio, Idea Center at Playhouse Square, Cleveland Ohio, USA, tookplace on September 26, 2012, in partnership with Public Radio International and WVIZ/PBS and 90.3 WCPN ideastream, Pacifica Network and Native Voice One 

The video below presents highlights from the first stop on The Poverty Tour 2.0 in Cleveland, OH with Congresswoman Marcy Kaptur, Congressman Dennis Kucinich, Cleveland City Councilman Brian Cummins, George C. Fraser, Chairman and CEO of FraserNet, Inc., SEIU Justice for Janitors organizers Laurie Couch and Sandra Ellington, Chris Cooper from Kent State University’s Ohio Employee Ownership Center, Green Clean Co-op worker-owner Mary Vel Vera, and Green Party presidential candidate Jill Stein.

Video guide

• 00:00 - 23:17, entertainment by the House Band - Jeff Moyer, Kevin Richards, Joe Hunter, Ed Lemmers, Haris Evastovalis; and, introductory comments regarding the kick-off of Poverty Tour 2.0.
• 23:18 - 25:17, Official kick-off and introductions
• 25:18 - 29:27, Congresswoman Marcy Kaptur
• 29:28 - 32:15, Councilman Brian Cummins
• 32:16 - 39:10, George C. Fraser
• 39:11 - 45:32, Congresswoman Marcy Kaptur
• 45:33 - 46:47, Commercial Break, entertainment by the House Band
• 46:48 - 54:04 , George C. Fraser
• 54:05 - 58:12, Councilman Brian Cummins
• 58:13 - 1:05:18, Commercial Break, entertainment by the House Band
• 1:05:19 - 1:20:08, SEIU Justice for Janitors organizers Laurie Couch and Sandra Ellington
• 1:05:19 - 1:21:40, Commercial Break, entertainment by the House Band
• 1:21:41 - 1:41:55, Chris Cooper from Kent State University’s Ohio Employee Ownership Center, Green Clean Co-op worker-owner Mary Vel Vera
• 1:41:56 - 1:43:23, Commercial Break, entertainment by the House Band
• 1:43:24 - 1:58:13, Audience comments and Q & A
• 1:58:14 - 2:05:25 Commercial Break, entertainment by the House Band
• 2:05:26 - 2:17:05, David Johnson, Census Bureau Announcement on poverty
• 2:17:06 - 2:18:00, Commercial Break, entertainment by the House Band
• 2:18:01 - 2:33:06 Congressman Dennis Kucinich
• 2:33:07 - 2:36:57, Reverend Tom Gerstenlauer, Miller Avenue United Church
• 2:36:58 -  2:38:10 Commercial Break, entertainment by the House Band
• 2:38:11 -  2:56:08, Green Party presidential candidate Jill Stein
• 2:56:09 - 3:03:47, Audience comments and Q & A and closing

(L-R) Tavis Smiley, Brian Cummins, Cornel West and George C. Fraser.

“In this nation I see tens of millions of its citizens, a substantial part of its whole population, who at this very moment are denied the greater part of what the very lowest standards of today call the necessities of life.” 

- Franklin D. Roosevelt

Councilman Calls On Sports Teams To Boost Investments In Cleveland

Ideastream audio file posted: Sunday, January 20, 2013



"...we have to look at the equities of who’s paying for what, and who’s getting what services, and is it fair?...

If we go to voters for renewal, it’s not just about raising taxes, it’s about paying off and maintaining facilities that should be benefiting our city and our county.”

- Councilman Brian Cummins, Cleveland City Council, Ward 14