Buck You

The Journal Sentinel continues their advertising campaign periodic reporting for the Bradley Center. Don Walker writes, Operating Income Up, But Challenges Remain. (From fiscal year June 2010 to June 2011 operating income for the Bradley Center increased from $14.7 million to $16.3 million. A 10.9 percent increase.)

The thing that really irritates me about this whole stadium subsidization situation: these captains of industry, these entrepreneurs, these businessmen whom always complain about entitlements, aid to the poor, and workers wages (to name a few of their complaints), these same people have no problem putting their hand out and demanding taxpayer money for their private playgrounds and projects. They're so smart  and innovative, except when it comes to paying the costs of their own business.

Exemplified by Marc Marotta, the chairman of the Bradley Center board, "The next five to seven years, there has to be a public-private effort." Strange how the private sector believes the public sector exists to service them specifically. Yet, when these private players are asked to pay their fair share of taxes, excuses for why they shouldn't have to pay more could fill all the seats at the Bradley Center.

Workers need to sacrifice. They should pay for their own retirement and health care; employers should no longer bear any responsibility. Social Security, Medicare, and unemployment insurance should all be diminished...we just can't afford it.

But...we need a private-public effort when tax dollars are being redistributed upward. When unemployment is at double-digits, people are losing their homes, and others are going without needed medical care, we can't use those same tax dollars to help out. No, in that case, we're broke. But when you can afford a boardroom full of attorneys, we will find the money to help build your stadium. We can raise taxes to pay for Miller Park, but we can't do the same for our park system or public transportation.

And, it's odd that even though the NBA season started late this year, the City of Milwaukee didn't collapse without the Bucks playing their basketball games. According to all the blather being whipped up, one would have thought that the, roughly, 20 cancelled games would have left Milwaukee resembling Thunderdome.

Economic Engine or Albatross?

Marc Marotta, the board president for the Bradley Center, in the Milwaukee Journal Sentinel, declared the Bradley Center an economic engine.

Most of the workers are non-union, low-wage, seasonal and without benefits. Not the type of jobs most economic development aims to, nor should, create. Most of the millionaire athletes that play at the Bradley Center don't live in Milwaukee - their tax and spending dollars spillover outside Milwaukee. Often, the money spent on sporting events leaks outside the host region.

To be an economic engine, a project has to lure customers from outside the area that would not otherwise be spending money, or induce locals to spend more than they otherwise would. If people decide to go to the Bradley Center rather than a movie one night, there is no growth. This is merely a realignment of leisure spending. The majority of dollars spent at these events are simply a substitution of spending patterns (a basketball game rather than eating dinner out).

And, again, perplexingly, many whom would routinely be lumped in with the ultra-conservative, government-is-bad, no-new-taxes cabal are saying they need public dollars to continue their private entity. So...government can't do anything right, they don't know how to properly spend tax dollars...but when the government is giving millions to stadiums and arenas, they're investing wisely. Yes, screw public transportation, green energy, and modernized sewer and water systems. Sport stadiums are much more crucial to our economic future.

If extra-market forces (taxpayer subsidies) are good when it comes to stadiums, why aren't taxpayer subsidies good for public works programs, light rail, greening older buildings, or facilitating universal health care? Those subjects seem much more important to the average citizen than sporting facilities.

It's also very strange to claim the Bradley Center is an economic engine and then offer up nothing quantitative to back up that claim. But then again, actual studies looking into the effect of stadium subsidization have found that stadiums have little to minimal impact on the local economy.

For Further Reading:
Basket Case
Buck The System
Conclusions On Subsidies For Sports Franchises
Economic Impacts Of Tourism
Sports, Jobs, & Taxes
Stadiums & Convention Centers As Community Loss Leaders
The Stadium Gambit & Local Economic Development
Stadium Swindle