Moore: The Pawsox Battle Rages On

Russell J. Moore GoLocal MINDSETTER™

Moore: The Pawsox Battle Rages On

Dominick Ruggerio
The announcement by Senate President Dominick Ruggerio (D - Providence, North Providence) last week that a deal to provide subsidies to the Pawtucket Red Sox owners in order to construct a new stadium wouldn’t be considered in this legislative session signals Rhode Island will be fighting over this issue for years to come.

The subject has become a political hot potato. Rhode Islanders are very wary of corporate welfare. Residents don’t seem to have the will to pay for a new stadium that will force taxpayers to pay more for the stadium than the wealthy group of primarily out-of-state residents paid for the team, which was roughly $30 million.

The outline of the deal that was proposed--a formal piece of legislation never surfaced--was predicated upon the fact that the state would put up $23 million up front and then rely on tax revenue generated by the stadium over the next three decades to help pay for the rest of the cost. The City of Pawtucket would be required to

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Nobody seems to be asking the question as to why the construction of a team’s stadium should be so-called “revenue neutral”. Let’s face it: if the team is devoting the revenue it generates to help pay for a newly built stadium instead of going into the state’s general fund to pay for much-needed government services---that doesn’t sound much like a “revenue neutral” deal.

Furthermore, highly respected economist Victor Matheson, a professor at Holy Cross who has studied the economics of subsidizing ballparks, has repeatedly pointed out that consultants tend to be “wildly optimistic” when they arrive at their estimations. None of this is really surprising. Consultants usually just tell the people who hire them what they’d like to hear.

In a state where there never seems to be enough money to pay for the things we need--like infrastructure and essential services--, a new stadium is a tough sell to the typical beleaguered taxpayer.

Governor Gina Raimondo, who at first said the outline of the new proposal sounded like “a good deal” for taxpayers, later backtracked, agreeing with Ruggerio that there wasn’t enough time left in the legislative session to properly vet the deal, particularly since it was becoming apparent that the state would be forced to guarantee the city’s contribution to the deal if Pawtucket became unable to pay it.

The Governor told the Providence Journal that the request doesn’t sound entirely unreasonable since to renovate McCoy stadium could cost taxpayers more money.

But why do the taxpayers need to be in the business of subsidizing stadiums?  What’s the risk involved to the state if it does nothing?

Matheson has also pointed out that the demographics in Rhode Island are favorable towards a minor league sports team. I, for one, don’t believe for one minute that if the wealthy Pawtucket Red Sox owners move the team to supposed greener pastures that Rhode Island won’t be able to lure a team that offers entertainment at fan-friendly prices.

In any event, both Ruggerio and House Speaker Nicholas Mattiello have signaled a willingness to call the legislature into session again this fall to vet a new potential deal. Yet it’s hard, given the circumstances--budget shortfalls, voter hangover remaining from the 38 Studios debacle--to see state leaders and team owners getting to “yes” anytime soon.

Let’s drive a hard bargain here. The Pawsox are lucky to have us--not vice versa.

Russell J. Moore has worked on both sides of the desk in Rhode Island media, both for newspapers and on political campaigns. Send him an email at [email protected]. Follow him on Twitter @russmoore713.

Pawsox Stadium Timeline

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