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Headlines about taxpayer-funded sports facilities always remind me of the old mobster who wanted to go legit — because that’s where the real money is.
The latest example came Aug. 15, when the Penguins broke ground on their new $290 million arena in the Hill District. Chatting with reporters, Penguins owner Mario Lemieux revisited last year’s controversial negotiations, in which the Pens threatened to move if they didn’t get the arena deal they wanted. As news cameras rolled, Lemieux acknowledged that moving “wasn’t a possibility,” but just an effort to “put pressure on the city and the state.”
“Those trips to Kansas City and Las Vegas and other cities were just to go, have a nice dinner and come back.”
Strangely enough, back in the spring of 2007, when the Pens were threatening local officials, they didn’t say anything about the quality of the restaurants. In a public letter, however, they did point out that in Kansas City they had been “greeted by open arms [and] treated as valued new partners in the community. … The terms of the deal offered in Kansas City were for a rent-free arena with no risk of cost overruns …”
Within a few days of that letter, Lemieux got the deal he wanted: Some $10 million in cash upfront, plus millions more in slot-machine revenue, protection from cost-overruns, naming-rights revenue, etc. etc.
In the mob, they call this sort of tactic extortion. But when you’re a millionaire seeking tax subsidies for a nine-digit project, it’s just business as usual: Play cities off each other and get the best deal you can. Even City Paper — which can barely get into Lemieux’s ZIP code, let alone his head — saw this coming. As this space noted in December 2006, if Lemieux wanted to squeeze politicians, he need only “talk about how pleasant winters are in Kansas City.” A week later, Lemieux was off sampling KC’s distinctive cuisine.
But everyone panicked back then, and no one seems to care much about Lemieux’s ruse now. Amongst the folks I’ve heard from, the general feeling seems to be, “Good for Mario for beating those shiftless politicians at their own game!” The fact that it’s our money — every bit as much as if we were paying for some patronage job in Public Works — seems barely to register. For some reason, we resent somebody’s cousin getting a $29/hour construction job more than strong-arm tactics used to land a $290 million arena.
In any case, the surprise here isn’t that Lemieux played the game. The surprise is that he was crass enough to boast about winning it. Even the most egotistical athlete knows that when you land the fat contract, you don’t boast about how you were willing to take a couple million less. You just thank “the best fans in the world,” and shut up.
Ironically, the people who might be hurt most by Lemieux’s remarks are the Steelers, currently seeking tax dollars to finance a new amphitheater they want to build near their taxpayer-underwritten stadium. The proposal has been met with skepticism even from the Pittsburgh Post-Gazette editorial page — which ordinarily can’t say “no” to such deals. The last thing the Steelers need is Lemieux reminding everyone how easy it is for sports franchises to jerk us around.
Of course, there’s always the chance Lemieux didn’t really mean what he said at the groundbreaking. Perhaps he just told Pittsburghers what he thought we wanted to hear on a festive occasion. But actually, I hope Lemieux was telling the truth this time around — even if it means he was ripping us off last year. As I write this, Hill District leaders are preparing to sign a “Community Benefits Agreement” promising jobs and reinvestment as part of the new project. It would be a bad omen for that effort if, at the arena groundbreaking itself, Lemieux was laying a foundation of BS.
Besides, team president Ken Sawyer promised that the Penguins are “here in Pittsburgh forever,” and who could doubt the word of a Penguins exec now?
Even so, I’m glad the Pens are a legitimate organization. Because if this were the mob, I’d be worried it was the kiss of death.
This article appears in Aug 21-27, 2008.
I think if your a resident of Allegheny County, you should be able to receive a discount off from the purchase of Steelers, Pirates, Pitt and Penguin tickets. When you purchase a ticket, they can ask for your state ID, which normally proves your residence. Why should the tax payers pay full price for a ticket and the sports teams get our money to help the owners make more money. I love sports, but there are more important things in life, like the number of bridges that need repaired, public education and etc…
This article is ridiculous, as it fails to take into account, of course, that the city desperately needed a new multi purpose facility, as Mellon Arena is woefully inadequate. ROI on the building is overlooked as well. Namely the absurd amount of entertainment tax the Penguins generate for the city. In reality the city and county governments get a cut of every Penguin ticket sold, as well as a cut of the ticket for every other event that will be held at the arena. Not to mention the parking tax revenue, as I doubt many hockey fans are walking to the games, and the tax charged on concession items, as I also doubt many fans are brewing their own beer in their seats.
And of course the Penguins are bearing some of the cost for the facility. We could also discuss the economic benefits of the Arena deal, namely jobs for the Hill, service industry revenue generated for local establishments on game days, etc… but the only way this article is exciting is if you instead attempt to besmirch the reputation of a community icon. How thrillingly sensational and fresh your approach is. Lemieux negotiating a better arena deal in this situation is no different than telling a car dealership you may buy that same car from another dealer. Get over it.
If we are going to go along that vein, then everyone in Clarion/Mercer/Venango Counties should be able to go to Allegheny County and use the PAT for free, since now we who use I-80 daily have to pay tolls to cover finances for the PAT that many of us never use.
Descartes —
There are plenty of arguments that could be made for building a new arena. But back in 2007, there was precious little talk of ROI. What filled the air, and the airwaves, was fearmongering about the Penguins’ imminent departure. Now we’ve got Lemieux saying he deliberately exaggerated those fears to get the deal he wanted.
As I said in the piece — and as your remark about haggling over a car suggests — the tactic isn’t exactly new. Some of us saw it coming more than a year ago. But it boils down to this: When it comes to public money, I don’t like being jerked around — by a “community icon” or anyone else. Lemieux traded on his status to get what he wanted, and he used the groundbreaking to remind us of how clever he’d been about it. All of which is his right … but he can’t be surprised when people in Pittsburgh (or Kansas City, for that matter) object.
As for the broader economic benefits, I’m reserving judgment. There’s all kinds of research out there to show that sports stadiums don’t really create economic activity so much as shift it around — from a bar in one part of town to one that is more convenient on game day, for example. In this case, shifting prosperity around would be a good thing: The Hill District could use the help. In fact, my piece DID mention the investment being promised to the Hill. But you know, the Hill has heard that kind of promise before. I hope it turns out better this time, but it’s another reason why I’m not going to follow your advice to “get over” Lemieux’s remarks quite yet. I’ll be happy to do so when the project delivers.
In any case, thanks for taking the time to comment.