The predominant discussion in the Indianapolis media over the proposed $500 million Colts stadium is how to fund it, not over the wisdom and propriety of taxpayers going into debt to build it.
Apparently the leaders of both major political parties in Indiana have signed off on the concept, including a poor building design, and are content to confine their discussion to who's picking up the tab.
Come hell or high water on White River, Indianapolis Mayor Bart Peterson has vowed not to lose the Colts during his administration. His plan in part is to raise $13 million annually through higher car rental, innkeeper and admissions taxes in Marion County, as well as with annual gambling profits of $46 million from 2,500 pull-tab gambling machines in downtown Indianapolis.
Regional Republicans have their own plans to fund a new stadium. Rep. Luke Messer of Shelbyville proposes giving Indianapolis $30 million in annual revenue from 2,500 slot machines at the Hoosier Park and Indiana Downs horse tracks. Marion County GOP chairman and state Rep. Michael Murphy has a similar plan that would divide the slot machine profits differently, giving Indianapolis $48 million annually.
Here are three problems with these major party proposals, besides any issues that readers might have over funding the stadium with gambling profits.
First, they do not address the issue of stadium obsolescence. Taxpayers cannot afford to again let government build a stadium that the NFL outgrows, especially one that is three-times the real cost of the first one. Proponents should guarantee that the stadium will be valuable for 50 years, or promise to indenture the lives of their children and grandchildren at double the rate of our servitude.
Second, their proposals treat businesses unequally. They subsidize rich millionaires at the expense of smaller or more deserving businesses. Likewise, they treat businesses such as the Indianapolis Motor Speedway unfairly by taxing them to underwrite their sports competitor. It's a slap in the face to the Speedway, which funds itself.
And why should we indenture each Indianapolis citizens with more than $1,000 in debt for eight regular-season football games each year? If gambling revenue projections are not met, are residents of Indianapolis willing to be on the hook for the balance? I'm certainly not.
But here's the real crux. The RCA Dome is perfectly good as it is, except for one basic flaw. No, the flaw is NOT the size of the Dome. Although it is the smallest in the league at 57,900 seats, the Colts barely sell the Dome out even with ticket prices just below the league's average of $54.75.
The problem with the RCA Dome stems from how NFL teams share revenue. Owners keep their revenues from private luxury suites. At the Dome, Colts owner Jim Irsay has 104 suites. The league's most profitable franchise, the Washington Redskins, has 280.
Irsay seeks a stadium with enough suites to give him a shot at a medium profit relative to the rest of the league. He would have already moved his franchise to Los Angeles had that city promised him a stadium with enough suites, which it could not afford to do.
So he and his franchise are leveraging Indianapolis and our state government into building him a stadium by 2008 that merely gives him more profit potential. Ironically, Irsay's best selling point is that he will not also hold the city hostage by making it guarantee that the suites it builds him will be sold. Huh? Until then, the city expects to pay him at least $36 million to keep the Colts in town.
Compare this to the real costs of a new stadium. Its $500 million price tag can triple by the time its bond is paid. For the 400 permanent jobs that the stadium creates and the hundred or so new suites that are created, that amounts to a public investment of over $1 million per job and $3 million per luxury suite. Plus, we will build a stadium with no more capacity than the original Hoosier Dome and, from the looks of the design, one with lousy viewing for NCAA basketball.
That's maddening. Our elected officials are about to build another obsolete stadium with limited capacity, a poor configuration and an exorbitant price tag. They will again saddle us with public debt that is tall on political horseplay and short on horse sense.
©2005 Libertarian Writers Bureau
Attorney, screen writer and former chair of the Libertarian Party of Marion County.
In order to build a stronger, more self-sufficient America, America... Read More
INTRODUCTIONThe aim of writing this article is to encourage the... Read More
I have to be honest. It is time to come... Read More
Introduction:Although politicians and so-called "Intelligence Experts" are the ones appearing... Read More
The official figures are staggering: 35% of the workforce -... Read More
US Steel prices have cost franchisees in my company and... Read More
The Bill of Rights to our Constitution caused -- and... Read More
The City of Portland is going after any small business,... Read More
The offshore financial centres have been forced in recent years... Read More
In order to win the presidency in America, candidates must... Read More
The North American Trade Agreement (NAFTA) was implemented on January... Read More
With the world's largest oil and natural gas reserves, second... Read More
Land Mines have been one of the most evil left... Read More
Washington DC council member David Catania actually suggested that the... Read More
The man on the tape raised his hand, pointing a... Read More
We are told by out leadership that we risk loss... Read More
Currently the United States has weapons, which can shoot around... Read More
Britain has a proud tradition of valiant armed forces and... Read More
It is amazing how the Federal Trade Commission has destroyed... Read More
Indian and Pakistan and nuclear war. What does the world... Read More
Iran's objection to ratifying the International Atomic Energy Agency's Additional... Read More
Is the Federal Trade Commission really stopping SPAM? Is the... Read More
Last year a Maryland State Legislator whom I presume never... Read More
The recent scathing remarks by High Court Judge Richard Mawrey... Read More
Without the flow of fuel our very mobile society comes... Read More
We know we can cloak a giant airship from those... Read More
Legislation is getting legs to further curtail your use of... Read More
With people living longer we have some problems as those... Read More
"Had there not been outsourcing and utilization of cheaper resources... Read More
The newest pebble reactors are easy to build and manage... Read More
I always have to remember to take a deep breath... Read More
You say, you want to help the Palestinians, but most... Read More
If someone wanted to farm future clones they would need... Read More
PolicyFederal Fair Housing accessibility requirements for new multifamily buildings should... Read More
Few understand the Franchising Format and even fewer have correlated... Read More
Amnesty International comments on the proposal that has been laid... Read More
For more than a decade, you the American taxpayer have... Read More
Washington DC council member David Catania actually suggested that the... Read More
The idea that the majority shows the will of the... Read More
All UAVs Need a Self Destruct BLOS DeviceWhat do you... Read More
I am noticing an increasing and alarming rate to which... Read More
I would like to discuss a few issues we have... Read More
Earlier this month, I heard President George W. Bush and... Read More
As the populations expand in Colorado outside of Denver, Las... Read More
As concerns grow over the threat of bioterrorism and weapons... Read More
..."history may judge us to be the real bully if,... Read More
We need a government that can be as responsive to... Read More
The filibuster has been a tool available to U.S. Senators... Read More
Bill Cosby got it wrong. His many speeches regarding the... Read More
Many believe Al-Qaida already has nukes in the United States... Read More
With pain rocking through my whole body today, I cast... Read More
In response to Douglas Bower's article; Logic Class 101 Applied... Read More
Let's put the religious part of the debate for a... Read More
As we watch fewer Americans voting it is no wonder... Read More
Bosnia-Herzegovina (heretofore "Bosnia") is an artificial polity with four, tangentially... Read More
Introduction:Although politicians and so-called "Intelligence Experts" are the ones appearing... Read More
The shouting is over and directions for the next four... Read More
As you know Delta Airlines is close to bankruptcy. Their... Read More
I was dismayed to learn the other day, that my... Read More
Roberto Calvo Macias, a young author and thinker from Spain,... Read More
1) IS HAVING A DEMOCRACY MORE EFFECTIVE IN ADDRESSING POLITICAL... Read More
Legislation is getting legs to further curtail your use of... Read More
Why did FDR say Benjamin Franklin, Thomas Jefferson and Count... Read More
The US Dollar has been falling continuously in last year.... Read More
All the indicators show an improving economy and, finally, the... Read More
Many folks who are pro-NASA and Pro-Space Colonies say that... Read More
Political |