Pro Sports – Law Street https://legacy.lawstreetmedia.com Law and Policy for Our Generation Wed, 13 Nov 2019 21:46:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 100397344 Stadium Deals: The High Price of Your Home Team https://legacy.lawstreetmedia.com/issues/business-and-economics/stadium-deals-high-price-home-team/ https://legacy.lawstreetmedia.com/issues/business-and-economics/stadium-deals-high-price-home-team/#respond Sun, 21 Feb 2016 17:05:33 +0000 http://lawstreetmedia.com/?p=50537

The cost has become huge.

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"FirstEnergy Stadium" courtesy of [Erik Drost via Flickr]

As of 2015, each NFL team was worth at least $1.4 billion according to Forbes. Despite these massive valuations, three teams–the Oakland Raiders, St. Louis Rams, and San Diego Chargers–hoped to leave their current cities and move to Los Angeles. The reasoning behind the desire to move was a yearning for a new, higher revenue stadium to play in. Each team was eager to leave its current city because of the failure of the local government to fund similar sites. This has increasingly become an issue in the NFL, as with other major sports leagues. It has even made international events like the World Cup and Olympics less appealing to host cities.

Read on to find out more about the real cost of having a hometown team, why the public keeps giving in to team demands, and how this problem has spread around the globe.


The Cost

The cost to taxpayers to renovate or build new stadiums has been enormous, particularly when it comes to America’s most popular sport, professional football. Over the last 15 years, the NFL has received $12 billion in public funds. These funds are not isolated to a few teams either, 29 of the 31 stadiums in the NFL (the two New York teams play in the same stadium) have used public financing to build new arenas. Public support for pro sports teams comes in the form of tax breaks, loans, and grants offered primarily by a city or county and occasionally the state.

Despite this funding, most cities and voters have little, if anything, to show for it. In fact, some reports suggest that using subsidies to pay for stadiums can negatively affect metrics like poverty rates and median income levels. Robert Baade, a researcher of these stadiums and their economic consequences, disputes the clear connection between the two, but his own research suggests that new stadiums almost always fall short of delivering the promised economic uptick suggested when they are funded.

Even stadium-related costs for things like renovation go to projects such as luxury boxes or seat licenses, which are not typically accessible to the casual fan or those with less disposable income. These same fans also do not see any sort of break on the cost of tickets or concessions. In fact, the only group that really seems to make out well in all this is the owners. Not only do the owners get to keep most of the revenues from the stadium, minus a very modest rent, they also pay very little in upkeep costs.

The video below goes into detail about what goes into building these stadiums:


Pay… or Else

Since most economists agree that there are very little, if any, benefits to using public funds to build these stadiums, it may be worth considering why people agree to finance them at all. Sometimes, it may simply be because the public doesn’t know about the plans. In 2013 for example, the Atlanta Braves organization agreed to move the team out of the city and into Cobb County. The move was done in secrecy and all information about the deal was kept from the public because otherwise voters could have rejected the plan.

While the Braves left Atlanta to get funds from a nearby county, the city was already building a new stadium for its NFL team as well as a practice facility for a new MLS team. This move is also unfortunate because the original stadium, which was built for the Olympics and would become the Atlanta Braves’ home, was initially financed without any public money. Making matters worse, that stadium they are so desperate to move out of is not even 20 years old.

In the recent fight for the St. Louis Rams, the court voided a law requiring a public vote to approve stadium funding only to watch the Rams leave for Los Angles anyway. But when citizens actually do get the chance to vote on how their tax dollars are spent, sports teams have mastered an invaluable tactic to keep the money flowing. That tactic is the threat of relocation, or basically taking the hometown team hostage to see if the city and the taxpayers will pay up. Once again, the Rams are not the first to use this threat or to follow through with it. The Baltimore Ravens and Indianapolis Colts, two high-profile teams that have won Super Bowls in the last 10 years, both left the cities they originally played in when their demands for new stadiums were not met.

The following video gives a lighthearted look at how teams use the threat of relocating to get new stadiums:


Case Study: The St Louis (now Los Angeles) Rams

While the Rams are clearly not the only team to move or used the threat of relocation in an attempt to leverage a city for a better stadium deal, it is the most recent. The Rams originally moved from Los Angeles in 1995, lured to St. Louis with a $250 million stadium paid for exclusively with public funds. However, as the stadium aged, Rams owner Stan Kroenke, the 63rd richest person in the United States, worth $7.6 billion, exercised an opt-out clause that let him flee St. Louis for Los Angeles and its much bigger media market.

This decision came even after St. Louis agreed to offer the Rams an additional $158 million while the new site in Inglewood, California offers no public funds at all. This may seem foolish, but as the owner of the new site–which includes amenities beyond just a football stadium–and landlord for whichever other teams play in Los Angeles, Kroenke is likely to make back his initial investment and more. Although Kroenke ultimately opted for a venue that does not utilize public funds, the Rams managed to get a remarkable offer from St. Louis. In the negotiation process, the owner, and to an extent the local government, utilized many of the classic leveraging techniques such as removing the influence of voters, threatening relocation, and ultimately following through on a threat to move.


A Global Epidemic

While NFL stadiums are the biggest and most public culprits of the stadium financing problem, there are a number of high profile examples around the globe. These often come in the form of stadiums built for the World Cup and the Olympics.

After less than two years, many of the sites for the Men’s World Cup in Brazil sit idle, barely being used. Some of the stadiums are only now being finished while others are put up for sale so that the government can make back some of its investment–an estimated $3 billion spent on building and refurbishing the facilities. Brazil is also scheduled to host the Summer Olympics in 2016, a move that comes with similar problems but on an even grander scale.

The abandonment of Olympic stadiums has also become a major issue for host countries. Facilities in places like Beijing, Seoul, Athens, and Montreal sit abandoned or are rarely used just years after costing the cities that built them hundreds of millions of dollars. This is especially disconcerting because it comes with the additional cost of hosting the Olympics. In what makes the NFL’s demands look like pocket change, the cost of the Olympics has averaged $3.6 billion from 1968 to 2010 and $16.2 billion after that. As bad as these costs are, the fact that they have an average cost overrun of 167 percent is even more concerning.

In fact, due to the ever-rising costs of holding the Olympics, many cities now are hesitant to host future events. In the run-up to the selection of the site for the 2022 Winter Olympics; Poland, Germany, Switzerland, Sweden, and the Ukraine withdrew their bids when polls showed it would have been incredibly unpopular. Boston similarly followed suit when it withdrew its bid to host the Summer 2024 Games. Ironically, one of the best examples of a city actually repurposing one of its old Olympic stadiums comes from Atlanta where the recently abandoned Turner Field Baseball stadium was created by repurposing the 1996 Olympic Stadium. The accompanying video gives a chilling look at a number of stadiums used for the Olympics and then just abandoned:


Conclusion

Professional sports teams, like any business, are always seeking to maximize their profits and it is unrealistic to expect them to do otherwise. Even though the public usually pays a large portion of the cost for a new stadium, they rarely pay all of it. Instead, that cost is usually spread out between the owner–in the case of the NFL, all the owners by using something known as the G4 Fund. Sports leagues are not the only corporations utilizing these tax breaks and deals offered by local governments. Many companies take advantage of these opportunities and there is often less of an outcry when cities, counties, or states offer huge tax breaks to lure other organizations. While these teams and businesses may have a lot of bargaining power, the decisions to use public funds remain up to local governments, and in some cases, voters.

However, while there is certainly enough blame to spread around, only the owners of these teams or their partners tend to benefit from them. This is particularly true for NFL owners, as they not only benefit from stadiums but media deals as well. Until recently, the NFL was also considered a non-profit organization, giving it even more tax breaks.  All the public has to show for this is more debt, empty stadiums, and the knowledge that the next threat of a move could happen at any time. The situation is increasingly frustrating and begs the question: what can be done?

Unfortunately, there may not be much that cities can do. In his recent budget proposal, President Obama included a plan to end tax-free bonds for teams, but that has a long way to go before it becomes law. Other suggestions have included anti-trust lawsuits, but these too gained little traction. The ultimate problem is that there are more cities than teams, meaning the teams will always have leverage of some kind and cities are often interested in getting a new team.  The real lesson in all this is while we root for our favorite hometown teams we should remember those teams will likely only remain in our hometowns if the price is right.


Resources

Forbes: The Business of Football

City Lab: The Never-Ending Stadium Boondoggle

The Huffington Post: “Taxpayers Have Spent A ‘Staggering’ Amount of Money On NFL Stadiums

Buffalo Rising: New Stadium Prospectus: Finance-Truth, Misconceptions, and Consequences

The Wire: Voters Don’t Want to Pay for Sports Stadiums Anymore

Curbed: How Atlanta’s Stadium-Building Madness is Nothing New

WBUR: Nearly 20 Years Later, The Legacy Of Atlanta’s Olympic Venues Is Still being Written

The New York Times: In Losing the Rams, St. Louis Wins

St. Louis Business Journal: Kroenke (Stan and Ann) are some of America’s richest

The New York Times: World Cup Stadiums Leave a Troubled Legacy in Brazil

The Wire: Turner Field Is the Latest In a Long Line of Abandoned Olympic Stadiums

Business Insider: The cost of hosting the Olympics is getting out of control

Slate: How to Stop the Stadium Wars

The Atlantic: How the NFL Fleeces Taxpayers

Michael Sliwinski
Michael Sliwinski (@MoneyMike4289) is a 2011 graduate of Ohio University in Athens with a Bachelor’s in History, as well as a 2014 graduate of the University of Georgia with a Master’s in International Policy. In his free time he enjoys writing, reading, and outdoor activites, particularly basketball. Contact Michael at staff@LawStreetMedia.com.

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Women in the Big Leagues: Can They Legally Play on “Men’s” Teams? https://legacy.lawstreetmedia.com/issues/entertainment-and-culture/women-big-leagues-can-legally-play-mens-teams/ https://legacy.lawstreetmedia.com/issues/entertainment-and-culture/women-big-leagues-can-legally-play-mens-teams/#respond Thu, 09 Jul 2015 13:30:23 +0000 http://lawstreetmedia.wpengine.com/?p=44619

Are there any laws that prohibit women from playing in the NBA, NFL, or MLB?

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Image courtesy of [Oleg Klementiev via Flickr]

The 2015 women’s World Cup final brought in millions more viewers in the U.S. than the 2014 men’s final. As the most watched soccer game in U.S. history, the final has spurred quite a lot of thinking about the lack of relative women’s participation in professional U.S. sports more broadly.

We know that men receive more athletic scholarships for college than women; the percentage of women coaches of men’s sports is tiny, and the percentage of women coaches for women’s sports is dropping as pay for coaches increases; and sports media devote precious little, if any, time to women in sports.

All of these forms of discrimination contribute to fewer women having access to playing sports professionally.

But are there actual, legal barriers to women as players participating in male-dominated professional sports? From the NCAA to the NFL, the answer is technically no.


 

NCAA and Title IX

Originally signed into law as part of the Civil Rights Act of 1964, Title IX is often the piece of legislation that athletes who are women cite as their legal protection in the arena of college sports. Title IX states that,

No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance.

Because most colleges and universities cannot function without continuing to receive Federal financial assistance of one kind or another, this legal provision is the means through which many women athletes have attempted to secure their rights to play in intercollegiate sports. Actually playing on a team is not the only aspect of college life Title IX is supposed to regulate, however. More expansive than this, Title IX:

Forbids sex discrimination in all university student services and academic programs including, but not limited to, admissions, financial aid, academic advising, housing, athletics, recreational services, college residential life programs, health services, counseling and psychological services, Registrar’s office, classroom assignments, grading and discipline. Title IX also forbids discrimination because of sex in employment and recruitment consideration or selection, whether full time or part time, under any education program or activity operated by an institution receiving or benefiting from federal financial assistance.

 

However, because legal standards in the United States require that the court proves individual and/or institutional intent to discriminate in order to prove discrimination, the NCAA’s standards for complying with Title IX–requiring, according to the NCAA’s interpretation, “that men and women be provided equitable opportunities to participate in sports”–is not likely to actually make the systematic changes women need in sports across the country. “Providing equitable opportunities” still allows women’s sports to receive much less than half of college funds for athletics, and it also still leaves athletes who are women vulnerable to more discrete forms of discrimination.

A good case study of these forms of discrimination is the case of Heather Sue Mercer, who in 1997 filed suit against Duke University under Title IX because she was cut from the football team for being a woman and, while she was still on the team, was treated much differently than her male teammates. Even though she was eventually awarded $2 million in damages, the standard for awarding damages (determining malice) is much lower than the standard for determining whether Duke violated Title IX (deliberate indifference, or the intent to discriminate, which Duke was found not to have).

The interpretations of Title IX in intercollegiate athletics that arose from this case have had long-lasting impacts on women trying to break into intercollegiate sports. The court ruled that colleges are not required to allow women to play on “men’s” contact sports teams, leaving decisions about women having access to sports in coaches’ hands. This leaves the door wide open for coaches to make statements like Goldsmith’s, citing arbitrary reasons like size that didn’t seem to impact Mercer’s ability to play just as well as — and better than — others on her team when she was invited to join it in the first place.

In this way, the interpretations of Title IX continue to allow sports discrimination to proceed in similar manners to other forms of workplace discrimination. So long as a coach (read: employer) does not explicitly state that a woman is being denied a deserved position on a team because she is a woman, he and his institution are generally safe from being legally found to be discriminatory in intent and, therefore, in fact. Since few, if any, institutional legal advisers would encourage clients to be explicit in such a manner, it remains very difficult for women to prove discrimination and therefore, to use Title IX as a means through which to gain equitable, safe, and affirmative access to intercollegiate sports participation.


And what about the pros?

Though Title IX by default does not directly affect professional sports–by definition, it only impacts institutions that receive federal funding–athletes attempting to make it into the big leagues find themselves strongly disadvantaged by the legacies of Title IX. Women do not only face discrimination on athletic fields that negatively impact their access to playing in the pros, but women’s pro leagues also experience extreme financial hardships that male leagues simply do not face. This acts as a strong barrier to all women, but especially to women who, for example, have a great deal of debt from college because they did not receive the same kind of scholarships that they would have if they were men. Because of the economic impacts of sports-based (and other) discrimination, women–especially women of color–are more likely to lack the resources needed to stick it through playing in underfunded women’s pro leagues.

The lack of ability for women to get professional opportunities and exposure is largely dependent on economic and media biases, as described by Shira Springer of The Boston Globe:

Absent deep-pocketed investors who can commit for several years, women’s professional teams and leagues find themselves scrambling to survive almost from the moment they launch. With the notable exception of the National Basketball Association-supported WNBA, women’s pro leagues never get a chance to play the kind of long game that could build momentum and diverse fan bases. ‘Women’s sports are still sort of niche sports,’ says Angela Ruggiero, president of the Women’s Sports Foundation based in New York City and a four-time Olympic medalist in women’s ice hockey. ‘Part of it is visibility. Because most women’s sports don’t get the same coverage compared to men, it’s not the same fan experience, and it’s much harder to get invested. Part of it is that sports fans are still trying to understand and appreciate women’s sports and female athletes.’

Partly because of this, many athletes who are women aspire to play in the “big leagues” that everyone is almost guaranteed to know about: the MLB, the NBA, the NFL.

Football–due to its emphasis on extreme contact–is often the sport that people react most strongly against women participating in. Many people simply do not believe that a woman could excel in the NFL (or football in general), except perhaps as a kicker.

But are there any regulations–legal or league-based–that actually prevent women from playing in professional “male” sports, even the NBA and NFL? The answer, it seems, is no.

In 2012, the NFL finally made it clear that there are no provisions, legal or otherwise, that would prohibit women from participating in the NFL. Soon after, in 2013, New Yorker and superb kicker Lauren Silberman competed at the NFL’s New Jersey regional combine. While she did not make the cut onto a team, Silberman told NFL.com before the combine that,

I was not aware that I was the first female registrant. I was actually hoping that the 2012 historical milestone rule, to allow women to play, would prompt more women to attend tryouts this year. But for me, what’s important is to finally have a chance to fulfill my dreams by trying out to play in the world’s most competitive football league.

Silberman’s dream was stymied, but like Silberman, the dreams of many women to play in professional sports–like Melissa Mayeux, the first woman eligible to be signed in the MLB from the international registration list–are still moving forward despite the obstacles.


So when will women be in the dominant pro leagues?

While athletes who are women are legally entitled to the equitable access to intercollegiate athletics, the reality is that most women, regardless of ability, do not have access to the same types of opportunities or benefits that athletes who are men have. Similarly, women are not barred by any regulation from participating in pro “male” sports, including high-contact leagues like the NFL; however, even as athletes like Silberman and Mayeux push boundaries in the big leagues, there is a very, very long way to go for women who dream of playing in those arenas.


Resources

NFL.com: Female Will Compete at Regional Combine For First Time

Boston Globe: Why Do Fans Ignore Women’s Pro Sports?

LexisNexis Legal Newsroom: Gender Participation Issues Related to Sports

NCAA: Title IX Frequently Asked Questions

AthNet: Title IX and Its Effects on Intercollegiate Athletics

ESPN W: Five Myths about Title IX

Women’s Sports Foundation: Title IX Myths and Facts

Life and Times: The Impact of Title IX on Women’s Sports

U.S. News & World Report: 40 Years After Title IX, Men Still Get Better Sports Opportunities

NFL: Women Will Compete at Regional Combine For First Time

Weekly World News: NFL to Allow Women to Play

Jennifer Polish
Jennifer Polish is an English PhD student at the CUNY Graduate Center in NYC, where she studies non/human animals and the racialization of dis/ability in young adult literature. When she’s not yelling at the computer because Netflix is loading too slowly, she is editing her novel, doing activist-y things, running, or giving the computer a break and yelling at books instead. Contact Jennifer at staff@LawStreetMedia.com.

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You Play Ball Like a Girl! https://legacy.lawstreetmedia.com/blogs/culture-blog/play-ball-like-girl/ https://legacy.lawstreetmedia.com/blogs/culture-blog/play-ball-like-girl/#respond Wed, 01 Jul 2015 12:30:11 +0000 http://lawstreetmedia.wpengine.com/?p=44213

What if we talked about male athletes the way we talk about women?

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Image courtesy of [wiredforlego via Flickr]

Oh, I would love it if the way that people are talking about 16-year-old Melissa Mayeux–an excellent French shortstop (and the first woman to be added to the MLB’s international registration list, which makes her technically eligible to be signed this week)–is how we would talk about men.

Take Yankees outfielder Garrett Jones. How ‘ridiculous’ would it be if I took his ‘supportive’ comments about Mayeux and made them about men? Let’s find out, shall we? (Brackets are where I’ve switched pronouns and other such gender-y words.)

I watched the video of [him] taking ground balls and hitting, and [he] looked really good for being 16… [He] looked good for a 16-year-old [girl]. I’m for it. If a [boy] can play up to the level and compete with [gals], I’m all for it. If [he] can compete and help the team win, why not? It’s pretty cool that [boys] are playing baseball. I didn’t know they had that in other countries, like France. So, why not? If a [boy] can compete with the [gals] and play, why not let [him] play?

Hahaha, funny, right–isn’t it so odd to talk about how surprising it is that boys might be as good as girls at something? But it is not ridiculous–it is, in fact, considered complimentary–when we talk about girls that way. When we’re shocked that girls and women are–not can be, but are–as good as men at sports. Or maybe–gasp!–even better?

Keep your compliments to yourselves, boys. I don’t want to hear that I can play if I’m as good as you. (I already know I’m better.)

And just for clarity there, Jones: were you unclear as to whether people in general play baseball in France? Or that girls are allowed to play?

Probably the second one, because you seem surprised that girls play baseball at all (though I suppose you’re right: it is “pretty cool”).

But I suppose maybe it’s not fair for me to take Jones as a proverbial straw man: he was, after all, trying to be supportive, and anyway, the problem is not limited to him.

There’s a problem in the way that most male-dominated sports-casting is discussing Mayeux: in sporting industries where women must automatically be on the defensive regarding whether or not we are “as good as” men, we are bound to get sexist reporting and commentary that is trying very hard to sound non-sexist.

Except it’s failing. Because it is evidence of a sexist industry when supportive people are referring to Mayeux as a “legitimate” shortstop (would we question a man’s legitimacy in his position?)

It is evidence of a misogynist industry when MLB Director of International Game Development Mike McClellan comments on Mayeux smoking a 91 mile-per-hour fastball that she “looked good doing it.”

It is evidence of a misogynist industry when articles rush to assure readers that Mayeux is not interested in–or (unrealistically unlikely) even aware of–breaking down gender barriers.

If she were an outspoken advocate for her right as a woman to enter the MLB, would she be considered a less “legitimate” shortstop?

In the male-dominated gaze of pro sports? Probably, yeah.

Jennifer Polish
Jennifer Polish is an English PhD student at the CUNY Graduate Center in NYC, where she studies non/human animals and the racialization of dis/ability in young adult literature. When she’s not yelling at the computer because Netflix is loading too slowly, she is editing her novel, doing activist-y things, running, or giving the computer a break and yelling at books instead. Contact Jennifer at staff@LawStreetMedia.com.

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