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Charlotte votes down Hornets arena
The first thing any team owner wants is to sweeten his stadium deal, and the last thing he wants is to give the voters a chance to decide whether he will be allowed to do it. For the owner, the stakes are high. Every nickel he can squeeze out of a luxury suite adds to his profit and builds the total value of his team exponentially. It is no secret that a new stadium, especially when financed with taxpayer dollars, can double or triple the value of a franchise. For the taxpayer, the benefits of a new stadium are less obvious. Every time an owner wants a new facility, there is talk of civic pride, and fuzzy projections are made about economic benefits. But the real question is: How much money do the taxpayer/voters want to invest in the welfare of wealthy owners and wealthy athletes? Consider, for example, what happened in Charlotte earlier this month. Local politicians were worried about investing public money in a new arena for the Hornets. After months of debate, it was determined that the people would decide in a referendum. And the voice of the people came through loud and clear: More than 57 percent of the voters said they did not want to build a new playhouse for George Shinn and Derrick Coleman. It was a rare bit of bad news for owners, who in the last nine years have triumphed in 28 of 37 votes on new stadiums, a nice .757 win percentage. Voters have authorized more than $7 billion in funds for new venues. And that is only a part of the picture. Many new stadiums have been built with substantial taxpayer money without the issue ever having been put to a vote. A new Soldier Field is ready to go in Chicago, based only on an agreement between Mayor Richard Daley and the Bears ownership. In addition to Shinn and Coleman, there were other powerful negatives at work in Charlotte. The team's ownership carried the threat of moving out of town one step too far when they formally petitioned the NBA for permission to relocate to Memphis. When the team's performance became a pleasant surprise, the owners reconsidered and withdrew the request. What little credibility the ownership had was reduced even further. In a desperate attempt to make a new $205 million Hornets arena more acceptable to voters, the city fathers threw in money for a minor league baseball stadium and funds for five theaters and museums. But it was not enough. The supporters of the plan spent $600,000 looking for "yes" votes. But it was an amateur campaign using volunteers. A couple of groups spent $19,000 in a last-minute effort to stop the plan and managed to embarrass the Hornets. It's not as though Charlotte is an unfriendly place for professional sports. Ericcson Stadium, the home of the Panthers, is the Camden Yards of the NFL. Carolina owner Jerry Richardson managed to build it without a referendum and primarily with private money. The city contributed only $58 million for roads and parking, and the new arena has become one of Charlotte's principal attractions. Until the Seahawks' new stadium opens in a couple of years, it will be viewed as the NFL's finest venue. For an owner looking for a new facility, the lessons of Charlotte are clear: Avoid any referendum. If you find yourself facing the voters, do what you must to win. Civic-minded volunteers are not enough. A high-powered campaign is essential. James Carville would not be overkill. Facing tough opposition in Phoenix, the Cardinals ownership went all out, spending significant money in campaign consultants and advertising, and the voters approved the new stadium in an upset last November. For a citizen fighting the idea of a handout to a wealthy team owner, the Charlotte outcome is somewhat encouraging. It will never be easy to stop an owner looking for a new stadium deal, but a referendum gives you a chance
Sports Illustrated legal analyst Lester Munson will hold court on sports law and business matters every week on CNNSI.com. The opinions expressed here are solely those of the writer.
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