The Economics of Financing Spring Training: Not Always a “Home Run” For Teams and Local Communities
By Jordan Mamorsky
In most seasons, spring training brings renewed hope to fans and professional baseball money to cities dotted across Arizona and Florida. However, this year, in the city of Sarasota, the arrival of pitchers and catchers has not only brought smiling faces to the new home of the Baltimore Orioles. It has brought an 18-foot inflatable rat.
Set up by a local watch-dog group, the Sarasota Citizens for Responsible Government, the inflated rat was a symbol of the group’s distaste for the Sarasota Board of County Commissioners’ decision to use public funds to finance the city’s lucrative stadium renovation deal with the Orioles on July 22 of 2009. The dispute has resulted in a legal dogfight which has loomed over the Orioles move to the Floridian town and become a public relations nightmare for the city and the Baltimore Orioles franchise.
The Orioles moved to the town this year, after Sarasota failed to keep the beloved Reds and then lost in the bidding for the Red Sox. Sarasota’s agreement with the Orioles was conditioned on $31.2 million in renovations to aging Ed Smith Stadium and Twin Lakes Park (where the Orioles would hold their spring training games and workouts). 1 The Sarasota Citizens for Responsible Government’s legal complaint targets these public funds as “unlawful expenditures” under Florida “Sunshine” Law guaranteeing transparent, open civic government and as an unlawful grant improperly certified by the Florida Office of Tourism, Trade and Economic Development (“OTTED”). 2
The watch-dog group specifically alleges that the deliberations to bring the Orioles to Sarasota were in a “dark back room” despite being advertised by the County Commissioners as a public meeting. 3 The group claims that the County Commissioners sidestepped Florida open government law by shielding the public from having a voice in the decision to bring the Orioles to Sarasota. 4
The County Commissioners dispute that the public was unlawfully aware of the Orioles deal. “I don’t think there’s anything to the notion that the public was shielded,” Deputy County Administrator Dave Bullock said. “We think we’ll prevail in this [law suit] and there’s really nothing to this.” 5
Unfortunately for the county, a twelfth circuit judge disagreed. On Feb. 8, 2010, the judge demanded that the Chair of the Board of Commissioners, Joel Barbetta, show cause as to why the Plaintiff’s petition for relief should not be granted and oral arguments proceeded on Feb. 16. 6 Because the case was not dismissed, the legal process and the gathering of evidence could take months if not years to be resolved, effectively stalling the proposed $31.2 million renovations to the Orioles stadium. In fact, the Orioles have already been advised that they may have to hold spring training without the planned renovations for the next two years. 7
Rather than jeopardize their deal with the Orioles, the county has refused to meet the citizens group’s settlement terms which include putting the stadium renovations on the ballot in a binding referendum on the county and the Orioles franchise.
“At this point in time, it’s not practical,” County Commissioner Nora Patterson said. “We have a contract with the Orioles. I am not going to want to put it up for a referendum after we’ve signed the contract. That doesn’t make any sense.” 8
As an alternative to the binding referendum, the County held public hearings on the renovations Feb. 19, 2010. The County and its attorneys believe that in similar cases, judges have looked favorably upon communities that have proceeded with the same hearings in the name of transparency and open government. 9 They may be right. County attorneys can now point to the fact that out of 75 speakers at the public hearing, only two voiced their concerns with the Orioles deal. 10
Regardless of the legality of the public financing deal, much of the angst within the Sarasota community is due to a phenomenon occurring nationwide. Professional baseball franchises are leaving their traditional spring training locations for greener pastures, better facilities, and traditional spring training cities like Sarasota are struggling to keep up.
In fact, since 1998, six major league clubs have moved to Arizona based upon the allure of sweetheart stadium deals, better weather, and proximity to other major league franchises. 11. In efforts to reverse this trend, the city of Naples, FL, has engaged in a fierce battle with Mesa, AZ, over the future spring training location of the Chicago Cubs. While the Cubs franchise has held spring training in Mesa since the 1950s, Naples sought to draw the team by promising a new stadium, surrounding training facilities and a commercial district. 12. Naples and the state of Florida were so transfixed on drawing the Cubs that Florida Governor Charlie Crist invited Cubs Owner Tom Ricketts to a meeting in Tallahassee. 13
In the end the Cubs renewed their contact with Mesa on the condition that they would finance an $84 million new training facility. 14 Yet, like Sarasota, the deal was made without adequate consideration to the hurdles of public financing
Here, Mesa’s financing proposal was to include a $1 surcharge on each auto rental in the Phoenix area and an 8 percent surcharge on tickets to all minor league games. 15. This proposal, now set forth by the Arizona legislature, has received criticism from an unlikely source, Major League Baseball Commissioner Bud Selig. Specifically, Selig has explained that he is against penalizing car renters and baseball fans that choose to attend the Cubs games.
“The Commissioner is opposed to the proposed legislation,” Bob DuPuy, baseball’s chief operating officer said. “He is committed to finding an alternative method of financing that will allow the Cubs to continue training in Arizona.” 15
All of this means that spring training is no longer an entirely joyous time of year for professional baseball franchises and its dueling Arizona and Florida spring training communities. Cities like Sarasota and Mesa seek every competitive advantage in their quest to retain professional baseball and its expected financial rewards. However, in this case, the victor may not go the spoils. Lucrative deals with spring training cities have the potential to rapidly go sour when angry citizens or the commissioner disfavor the deal or the financing. While the devil may be in the details, it is vitally important for baseball franchises to ensure that they have the approval from local communities and the league before any ink is spilled on the paper. If not, an 18-foot inflatable rat could land on your spring training doorstep.
1. Washington Post News Services, “Orioles, Sarasota Reach Spring Deal,” THE WASHINGTON POST July 23, 2009,available at http://www.washingtonpost.com/wp-dyn/content/article/2009/07/22/AR2009072203307.html
2. See Sarasota Citizens for Responsible Government Complaint Case No: 2010 CA 001262 NC p. 15-19. Available at: http://www.stadiummess.com/uploads/Complaint___Exhibits.pdf
3. Id.
4. Id.
5. Doug Sword, “Lawsuit seeks to Halt Orioles Stadium Deal,” HERALD TRIBUNE, Dec. 30, 2009, available at: http://www.heraldtribune.com/article/20091230/article/912301039?p=3&tc=pg
6. Sarasota Citizens for Responsible Government v. Joe Barbetta, Order to Show Cause, Case No. 2010 CA 001262 NC. Available at: http://www.stadiummess.com/uploads/1_861_3730_100208_236558064_2_.pdf
7. Robert Eckhart, “County Commission Defends Orioles Deal,” THE HERALD TRIBUNE, February 20, 2010, available at http://www.heraldtribune.com/article/20100220/ARTICLE/2201048/2416?p=1&tc=pg
8. Robert Eckhart, “Group Offers to Settle Sarasota Baseball Suit,” HERALD TRIBUNE, January 21, 2010, available at: http://www.heraldtribune.com/article/20100121/article/1211069
9. Robert Eckhart, “County Commission Defends Orioles Deal,” THE HERALD TRIBUNE, February 20, 2010, available at http://www.heraldtribune.com/article/20100220/ARTICLE/2201048/2416?p=1&tc=pg
10. Id.
11. Ken Belson, “Promises and Perks To Try to Lure Cubs From Arizona,” THE N.Y. TIMES, January 28, 2010, available at: http://www.nytimes.com/2010/01/29/sports/baseball/29cubs.html
12. Id.
13. Id
14. Id.
15. Carrie Muskat, “Clubs, MLB Prefer Different Cubs Financing,” MLB.COM, February 18, 2010. .
16. Id.
