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Owners' Error

Starting from nearly day one, the new ownership group of the Pawtucket Red Sox -- a collection of some of America’s most wealthy businessmen -- saw their investment in the team as a “gift” to Rhode Islanders and that their vision of a mega-stadium in Providence was a windfall.

The ownership group’s early strategy was to demand more than $140 million in subsidies and tax breaks and that led to strong public backlash.

The ownership group -- with a collective net worth of $6 to $8 billion, later blamed the late Jim Skeffington for the misstep, but the collection of owners all thought that for a small investment in the PawSox -- $2 million to $3 million per owner, reportedly, the windfall potential was tremendous -- and all financed by taxpayers.

Raimondo’s Flip Flop

As the Providence proposal took on water Governor Gina Raimondo reversed field and went from supporter to opponent on the financing structure.

Raimondo, who had once chided critics about complaining about the move from Pawtucket to Providence, flipped on the ownership group and ultimately opposed the Providence financing deal. The implications were two-fold.

First, it raised questions with owners about who to negotiate with and how to negotiate with Rhode Island’s government in good faith. Second, it did tremendous damage to her already strained relationship with Speaker of the House Nick Mattiello. Her change left him the last official holding the political hot potato.

Lucchino’s Demands

After Jim Skeffington’s death, former Boston Red Sox top executive Larry Lucchino took over the ownership effort to site a new stadium.

Lucchino, who had built stadiums in Baltimore and San Diego for major league franchises, had a formula. While his ownership group in Boston had failed to build a new Fenway Park in Boston due to public opposition, Lucchino put forth a series of demands and, more so than any factor, lead to the team’s stadium efforts failure.

First, he would not wait until after the 2018 election. Second, he refused to have the owners take on the final financial backstop. Third, he refused to acknowledge that times had changed — that minor league baseball’s popularity which peaked in the 1990s was long past.

Public Support — No Millions for Billionaires

At the end of the day, Rhode Islanders, by an overwhelming majority did not want to invest taxpayer dollars in a public stadium.

According to two GoLocal polls conducted by Harvard’s John Della Volpe which asked, “The Rhode Island General Assembly is in the process of negotiating a $40 million public financing deal with the Pawtucket Red Sox for a new stadium, hoping to bring a vote before the House and Senate this summer.  

In general, do you favor or oppose the use of public funds to help finance a new stadium for the Pawtucket Red Sox?”

Net: Favor                   33%

Strongly favor             13%

Somewhat favor          21%

Net: Oppose                59%

Somewhat oppose      21%

Strongly oppose         38%

Don't know                   8%

Lack of Functional Leadership

In the end, the dysfunctional relationship between Raimondo, Mattiello, and Ruggerio doomed a viable solution — maybe from the beginning.

Instead of a united front by the three top political leaders, the owners got greedy and tried to manipulate the division of the state’s Democratic leaders.

Democrats Raimondo, Mattiello and Ruggerio are as aligned as Iraqi ethnic groups Kurds, Sunnis and Shias. Yes, they are all Democrats, but their trust and ability to co-govern often fails.

“Trust and reliability are the key ingredients in any public-private deal. Polls show about 60% of Rhode Islanders opposed the project which reflected in part a lack of trust in elected officials. The owners grew not to trust Rhode Island pols because of the way the process and negation unfolded at the State House,” Gary Sasse of the Hassenfeld Institute tells GoLocalProv.