This morning’s Washington Post reports that problems are developing in the negotiations between the District of Columbia and Major League Baseball over a new stadium for the Nationals.
Major League Baseball has not agreed to the District’s request for an additional $20 million to help build a stadium and might file for arbitration if a lease agreement is not reached with the city by the end of December, MLB President Robert DuPuy said yesterday.
“The stadium agreement provides for arbitration if a deal is not reached and would be one of the options,” DuPuy said in an interview.
DuPuy’s comments raised the stakes in the sensitive negotiations over a stadium lease between the city and baseball, which have held up the sale of the Washington Nationals and threaten to delay construction of the $535 million stadium project in Southeast.
$ 535 million to be financed largely by the taxpayers of the District, of course, while the new owners of the Nationals get a sweetheart deal that gives them exclusive rights to use the stadium and puts nearly all of the risk associated with the project in the hands of the citizens of the District. Sounds like a fair deal right ? I don’t think either.
Among several sticking points in the lease negotiations, baseball has refused the city’s request for a $24 million letter of credit that would ensure the Nationals’ rent payment in the event of a terrorist attack or players’ strike. Jerry Reinsdorf, owner of the Chicago White Sox, and Jonathan Mariner, baseball’s executive vice president for finance, are believed to be coming to Washington this week to resume negotiations, baseball sources said.
In other words, put all the risk on the city and give all of the rewards to the new owners of the Nationals. Its called corporate welfare and its probably the biggest moneymaker in sports today. Get the government to build your stadium for you, negotiate a sweetheart of a lease, and then make a huge profit on ticket prices and concessions. The owners would be foolish not to accept such an offer, but politicians are total fools for even thinking of offering it.
“The District is not sharing the risk and reward in a congruent manner with Major League Baseball,” said David Malloff, who lives in Dupont Circle. “Critically, Major League Baseball was not asked to share in cost overruns. . . . D.C. cut a wholesale giveaway in no uncertain terms.”
Yep, that about sums it up.
I’m a huge baseball fan, and happy that the national pastime is back in the nation’s capitol, but there is no reason that taxpayer dollars should be used to fund new stadium projects.
Linked with Don Surber and The Political Teen
