Los Angeles Saints

[4bubba]

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New Hope ??


Wednesday, April 6, 2005

Associated Press

BATON ROUGE, La. -- Gov. Kathleen Blanco says she has an offer for New Orleans Saints owner Tom Benson. She wouldn't give any details, but said she plans to call him this week to set up a meeting.

"I just want to see his reaction to our offer," she said during a visit to a high school in Tensas Parish.

Blanco said she will release details once she has made the offer, whether or not Benson takes it.

"This is not a negotiated offer," said Denise Bottcher, the governor's press secretary.

The Legislature would have to approve parts of a new agreement, as it did the $186 million, 10-year agreement worked out three years ago with Gov. Mike Foster.

The Saints contend they need state cash to keep their revenues in the middle of the NFL pack. Blanco says the state cannot afford the current deal.

Last year, the state had to borrow $7 million from an economic development fund to make a $15 million guaranteed payment to the Saints. This year's shortfall is expected to be $9 million.

The state is considering a refinance of the debt on the Superdome to pay off this year's shortfall.

The Blanco administration briefed New Orleans-area legislators and Capitol leaders in January before beginning negotiations with the Saints. The governor said then that she wants to wean the team off fixed guarantees from the state, and suggested that the team could pick up at least a quarter of the tab for a proposed $170 million renovation of the Superdome, since more fancy boxes would bring in more money.

Since then, she's been silent, at the Saints' urging, about the progress of talks.

Sen. Jay Dardenne, R-Baton Rouge, said Tuesday that he hopes Blanco confers with legislative leaders before making an offer to the Saints. "If she hasn't done that, that seems to me to be a strategy that ought to be rethought," he said.

Rep. Jim Tucker, R-Terrytown, said he thinks it's smart to keep the talks quiet. "The problem with bringing too many people in is you get rumors and innuendoes floating around," Tucker said. "They need to keep it private at this point."

Bottcher said she doesn't know how soon the state would sit down with the Saints should Benson spurn the governor's offer. "Is this the deal-breaker?" she said. "That I don't know."

 

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Updated: April 11, 2005, 5:52 PM ET
State wants to see team's financial books
Associated Press


BATON ROUGE, La. -- The state is asking the Saints to put $40 million toward renovations of the Superdome in its formal offer to team owner Tom Benson, and Gov. Kathleen Blanco said Monday that she wants a peek at the team's financial books if Benson rejects the state's offer and wants further negotiations.

State officials offered a final proposal to the Saints two weeks ago at their final meeting to work on a renegotiated deal to keep the NFL team in New Orleans. Negotiators for both sides now are waiting for Blanco and Benson to sit down and talk about the offer.

A meeting date hasn't been set.

"I'm asking Mr. Benson to make some sacrifices and some personal investments," Blanco told the Press Club of Baton Rouge.

Benson, who was out of town until this week, has received a full report on where the negotiations are, said Saints vice president of administration Arnold Fielkow.

"He has been fully briefed on the negotiations, the offers and where the discussions are," Fielkow said Monday afternoon. "He is in the process of studying the state's offer and considering his options."

Fielkow said he was unaware of any effort by the governor to set up a meeting, however.

The state's proposal would require the team to give up some of its annual cash payments from the state, though Blanco wouldn't say how much the state is asking the NFL team to relinquish.

Blanco is trying to renegotiate the current $186 million agreement that was worked out in 2001 by the administration of former Gov. Mike Foster and calls for annual payments to the team. The current deal ends in 2010, but allows the Saints to exercise an option after this season to pay an $81 million penalty and leave New Orleans.

The Saints say they need the state infusions of cash to stay competitive in the NFL, but the state has had a hard time keeping up with the payments. The state had to borrow money to make the most recent payment last year and is projected to be $9 million short this year.

"I'd like to not have this annual struggle," Blanco said. "I'd like it to be affordable."

As part of a new deal, Benson originally pushed for a new stadium, but both sides have settled on a renovated Superdome -- which is estimated to cost $168 million -- with beefed up amenities that would help generate more dollars for the team. Blanco wants the Saints to pick up $40 million of that cost.

And if the state's offer "is not satisfactory" to Benson, Blanco said she wants the Saints to open their books to explain why the team needs more money than the state is offering.

 

[4bubba]

Updated: April 27, 2005, 6:48 PM ET

Saints walk away from bargaining table ... for now

Associated Press
National Football League News Wire

BATON ROUGE, La. -- New Orleans Saints owner Tom Benson on Wednesday rebuffed a call by Gov. Kathleen Blanco to meet soon to resolve stalled talks aimed at securing a long-term Louisiana Superdome lease for the NFL team.

Benson said in a statement that the Saints would "look forward to continuing our dialogue with the state" after the 2005 NFL season is over. He said he made the decision after consulting with the NFL, other team owners and his family.

"After much deliberation, I believe it is in everyone's best interest to continue to operate under the existing agreement reached with the state and approved overwhelmingly by the Louisiana Legislature only three years ago," Benson said. "I would also expect the state to do likewise."

Blanco had invited Benson to the Governor's Mansion this week or next to resolve the dispute. There was no immediate response from the governor's office about Benson's latest statement.

Blanco has offered to launch a $168 million renovation of the Superdome for the Saints, giving the team more expensive box suites and sideline seats.

In return, Blanco wants Benson to pay $40 million toward the cost of the stadium makeover and take a cut in the annual guaranteed payment the team gets under the contract signed in 2001 by then-Gov. Mike Foster. The current contract guarantees the franchise $186 million in cash subsidies over 10 years.

The state is due to pay the team $15 million by July 5, but Blanco said the revenues that finance the deal are expected to fall about $9 million short. The state had to borrow money last year to make the payments.

A package of bills has been filed for the legislative session to help finance a possible deal with the Saints, including proposals to raise the hotel-motel tax in Orleans and Jefferson parishes; to institute a 10 percent tax on tickets to Saints games and other National Football League events at the Dome; and to increase the auto rental tax.

"In the big scheme of things, the governor wants to move on" to other pressing matters in the legislative session if a deal cannot be struck, said Tim Coulon, Blanco's chief negotiator and chairman of the Superdome Commission. "If the Saints aren't interested, we need to eliminate that from the agenda."

The state will default on the contract and the Saints can then move with no default payment of their own.


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[4bubba]

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The Saints will make New Orleans pay every dollar of the 15 million owed to them.

If New Orleans comes up with the 15 million dollars, the Saints will then have Los Angeles and the NFL come up with the 81 million after the 2005 season to void the contract.

If New Orleans defaults on the 15 Million, the Saints will immediately void the contract and offer New Orleans to have the Saints stay in New Orleans for the 2005 season for free. (because the other teams travel plans have already been made to come to New Orleans)

Either way, there is a 90% chance the Saints will be in Los Angeles starting in the 2006 season.


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From previous article May 25, 2004


.....If the state does not come up with the money by July 5, it could be placed in default. If the default is not addressed within 75 days, the team would be free to move without repaying any of the money it has already received from the state.

75 days from July 5 is September 19. The season will have already started.

 

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Updated: April 29, 2005, 11:20 PM ET
Coulon: Saints rejected the state's ``final and best offer''
Associated Press
National Football League News Wire

NEW ORLEANS -- The New Orleans Saints offered to pay up to $17.5 million toward Louisiana Superdome renovations and also sought cash subsidies that would have required $16 million in new taxes, leaving the team and the state tens of millions of dollars apart when negotiations over a new and longer stadium lease broke off this week, Superdome Commission chairman Tim Coulon said.

"I would say the Saints have not accepted our last offer, which we considered to be our final and best offer," Coulon said Friday. "Where we go from here is, we live under our existing agreement."

Saints owner Tom Benson has cut off negotiations until after the 2005 season, at which time he could opt out of the current lease by paying the $81 million and then sell or move the team. The NFL has repeatedly said that bringing a team back to Los Angeles, either through relocation or expansion, is a priority.

"It's about leverage. It's about creating an opportunity for fear -- fear factor among those who support the Saints," Coulon said, recalling what happened when the current deal was renegotiated from a previous, then-active lease in 2001. "In 2001, the state had a deal with the Saints, and the Saints said it wasn't good enough because the climate had changed in the NFL. The state stepped up and changed the deal. Now the climate is different for the state.

"We're optimistic their intent is consistent with what Mr. Benson has said, and that's to stay in the city," Coulon added.

Coulon acknowledged that the Saints had agreed to eliminate the 2006 escape clause from the current lease if the state would eliminate its own, which takes effect in 2007.
Coulon said the state refused because the state's ability to end cash subsidies early gives it more leverage in renegotiating a longer lease that is more favorable to taxpayers. The New Orleans-area hotel and motel taxes dedicated to the current lease are expected to come up about $9 million short this year alone.

Most details of the negotiations, aimed at ensuring the Saints remain in New Orleans at least another 20 years, had been kept confidential until Coulon and Superdome official Doug Thornton decided to meet with reporters on Friday afternoon.

The pair said the they had, under Gov. Kathleen Blanco's direction, offered the Saints a generous deal that would have given the team an opportunity to be in the top half of the NFL in revenue.

In their "final" offer, state negotiators, led by Coulon, asked the Saints to pay $40 million -- or a little less than 25 percent -- of a Superdome renovation now estimated to cost around $174 million. The state also offered to continue to pay the current annual cash subsidy -- totaling $50 million -- until completion of the first phase of renovations for the 2007 season. After that, under the state's proposal, the cash payment would have dropped to $14 million, then to 9.5 million when the renovation was complete for the 2008 season, but rising 2 percent annually from there.

That plan would have required the state to raise $12 million in new taxes. The Saints wanted the new schedule of cash payments to begin at $13.5 million in 2008, Coulon said.

"It's beyond the threshold of pain," Thornton said of the Saints latest offer, which would require $4 million more in new taxes over what the state offered even if the Saints also agreed to pay $40 million toward renovations. "What we were trying to do is reach a framework of an agreement, and to get any tax passed would be a Herculean effort."

Coulon also pointed out that the Saints never allowed state negotiators to see hard financial data from the team or the NFL.

"We asked the Saints to substantiate the need as opposed to a want. That was never forthcoming," Coulon said.

Benson could still change his mind and accept the state's latest offer until March of 2006, after which the terms would change because of a projected 3 percent annual increase in construction costs, Thornton said.

Saints officials declined to comment Friday on their view of the negotiations.

Blanco had sought to call Benson to ask him whether he'd change his mind and resume negotiations sooner than 2006, but Coulon said those efforts were unsuccessful as far as he knew.

"If there's an opportunity, we'll move forward, but there has to be two of us to share information. Right now the Saints have chosen not to," he said.

According to figures supplied by Coulon and Thornton, the Saints' last proposal would have cost state taxpayers $100 million more over the 20-year length of the agreement.

They also pointed out that around the NFL, owners have contributed an average of 35 percent of the cost of stadium renovations or new construction. The state asked the Saints to contribute 25 percent and the team only offered to pay 10 percent, even though the NFL has a loan program to help teams pay for portions of renovations or new construction.

A recent example held out by Thornton was Atlanta Falcons owner Arthur Blank's offer to invest $150 million to improve the Georgia Dome in hopes of hosting the 2009 Super Bowl.

The state negotiating team also estimated the Saints could potentially earn more money under their proposal than if the current deal was extended over the same amount of time, depending on team performance.

The idea behind the renovation is -- while improving the state's property -- to give the Saints more amenities with which to generate money, such as more private suites, concession stands, club lounges, even more bathrooms to reduce lines and allow fans more time to watch the game and spend money.

The state estimated those new amenities could allow the team to immediately earn an additional $12 million to $15 million per year. Combined with the lower cash payment, the total would still exceed the value of the current deal, Thornton said.

The problem for the Saints, however, is that the team likely would have to win on the field to lure the type of crowds necessary to realize the state's most optimistic financial projections.

"Obviously that means they'd have to bear ... a percentage of risk," Coulon said. "They'd have to bear some of the burden to fill the stadium, to fill the suites."

Currently, in addition to the cash payments by the state, the Saints' lease calls for the state to pay for game-day expenses as well as debt service on and maintenance of the Superdome. That would remain the same under the state's latest offer.

The Saints also would keep all parking, premium seating and advertising revenues as well as 42 percent of concession revenues.

 

[4bubba]

Updated: May 6, 2005, 4:03 PM ET
Pasadena residents favor addition of NFL team
Associated Press
National Football League News Wire

PASADENA, Calif. -- A poll shows a majority of the city's registered voters favor bringing an NFL team to the Rose Bowl.

The poll, released Thursday by the Rose Bowl Operating Company, found 58 percent of respondents "strongly favor" or "somewhat favor" making the 83-year-old stadium the home field for an NFL franchise. Thirty-three percent "somewhat oppose" or "strongly oppose."

On Monday, the City Council will begin reviewing an environmental study on the impacts of rebuilding the Rose Bowl to meet NFL standards. The council must certify the report to continue negotiations with the league.

According to the survey, 78 percent of respondents think the City Council should seriously consider making the NFL a long-term tenant at the Rose Bowl when the stadium's financial woes are taken into account. Nineteen percent oppose the idea.

A total of 808 people responded to the poll, which had a margin of error of plus or minus 3.5 percent, and was conducted by the Santa Monica research firm Fairbank, Maslin, Maullin & Association.

The Rose Bowl is one of several potential NFL venues in the Los Angeles area, which has been without a team since the Rams moved to St. Louis and the Raiders returned to Oakland before the 1995 season.

 

[4bubba]

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OPEN LETTER FROM SAINTS OWNER TOM BENSON
April 27, 2005, New Orleans Saints
Apr 27, 2005 ? 4:34 pm



I would like to thank Governor Blanco and the negotiation teams for both the State and the Saints for their time and effort over the past several months. Many ideas have been discussed between our organization and the State in order to address the increasingly competitive economics of the NFL as well as the challenging economic marketplace in which we find ourselves. Since I acquired the team over 20 years ago to prevent it from being moved to another state, it has been my sincere desire to keep the Saints in New Orleans.

Over the past few weeks, I have had an opportunity to consult with the League, other NFL owners and my family regarding the State-Saints discussions. After much deliberation, I believe it is in everyone's best interests to continue to operate under the existing agreement reached with the State and approved overwhelmingly by the Louisiana legislature only three years ago. I would also expect the State to do likewise.

I am excited about the Saints prospects for the 2005 NFL season and, at this time, all of the energies of our organization will be focused on making this season a special one for all of our fans. At the conclusion of the Saints season, we once again look forward to continuing our dialogue with the State.



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Tom Benson

 

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Updated: May 12, 2005, 9:01 AM ET
State looks at threat to move as bargaining tactic
Associated Press
National Football League News Wire

NEW ORLEANS -- State officials say they are not surprised by a report that New Orleans Saints owner Tom Benson is looking at San Antonio as a possible new home for the team, labeling the threat a bargaining tactic.

Benson recently cut off talks with the state about a new long-term agreement to keep the Saints in New Orleans until after the upcoming season.

"It doesn't surprise us at all that they will be rattling the saber a little bit to bring more tension to the situation," said Doug Thornton, regional vice president of SMG, the company that operates the Superdome. "This is not new. This is what NFL teams do."

In a story in Wednesday's editions of the San Antonio Express-News, Stanley Rosenberg, Benson's attorney and a member of the team's board of directors, said the Saints' owner is interested in moving the team, possibly to San Antonio, his second home.

Rosenberg also met with representatives of New Mexico Gov. Bill Richardson to discuss the possibility of the Saints' moving to Albuquerque, the newspaper reported.

Rosenberg, one of Benson's key negotiators, also said he has received several offers from outside interests to buy the team, including one for more than $1 billion.

When reached Wednesday at his office, Rosenberg declined to comment other than to confirm that the highest offer Benson has received for the team was "for more than $1.2 billion." The Saints also declined comment.

Gov. Kathleen Blanco said she wasn't surprised the Saints camp raised the possibility of relocation, but she said Louisiana has made a fair offer to Benson. She said she doubts the team can get a better offer elsewhere.

"I still think we offered a great deal to the Saints right now, to Mr. Benson in particular," Blanco said.

The Saints' current agreement, which runs through the 2010 season, includes an exit clause that lets the team leave Louisiana after this season by repaying the $81 million it received during the first four years of the deal. The state can opt out of the deal after the 2007 season.

"We're not going to give them a single legal leg to stand on that would allow the team to leave without paying a penalty," Blanco said. "It's hard for me to predict what their goals are."

The Saints called off negotiations after reviewing a state proposal focused on a $174 million Superdome renovation, with the Saints contributing $40 million, that would increase the team's ability to make money but also reduce the amount of guaranteed income from the state after the renovation is complete.

The state package includes $267 million in guaranteed money for the team, $134 million toward the Dome renovation and an estimated $336 million in additional revenue the Saints could earn after the renovations are complete.

Including the stadium renovation, the state estimates its proposal is worth $737 million from now through the 2025 season.

NFL spokesman Greg Aiello said the Saints have not applied for relocation, the first step in a lengthy procedural process required by the league to move a team. Any proposed relocation by a franchise requires the approval of 75 percent of NFL owners, or 24 of 32 teams.

"We expect the Saints' emphasis to continue to be to negotiate a deal with the state and honor their contract," Aiello said. "All teams, under league rules, must honor their stadium leases."

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Updated: May 18, 2005, 2:32 PM ET

Poll: Overwhelming number oppose tax support for Saints
Associated Press
National Football League News Wire

NEW ORLEANS -- Nearly three out of every four Louisiana voters oppose giving tax dollars to keep the NFL's Saints in New Orleans, according to a poll compiled for a state lawmaker.

Gov. Kathleen Blanco has been attempting to get Saints owner Tom Benson to renegotiate a deal giving the team $186 million over 10 years, saying the state cannot afford it. The contract was negotiated by then-Gov. Mike Foster and approved by the Legislature.

Benson recently canceled additional negotiations until after the 2005 season when the Saints have their first opportunity to negate the current deal and move by repaying the $81 million the team received during the first five years of the contract. The state can opt out of the deal after the 2007 season.

Pollster Verne Kennedy's Florida-based Market Research Insight conducted the statewide telephone poll of 350 voters April 22-25 for Sen. James David Cain, R-Dry Creek. The poll asked: "Do you favor or oppose the use of tax dollars to keep the New Orleans Saints in Louisiana?"

Of those who responded, 62 percent were strongly opposed to using tax dollars, 7 percent were somewhat opposed, 8 percent were undecided, 9 percent were somewhat in favor and 14 percent strongly were in favor.

When the undecided voters were taken out, 67 percent strongly opposed using tax dollars to keep the team, 8 percent were somewhat opposed, 10 percent were somewhat in favor and 15 percent were strongly in favor.

The poll had a margin of error of plus or minus 5 percentage points, Market Research Insight said.

In a statement, Cain said he was "only the messenger," but added: "It's just not right for us to give corporate welfare to one business, just because it is a football team, while we are taxing other businesses so much they are leaving the state."

"Clearly, Louisiana's image is enhanced if the Saints stay in Louisiana, but the voters are opposed to having any more state tax dollars spent on a football team," Cain said.

The Saints did not respond immediately to a call for comment on the poll. The Blanco administration did not immediately comment.

Benson called off negotiations after reviewing a state proposal focused on a $174 million renovation of the Louisiana Superdome with the Saints contributing $40 million. The Blanco administration said that deal would increase the team's ability to make money, but also reduce the amount of guaranteed income from the state after the renovation is complete.

The state proposal includes $267 million in guaranteed money for the team, $134 million toward the stadium renovation and an estimated $336 million in additional revenue the Saints could earn after the renovation is complete.

Last week, Stanley Rosenberg, Benson's attorney and a member of the team's board of directors, said Benson was interested in moving the team, perhaps to his second home in San Antonio. Rosenberg also said the Saints had discussed the possibility of moving to Albuquerque, N.M., and that Benson had received several offers to sell the team, including one for more than $1 billion.

State officials said they considered the report a bargaining ploy by the Saints.

On Monday, the Senate Finance Committee voted 7-2 to kill a bill that would bar giving the Saints any more state money to stay in Louisiana.

Sen. Rob Marionneaux, D-Livonia, and the bill's sponsor, said the money would be better spent elsewhere on health care and other state needs. But other lawmakers said that the bill would break the existing contract, costing the state millions of dollars in penalties and could reflect badly on the state when it tries to enter into other economic development deals.

 

[SALTY DOG]

I can still remember way back when Saint fans
would wear brown paper bags over their heads
with holes cut out so they could see....did not
want their identity exposed, were ashamed of
their team...THE AINTS.... :mj07:
On the other hand... City of Angels...Saints....
a natural fit....butt a huge push right now in
Anaheim at the platinim triangle to build a mega
attraction linking Disneyland with a monster transit
system to make it more than just a Sunday
afternoon affair...and San Diego is near bankrupt
and will not build a new stadium so it comes down
to Owlins or Chargers...the Saints would be a
perfect name...but who would YOU want on your
roster...the Saints or the Chargers.... :scared

 

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Plan to cut off Saints is rejected
Even critics say state should keep its word
Tuesday, May 17, 2005
By Robert Travis Scott
Capital bureau

BATON ROUGE -- Although some members of the Senate Finance Committee expressed strong criticism of the state's contract with the New Orleans Saints, they voted 7-2 Monday to reject a bill to cut off all direct payments to the National Football League team.

They said they could not support the proposal because the state must stand behind its commitments with private sector enterprises.

Sen. Rob Marionneaux Jr., D-Livonia, who represents residents of six parishes around Baton Rouge, testified in favor of his Senate Bill 18. He has been a vocal critic of the contract, which guarantees the team $186 million in 10 years, including a $15 million payment due July 5. The state borrowed $8 million to make the payment last year, and officials say they are facing a similar shortfall this year.

Marionneaux's bill says, "No state funds shall be appropriated or otherwise granted, paid, or loaned to, or otherwise provided for us by, or primarily for the benefit of any National Football League franchise."

Marionneaux said the bill would effectively cancel the state's contract and forbid the state from any future agreements that give or loan money to the team. He said he supports the state's proposal to renovate the Superdome, where the team plays, and that his bill would not prevent that from happening.

Nearly 500 of Marionneaux's constituents responded to a survey he mailed about three weeks ago, and 482 of them said they did not want to see any further state support for the Saints.

Sen. Butch Gautreaux, D-Morgan City, was one of several members of the panel sympathizing with Marionneaux's concern that the state is paying too much to Saints owner Tom Benson and that it might agree to another expensive deal.

"He wants more money, and we can't afford to give it to him," said Gautreaux, who said he voted against the bill because he thinks the state must honor its contract.

Committee Chairman Francis Heitmeier, D-Algiers, who also opposed the measure, reminded the committee members that the Legislature signed off in 2001 on the state's financial commitment to the Saints.

The agreement includes an exit clause that lets the team leave Louisiana after next season by repaying the $81 million it received during the first four years of the deal. If the Saints do not take the option, the deal remains in place.

The state also has a one-time, 30-day exit clause after the 2007 season.

The Saints recently called off negotiations to revamp and extend the contract, after reviewing a state proposal focused on a $174 million Superdome renovation. State officials have said the proposal would increase the team's ability to make money but reduce the amount of guaranteed income from the state after the renovation is complete.

 

[4bubba]

Updated: May 25, 2005, 7:25 PM ET
Progress made on team in LA, but no timeline set for stadium selectionAssociated Press
National Football League News Wire

WASHINGTON -- NFL owners received updates this week on the three remaining sites that could host a team in Los Angeles, although the talk of returning to the country's second largest city was overshadowed by the league's labor situation.

The league is working on contingency agreements with the three sites: the Los Angeles Coliseum, the Rose Bowl in Pasadena and a parking lot next to Angel Stadium in Anaheim.

 

[4bubba]

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Tagliabue plans to join Saints talks
Posted: Thursday May 26, 2005 10:25AM; Updated: Thursday May 26, 2005 10:25AM

What the NFL learned from Al Davis/Raiders
Fearing that the NFL would be guilty of conspiracy in getting the Saints to move to Los Angeles, Tagliabue decided to act like he wants the Saints to stay in New Orleans, which is totally false.

NEW ORLEANS (AP) -- NFL commissioner Paul Tagliabue says he plans to talk with New Orleans Saints owner Tom Benson and then Gov. Kathleen Blanco to see if he can get the two sides to restart stalled talks over a Superdome lease.

Benson called off negotiations on April 27 until after the 2005 season. Benson and Blanco have said they want to reach an accord that would keep the Saints in New Orleans at least through 2020.

The current $186 million deal, which expires after the 2010 season, enables the Saints to end the deal by paying the state about $81 million.

"I think I'm concerned any time negotiations break down, which seems to be the case," Tagliabue said at the NFL owners' meeting in Washington. "I'm expecting to talk to Tom in the next couple of days about his sense of where they are."

Blanco's chief negotiator, Tim Coulon, said he believes the governor would welcome involvement by the commissioner.

"I'm sure the governor would look favorably upon that," Coulon said. "The ball's been in Mr. Benson's court for some time now."

At the heart of the talks has been a $174 million renovation of the Superdome that Blanco says would give the Saints a chance to make more money without direct subsidies from the state. Benson has preferred a new stadium, but has said he is willing to consider overhauling the Superdome.

On Tuesday, Benson said that the renovation does not provide a long-term solution to the stadium issue. Pouring millions into the third-oldest stadium in the NFL is a "halfway job" that is "not going to resolve anything," he said.

Speaking in Baton Rouge, Blanco disagreed.

"So many people still value the Superdome." the governor said. "We think it's a terrific facility. With a significant facelift, I think it would serve him and us for many years to come."

 

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Public enemies


Why should taxpayers build stadiums for owners?
Posted: Wednesday May 25, 2005 3:10PM; Updated: Thursday May 26, 2005 11:40AM


Just askin', but what is so darned important about a new stadium that states and cities should hand over buckets of public dollars while real necessities go wanting?

I'm just a simple man who puts his pants on one arm at a time, so I got to wonderin' after I read that owner Red McCombs was moved to sell the Minnesota Vikings due to the difficulty of getting taxpayer support for replacing the Metrodome.

My reaction was, "Why the hell should taxpayers support a new stadium that mainly benefits a private business? How many taxpayers are sports fans, and how many fans have the bucks or opportunities to attend games?"

Hardly a year goes by when one owner or another isn't threatening to blow town unless he gets a new palace at public expense. The Florida Marlins have Atlas Van Lines on speed dial. Tom Benson may boogie out of New Orleans with the Saints unless the Superdome is renovated or replaced. Ditto the Chiefs in Kansas City, where Jackson County's coffers are so light it can't meet its upkeep obligations on Arrowhead Stadium.

Why should a county be responsible for upkeep?

Here in New York, there are two huge deals in the works. One is a new Yankee Stadium at a cost of $800 million to carried by the Yankees, largely with dough that would otherwise go into Major League Baseball's revenue-sharing plan. New York City and state will reportedly kick in $300 million for a commuter rail station, improved parking and a waterfront park.

OK, maybe I'm just a cynical old killjoy, but I've had enough bitter experience with contractors to know that cost overruns are inevitable and price tags inevitably wind up like hot soup in the lap of the consumer.

The second deal makes my head explode. Mayor Michael Bloomberg, Governor George Pataki and assorted poobahs are clamoring for a new stadium for the New York Jets in the mind-blowing neighborhood of $2.2 billion. It would the 2010 Super Bowl and 2012 Summer Olympics -- one-off events with their own price tags -- plus Jets games, conventions and trade shows. Does that justify the city and state forking over millions apiece in public funds while the land the stadium will sit on -- land appraised at $923 million by the way -- is sold to the Jets for the low, low discount price of $250 million?

That there piece of land is owned by the Metropolitan Transportation Authority, which is always screaming that it's 95 cents short of a dollar. The MTA has hiked fares in recent years to the point where it now costs me $353 a month to commute to work on their choo-choos. Might the MTA need that extra $673 million? Or am I just dense? Stadium opponents also point out that the money and land would be better used to address crucial issues such as affordable housing and overcrowded schools.

The Guv'nuh has rolled out the boilerplate about tremendous opportunity for economic development blah blah blah and U.S. Olympic Committee Chairman Peter Ueberroth has wagged his finger at state lawmakers, warning that NYC may lose its bid for the 2012 Games if it doesn't cough up the cake. The final decision will be made without public input. As the late Mr. Rogers woul intone, "Can you say outrage?"

Does it stick in your craw that the people who will pay for billionaire Jets owner Robert W. JohnsonIV's sweetheart deal will likely never get into his new pigskin emporium? It's possible that personal seat licenses will tack $5,000 onto the cost of a season ticket. You already have to pay $50 for the privilege of putting your name on a waiting list for Jets tickets that is 10 years long.

I realize that stadium scenarios differ, but shouldn't owners and leagues pay their own way? As it is, the common fan is being priced out in the quest for ever larger revenue streams to cover insane player salaries. The new Yankee Stadium will have about 7,000 fewer seats but more luxury suites. What does that say?

"This whole thing, combined with all the other thievery and depredations being committed has thoroughly killed any remaining enthusiasm I have for pro team sports," writes Brian Donohue of Brooklyn, NY. "Indeed, a pox on all their houses."

Hey, I can see why the Marlins want a new ballpark. They hold a lousy lease on a football stadium in a beastly climate. I also see why the state of Florida is balking at giving them a $60 million tax rebate after pledging a reported $166 million. I'm just not convinced that a new stadium guarantees high attendance or benefits that outweigh things like affordable housing, education, and health care.

 

[RAYMOND]

what up bubba , how that hangover doing from the super bowl party

 

[Cie]

Blanco backing new taxes to pay Saints
Bills target hotel rooms, car rentals, football tickets
Monday, May 30, 2005
By Robert Travis Scott

Capital bureau


BATON ROUGE -- Gov. Kathleen Blanco will push for new taxes on New Orleans hotels, rental cars and football tickets this week as a way of raising money to help meet the state's annual payments to the New Orleans Saints.

Two administration bills that would create about $12 million in new annual revenue, drawn mainly from Saints fans and the tourism industry in Orleans and Jefferson parishes, are scheduled for a House committee hearing Wednesday.

Andy Kopplin, Blanco's chief of staff, said the governor had hoped to raise the additional revenue to support a proposed long-term contract between the state and the Saints that included a state renovation of the Superdome. But team owner Tom Benson has cut off talks toward a deal, leaving the state with its current obligation to the team, he said.

"We'd rather come to the legislature with these revenue sources for a long-term deal" with the Saints, Kopplin said. "Unfortunately, because Mr. Benson has yet to say yes, we have to come forward for the revenue to meet the existing contract."

The problem is not the overall state budget, but the budget for the Superdome Commission, which relies on revenue from the hotel occupancy tax and events at the Dome and New Orleans Arena. Since the 2001 terrorist attacks, hotel revenues have not met expectations, the Dome's insurance costs have skyrocketed and officials have been unable to sell the naming rights to the stadium.

Meanwhile, the state is locked into a 10-year, $186 million deal with the Saints that includes annual cash payments, free Superdome rent and concession sales revenue for the franchise.

The commission is the conduit for the state's annual subsidy payments to the Saints. Its budget will fall as much as $10 million short on its $15 million payment due the Saints on July 5, Dome officials said Sunday. The outlook for next year is even worse, when the commission probably will fall short of its July 2006 Saints payment by $13 million, the officials said.

The issue arose during state budget hearings Sunday before the Senate Finance Committee. Superdome General Manager Glenn Menard and Senior Director of Finance and Administration David Weidler presented the figures and noted the administration bills coming up for hearings this week.

One of the bills would levy a 5 percent tax on auto rentals in Jefferson and Orleans parishes and generate about $500,000 per year.

The other would increase the state's tax on hotel rooms in the two parishes from 4 percent to 5 percent, bringing in an additional $7 million to $8 million per year. The bill also would permit a "sports development fee" at the Superdome of as much as 10 percent for tickets to Saints games or any other NFL event, generating about $3.2 million of revenue per year. Up to 10 percent could be charged for food, beverages, catering and merchandise sold in the Dome for any event, generating about $515,000 per year.

The Dome commission would set the sports fee amounts and approve rules for charging them.

The bill does not call for a tax on tickets or concessions at the neighboring New Orleans Arena. But the bills were filed just before the current legislative session began, and it is common for administration bills to be changed during their first appearance in a Legislative hearing.


Lawmakers' reactions

Senate Finance Committee Chairman Francis Heitmeier, D-Algiers, said some combination of the proposed taxes would answer the perennial Saints shortfall, and that he supports the legislation.

"We don't want to keep coming back each year with the same problem," Heitmeier said.

But Sen. Art Lentini, R-Kenner, who sits on the finance panel, said, "I am not convinced of that." He said the state should consider the taxes if the Saints get back into the picture with a new long-term agreement that requires additional state revenue. But he is skeptical of Blanco's proposed taxes as a solution to meet the current Saints contract.

The local hotel industry has in principle gone along with the idea of a higher room tax if the state enters a long-term deal with the Saints, but hotel officials have not favored the proposal to meet the current Saints contract. The overall room tax currently is about 13 percent.

Kopplin said the administration has been talking with hotel officials as recently as Friday. "The industry has indicated its willingness to work with the governor on this issue," Kopplin said.

Some New Orleans lawmakers want to use at least part of a new hotel tax to finance local projects unrelated to the Saints, such as crime prevention and medical research.

But Kopplin said, "The governor's priority is addressing the shortfalls with the current obligation with the Saints, and that's going to be her focus" with the bills.


In the hole

Kopplin said it is especially important to find new money to support the state's obligation to the Saints because the team has the option to buy itself out of the current contract after this fall's football season. Also, the state must live up to its contract, he said.

Last year, the Dome Commission borrowed money from a state economic development program to make the 2004 annual payment to the Saints. To pay back that loan from one state agency to another, and to consider other long-term financing options, the state has hired a Wall Street investment firm to look for ways to leverage the revenue from the proposed new taxes.

The Dome's financial woes do not end with the Saints. Officials said Sunday that the Dome's budget for maintenance and renovation is not being replenished year to year. Under state law, when the commission makes more money than needed for operations costs and other financial obligations, it must apply the first $2.3 million in revenue above that amount to its maintenance and renovation fund. But the commission has been broke and hasn't paid into the fund for the past three years, they said.

The Dome has a backlog of maintenance and renovation costs of more than $4 million. Dome officials requested that money be placed in the state's construction budget for next year to meet that need, but the request was denied, they said.

The Dome and Arena are managed and staffed by SMG, a national events management company. To save costs, in the past two years the operation has cut 27 positions, saving about $1 million per year.

. . . . . . .


Robert Travis Scott can be reached at rscott@timespicayune.com or (225) 342-4197.

 

[Cie]

Saints are going nowhere. Ticket sales have started slowly because of ????? about the future. Benson has stated his intentions---> Staying in New Orleans and handing over power of the team to his Granddaughter Ticket sales will now pick up nicely, eventually reaching last season's range of 50,000+.

 

[4bubba]

////


Cie,
it looks like you are right, but from a different angle. It appears L.A. wants the team much less than the NFL


Updated: June 7, 2005, 4:17 AM ET
Council vote takes Rose Bowl out of running for NFL stadium site
Associated Press
National Football League News Wire

PASADENA, Calif. -- The City Council voted 4-2 to drop its bid to bring an NFL team to the Rose Bowl early Tuesday after nearly seven hours of debate, leaving just two of four original cities among those vying to host a national franchise in greater Los Angeles.

Council members Chris Holden and Joyce Streator, the two strongest NFL supporters, conceded defeat after Councilman Steve Madison surprised many residents by voting against the proposal. Many had thought Madison, one of three swing voters on the council, would support the deal.

"I am thrilled, ecstatic, and I praise Steve for sorting it out the right way," said Sue Mossman, executive director of Pasadena Heritage, which opposed the NFL bid.

The Rose Bowl loses about $2 million annually, which is covered by subsidies from Brookside Golf Course.

The city's finance director, Jay Goldstone, issued a memo Friday stating that the NFL deal would bring $133 million in taxes, rent and cost savings to the city over the life of the 25-year lease, the Pasadena Star-News reported Tuesday.

The city was believed to be asking at least $1 million in annual rent from the NFL. The Star-News reported, however, that the NFL had offered less than $325,000 in annual rent and that the difference in figures had created some doubts for council members who initially supported the plan.

Opponents argued that the NFL would bring too much traffic, displace park users from the Arroyo Seco and threaten the Rose Bowl's historic status.

Last month, Carson dropped out of the race after city officials announced they would instead focus on developing a massive retail outlet on a 157-acre property between two freeways. The two locations still in the running are a parking lot next to Angel Stadium in Anaheim and the Los Angeles Coliseum.

The region has been without an NFL franchise since the Rams left Anaheim for St. Louis and the Raiders left Los Angeles for Oakland before the 1995 season.

 

[SALTY DOG]

I think you will find out in the near future that
the "parking lot next to Angel Stadium", is just
a tad more than that. Disney is not just about
parking lots, and San Diego is in the crosshairs.