Population Statistic: Read. React. Repeat.
Monday, February 04, 2021

Here’s a bookmark worth keeping track of: Legal professional newspaper Metropolitan Corporate Counsel is running an overview on the current status of major professional sports stadium jockeying in the U.S., with a particular focus on the New York metro area. The current installment deals with the public financing of these stadia deals, and the use of governmental eminent domain to secure building sites for those facilities.

Exhibit A includes a high-level breakdown of the public-till pricetag for the New York Mets and their soon-to-rise Citi Field, along with the comparison dollar figure for their cross-town rivals:

In total, the direct subsidies, exemptions, and bond financing will save the Mets approximately $276 million, while costing New York City $155 million in lost revenue and the State of New York $89 million. The Yankees received a very similar financial package from the city and the state, with the team receiving $276 million in benefits over a thirty-year period, at a cost to the city and state of $170 million and $85 million, respectively.

Not a bad business to be in. Underlining all that: Since 1996, 65 franchises in the NFL, NBA, NHL, and MLB have engineered new or substantially renovated arenas/stadia, with government money paying the lion’s share of that construction.

Part two of this analysis will deal with the naming-rights end of the sports-biz equation. I’m hoping the law reporters will bear in mind this qualifier for why prices for such corporate christenings have increased lately:

The chief reason why the naming-rights prices are super-sizing is that they’re being applied to brand-spanking-new buildings. That’s key. Instead of slapping a new name onto an old building — that comes with an entrenched name and tradition that, sometimes, never gets completely supplanted — the naming-rights holder gets virgin territory. So there’s no chance of [the NHL New Jersey Devils’] Prudential Center being referred to by its “old” name, because there is no old name for the stubborn voices to hang onto. That’s worth an extra couple hundred thousand per year, I figure.

I’m crossing my fingers on landing one of those coveted law-talkin’-guy footnote citations…

by Costa Tsiokos, Mon 02/04/2021 11:30:58 PM
Category: SportsBiz, New Yorkin'
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    Part One was a month ago. Now, Metropolitan Corporate Counsel takes a further overview look at how the major pro sports league exploit their playing facilities as revenue streams: Namely, via naming rights and amenitized in-stadium premiums like luxur…

    Trackback by Population Statistic — 03/04/2021 @ 10:25:19 PM

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