Fighting Over Sports Subsidies
Spring Training is a big deal here in the valley. The Cactus League has played here for decades and it's seen as a boon to tourist industry. Most of the teams play in public facilities built (at taxpayer expense) specifically for them. Of course tax revenue must be raised to pay for them. The latest is what to do for the Chicago Cubs.
A bill to help keep the Chicago Cubs' spring-training operations in Mesa ran into strong headwinds Friday even before it was introduced in the Arizona Legislature.
Derrick Hall, president of the Arizona Diamondbacks, told The Arizona Republic that Cactus League teams are united in opposing the legislation, which would raise car-rental taxes and impose a surcharge on spring-training tickets to help pay for a new Cubs stadium and practice facility in Mesa.
A surcharge on tickets is just an excise tax on tickets to spring training games.
It's also interesting to look at the numbers.
The bill seeks to raise $59 million over 20 years to pay off bonds that would be issued by the Arizona Sports and Tourism Authority to build the Cubs complex.
The sports authority was created in 2000, when voters approved Proposition 302 to raise money for an Arizona Cardinals stadium and for Cactus League facilities, with West Valley cities getting the bulk of the funding so far. The sports authority levies a 1 percent bed tax and a 17.75 percent car-rental tax.
With the authority's initial funds now tapped, Mesa and the Cactus League say they need the legislation to keep the Cubs from bolting to Florida. The authority's $59 million would cover 70 percent of the public cost for the new facilities, which has been capped at $84 million. Mesa would contribute the remaining $25 million, Mesa Mayor Scott Smith said.
Investment by private parties, including the Cubs, would push the total cost of the baseball complex to about $119 million.
So taxpayers put up $59 million, Mesa taxpayers another $25 million and private parties put up $35 million.
Just as a point of reference, the Cubs 2009 player payroll (for active players) was $134 million. The local Arizona Diamondbacks were about half that - $73 million.
Labels: microeconomics
