Tag archive for "Public funding"

Issues, Stadiums

Vikings’ Stadium Bill Versus The People of Minnesota

1 Comment 08 May 2010

Vikings’ Stadium Bill Versus The People of Minnesota

by Jeremiah Tittle

VikingStadium

It is simply amazing what some local and state representatives will try to shove down tax-payers’ throats. In Minnesota, thanks to the opposition, the Vikings-approved new stadium bill has been met with defeat after defeat.

favre_childressFour Minnesota State legislators including House Ways and Means Committee Chairman Loren Solberg, DFL-Grand Rapids, and Senate Tax Committee Chairman Tom Bakk, DFL-Cook, introduced a bill Wednesday which would provide the Vikings with roughly two-thirds of the $791 million needed to build a new stadium, and keep the team – with or without Brett Favre – within the precincts of the twin-cities.

vikings-stadium-renderingAfter the bill was barely shot down with a 10-9 vote in the Minnesota House State and Local Government Operations Reform, Technology and Elections committee, the Senate State and Local Government Committee approved the bill under the all important condition that funding not be pillaged from Minneapolis City taxes nor through a state lottery game as was proposed.

Personal Seat Licenses could be the last gasp effort for the Wilf family to get a new sandbox to play in (without actually having to pay for it), but Neil deMause, author of Field of Schemes, is not optimistic that this method will work. Furthermore, since the Vikings have declined to renew their lease on the Metrodome beyond next season, the future of the team in Minneapolis is surely uncertain.

So be it. Keep up the fight, Minnesota! Don’t let the Vikings hold you over a barrel demanding your hard-earned tax dollars.

Jeremiah Tittle is the Managing Editor of SportsFansCoalition.org.

Blog

Phoenix Coyotes Surrounded by Sharks

1 Comment 30 March 2010

PhoenixCoyotesStadiumEver since the franchise declared bankruptcy last year and the National Hockey League absorbed the Coyotes for $140 million, the league has been seeking to unload the under-performing club to a new bidder. Furthermore, local Glendale residents and political officials have expressed outrage at the mere threat of offering tax incentives for suitors.

That hasn’t kept Jerry Reinsdorf, Chicago-based owner of the Bulls and White Sox, from throwing his hat in the ring. Albeit, the hat has multiple strings attached that would allow him to walk away if the numbers don’t add up to his liking with substantial subsidies funded ultimately by local sports fans.

The other less attractive bid (if that’s possible) has emerged from Ice Edge Holdings. COO Daryl Jones said that $6-11 million per year must come from Glendale, AZ taxpayers’ pockets for the deal to get finalized.

Talk about being between a rock and a hard place. There appears to be no immediate answer for all parties to be satisfied, but one thing is for sure. The locals have shelled out enough cash in recent months, and can not afford to have sports franchises use their public funds like their personal piggy bank.

Blog, Issues, Stadiums

Cactus League: Spike in Cubs Spring Training Tickets

1 Comment 20 March 2010

cactus_leagueIt’s no different than the threats which emerge from NFL, NHL, or NBA franchises. Whether it’s a mammoth billion dollar-stadium in Dallas, the big apple, or the relatively small spring training facility in Mesa, Arizona that the Cubs populate in March, when teams leverage our tax dollars for their stadiums it is simply unfair to sports fans.

In the case of the $84 million Cactus League stadium build for the Chicago Cubs faithful (set to open in 2013), the ‘threat’ by the team to bolt for Florida was enough to convince local lawmakers to hike up the ticket taxes to pay for them to stay. Despite avoiding the citrus of the Grapefruit League, Cubs fans have a sour taste in their mouths over this increase as spring training is supposed to provide an affordable outlet for die-hards to preview the current and future stars of their baseball club in action.

They’re not the only ones upset by the lawmakers’ decision.

The Arizona Diamondbacks, Chicago White Sox, LA Dodgers, Oakland A’s, and Texas Rangers have all expressed their discontent over the proposed Cactus League ticket tax that would be shared across the board. Rightfully so. If the goal was to keep the Cubs in Arizona each spring, why should all clubs, and all baseball fans be required to absorb one team’s ransom?

In the lawmakers’ decision, the Cubs preferred method of public payment for the new stadium, a car rental tax, was dropped. Now, their cross-town rivals, the White Sox, will have to live with the fact that every time they set foot in Camelback Ranch (their shared facility with the Dodgers), they’ll be supporting the dreaded Cubs’ shiny new stadium in Mesa.

Here are some more stats of stadium financing in AZ from the Phoenix Biz Journal:

Stadium: Proposed Cubs stadium

 

  • Site: Mesa
  • Opened: 2013*
  • Tenants: Chicago Cubs
  • Cost: $84 M

 

 

  • Major financing: Proposed ticket fees on all Cactus League games, proposed rental car tax increases, Mesa bonds

 

Stadium: Camelback Ranch

 

 

Stadium: Goodyear Stadium

 

  • Site: Glendale
  • Opened: 2009
  • Tenants: Cleveland Indians, Cincinnati Reds
  • Cost: $108 M
  • Major financing: $55 M from AZSTA, Goodyear bonds

 

Stadium: Planned Arizona Diamondbacks/Colorado Rockies stadium

 

  • Site: Salt River Pima-Maricopa Indian Community
  • Opened: 2011*
  • Tenants: Arizona Diamondbacks, Colorado Rockies
  • Cost: $100 M
  • $23 M stimulus-backed loan, Tribal money

 

Stadium: Chase Field

 

  • Site: Phoenix
  • Opened: 1998
  • Tenants: Diamondbacks
  • Cost: $364 M
  • Major financing: Quarter-cent Maricopa County sales tax increase, Diamondbacks paid extra construction expenses

 

Stadium: University of Phoenix Stadium

 

  • Site: Glendale
  • Opened: 2006
  • Tenants: Arizona Cardinals
  • Cost: $471 M
  • Major financing: $311 M from AZSTA, Prop. 302 increases to rental car and hotel taxes, $145 M from Cardinals, $5 M from Fiesta Bowl, $10 M from city of Glendale

 

Stadium: Jobing.com Arena

 

  • Site: Glendale
  • Opened: 2003
  • Tenants: Phoenix Coyotes
  • Cost: $180 M
  • Major financing: Glendale bonds and financing

 

Stadium: US Airways Center

 

  • Site: Phoenix
  • Opened: 1992
  • Tenants: Phoenix Suns
  • Cost: $90 M
  • Major financing: Phoenix bonds and loans

Blog, Issues, Stadiums

SFC Board Member Dave Zirin on KALW in San Francisco

No Comments 10 February 2010

Listen to the interview on Your Call on KALW featuring SFC board member and sports writer Dave Zirin as well as prolific author and professor Andrew Zimbalist by going to our media page or clicking here.

The topic of conversation is public funding for stadiums and the need for an organization like the SFC to fight for sports fans.

Read the Your Call blog here.49ers-stadium_NEW

Read Dave Zirin’s columns here.

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Super Bowl Sunday is Here – Will it Be in 2012 or 2014?

1 Comment 07 February 2010

superbowl-timeIt appears to be an exciting matchup of two equally potent teams on offense led by prolific quarterbacks that even Brett Favre would acknowledge are the best in the game and deserving to take home the Vince Lombardi trophy to open this new decade. 

While the excitement of the big game builds, it’s important to remember that we are heading into an upcapped year and a lockout in 2011 is imminent. Not trying to be ‘Debbie Downer’, but it’s true.  From a fans perspective, the owners – who have up until now done their best impression of G. Gordon Liddy at the Watergate hearings – better extend the olive branch to players to get this deal done. 

Roger Goodell was seen pleading with both sides for the sake of the game as he delivered his State of the League address to media on Friday. To clarify, Goodell has a vested interest here as his legacy will take a major hit if he is not successful in this plea, and don’t forget SmartMoney’s ‘Thing 10′ in its article ‘10 Things the NFL Won’t Tell You’:

“It’s just a business to us.”

In other sports business news, New York sports fans are well aware of the third new stadium construction project – following the Yankees and Mets new buildings – subsidized with taxpayer funds housing the Giants and Jets.  To signal the end of an era, demo crews have begun their work on the old venue in earnest.

Remember Cincinnati’s Nasty Tax Obligations, well the Bengals are offering to let Hamilton County off the hook with some concessions, paying 1-3 million a year in rent and upkeep of Paul Brown Stadium while seeking to have the county offers up proceeds from other events and a little political support in convincing  the city of Cincinnati to arrange a similar deal with the team. Stay tuned to SFC for updates.

Coming full circle, Miami local leaders are criticizing Dolphins owner Stephen Ross for seeking tax money to put a roof on Sun Life Stadium, home of tonight’s Super Bowl. And rightfully so. The roof would help Miami get another Super Bowl bid, but is it worth it? 

The best quote to sum up a definitive answer to this quandry comes from Victor Matheson, a sports economist at the College of the Holy Cross in Worcester, Mass, who co-wrote a 2004 paper on the big game’s economic impact:

“You could host a Super Bowl every year for the next 20 and be lucky to recoup your costs.”

Enough said.

DolphinStadium

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SmartMoney Highlights the NFL’s Abuses of its Fans

2 Comments 29 January 2010

nfl-logo

In the February edition of The Wall Street Journal Magazine, Jason Kephart’s article titled ‘10 Things The National Football League Won’t Tell You’ illuminates multiple agregious practices that America’s number one sport would like to keep swept under the carpet. A number of these issues directly affect sports fans slimming the bulge in their wallets and limiting their ability to enjoy being a fan altogether. 

Thing 1: “Our reign may be in danger.”

SFC  board member Dave Zirin and SportsFansCoalition.org managing editor Jeremiah Tittle brought this issue to light in their article published in The Nation warning of the pending lockout in 2011.  The owners and players are at war right now, and the owners aren’t willing to budge.  Their out?  Maybe the Supreme Court Justices will have something to say about this come June when they are expected to rule on American Needle v. the NFL. This is getting ugly, and when players and owners fight, fans lose.  Big time.

Thing 4: “You’re not getting your money’s worth from our new stadiums.”

You know that $1 billion stadium Jerry Jones built in Texas?  Tax payers paid for almost third of it ($325 million). This truly benefits sports fans because they now can drink in a bar with smoke machines on overdrive and TV cameras rolling as the Cowboys walk through the action heading towards the field. Then again, maybe not.  Maybe all this public funding is not worth it afterall.  Maybe subsidizing billionaires is not the best use of our tax money.  Well, the NFL doesn’t care (Thing 10). The NFL is pressuring every team to build anew, and if the market won’t play ball, it’s time to take Arnold Schwarzenegger up on his offer to spend OPM (other people’s money) on a new stadium in Los Angeles.

Thing 7: “If you don’t come to the games, we won’t show them on TV.”

This issue is so close to the heart of this organization.  The SFC has fought and will continue to fight any form of blackout until we are blue in the face.  There is something so fundamentally wrong with keeping certain fans out. The reasoning is backwards. In the midst of a recession, the use of blackouts to penalize rather than motivate fans to come to the ballpark is rediculous.  Shame on the NFL.  Shame on any company that witholds sports from their fans in their local market.  Unforgivable.  The SFC will work tirelessly to change this practice.

Thing 8: “You won’t believe what we charge for season tickets.”

SFC members believe.  We’re not shocked.  Appalled maybe, but not shocked.  The price is hefty, but the added tactics to bilk fans are beyond rediculous.  Personal seat licenses, parking fees, and forcing fans to also purchase tickets to preseason games are just some of the abuses that come to mind. 

These issues are not lost on Sports Fans Coalition members as we continue to beat the collective drum. The fact of the matter is that the SFC has not only been blaring out this information over the loud speakers, but also has taken these issues to your representatives putting the pressure on. 

Join us, sign our petition to the FCC, and spread the word to your fellow sports fans.  The SFC is here to stand up to tirany. We’re not going to take it from the NFL.

One more thing.

Thing 10: “It’s just a business to us.”

Well, then you better show some respect to your customers.  Enough said.

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Silver Lining for Vikings Fans (Politically)

No Comments 25 January 2010

Here is SFC board member Dave Zirin’s most recent article in The Nation focusing on the Viking’s future home, the State of Minnesota, and tax payer dollars once again going down the toilet to keep a team from bolting a la the Baltimore Colts.

95653900MH104_NFC_ChampionsSilver Lining for Vikings Fans (Politically) by Dave Zirin

This is a day to empathize with the agony amongst the long-suffering fans of the Minnesota Vikings. With a trip to the Super Bowl in their buttery grasp, they fumbled it all away. In a game they largely dominated from start-to-finish, the Vikes lost in overtime to the New Orleans Saints in the NFC Championship Game, 31-28. Miscues, interceptions, and some questionable calls will have Vikings Nation asking “what if” for the next nine months.

Yes, there is misery in Minnesota. But there is also a silver lining, and I’m not talking about the joy in Green Bay at the spectacular fall of Minnesota QB Brett Favre. Vikings owner Zygi Wilf was locked and loaded to arrive at the Minnesota State Legislature on February 4 – three days before the Super Bowl – to press for a new $1 billion stadium with $700 million to be paid by the taxpayers. The Vikings, like many teams, is holding up the specter of moving the franchise to Los Angeles if they don’t get a nine-figure welfare check. With the state’s phony populist absentee governor Tim “Glass Jaw” Pawlenty saying little more than, “We have to keep the Vikings no matter what,”
Wilf was ready to roll the state’s taxpayers. But now that the team has failed to reach the Big Game, the wind is out of Wilf’s sails and Zygi is no longer coated with stardust. This isn’t to say that Wilf won’t emerge triumphant, but without the team in the Super Bowl, it’s much more apparent that he will have a fight on his hands.

As Minnesota resident and dogged stadium opponent Willard Shapira wrote, “Most communities around the U.S. have caved in to such outrageous demands but socially concerned Minnesotans are fighting the Vikings tooth and nail. Others around the U.S. battling big-money and establishment power politics would take heart from a public victory over the Vikings and their gang of arrogant, plutocratic conspirators in business, politics and the media.”

Remember that Minnesotans repeatedly rejected the Twins billionaire owner Carl Pohlad’s efforts to get a new baseball stadium on the public dime. Despite their votes, Pawlenty rammed the $500 million facility through the legislature and it opens for business this spring. Now the owner called “the Big Bad Wilf” wants his piece of the public pie, recession be damned. The Vikings failure to make the Super Bowl makes his effort far more perilous.

On the flip side, and ever so ironically, New Orleans first trip to the Super Bowl makes it a near impossibility for the Saints owners, the Benson family, to fulfill their pre-Katrina dreams of moving their franchise to the City of Angels. If they made that move, I’m convinced that the Crescent City would implode with grief. Now, as a Super Bowl team, that move becomes a political impossibility.

Therefore in one tense contest to see who would ascend to the Super Bowl, two sets of owners saw their most treasured dreams to burn tax payers and break hearts go up in smoke. That’s something all fans should cheer. Even in Minnesota.

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Bay Area Tax Payers Fighting Two Stadiums at Once

2 Comments 16 January 2010

StadiumUnderConstruction

San Francisco construction companies will soon be quite busy as the Oakland A’s and San Francisco 49ers are moving.  That is, providing that tax payers agree to subsidize these two new stadiums’ construction. 

Thus far, tax payers have protested the expenses associated with the 49ers heading to Santa Clara.  Just short of a billion dollars, the budget would intimidate even one of the richest markets in our country. 

While the negative reaction of concerned tax payers in Santa Clara has united many against the new stadium deal, the team and stadium subsidizers have devised a sneaky way to get their initiative on voters’ ballots.  That initiative seeks to hide the Environmental Impact Report on the prospective stadium construction and waive the rights of tax payers from recourse once they break ground. 

According to a concerned group of residents in the area Santa Clara Plays Fair, those with financial interests in the new stadium becoming a reality have created a petition for this measure to be on the ballot.  Signiature gatherers are misrepresenting the purpose of the petition, and unfortunately, succeeding in their push to get the line item on the ballot as early as June.

In other Bay area stadium news, a group has been formed to push for a new location and new stadium construction for the A’s called Let’s Go Oakland! 

There is talk of the A’s moving to a site on city-owned land right next door to the San Jose Sharks’ arena which would trigger a taxpayer vote.  Freemont could be the site of the new stadium without any vote necessary and could be more likely given that fact. 

Apparently, Bud Selig and Major League Baseball made the business move of soliciting Freemont to throw their hat in the ring to get an even better deal out of the host city, and in turn, more tax subsidies.

According to FieldofSchemes.com, a group called The Fremont Citizens Network is ready to take down this, the latest effort to move the team at the taxpayers’ expense.  Thank goodness. 

The bottom line is that if you live in the Bay Area, you need to be aware, don’t sign anything unless you know the full story, and research what the public advocacy groups are doing in your area. 

While a new stadium sounds great for sports fans, you have to weigh the consequences as these deals far too often come with a price tag that will hit your bank account mid-April.

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Monday’s Call to Action by Brad Blakeman

No Comments 11 January 2010

blakeman_bradleyThe buck needs to stop with Fans/Voters when it comes to public financing of stadiums, arenas and sports facilities that are designed and built for professional sports teams.

In short, no public funds should be used for this purpose without a
Referendum placed before the People for their up or down vote.

To date, Fans has been locked out of the decision making process with regard to the building of mega multi-million dollar sports facilities with their tax dollars. The Fans have bourn the brunt of the decisions as opposed to being benefited by them.

A Referendum process would force more light to be shed on decisions to spend public monies for primarily private purposes. It would also allow Fans more input in the decision making process itself.

Transparency is a good thing but, the politicians and the sports teams
owners will not practice it on their own.

That is where Sports Fans Coalitions comes in. With your help, we will force
government officials and businessmen to act in the public’s interest and as
a result, the needs of Fans will be first and foremost as opposed to an
after thought.

We need your help. Join SFC today and tell your friends to join as well.
There is strength in numbers and we are building a strong, effective and
lasting coalition that will make a real difference today, tomorrow and for
the future.

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A Grim Reminder of Poor ROI on Public Funding for Stadiums

3 Comments 23 December 2009

Reading the following article from The Wall Street Journal is like taking a tour of a graveyard for us sports fans:

Last-Minute Gift Ideas: Old Stadiums

Some of These Facilities That Sit Mostly Idle Could Possibly Be Had for a Reasonable Sum

By HANNAH KARP

[SP1]  

The Pontiac Silverdome is shown last month.

Most sports fans assume that once a stadium or arena is replaced by a newer model, the old house is immediately blown to smithereens in a pyrotechnics show that would make James Cameron proud. But many more than you think are still around. Some have historical value, while others are still bringing in funds to cash-strapped municipalities. Who knows, some may even be available to well-heeled holiday shoppers looking for a last-minute gift. Here are a few:

 

Pontiac Silverdome, Pontiac, Mich.

Thirty-five years after taxpayers spent $56 million to build it, this domed stadium, once home to the NFL’s Detroit Lions and NBA’s Pistons, was auctioned off last month for $583,000 to the highest bidder—a developer from Toronto. After several lawsuits, the deal is expected to go through this month because the city can no longer afford to maintain it. The developer, Andreas Apostolopoulos, spent last week in Pontiac and says he is in discussions with Major League Soccer to bring a team to the Detroit area. He says the stadium might not be quite the bargain it appears, given the amount he’ll have to invest to bring the facility up to speed. “There’s a lot of work to do first,” he says.

 

Reliant Astrodome, Houston

The world’s first domed sports stadium, the Astrodome was nicknamed the “Eighth Wonder of the World” when it opened in 1965 to house baseball’s Astros and football’s Oilers. But since the Astros moved into Minute Maid Park (née Enron Field) for the 2000 season, after the Oilers had already decamped for Tennessee for the 1997 season, the city has spent millions over the years on basic upkeep even though the dome has no major tenants. After plans fell through to convert the facility into a hotel and convention center, there are groups lobbying to turn it into everything from a movie studio to a planetarium.

 

Pyramid Arena, Memphis, Tenn.

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The Pyramid in Memphis shown in early 2008.

Opened in 1991, this 20,000-seat arena on the banks of the Mississippi—one of the world’s 10 largest pyramids—housed the NBA’s Memphis Grizzlies and the University of Memphis men’s basketball team until both moved to the FedEx Forum in 2004. Shelby County, which sold its half share in the arena to the City of Memphis this year, has considered refashioning the pyramid as a casino or an aquarium. A local congressman suggested opening a new branch of the Smithsonian Institution. Sporting-goods outfitter Bass Pro Shops is renting the pyramid for $35,000 a month with plans to convert it into a megastore, but a spokesman says the company won’t purchase the building.

 

Robert F. Kennedy Memorial Stadium, Washington

Former home of both the Redskins and baseball’s second Senators franchise, which moved to Texas to become the Rangers after the 1971 season, the 48-year-old RFK hasn’t been able to hook a new team for long despite $18.5 million in renovations for baseball’s Nationals, which played there from 2005 through 2007. Critics pronounced it one of baseball’s worst stadiums on account of its cramped quarters and awkward layout. The resident DC United soccer team hopes to have a new home by 2012.

 

Balboa Stadium, San Diego

Built in 1914, this facility housed the Chargers during some of their winningest years from 1961 to 1966 and hosted three American Football League championship games during that period. Now owned by the city of San Diego and leased to the local school district, the stadium has fallen into such disrepair that many soccer players and runners fear injury on the worn-down track and torn-up turf. The city and district have said they can’t afford renovation.

 

Olympic Stadium, Montreal

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Montreal’s Olympic Stadium in 2001.

Designed for the 1976 Olympic Games by ambitious French architect Roger Taillibert, this structure—which was part of a $1.5 billion project that was just paid off a few years ago—has been plagued by problems since its inception, thanks to labor strikes, fires and a host of structural snafus. The inclined tower—now the highest in the world—wasn’t finished in time for the Olympics, nor was the retractable roof, which proved unstable in high winds even when it was completed a decade later. Part of the roof collapsed before the Montreal auto show in 1999. Once home to baseball’s Expos, a soccer team and the Canadian Football League’s Montreal Alouettes, the stadium was used this month for a swine-flu-vaccination clinic.

 

Beijing National Stadium, Beijing

This stadium, built for about a half billion dollars before the 2008 Olympic Games and better known as the “Bird’s Nest,” was transformed into a snow park this month, much to the chagrin of environmentalists who say creating the artificial snow is a waste of water, especially given the continuing drought in the area. The snow festival is one of only a handful of events the stadium has hosted since the Olympics. With annual operating costs of roughly $10 million, the facility was placed under government management in August to curb financial losses.

 

Alamodome, San Antonio

Opened in 1993, the nearly $200 million arena was forsaken seven years ago by the NBA’s Spurs, fans of which complained of poor views from many seats in the designed-for-football stadium. (The Spurs now play in the AT&T Center). In 2005 the San Antonio City Council voted to spend close to $6.5 million to renovate the arena to lure a Major League Soccer franchise to the city, but it soon abandoned that plan, and the city hopes to someday draw an NFL team. One of Texas’ least-utilized stadiums, it hosted the New Orleans Saints for a few games in 2005 when they were displaced by Hurricane Katrina. The stadium’s bread and butter is playing host each year to college football’s Alamo Bowl, which this season will feature Texas Tech against Michigan State.

 

The Forum, Inglewood, Calif.

Home of the Los Angeles Lakers and NHL’s Kings until both moved to the Staples Center in 1999, this circular, $16 million arena was purchased by the Faithful Central Bible Church in 2000, though the church stopped holding regular services in the arena earlier this year. The church’s Web site states “WE ARE AVAILABLE” for film shoots and rehearsal space; earlier this year the Lakers played a preseason game in the Forum to celebrate the team’s 50th season in Los Angeles. The arena also has hosted big health clinics for low-income families.

http://online.wsj.com/article/SB10001424052748703478704574612111114848276.html

 

The bottom line is that public funding for stadiums is NOT the answer.  Sports franchise owners are some of the wealthiest people in the world and need no subsidy.  However, government officials continue to court and support the use of tax payer funds and generous tax breaks for the purpose of stadium construction.

The last example of The Forum in Inglewood could be the most inspiring example of recycling, giving back to the low-income community through hosting health clinics.  Alternatively, Montreal Olympic Stadium may represent the worst example as the city continues to recover from the initial overinvestment and crippling returns.

Across the spectrum of stadiums for sale and stories therein, there is a depression that permeates our current recession.  That depression is not an indication of an economic status, but rather, a feeling of sadness in reaction to the misuse of our public funds.




About SFC

SFC is the American sports fan’s advocate in the D.C. public policy arena fighting for sports fans in every city across the country.

Sports Businesses, Leagues, and Universities are grasping for our cash left and right. Let's join together to keep their hands off our wallets unless and until we have a say in how that money is spent. Futhermore, we sports fans believe we should be able to watch our games, no matter how we get our media.

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