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Dave Zirin

Dave Zirin

Posted: August 26, 2010 07:01 PM

Let's look at what we have before us: leaked documents that by all accounts should be part of the public record; an alarming snapshot of corruption, waste, and fraud that connects the seamiest worlds of politics and big business; calls to prosecute whoever might be responsible for daring to drag truth into the light of day.

No, this isn't a summary of the "WikiLeaks scandal" that exposed the brutal facts that surround the US quagmire in Afghanistan. It's Major League Baseball, and the leaked private financial statements that show how some teams, claiming poverty, demanded tax dollars for new stadiums while pulling in record profits. Like with the war in Afghanistan, it's a reminder that, for people in power, words like "democracy" and "transparency" aren't sacred values. They're punchlines.

The leaked Major League Baseball documents show the National Pastime to be an
unaccountable, highly-secretive legal monopoly that demands and receives billions in tax money for publicly-financed stadiums while willfully misrepresenting their bottom line. They show that, despite team protestations of perpetual poverty, the Pittsburgh Pirates have made a fortune while not fielding a winning team in 18 years. Pirates owner Robert Nutting pulled $30 million in profit in 2007 and 2008 despite fielding losing teams with a 23-million dollar payroll, the lowest in the game. As long as he receives revenue from big-market clubs via the luxury tax and extorts millions in revenue from their publicly funded home at PNC Park, he could care less. If the old Willie Stargell Pirates of 1979 won a World Series to the tune of "We Are Family," the Nutting Pirates dance to the beat of "Gangsta Gangsta."

But the worst story to emerge from the documents is that of the Florida Marlins, owned by multimillionaire art dealer Jeffrey Loria. The Marlins have secured funding for a new 400-million dollar, publicly-funded stadium, all while lying about their bottom line to max out their corporate welfare potential. As Yahoo sportswriter Jeff Passan wrote:

The team fought to conceal the $48.9 million in profits over the last two years because the revelation would have prompted county commissioners to insist the team provide more funding. Loria, an art dealer with a net worth of hundreds of millions, wouldn't stand for that. He wanted as much public funding as possible -- money that could've gone toward education or to save some of the 1,200 jobs the county is cutting this year.

As politicians begin to rev up their shock and outrage, it's worth asking why this is a story at all. As with Afghanistan, where for years independent, unembedded media has been raising critical questions about the US military intervention, it should hardly shock us that public funding of stadiums is a sham, and the owners of teams simply lie their way to the bank.

Neil deMause, editor of www.fieldofschemes.org, wrote to me:

The remarkable thing to me about the leaked MLB documents is how much of this we already knew: Forbes has been reporting for years that franchises like the Marlins and Pirates were turning profits despite dismal teams, and the leaked documents show that their estimates were generally right on target. It shouldn't come as any surprise that if you're eligible for a cut of league revenue and don't spend anything on payroll, you're going to make money -- does anyone really think it costs that much to paint in the batter's box every day?

He's absolutely correct. The numbers have been there for years but politicians simply took owners at their word that Forbes was simply wrong. Politicians now either look incredibly naive or utterly complicit. They were dupes or participants in what has been a Ponzi scheme of lies and organized theft. Passan was absolutely correct in writing, "The swindlers who run the Florida Marlins got exposed Monday. They are as bad as anyone on Wall Street, scheming, misleading and ultimately sticking taxpayers with a multibillion-dollar tab. Corporate fraud is alive and well in Major League Baseball."

The question now is about the appropriate response -- and this question far transcends the world of sports. It's about approaching our political leaders with the now indisputable truth: stadium construction deals are corporate welfare hotels that don't return on their promised investment, and most city officials are either too cowardly or too compromised to stop them. The idea that we are giving tax money to owners who are then under no obligation to tell the truth to the public about the general state of their finances is appalling.

Let's make it clear to the billionaire owners of baseball teams: Pay for your own damn stadiums. If you do take public money from us, then we the people should have a public ownership stake in the teams. Major League Baseball's owners have been playing dirty for far too long. It's time to send them to the showers and for fans to get off the bench.

Cross-posted form thenation.com

Dave Zirin is the author of "Bad Sports: How Owners are Ruining the Games we Love" (Scribner) Receive his column every week by emailing dave@edgeofsports.com. Contact him at edgeofsports@gmail.com.


 
 
 

Follow Dave Zirin on Twitter: www.twitter.com/edgeofsports

Let's look at what we have before us: leaked documents that by all accounts should be part of the public record; an alarming snapshot of corruption, waste, and fraud that connects the seamiest wo...
Let's look at what we have before us: leaked documents that by all accounts should be part of the public record; an alarming snapshot of corruption, waste, and fraud that connects the seamiest wo...
 
 
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Catfish1968
I live in a river of mud
09:44 PM on 09/04/2010
Dave, you rule.
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HUFFPOST SUPER USER
Mister Biggles
07:01 AM on 09/01/2010
No team sport without a salary cap is legitimate.

As much as I would like to fault the Pirate's owners...they could spend another $40 million a year and it would change nothing as long as the Yankees can spend $300 million a year.
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11:41 PM on 08/31/2010
All I can imagine is that so many sports fans are so wrapped up in loving their team that they ignore the shovel smashed against their face. I mean here in NYC, the Jets have totally screwed over its long term fans. Yet people keep coming back for more. I turned my back on pro sports many years ago and it was the smartest thing I ever did. Of course, now college football is being ruined now too. I need to find the tiddly winks circuit.
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FoonTheElder
Always choosing between the lesser of two evils
12:09 PM on 08/31/2010
The vast numbers of professional sports owners in the U.S. are phony capitalists.

They have no problem using the capitalist system to make their fortunes by holding down the wages of their employees when capitalism is to the owners advantage. But as soon as 'free trade' of labor is to their disadvantage, they cry that they must have socialism.

Wahhh! Protect us from the other owners. Buy us stadiums. We can't survive without salary caps and years of restrictions before free agency. We have to have exclusive territories. We don't want any guaranteed contracts.

Typical of today's wealthy, they want to capitalize the profits and socialize the costs and losses.
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HUFFPOST COMMUNITY MODERATOR
cplKlyde
06:12 PM on 08/30/2010
Make sports team pay for their own stadiums. Oh Dave you're such a dreamer.

On the other hand I have to give props to my home town CBus Ohio. The voters of the city and the county 4 times voted down susidies for NHL Blue Jackets arena. Of course since the day Nationwide Arena opened the team and the owners of the arena have been pleading poverty, claiming that if they don't get tax dollars the team will have to move south.
11:28 AM on 08/29/2010
Pittsburgh will never have a winning season again until Nutting is out of the equation. Baseball could be huge in this city again, if given the right management. I've stopped supporting the organization, even if PNC Park is one of the most beautiful ballparks in the nation.
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Mister Biggles
06:58 AM on 09/01/2010
When it looked iffy that the Pens would get a new building, I wanted to just put a dome on PNC and give it to a real team.
08:07 PM on 08/28/2010
The ones most against extending unemployment benefits are the ones who have their hands out looking for a government subsidy. The hypocrisy is epic.
10:17 AM on 08/28/2010
The problem is that professional sports team owners KNOW that the some city will always be willing to bend over for them, hence ALL of the cities have to play the subsidy game for fear of losing their team. No mayor wants to be the one who "lost the Bulldogs". As for money being misplaced though, most of those stadium deals are set aside, earmarked funds. They aren't coming "from" education. If the municipalities wanted to force higher spending on education down their constituents throats, they still could by enacting separate education taxes,lotteries, etc... I don't think you can blame the stadium financiers for that. Most tax payers are tired of seeing limited returns on those education budgets, whereas the satdium money gets them a team(s) and bright shiny stadium to look at 10 to 30 week s a year.
08:14 PM on 08/28/2010
Here in Seattle, while there was outrage at the Sonics leaving, there was zero interest in public financing a new arena for them and the same was true of the ballpark the Mariners now play in. The only reason that happened was due to a political sleight of hand.

Now nobody wants another NBA franchise and that league and David Stern are about as popular as the bubonic plague.

The L.A. citizenry continues to not be interested in paying for an NFL franchise, either and, when the Rams and Raiders left, nobody paid any political price for it nor was Seattle mayor Greg Nickels hounded for it (Nickels problem was the incompetent way he handled the freak snow storm we had).

Localities need to call team owners' bluffs because they can get by just fine without a pro team.
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HUFFPOST SUPER USER
medicontheedge
big loud broad
05:28 PM on 08/27/2010
NEW RULE: NO tax dollars or "tax breaks" for professional, for profit businesses that contribute little to munincipal coffers. Like sports.

Low paying comcession jobs are not so beneficial as to offset the taxes they should be paying.
and any city that actually PAYS for the arena to be built is corrupt.
08:15 PM on 08/28/2010
Most of those concessions contracts go to out of town firms anyway and a lot of them employ illegal aliens.
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HUFFPOST SUPER USER
Eric Gardner
Hoping humans evolve again...
04:56 PM on 08/27/2010
Dave, this is just not Baseball, this is going on in the NFL also. I gave up my season tickets after Indy got a new stadium. Did I want a new stadium? Yes, did I want $750 million of taxpayer money to fund it? No...
05:32 PM on 08/27/2010
And in Major League Soccer...they kicked the minor league baseball team out of Portland so that taxpayers could be the primary funders of the stadium remodel for a MLS expansion team. Booooo
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HUFFPOST COMMUNITY MODERATOR
cplKlyde
06:16 PM on 08/30/2010
The Columbus Crew paid for their own stadium. There is no reason the other pro teams shouldn't do the same.
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HUFFPOST SUPER USER
Tim McCown
04:03 PM on 08/27/2010
As much as I love Baltimore sports particularly the Ravens, Art Model proved that baseball is not the only sport with corrupt shennanigans. Baltimore got punked for years by the NFL using them to extort bigger offers from other cities that they wanted to put teams in like Carolina. Finally the state of Maryland creates the gift horse of all gift horses M&T Bank Stadium, back then it was PNC where the state built the stadium and gave away concessions and parking to the new owners. Art Model votes down any team for Baltimore. Suddenly Art claims he can't make any money in Cleveland even though that city turns out 80,000 fans for an annually poor team and guess who is coming to Baltimore. I still love the Ravens the Orioles are one of the worst teams ever. Baltimore's Orioles are so bad that even with a huge number using steroids they still couldn't win.
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HUFFPOST BLOGGER
Brian Ross
Managing Editor of Truth-2-Power.com
03:13 PM on 08/27/2010
After 11 years of covering the minors, I can say that the Mafia is less corrupt, but this is hardly the worst thing that they do. MLB baseball is a dying, decaying product, a business that sells a sport wholly mired in its own greed. The world has changed around it: Minor league ball has exploded by almost ten million new fans while, other than in the steriods years of Bonds-Aaron and the Sosa-McGwire sham, baseball's attendance has been flat or down (They lie about this too). Instead of regionalizing the game and elevating some markets to a broader "major" league while dropping others like Pittsburgh into line with the kinds of attendance they draw, those few owners, most of whom are from rust belt cities far beyond their prime, continue to run the game like it's 1944. There is the Mets/Yankees/Phillies/Cards/Braves/Red Sox/Dodgers/Giants league, and then there's pretty much everyone else who belongs in another class of baseball. The whole thing needs to be reworked.
08:19 PM on 08/28/2010
"There is the Mets/Yankees/Phillies/Cards/Braves/Red Sox/Dodgers/Giants league,"

You left out the Cubs. But anyway, if you judge MLB by what teams regularly get ESPN game time, it seems like the national pastime is down to about ten teams and not a peep about that from anyone in Selig's or the other team's offices.
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01:24 PM on 08/30/2010
How 'bout them Rays?
01:33 PM on 08/27/2010
If sports fans organized and demanded that team owners be fiscally responsible in their cities and communities - and held them accountable by commencing with boycotts and other economic initiatives - we'd have a level playing field (pun intended). However I find that the identities of sports fans are so wrapped up in their teams and players ("we won the Super Bowl...") that they dare not question the powers that be. Sports fans will complain at the pub, but they are too addicted to the games - which is a shame, because sports fans collectively have tremendous power. More so that in our so-called democratic American government.
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cdecisneros
my micro bio is empty because I went to the micro
11:48 AM on 08/27/2010
What?Corruption in Miami? This is my shocked face. The only thing worse than a team lying about how much money it makes so as not to have to pay is a team promising to pay "for about half of the stadium"and then not paying at all. Our lovely Buccaneer owners pulled that stunt. And then when the people voted for the tax they thought that they were voting for only "their half". It wasn't till after the vote when people like me told them that "no we are paying for the whole thing not half" that they realized that they had been taken. And now the Bucc owners bought Manchester united instead of fulfilling their promise.
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mr d
01:27 PM on 08/27/2010
I know this one quite well. The Glazers also make money from other events at the RayJay
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cdecisneros
my micro bio is empty because I went to the micro
02:02 PM on 08/27/2010
They make money from everything at the RJ.
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zoemonster
11:42 AM on 08/27/2010
Zirin failed to mention that this type of shenanagins (public funding of private-for-profit enterprises) also occurred with the funding of a stadium in Arlington, TX. The team owner? Why the same George W. Bush who later duped the entire nation and its chief legislative body into funding wars that were designed to do nothing more than reap profits for his cronies.
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CFAmick
02:05 PM on 08/27/2010
Bush was an owner in name only, basically so the team and league had a key to his father's White House. I doubt the other owners let him near day to day operations.
10:23 AM on 08/28/2010
Nice try.I don't really care what he did in terms of operations. After ruining every prior business venture he tried up to that one, I'm sure they wouldn't give him the keys to the car. He was literally worthless from running oil businesses in to the ground until Daddy's friends got him yet another plum position on the Rangers. But he profited MILLIONS of dollars on the backs of Texans as an owner and people largely gave him a pass on it, not to mention umpteen SEC violations and trading shenanigans.
02:26 PM on 08/27/2010
Dave has a chapter about Bush in his new book Bad Sports. You should check it out.