National Stadium Expert: Public Should Not Subsidize PawSox to Stay in Pawtucket
Saturday, January 28, 2017
A leading sports economist is saying that he would personally advise no public money be spent on rehabbing - or rebuilding - McCoy Stadium for the Pawtucket Red Sox, after a report released this week showed that it would cost $68 million to renovate McCoy, and at least $78 million to construct a new stadium.
“As an economist, I would personally advocate for no public money beyond a provision to infrastructure around the stadium to fans can get to the games,” said Victor Matheson, who is a Professor of Economics at Holy Cross, whose focus is on sports. “That being said, there are certainty sports fans who think that having a AAA team in town is a nice amenity for local residents so might be worth some public money. So, some level of ask might be able to get public support.”
The 182 page report, which was paid for by PawSox owners, the City of Pawtucket, and State of Rhode Island, outlined what would be needed to fix the 75-year old facility, whose lease from the state expires in 2021.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe consultants themselves concluded that the “typical goal of a public investment of this nature, to generate a significant return on that investment driven by ancillary development around a new stadium - will ever be realized at this site.”
Meanwhile, Matheson spoke to reports that the PawSox ownership could be eyeing the site where Apex currently stands in Pawtucket - which was not evaluated in the report.
“If stadium construction is wildly unprofitable at the existing site, there is no reason to believe that another site in Pawtucket would fare much better in the analysis,” said Matheson. “My guess is that a downtown Providence stadium like the previous proposal would have a slightly higher chance of providing an increase in attendance or neighborhood spillovers, but again not enough to justify a big subsidy.”
Picking Apart the Report
Upon reviewing the report, Matheson offered the following.
“Page 132 and 134 say it all,” said Matheson. “Spending $68 million on a major rehab gets you about $22 million back over time. That's a pretty big negative return. Spending $94 million on a new stadium gets you about $24 million back over time. That's even worse.”
“It makes sense to do whatever the owners are willing to pay to have done,” said Matheson. “If they are willing to pay an extra $9 million per year in rent, then build them whatever stadium they want. If they expect the taxpayers to do it all, rehab the stadium just enough to keep it from falling down.”
There has been no ask from the collective billionaire ownership of the PawSox since April 2015, when the owners put forth a proposal for an $85 million stadium in Providence on 195 - that could have cost taxpayers $4 million a year, and drew the rebuke of Governor Gina Raimondo and outraged taxpayer and citizen groups.
“Given the bridges that were burned by the audacious money job by the new owners the first time through, I would be shocked if taxpayers/legislature agreed to give money without at least a 1:1 contribution by the owners,” said Matheson. “I have been wrong before about this, and the taxpayers might become more willing if the PawSox had a credible threat to relocate out of the state - which they don't at the current time.”
SLIDES: PawSox Stadium Aftermath - 2015
Related Slideshow: PawSox Stadium Aftermath: Winners and Losers
The Providence baseball stadium looked like a sure thing. Powerful owners pushing the project. Top politicians coupled with influential lobbyists and PR consultants all on board. Then, everything changed.
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