Cleveland’s sports venues are now 30 years old. The franchise owners want to have either major upgrades to the facilities or brand-new structures. The current stadiums and arena as well as the former Cleveland Municipal Stadium were built with public money which establishes a precedent. On the other hand, the long-gone Cleveland Arena and the Richfield Coliseum were owned and run privately without taxpayer assistance.
Greater Cleveland is one of only 18 metropolitan areas in the United States to have an MLB, NFL, and NBA franchise. Because Cleveland is a major league city, its residents were able to see Hall of Fame athletes like Frank Robinson, Jim Brown, and Nate Thurmond not to mention future Hall of Famer LeBron James. They were all accessible via a short car ride.
Cleveland’s civic leadership will urge Cleveland and Cuyahoga County residents to tax themselves to maintain these valuable franchises because they attract new residents, businesses and jobs and are a stimulus for the local economy. As proof of this financial benefit, will any campaign to fund the sports complexes mention that since 1970 Cleveland has lost almost half of its population and far more than half of its Fortune 500 companies. And how will it talk up all the development the torn-down Coliseum inspired in the immediate area? Zip is the word.
Given the questionable financial benefits that accrued to Cleveland because of its major league franchises, is it necessary for the public to support teams financially or can the teams’ owners provide the money as Nick Miletti did 50 years ago?
Recent valuation of the Guardians, Browns, and Cavaliers were $1.3 billion, $3.85 billion, and $1.95 billion respectively. Minimum salaries in the respective leagues in 2021 were $570,000, $660,000, and $898,310. Professional sports have become exponentially bigger businesses than they were 30 years ago. The profitability of the teams is not public information but if they are not profitable, then the owners must be fabulously wealthy to be able to afford such expensive status symbols.
Clearly, between the owners and players, there is enough money to pay for the fields and courts where the games are played. It probably would be unreasonable to ask the owners and players to pay cash. A 15–30-year bond issue would be a possible solution depending on the expected useful life of the stadium or arena. The bond holders, which should include owners’ and players’ as investors, could have not only the building as collateral but also the stock in the franchises. The owners could also lay off some of their risk on the players by paying a portion of their salaries in the issued bonds. The players would then have some income after their playing days are over and a lump sum payment in the future.
We can figure out the details. Multiple franchises and even cities could be involved. Existing facilities could be taken private.
It’s time for millions of citizens to stop subsidizing millionaires and billionaires.