March 09, 2008
Oh, What To Do About those Sonics - UPDATED

James Vesely's column today correctly delineates the clash of culture occurring between the world of sports/entrepreneurship and the state capital. Essentially, no matter how compelling a case (full details here) supporters of keeping the Sonics in town make, the odds are still stacked against them.

Witness the latest rhetoric from Olympia, including:

"But there are a lot of other priorities and calls on these dollars. We need to be careful how we step into this. We also need to recognize that we are trying to tighten our budget right now. To be cutting the budget and building something for a professional sports team sends the wrong message."

Talk like that would be a lot more logical if we were talking about any money out of the state's coffers. But we're not. The deal to refurbish Key Arena is $150 million from private sources, $75 million from the City of Seattle, and $75 obtained by the state allowing the use of existing specialty taxes currently being used to pay off the bonds for Safeco Field. There's not a dime involved that would otherwise be spent on any priority on Olympia's plate - assuming they could actually put together a plan to do so.

Bluntly, this deal is as good as it is going to get. Passing this plan increases the odds of Seattle winning its court case in the summer to hold the Sonics to their lease, thus increasing the chance the NBA and Clay Bennet eventually broker a deal to secure Oklahoma City another team and allow him to cut his losses by bailing out of the Sonics.

If that doesn't happen, the lawsuit fails, and the Sonics walk then Seattle might get another team sometime in the foreseeable future (though that's not highly probable). That team might retain the Sonics name and logo. More importantly, there are a lot of scenarios where Seattle gets stiffed and left with no NBA team at all, even with a ridiculously good offer on the table right now.

All the Legislature has to do is say yes. It's simple. So, they probably won't. And they're excuses for not doing so will be transparently lame since this deal is about as close to "something for nothing" as you can get with a professional sports franchise in the modern era.

UPDATE: The spittle filled "hell no!" and "you're not a conservative" tone of many of the commenters is amusing and slightly charming, but really misses the point.

Like it or not, public subsidies for the building of sports stadia and arenas are a normal part of having a professional sports franchise across the country. In that context, the deal discussed above is by far and away the best deal for taxpayers on a comparative basis. The only taxes involved are ones already being paid (in King County only) and the proposal doesn't even involve extending them since their current use - paying off the bonds for Safeco Field - is scheduled to be completed early.

Good luck attracting a new franchise, either NHL or NBA, to town for less. "We don't care about the sports teams! Let them walk!" is of course a frequent answer from some commenters. Noble sentiment I suppose, but note that articles involving our current professional sports teams, even more mundane items like the "Seahawks Notebook," frequently pepper the "most read" list on the Seattle Times and Seattle P-I web pages. These teams have a constituency.

The Sonics may end up leaving town. A replacement franchise may or may not be found if that occurs. And Seattle without an NBA team won't be the end of the world by any means. But the current deal is the cheapest way possible, at least to the taxpayers, to keep such a franchise in town.

Plus, its worth remembering, even if you don't care about professional sports or the Seattle Sonics, other people do. And there's more than a few of them.

UPDATE II: Some commenters, especially Hinton, will be thrilled to know they have a kindred soul in Geov over at Horse's Ass. He too is highly disgruntled, but generally joins me in assessing the proposed deal as:

about as good a proposal (and therefore about as reasonable a compromise) as one could hope for, given that the economics of modern pro sports now rely on the public to build teams' playpens, and there's always another sucker...

3/16 UPDATE: Comments closed due to spam.

Posted by Eric Earling at March 09, 2008 08:29 PM | Email This
Comments
1. What the holy heck is this garbage?!

Not. A. God. Damned. Dime. Of. Tax. Dollars. For. The. Sonics!

Supporting tax-subsidy of a professional sports team (we aren't talking national defense here!) is completely off the rails.

It's bad enough that we have tax-funded debt for the other two billionaire boys' clubs in town - but to consider extending the payback period for that debt by redirecting those funds to yet another team looking for a handout is positively through the looking glass. This is just as bad as plundering the city for $75 million that could be putting sorely needed cops on the street.

No. No more.

Eric, this post reads like an endorsement of tax subsidy for the Sonics. Could you clarify this point? Because I don't want to insult you if I'm misreading you - but if you do support this, I strongly feel you have zero claim to calling yourself a conservative.

Posted by: W. T. F. ? ! on March 9, 2008 08:35 PM
2. WTF -

Got it. Then no one that supported Safeco Field or Qwest Field can call themselves a conservative either. I'll keep that in mind.

And on a serious note, that $75 million your talking about isn't going to go to cops on the street or any other such expenditure. As noted in the post, the hotel & restaurant taxes in question are dedicated to the Safeco Field bonds right now. They're not currently available to the general fund of the state or any local government.

Posted by: Eric Earling on March 9, 2008 08:48 PM
3. I was going to Grad school at the University of Washington when this tax was imposed on us. The Safeco field deal wasn't like the Seahawk deal, when a Billionaire came in and asked the state of Washington to approve taxes on themselves. We in King County had no choice and our one vote (which said no to the project) was ignored.

The Sonic owners refused to submit to an election when given the opportunity. I don't care how "logical" this new proposal is. The taxpayers of King County deserve a chance to finally vote on this tax.

Posted by: Dave Orvis on March 9, 2008 09:13 PM
4. I didn't support tax dollars going to Safeco, Qwest, or the Kingdome, either.

Retire the existing bonds, and stop compounding the waste with more handouts for overpaid professional teams.

Posted by: W. T. F. ? ! on March 9, 2008 09:36 PM
5. I don't live in Seattle or follow basketball that closely, but what happens to Key Arena after the Sonics pack up? Isn't the city loosing money right now with the Sonics there? Oh right, I forgot the Storm are still there. Ooh, ooh, you can add 40+ concerts to the calendar. But seriously, I've heard lots about billionaires asking for public handouts and I do think it is quite outrageous, but all I've heard is no more tax money and no alternatives.

Posted by: Interested Observer on March 9, 2008 09:41 PM
6. WTF -

That's a nice idea in theory. But in practice it means having no professional sports teams in the city given what other cities are invariably willing to do. I just don't find such a turn of events terribly realistic.

Posted by: Eric Earling on March 9, 2008 10:02 PM
7. Well, Pittsburgh, St. Louis, San Diego, Cincinnatti, Jacksonville, Charlotte, Tampa Bay, all seem to be doing fine without a basketball team.

Posted by: Dave on March 9, 2008 10:27 PM
8. I am so sick of this battle over the sonics. there is no way i am going to let my lawmakers spend 150 million when teachers get paid poverty wages. How does the remodel help eastern washington? does it bring tourism revenue to spokane or pullman? when they can prove that then maybe i might listen to their arguements for key arens.

Posted by: linda on March 9, 2008 10:57 PM
9. Professional sports teams are *BUSINESSES* and purely discretionary ones at that.

Sports arenas - especially single-purpose boondoggles - are not critical infrastructure to be used by everyone. They are places of business built, furnished, and operated for the profit private businesses. If the business owners can't make the numbers work without raiding the public kitty, too bad.

No more handouts. If the Key's losing money, sell it. If nobody wants to buy the arena, knock it down. The land it's on is certainly worth a pretty penny.

When the heck did handouts become OK? How the hell do you reconcile taking tax dollars with the threat of force and using them to build a flippin' stadium for the benefit someone who could afford to build their own? These aren't critical infrastructure. Our roads and bridges are falling apart and stadiums are a priority?

Posted by: W. T. F. ? ! on March 9, 2008 11:31 PM
10. I like pro sports as much as the next guy. I grew up with the Blazers being the only show in town. That was back when the NBA actually played basketball and not showcase-the-star ball. But I agree with WTF, even if it means losing teams here locally, the message should be sent to all pro sports team, run it like a business. Granted, my enterprise is not as large and as community oriented as a pro sport, but no one gives me any handouts.

If in the long run all cities woke up to the fact that public handouts ultimately mean squandered tax dollars, maybe that would help pro sports turn to a more conventional model where they operate without all of the corporate glitz and need for high priced renovations. It works in Green Bay for now. And maybe that would help leagues like the NBA improve their product. I don't go to Sonics games anymore unless the tickets are free. I'm not paying good money to see overpriced second rate basketball that' more focused on ridiculous circus sidewhows and the variety of foods at the concession stands. The only way I'd even consider a public handout is if it was only used initially to attract the team, and then it was payed back in full using tax revenue from the ticket.

But really even that's dirty because then the teams just become another vehicle for the cities to get rich, and then squander that money on fancy buildings and affirmative action programs. In any proper world, Seattle City government would be run as lean as possible out of a few double-wide mobile trailers located deep in the Duwamish Industrial Area, and not in fancy temples downtown. Then businesses would keep more profits and provide their good and services at a lower price to the consumer.

BTW, If anyone here wants to see real basketball, your chance is coming up in just over a week. The NCAA March Madness is the premier event for real basketball played much more in accordance with the original Naismith vision as a team sport, with players actually PASSING the ball.

Goodbye Sonics. It's just entertainment.

Posted by: Jeff B. on March 9, 2008 11:49 PM
11. @2. Yep....not one dollar for any of them. They're a business and if they can't make a go of it themselves...then they shouldn't be in business. Counts for the shabby attempt by the Sonics, includes especially the shady crap by the Mariners years ago, and would apply to football if Paul Allen hadn't put it to a direct vote and paid for every penny over the $350 million. It even should include the few million the various minor baseball teams got for local improvements several years ago.

Professional sports should not receive any subsidy anywhere in this country.

Posted by: Matty on March 10, 2008 12:14 AM
12. I've already suggested to Eric that he give some serious thought to becoming a Republican. Clearly, he has no idea what the term means.

Seattle will survive quite nicely without a professional basketball team. There are a wide variety of other teams to support, from the UW to any local community college.

There is absolutely no justification for tax dollars of any kind going to any pro sports team.

And frankly, it seems to be increasingly clear that Eric might be more comfortable posting over with his own political kind.... at HA.

Posted by: Hinton on March 10, 2008 12:45 AM
13. Sounds like about $150 million is coming from taxpayers. This stinks.

I say we get the pro sports people off of the dole.

They should be funded by ad deals and ticket prices, not by taxpayers. If they can get some other City to pay them, I say let them leave. Who needs the blood-suckers?

The government has no business funding sports. There should be a separation between sport and state.

It is just part of the "bread and circuses" that keep the people from noticing how bad the government is.

Posted by: Bruce Guthrie on March 10, 2008 01:39 AM
14. The Public Facilities District legislation that rationalized the construction of some big stadium or other has been used to spread pork around the whole state. The whole PFD thing should be scrapped. I was in Bellingham when they applied for a PFD to renovate theaters and other things the city government shouldn't have been doing. It is mostly money wasted and should all be given back to the taxpayers. It is a very bad precedent.

This is socialism, and I am really surprised that Eric could support it and still attempt to call himself a conservative.

Posted by: Bruce Guthrie on March 10, 2008 01:44 AM
15. Can we just get rid of those losers already? Only in Seattle will people debate the merits of keeping a bunch of losing craphounds for the sake of paying more taxes on a stadium.

And you don'te even get what you pay for. Can anyone here show me a team that has a ring yet for all the money you shelled out?

Posted by: ERNurse on March 10, 2008 02:25 AM
16. Can we just get rid of those losers already? Only in Seattle will people debate the merits of keeping a bunch of losing craphounds for the sake of paying more taxes on a stadium.

And you don'te even get what you pay for. Can anyone here show me a team that has a ring yet for all the money you shelled out?

Posted by: ERNurse on March 10, 2008 02:26 AM
17. And ERIC-

NO conservative worthy of the name voted for Safeco OR Quest. You ought to know better than that.

And the decision of keeping a bunch of worthless, losing bums like the Sonics here when Oklahoma could be paying for their fatass, worthless lifestyles is a no-brainer. Let OK have the losers. What the hell is wrong with you!? Do you LIKE more money thrown away on worthless causes?

...Oh, wait. You are a SEATTLE Republican. Never mind. You and the Sonics were made for each other.

Posted by: ERNurse on March 10, 2008 02:35 AM
18. I'll never understand why some people get so worked about about a sports team?
Really now, you don't have something better to do with your life.

Make the teams support themselves, if they can't, well then BY-BY!

I see Everett is thinking about a trolly, more wasted money!

Posted by: Army Medic/Vet on March 10, 2008 06:13 AM
19. oops sorry

(get so worked up about)

Posted by: Army Medic/Vet on March 10, 2008 06:16 AM
20. #10: Maurice Lucas, Dave Twardzik, Lionel Hollins, Bobby Gross, Lloyd Neal, Corky Calhoun, et al.

But you pseudo-conservatives really need to be more friendly to the Sonics ownership. The owner's bidness pardner gave a quarter mil to the Swift Boat Liars.

Posted by: Jim on March 10, 2008 06:16 AM
21. Jim @ 20:

Those Swift Boaters are heros. The only liar amongst them was a traitorous, self-aggrandizing, leftist gigolo named Kerry. And in the end his own lies did him in.

Posted by: Saltherring on March 10, 2008 06:45 AM
22. To all of you who "just say no" to sports team subsidies, are you ALL for saying "no" to any public funding of the symphony, opera, museums?? What about their venues? In fact, what about ANY venues? Don't tell me that musicians -- be they classical or rock 'n' roll -- don't make serious money. Don't tell me that artists making $50,000 for some "found object sculpture" are broke.

And remember, I-91 mandates that the "investment" has to MAKE MONEY. Even according to (former) critics, the plan presented by Ballmer et al EARNS A GOOD RETURN for the invested public money.

Don't you believe in Trickle-Down Economics?

Posted by: The Real Mark on March 10, 2008 07:17 AM
23. Eric

regarding your comments on #2.

You are correct. Supporting the government funding of the two new stadiums is most certainly no conservative. Especially when Republican grassroots and voters previously expressed opposition to the stadiums.

If you don't get it. Too bad. There is no excuse for government to support the sporting entertainment business. May I remind you there are many stadiums privately owned. Yankee Stadium comes to mind. And there are many successful cities lacking a pro team.

Posted by: Snuffy on March 10, 2008 07:30 AM
24. I went twice when I was a kid, to see Lew Alcinder and Wilt Chamberlin both play the Sonics. I went with with my Boy Scout troop.

I went as a guest a few years ago and sat courtside and - it was OK, I guess. I don't particularly remember anything about it other than Gary Payton taunting some guy relentlessly.

I went to a Sonics game this year, I was an invited guest in the "XO Communications "Board Room." The food was pretty good and free beer too!

I don't follow basketball so my opinion of the quality of play isn't really worth much, it seemed OK.

What I will say is that I have been at funerals that the people who were in attendance were more animated - I mean to tell ya' the place was a morgue.

So that is the sum total of my experience with the Sonics - except when I was in college I contacted Gary Payton and got him to sign basketballs and they would be raffeled to support the Campus Ministry. He was a real sport and we raked in a lot of money raffeling them. One of the guys I went to school with father in law won one and he cherishes it to this day. That is the sum and total of my experience with the Sonics.

They are OK, but their owners should not expect the taxpayers to fund their barn.

Posted by: JDH on March 10, 2008 07:44 AM
25. I will be sure to write my legislators to ensure that they vote against any inane stupidity such as using taxpayer dollars to fund what should be able to support itself perfectly fine using private dollars.

Furthermore, I don't know how anyone could support using taxpayer dollars on this - especially considering our financial situation - and then call themselves a conservative, or say anything about our current state budget.

Posted by: Andrew Brown on March 10, 2008 08:15 AM
26.
The Key Arena needs to be abandoned as the Sonics home. It represents the old, centralized Lib hierarchy of power in Seattle.

Of course Nickles and the rest of the Hydra want tax payers to keep paying money into it. Not only does it suck down tax revenue, it assures that traffic on I-5 through Seattle will be forever impassible, giving them ammunition to ask for even more money for "mass transit".

The whole system in Seattle is rigged -- rigged to extort maximum money from the people by taking easily solvable problems and turning them into impasses.

Posted by: John Bailo on March 10, 2008 09:02 AM
27. I have to question whether this deal is real. Why did they wait until a few days before the end of session to propose it. A controversial proposal like a subsidized stadium requires more than a week of wrangling.

It seems like self-destruction by design. If it was, say, Monorailian Joel Horn behind the proposal, we could chalk it up to incompetence. Not so w/ Ballmer & co.

I have zero evidence, but I wonder if this could just be a stunt to gain a few PR points for Microsoft, and to provide Gregoire with cover against the loss of the Sonics in an election year.

Posted by: russell garrard on March 10, 2008 09:24 AM
28. Not One Dime.

Sports are a _luxury_. Streets and cops are a _necessity_.

'nuff said.

Posted by: steve miller on March 10, 2008 09:26 AM
29. The Real Mark @ 22:

I agree. No taxpayer subsidies for sports, symphony, theatre, opera, art museums, etc. Taxpayer should not be forced to pay for recreational facilities they do not choose to patronize. Let the price of the ticket cover the cost of the facilities and salaried performers. The attendee can then choose whether to subsidize....or not.

Posted by: Saltherring on March 10, 2008 09:57 AM
30. I don't mind fund-raisers or donations covering what ticket prices don't cover.

But I completely disagree with the government funding anything that's not a necessity. Public art - fine, as long as the public *does not pay for it*. Sports - fine, as lon as *the public does not pay for it*, including stadiums that are funded using an *emergency* clause of the state constitution.

Posted by: steve miller on March 10, 2008 10:09 AM
31. So Saltherring, how do you feel about library's? Peddlers of smut and counter culture material subsidized by the public dime, or useful institutions that enrich the lives of the communities that surround them?

How about University's and Colleges? Promoters of quality higher education or useless institutions brainwashing todays youth with teachings of Marxist theory using taxpayer money?

Posted by: Cato on March 10, 2008 10:15 AM
32. Libraries? Can be usesd as and are used as peddlers of smut and counter culture material subsidized by the public dime in most places where leftists hold the reigns of power, but they can also be useful institutions that enrich the lives of the communities that surround them if one can hole the ACLU at bay.

How about Universities and Colleges? Promoters of quality higher education or useless institutions brainwashing todays youth with teachings of Marxist theory using taxpayer money? Yep, that petty much sums it up. As I have often said, if you think education is expensive - try indoctrination.

Posted by: JDH on March 10, 2008 10:31 AM
33. Professional sports need Seattle, Seattle doesn't need professional sports. What I mean by this is that we wouldn't have any pro sports here if there wasn't a media and merchandising market to support them. These are businesses. If someone can't make the numbers work with a gold-plated taxpayer-funded stadium, then let them clear the field for a real businessperson who can. It's called capitalism, and it works pretty darn well, IMO.

Asserting "sports teams have a constituency" is sounds like a backhanded way of saying "let's buy votes with government handouts" - pretty much the definition of a lib dem position.

And what the heck kind of argument is "oh, but someone at HA supports welfare for sports teams?" Good for whoever that is if they support at least one conservative principle. If I define "conservative" as "the opposite of what person X says," then I've just given person X the power to define me and my views. No wonder our party is in such sorry shape with fuzzy-headed thinking like this.

Posted by: W. T. F. ? ! on March 10, 2008 11:15 AM
34. That last para should read:

And what the heck kind of argument is "oh, but someone at HA opposes welfare for sports teams?" Good for whoever that is if they support at least one conservative principle. If I define "conservative" as "the opposite of what person X says," then I've just given person X the power to define me and my views. No wonder our party is in such sorry shape with fuzzy-headed thinking like this.

Posted by: W. T. F. ? ! on March 10, 2008 11:22 AM
35. Cato @ 31:

Library's (sic) and University's (sic) were established to assist in educating the public, therefore having the potential to benefit all. It is sad that universities, as noted by JDH in post 32, have become more about indoctrinating than educating.

Posted by: Saltherring on March 10, 2008 11:49 AM
36. ERIC. Check the news. The GOV of NY is in big trouble.. 5500buck hookers.

Posted by: Army Medic/Vet on March 10, 2008 12:22 PM
37. When does the subsidy end?

The NBA business model, and other pro sports models, seem to be based on increasing the squeeze on taxpayers on an ongoing basis. So, let's assume the tax does pass, construction is done by 2014, then in 2016 are we going to start hearing "the Key is antique, time to get something bigger/newer/with built in wifi in all the seats which need to be torn out at a cost of $200 million?"

Subsidizing pro sports seems like a bottomless pit. And assessing this in just a week is really hard to do. The timing of the announcement is indeed very odd. Maybe there were waiting until after the OKC sales tax vote, hoping it would fail but when it didn't they felt it was now or never.

Posted by: Stuart Jenner on March 10, 2008 12:34 PM
38. Check the news. The GOV of NY is in big trouble.. 5500buck hookers.

GOP party members get charged with hitting on young men, I not sure which is worse. Though I must say getting caught with a member of the same sex seems to generate far more press.

Posted by: Cato on March 10, 2008 02:11 PM
39. Sonics? Who cares? If Oklahoma wants them, so be it.

It's not like the proposed renovations to the Key Arena were for the average basketball fan that wants to take his/her kids to the occasional game. It's all about increasing the number of luxury/corporate suites because that's where the money is. Why are taxpayers being asked to subsidize suites that are targetted at private corporations?

Posted by: Smoley on March 10, 2008 02:21 PM
40. Why are taxpayers being asked to subsidize suites that are targetted at private corporations?

Maybe we should ask Dubya, he ran a pro-baseball team and managed to get the city of Arlington to build him a new stadium using eminent domain.

Rumor has it they generate profits for surrounding businesses, people go to bar's and watch the games, gives people something to do on a Wednesday night.

Personally I agree Steve @ 28, which is why I signed the initiative put forth by Citizens for More Important Things. Maybe we can pester little Timmy Eyman to bring this idea to the state level.

Posted by: Cato on March 10, 2008 02:46 PM
41. public subsidies for the building of sports stadia and arenas are a normal part of having a professional sports franchise across the country.

Then why is it that places like the Fleet Center in Boston, Pepsi Center in Denver, Target Center in Minneapolis, Bradley Center in Milwaukeee, and many other stadia in other sports like Joe Robbie Stadium (Miami Dolphins) have been built with private funding? It can be done.

I've been to several games and a few concerts over the past few years at the Key, and it's a great place for events. Even if there were more restaurants and shopping at the Key, I wouldn't use them. There's plenty of options near the stadium.

I suppose in other cities where they build an arena in an isolated area, the "other amenities" might be useful, but why should the public pay for those at Key Arena? And any renovation to the seating are only going to make the seats I buy have a worse view. What's to like about that?

Posted by: Palouse on March 10, 2008 03:19 PM
42. Can you say, "...dribbling while Rome burns..."
I agree-NOT ONE CENT OF TAXPAYER MONEY FOR ANY PRO SPORTS TEAM. I could also get behind no public money for arts, either, even my favorite classical groups. Just think how much more money we'd have in our own pockets to give to deserving organizations if all that taxpayer money were returned to the taxpayers.

Posted by: Carol Kujawa on March 10, 2008 04:46 PM
43. "people go to bar's and watch the games"

Cato, did you sleep through the day they taught the difference between 'plural' and 'possessive'? Oh yeah, I forgot.....public schools.

Posted by: Saltherring on March 10, 2008 07:11 PM
44. I am a Blazer fan, who finally has something to root for after Whitsitt f***ed up the franchise and was run out of Portland. When the Sonics leave, they should ship Whitsitt along with them and do the Pacific NW a big favor.

Too bad about the Sonics going, but I'd rather them leave than pay one more cent for them to stay.

Posted by: KS on March 10, 2008 09:16 PM
45. "Though I must say getting caught with a member of the same sex seems to generate far more press."

Yeah, well, expecially if you've been the Attorney General of the state and have prosecuted for prostitution before, along with being one nasty S.O.B. The Wall Street Journal has had a lot to say about Spitzer in the past, and he was not a decent guy.

This is very fun to read about - too bad Stefan is not allowing comments on his posts.

Oh, also, Cato, maybe the interest is in what "Client # 9" wanted to do with this "young lady", seeing as she was kind of worried about it. Sex sells. More sex on the site, Eric, this stadium s__t is getting old, especially since you are about as wrong as you can be on this one.

Conservative, Eric? hah, pfffft. Your killin me, here.

Posted by: Dave Lincoln on March 10, 2008 09:38 PM