Wednesday, January 12, 2005
Storm clouds in the
outfield Sure, the Los Angeles
Angels of Anaheim is a silly name. If it survives a court
challenge, it will be an instant icon of the weirdness that
can result when cities subsidize sports teams.
By Steven Greenhut Columnist, The Orange County Register
Many disputes in life can be reduced to simple contractual
matters, something that the city of Anaheim grasps in its
lawsuit against Arte Moreno, the billionaire billboard
executive from Arizona who owns the baseball team formerly
known as the Anaheim Angels.
Since he floated the trial balloon last summer, Moreno has
argued that changing the team's name to the Los Angeles Angels
would widen the appeal of the team beyond Orange County. Los
Angeles is the No. 2 television market in the nation, whereas
the 340,000-population city of Anaheim is relatively small
potatoes.
One National Public Radio commentator last week agreed with
Moreno, arguing that his move is savvy and will generate more
TV income as contracts are renegotiated.
That may be true, but it's completely irrelevant. All that
matters is what the contract between the team and the city
over use of the stadium says, and the intent of the parties
who negotiated the contract. It's the contract at issue, and
everything else is just smoke and mirrors to deflect attention
from that main point.
The city of Anaheim, thanks to the foolishness of
then-Mayor Tom Daly and then-council members Lou Lopez and
Frank Feldhaus, gave then-owner Disney $30 million in benefits
in 1996 to keep the team in Anaheim. Residents got little in
return, but the one thing they did get was the supposed pride
of having the city's name in the national spotlight.
It looks like a sucker's deal in hindsight. Who really
cares if one's city is associated with a baseball team or any
other sports franchise? One of the great things about Southern
California is that residents here are not quite so dependent
on pro sports for their entertainment pleasure.
Notice the rough time the National Football League has been
having in locating a team in the Los Angeles basin. There's so
much else to do around here, and residents have none of that
inferiority complex shared by residents of second-tier cities.
That means that local residents and even city officials have
been reluctant to give away the store for the dubious benefits
of having a sports franchise named after their city.
The Anaheim deal was a bad one, although it pales in
comparison to some of the other whoppers nationwide. But a
deal is a deal. Messrs. Daly, Lopez and Feldhaus decided to
set aside development rights on one of the prime parcels in
the county and to hand over taxpayer dollars for little more
than a name.
Now, Moreno, who inherited the lease when he bought the
team from Disney in 2003, wants to change the terms because it
suits his bottom line. It appears that he intended to do so
all along, as he first removed Anaheim from uniforms and
marketing materials, and now has formally changed the team
name to the Los Angeles of Anaheim (we'll leave the jokes for
another time). Expect the "of Anaheim" to fade away if his
decision isn't overturned in court.
Bring on the lawsuit.
"The fact that it's better off for his bottom line is
irrelevant," said Tom Tait, the former Anaheim council member
who was one of two dissenting votes on the stadium lease
giveaway. "If someone didn't pay their mortgage, that would be
better for their bottom line also, but they have a contractual
obligation to pay it," he said.
It's a reasonable analogy. We'd all like to renegotiate
contracts to improve our bottom line, but we are legally bound
to stick to the original deal.
Moreno is going to play semantic games, arguing that the
clause in the lease requiring the team's name "to include
Anaheim therein" is met because Los Angeles Angels of Anaheim
includes Anaheim. The courts will decide, of course, but the
clear intent of the parties at the time was to have Anaheim a
prominent part of the team name. Just read the press coverage
at the time, in which Daly and other city officials proclaimed
their great victory in having an Anaheim team.
It's doubtful even they would have agreed to the terms of
the deal if Los Angeles Angels of Anaheim was going to be the
team name.
The lesson for residents across the country is not to give
taxpayer dollars to the corporate welfare queens who run
professional sports franchises. You can't trust 'em. They are,
as H.L. Mencken once wrote about government bureaucrats,
"seldom if ever moved by anything rationally describable as
public spirit ... . Their purpose, first, last and all the
time is to promote their private advantage."
I snicker when sports fans complain about outrageous
salaries paid to certain athletes yet support tax funding of
stadiums and arenas. Money is fungible. If taxpayers hand over
their hard-earned cash to team owners for stadiums, then the
owners will have more money to pay the salaries. There's only
one way to stop the madness: Stop feeding the beast. Stop
giving them tax dollars in return for bupkis.
Fortunately, Anaheim's current council majority, under the
leadership of Mayor Curt Pringle, is adamantly opposed to
corporate subsidies. The current City Council seems to
understand that Anaheim's revival has more to do with creating
a good business climate through lower taxes, fewer regulations
and fair treatment of all business, great and small, than
through the illusory benefits of kissing up to team owners.
The current council majority is rare on this score.
Even small cities lavish subsidies to lure minor-league
teams. (Remember the minor-league baseball debacle in Mission
Viejo a few years back?) The argument is always the same: The
team will not only bring community pride, but it will provide
"untold millions of dollars," as former Mayor Daly put it in
1996. The key word is "untold." You can't count the amount,
because the millions rarely materialize.
The evidence is strong, in fact, that publicly funded
stadiums do not provide any boon to the local economy. "Sports
spending is primarily substitutional," argues Cato Institute
senior fellow Doug Bandow in a recent column. "Stanford
University economist Roger Noll figured that only 5 percent to
10 percent of those attending games live elsewhere. Local fans
divert their outlays from other leisure activities and other
areas within the region." Other researchers, Bandow wrote,
found "no net employment hike" from government-funded stadiums
in cities that have them.
Nevertheless, sports-team owners will leverage one
community after another to receive the best possible deal from
craven politicians and fans who somehow think that enriching
an owner will bring pride into their lives. Get a life. You
want community pride? Get off your duff and do something to
improve your community. Do it with your own money, and leave
me alone.
Taxpayer-funded stadium deals - not to mention the way
cities sometimes abuse eminent domain on behalf of team
owners, to clear away private property to make way for the
stadiums - have become increasingly divisive. In Washington,
D.C., the city last year approved $500 million in
taxpayer-backed bonds to finance a 41,000-seat baseball
stadium to house the Washington Nationals, the team formerly
known as the Montreal Expos.
Controversy over thatboondoggle led to the election of
three new anti-stadium council members, who argue that the
money should go to schools and hospitals instead. I hope these
newcomers (including former Mayor Marion Barry, who was
sentenced to six months in jail after being busted for buying
crack cocaine) can throw a wrench in the wheels of the Major
League Baseball gravy train.
When I lived in Ohio in 1997, Columbus residents rebuked a
plan to build a publicly funded arena for a new professional
hockey team. Opponents argued that city residents shouldn't
have to pay for the entertainment pleasures of suburbanites.
Good thinking. Hockey boosters argued that there was no Plan
B. Reject the stadium and say goodbye to hockey. Well, four
weeks after the rejection, supporters came up with Plan B: a
privately funded stadium to house the Blue Jackets.
That's the best lesson: Just say no to greedy team owners.
Make them pay their own way. You can be sure that there are
many Plan Bs when taxpayers hold firm. Other private companies
have to pay their own way. Why are sports franchises so
special?
By the way, I like sports and have nothing against
billionaires or moneymaking. But taxes should be used to fund
a few limited, governmental functions - not to enrich a few
particularly aggressive pitchmen who sell fame to foolish
fans.
Not every region has 75-degree days in mid-December, nice
beaches and ski resorts within a two-hour drive. In some
places - think Green Bay, Columbus, Buffalo, Pittsburgh - a
football or baseball team is a bigger draw. So it might take a
while for sports-hungry residents of other places to recognize
that subsidizing sports teams is a waste of limited
resources.
In the meantime, taxpayers should at least hold team owners
up to the terms of their own contracts. A name change may seem
meaningless, but living up to a contract is important. I wish
the city of Anaheim the best as it tries to preserve its good
name.
CONTACT US: sgreenhut@ocregister.com
or (714) 796-7823
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