Prepared to Get Angry: Fantastic Stadium Deal Recap

A long expose in the latest Cincinnati Magazine sheds light on the stadium deal, both past and present. The article's author methodically lays out the timeline of events that has led to today's news that Hamilton County is selling Drake Hospital to fund the deficit caused by required stadium expenses and lower sales tax revenue.

Read the whole thing, please.  Here are some teasers:

The general thesis:

If you’ve turned on a TV or picked up The Cincinnati Enquirer lately, you know that instead the Bengals and Hamilton County have continued squabbling—and the stadium fund has continued hurtling toward financial disaster.

One reason, of course, is the economy. Since 1996, when voters agreed to increase the sales tax and build two new stadiums, Hamilton County has seen a lot of shops close or move to the exurbs (and a lot of shoppers shift their attention online). Tax revenues haven’t met projections, and each year the stadium fund has fallen further behind. Another reason is the Bengals lease, which requires the county to pay for everything from that new scoreboard to the stadium’s electric bill. Forget the team’s losing record—it’s the lease that earns national derision. In 2009, The New York Times devoted a long story to PBS’s “particularly lopsided lease.” This year, The Wall Street Journal devoted an even longer story to “one of the worst professional sports deals ever struck by a local government.”

The overall message:

At the stadium’s groundbreaking, Brown said the new facility deserved “a winning team. That’s what we plan to do.” Well, they haven’t, even as Brown has continued to turn enormous profits and to manhandle Hamilton County with a mix of business savvy and litigious bullying. But the county deserves some blame, too—and not just the previous administrations....That’s the first thing to remember about the stadium debate: The Bengals played rough from the beginning. The second is that a small and incestuous group has always driven the discussion. 

Crucial point:

The local media love to trumpet the county’s long-term projections—a $700 million deficit by 2032!—but that doesn’t make sense when the fund includes so many moving parts. In reality, we’re facing something far worse: a bruising annual argument in which the county looks bad, the Bengals look worse, and everyone wastes time and money. 

The summary:

Over the years, Brown has relied on peculiar logic to make his arguments. (Just one example: While he loves comparing PBS’s cost to that of stadiums in Jacksonville and Cleveland, Brown never mentions that owners in both cities have helpfully renegotiated their leases.) But even if his arguments were completely sound, why would an NFL owner pick such public fights with his city? It’s not classy. It creates heaps of bad press. And it all happens while Brown is earning crazy amounts of money in a stadium paid for by county taxpayers.

Go read the whole thing, get angry, and remember that's you are still not wasting your money on a team that is working to enrich themselves while bankrupting the city.

Comments

[WhoDeyFans]

or, you could get angry that the local politicians in a haste made a terrible deal and now use hospitals and education to hide the fact that the funds that the taxpayers pay for the stadiums were actually used in other areas. You know, like if you spent your mortgage payment on beer but then bitched when it came time to pay your bills.

But yeah, fuck Mike Brown, he is the worst.

[#DoNotOccupyPaulBrownStadium]

@WhoDeyFans: It takes two sides to make a crappy deal. Mike Brown is an evil scumbag. And Cincy politicians are mini-me scumbags.

[Brosef Stalin]

@WDF: Politicians are held accountable at every election. The Bengals, however, are held accountable by way our our financial decisions. The team sees no connection between playing hardball and squeezing every concession and dollar out of local taxpayers as possible and the fact that those taxpayers are also their customers. The difference that the Bengals enjoy, is that being a "fan" makes you forgive much easier because you are not a "real fan" unless you blindly support a team.

[Dan R.]

@WDF, what #DNOPBS and Brosef said. Also, you could get mad that contrary to owners in Cleveland and Jacksonville who saw what damage their deals were doing and renegotiated, MB has decided to squeeze the county for every penny he can get.

Why do you keep coming here? You have a whole website all to yourself. Seriously, I'm genuinely curious.

[WhoDeyFans]

Stalin, Very good points. You have to remember that the Bengals are also a business. There are some other very shoddy business deals the City has agreed to. The only reason there are not full page write ups on these deals is because the target is harder to hit. For the same reason you talk about fans forgiving is the same reason it is easy to make the Bengals the enemy. At the root it is on the politicians for the deal made. They should be held accountable. If you don't like the fact Steve Jobs cut all humanitarian programs at apple to make more profit, by all means don't buy an Ipod. But don't get mad at him because their is a deficit in Cupertino because apple does not have to pay any taxes in the city. That should be on the politicians, not the business.

Dan, I come here because occasionally there are some good debates. Wyatt, SWB and I have gone back and forth many times and have managed to not insult each other like so many commenters here have trouble not doing. I also agree with the idea that change is needed in the organization, I just have a hard time blaming Mike Brown for things that he should not be blamed for.

[Wyatt]

Gotta agree with WhoDeyFans here, at least partially. While Mike Brown is certainly a money-sucking vampire and has done nothing to relieve the financial burden his stadium has put on Cincinnati, there are many factors at work here, not least of which is that local politicians have allocated a great deal of the money that was designed to go towards the stadia to other projects. To paint this as simply as it being Mike Brown's fault with no blame proportioned to anyone else involved is both short-sighted and irresponsible. At this point, I don't really feel like the powers that be at WDR are really looking to make this site a legitimate movement anymore, but it still takes away from the overall credibility of the site if we focus all of our anger solely on Mike Brown and not on all of the responsible parties.

To be sure, this is as much Mikey's fault as it is any single other person involved in the deal, but it's not his fault entirely.

[WhoDeyFans]

Wyatt, I know you are an out of towner, but I think the politicians are still making terrible deals for the city. This goes beyond the scope of this forum but by them deflecting the blame onto Mike Brown, the fans (and their hearts) are not looking at the real issues. That the city politicians are terrible with budgets and money.

Yes Mike Brown could operate differently, but he is the same as every other business that takes advantage of the city. Ask for the world and take what you get. It is up to the politicians to look out for the budgets and pockets of the taxpayers, not your favorite football teams owner.

[Dan R.]

The site is about the Bengals, not the city of Cincinnati, which is why we're talking about MB's fault in the process, not city officials'. No one is saying that city officials weren't complacent and/or ignorant to a fault, or in some cases, even complicit in the bogus deal. But just as it's incorrect to say that it's totally MB's fault, and not the city's, it's also ridiculous to suggest that this is all the city's fault and MB's "just running a business."

For starters, it's hard to say it's the politician's fault for a bad decision, and not Mike Brown's, if Mike is paying the politician to make the bad decision (Bob Bedinghaus).

More generally, part of running a business is community relations, which is why most companies have whole departments devoted to this. If MB gave a shit about community relations, he wouldn't have made this deal in the first place since it's obvious it would attract this kind of attention. At the very least he could renegotiate the deal (as Nationwide also just did in Columbus) or at least offer to help the county meet obligations it cannot because they're being bent over by the team. An owner with even a spec of foresight would recognize that since this sort of deal is likely to give the team a black eye, it might make him the only owner in the sport that can't sell out a stadium even when his team is winning.

[WhoDeyFans]

Dan, I get it. You are on the "Mike Brown is the devil" bandwagon. Like a bull, you see red and you attack. You are wrong though.

"For starters, it's hard to say it's the politician's fault for a bad decision, and not Mike Brown's, if Mike is paying the politician to make the bad decision (Bob Bedinghaus)."

First off, that is illegal. Not just slap on the wrist illegal but Martha Stewart illegal. You honestly think with the publicity and books that would not have been looked into? Do you also believe that man never set foot on the moon? It is a weak conspiracy. Yes Bedinghaus screwed the taxpayers by making a deal then jumping ship. He was not paid to make the deal, he was put into position by the voters. Like everyone, he panicked and pushed the crappy deal. Knowing the magnitude of the crappy deal that was executed, where do you think his best chance of getting a job was?

Crazy how in your mind every business is so giving and the Bengals give nothing. Take my apple example, Steve jobs cut all humanitarian efforts at apple to make a larger profit. Do you own an IPod? Chiquita is leaving Cincinnati and P&G is forcing tons into early retirement. That is going to crush the Cincinnati local economy much more than the Bengals, no more bananas or any consumer health item for you?

I get it, you hate loving a football team that has continually disappointed you. When this site started, the response was awesome. It has since turned into fans calling each other names and bs stories like this one.

I am not on Mike Browns side at all, however, I do call a spade a spade. I don't turn a business owner into a devil because I don't like the way he runs his business. If you are that mad, then continue to not support. That (like Stalin said) is your vote. Post about it, post ads and banners.

But, when you make shit up, or call for his death or any other of the dumb things that are suggested in the comments here, just know, you lose all credibility.

[Dan R.]

WhoDey,

I'm not sure where the last part of your post comes from. No one in the comments section in this post, or any other for as long as I've been coming here, has made anything up, called for MB's death, or called you or anyone else names (though you have made quite a few unflattering assumptions and characterizations of me). I think you're getting a little worked up. No one thinks Mike Brown is the devil, just that he's a poor GM, and a bit of a moron. And as I said above, you're right that county officials bear a share of the blame - perhaps and equal share - but as I also said above, this site is about Mike Brown. When there is a HamiltonCountyCommissionersRevolution.com, your comments will fit nicely there. I'm not being sarcastic or facetious - they really should be called to task - this just isn't the forum for it.

As for Bedinghaus, I'm not saying Mike Brown handed him a briefcase of cash and said "I want a deal that says X." Mike is bad-owner stupid, not galactically stupid. But I do now work as a lobbyist in DC alongside a lot of former, current, and future Hill staffers, so I know a thing or two about how job trading works.

Other notes:
- No, I don't own an iPod, or any other Apple products.
- Chiquita and P&G are making involuntary decisions to save money, they are not consciously and actively looking for ways to squeeze every penny out of the county. To the extent that they and other corporations do, be it through tax abatements or other offsets, you probably won't be surprised to know that I'm opposed to such efforts, and generally an anti-corporate kind of guy.

Finally, as to this site turning into a place that publishes "stories like this one," you'll note that it's actually a Cincinnati Magazine story. Before that, it was a Wall Street Journal story, and before that it was a New York Times story. I, and most others, do not think of the WSJ and NYT as places that specialize in name-calling or think Mike Brown is the devil.

Feel free to respond, but please keep it civil.

- Dan

[Dan R.]

Correction: I called Mike Brown a moron. So yes, there is some name-calling going on. Guilty as charged.

[Bengals Fan Down South]

To add to Dan's statement, an owner and GM who loves his city, the very city his father setup shop in to call home, does not threaten it's people with packing up and leaving for greener pastures because he didnt get his new toy. These are the tactics of a child. The problem is, Mike Brown got what he wanted and failed to deliver his side of the bargain. I doubt a lot of these discussions would be taking place if we had a team that had the consistency of the Steelers, Patriots, or Ravens. The county doesn't have money. Period. Dot. Mike Brown will not, in good faith, make an effort to resolve the issues so the county can breathe a little easier. Its one thing to ask for a new score board or jumbotron if the old one broke or fell off the wall. But what MB has at the stadium works just fine. Last I checked, the score board showed the score just like always, why does he need a new one? This is just one concession MB could make in good faith. Instead, he proposed a slew of conessions that benefited mostly the Bengals, and oh by the way, he can get out of his lease early and head to LA. This my friends will win no friends in the court of public opinion.

So my final point would be, yes the county got themselves into a bind and MB is legally entitled to the terms in the lease. Whats done is done and that sucks. But MB, having all the power here, could change his public image and work with the county at least until the economy turns around, or the state of Ohio and Hamilton county decide to start doing things to attract new business to Cincinnati. Instead he says no, I want my new toys and I want them now. Hospitals and local schools be damned. that is what makes MB "evil."

[WhoDeyFans]

First, show me where I have not been civil. Seriously, because I asked if you believe in conspiracies?

Second: Show me where this happens:

"actively looking for ways to squeeze every penny out of the county."

See, that is what I am talking about. The county is trying to squeeze money from Mike Brown. If you sign a lease for an apartment and the landlord continues to try and change those terms, wouldn't you fall back on the lease? Would that be you trying to "squeeze every penny" out of your landlord? It is just not true.

And this line:

"an owner and GM who loves his city, the very city his father setup shop in to call home"

Paul Brown came here because he was kicked out of Cleveland. Not for some pipe dream to help the City thrive. He wanted an NFL team, this was his option.
Stating that it is dirty for the Bengals to threaten to leave? You mean like in almost every other NFL city when a stadium deal comes up. All teams threaten at some level to move where they can get a deal. Kind of like P&G, Chiquita and now Sears. Come on, this is not local.

Dan, sorry if any of my non insults hurt your feelings, it is obvious you have not been here long. Ask Wyatt, there are users with sign on names wishing for Mike Browns Death, I have had comments removed that were written about me. I am constantly called a sheep and worse. Most conversations here are not civil.

I get that it is a Bengals site and you all can continue to blame Mike Brown every time it rains, it does not make you right. The lease was set by the county, they could have fought harder or not made the deal.

The deal went to a vote. There was a tax approved by the voters that would pay for the stadium. Where did that money go? The County used that piece of the budget to cover other shortfalls. You know, other places where they spent more than they had. So how do you make up for it? Why not push out articles in all the publications you mention to garner public opinion against an owner that has performed horribly on the field. It is in no way Mike Browns fault the county has no money. But people like you claim he should be the one to fix it. Why? Because you are pissed about how the Bengals do on the field and that is it.

[Dan R.]

Second: Show me where this happens:

"actively looking for ways to squeeze every penny out of the county."

Did you even read the article? I'll list a few:

1. Threatening to leave town unless he was given a sweetheart deal on a new stadium. This includes having the head of the Cincy Chamber, who happened to be the nephew of a Bengals shareholder, back him up publicly.
2. Interpreting a payment that was a couple days late as grounds to break a lease that was already in his favor.
3. Forming a grasstops lobbying org, Citizens for a Major League Future, and using money from P&G, PNC, 5/3, and the Chamber to scare people into thinking they needed to give him the most lopsided deal in sports history or the city would turn into skid row.
4. Making up technology so that if it was ever invented the city would have to pay for it (i.e. "holographic replay systems")
5. Demanding unnecessary improvements to the stadium that the county would have to pay for.
6. Choosing not to pay for things that he could, like the scoreboard (they Reds paid for their own, even though they could have made the county do it).
7. Reneging on a handshake deal - a deal the team had announced was done on its website - and insisting that the county add 10 years to this albatross of a lease.

I could go on an on, but you get the point. Also, I'd avoid panning the county for using the stadium fund to pay for schools and infrastructure improvements. "Sorry kids, I know you need those textbooks, but we had a deal. Fair's fair." That kind of talk comes from the Mike Brown school of public relations.

Look, if you hate this site and the commenters here so much, don't come. "That (like Stalin said) is your vote."

[WhoDeyFans]

Dan, It is clear I have been around this site longer than you and will probably still be here when you tire of coming back. Anyway...

I get it, the deal is lopsided and as SWB pointed out in a very nice post long ago, probably the best stadium deal for a team ever.

However, using the hospitals and schools as an excuse is where you are wrong. Take your mortgage payment, give it to charity every month. When the bank comes knocking tell them about how many kids you saved and see if they let you keep the house.

You know why the county used the "Stadium Tax" money for those other things? Because they are terrible with money, plain and simple.

Also, the voters approved the stadium tax. It was listed on properties as "Stadium Tax". Since, the voters have defeated school, hospital and infrastructure levies. So I guess it is not only Mike Brown that is responsible for the poor hospitals and children. Come on, you know why they list those things first? Because people that read the surface of the issue get pulled in by their heart strings.

Never mind the amount of money spent on the streetcar exploratory committee. Or the National underground railroad freedom center. (And before anyone accuses me of being racist, no on goes there, they operate at a deficit). Or the tunnels for the underground transportation that were once excavated and left.

See, I am not in the Mike Brown school of public relations. I am more in the I am sick of the county and its gross misuse of public funds. Blame Mike for the Bengals, drafts or performance. Please don't blame him for the fact that a bunch of politicians screwed themselves and their county and now look to him to shield the blame they should receive.

[CurseofBoJackson]

So blame the politicians for being short sighted, stupid, underhanded, whatever you want, but please don't absolve Mike for worong doing as a result. Just because he is running a business doesn't mean that it's ok/good/forgiven etc.. for his org. to take every opportunity to fleece the pocket liners. There is a middle ground encompassing some level of morality and good business sense and Mike has consistently been FAR from it. TO argue otherwise is silly. This is personal opinion, but seeking of profit as the be all end all bottom line for all business decisions is deplorable, and if Mike were running a more 'normal' business i.e. one not operated socialistically, that strategy would have buried him.
How about this defensive backfield this Sunday? We gonna see Ghee at some point? He can't be too much worse than Kelly Jennings, perhaps this is not the game to toss him into though with burners abound?
Will Jay be smart enough to run Ced more? (provided he is healthy enough to carry 20 plus times)
Can we get the same or more pressure on Ben without Dunlap?
Can Whitworth and Smith handle the addition of Woodley to the LB corps?
I have Bengals down as a win with Simpson and the D having a big day.

[Dan R.]

You're making hypothetical arguments based on entirely different premises. "However, using the hospitals and schools as an excuse is where you are wrong. Take your mortgage payment, give it to charity every month. When the bank comes knocking tell them about how many kids you saved and see if they let you keep the house."

I'm not obligated to give money to charities. The county does, however, owe certain obligations to its school system (building maintenance, books, teachers salaries, etc...). It didn't have enough money to meet both obligations, so they raided the stadium fund to pay for schools (and hospitals, and infrastructure, etc...). Good on them. I would be disappointed in anything less.

Look, it's indefensible to argue that the county bears no blame for getting into this mess, which is why I'm not doing that. But it's equally indefensible to say Mike is blameless, which you are doing. To use just one small example, how do you explain the Reds paying for their own scoreboard, even though they didn't have to, while Mike forced the county for his, even though he didn't need it?

I will be coming to this site for as long as it's published. It's the only one I've found that supports the team while both providing insightful analysis of what the Bengals do on the field, but also accurate and honest information about what franchise leadership is doing off the field. If I only wanted the first half of the equation, I could go to Reedy's blog, or any of the other "fan" sites that copy and paste from him. This is also the only one with any sort of sense of humor.

At any rate, allow me to once again urge you to vote with your mouse, and avoid this site since it is apparently chock full of misinformation.

[WhoDeyFans]

Dan, This will be my last note on the issue, but please do more research on the Reds.

Look at what the county makes off of the Bengals tickets and concessions compared to what is made off the Reds, it is a huge difference. Once again, easy target.

We can agree to disagree on the county misusing the money.

There are several good Bengals sites out there (although, they won't share the Burn Mike Brown for everything) opinion here. You know mine and CincyJungle offers more news than Reedy. I don't even read Reedy's site.

Anyway, enjoy the game this weekend if you still do enjoy the games.

[JM]

I called for Mike Browns death and even a parade to commemorate the event.

I'm a Raiders fan now (ok I'm trying) and I can tell you a owners death is a positive thing. The difference between Al and MIke is just a few superbowls, a playoff win, and something called "glory days".

Bottom line is what we all know. Our economy was stronger in 96 than it is now. The team could give a little relief to the county as nobody (outside of Wall Street, Reagan supporters, and the Bush family) could have predicted the historic deficits that face the county, state, and federal debt issues that we now face. It's a systemic problem. The Bengals are one of many commitments the county can't meet.

The issue that makes Mike Brown such a piece of shit is that while the fans, taxpayers, and counties have lost revenues in our economy, this prick makes record profits and serves rotten chili. He could be Jimmy Stewart in it's a wonderful life, but he chooses to look like Mr. Potter.

[Hofbraunow]

To quote Mr. Potter, "I'll even go so far as to say"
Mike Brown *is* Mr. Potter...

And, later on, in the words of Mr.Potter (sort of), we'll be able to say,

"Mike Brown was no GM..."

Har, ok that's enough dual-role projection
for one day :)

-sent from my new iCrap device, a Chinese knockoff of the Chinese-made iPad....

It's my dream, that someday, the knockoffs will be
so instant, and so close, that no one would dare to outsource production there, at least not before commissioning production jobs in their own home land(s)...

[Whysoserious]

You guys need to lay off the crack pipes and go back to talking about sports since you seem clueless about politics and business. Honestly why should MB cut the county a break?!? Think Chiquita will turn course tomorrow and say they'll stay in town and not take any of the perks?!? Hell no their on the first flight to NC where they are getting more money than the Bengals deficit is.

If you owed a business would you give money back to the county/city if at the same time they were handing more money out to other businesses. I love football, I love the bengals buy I'm not naive enough to no realize its a business too. Nfl owners don't own teams because solely b/c they like football they own them to make money from Kraft to Jones.

[Whysoserious]

One more thing if MB is the only owner who only cared about the profits why did the NFL just sign TV deals increasing their fees 60%.

Blame MB for being a crappy talent evaluator, a crappy GM, and an idiot with no real plan to win, but please don't try to blame if for incompetent government and the profit driven way of American life.

[TigerJ@w]

@WDF, you are a MFB SHEEP! The bottom line is he had inside politicians who he paid off to get this deal. You will never believe this, but this happens in this country everyday. The RICH pay the politicians who make the decisions so they will get their way. It is simple as this. BTW, MFB has two politicians who are on his current payroll that made this stadium deal. How many times do I have to state this on this site? but hey, do not let me stop you from getting on your Kool Aid soapbox about how great MFB is and he is not really the problem. LOL Notice the games not selling out. This should send you a sign on what the fans really think about MFB and his ways! I can't wait for your Kool Aid reply. BTW, I have followed this stadium situation since the beginning and have many documents from the past to back up why I say these things. I am guessing most of the fans of this team now are in their 20s and do not have a clue about the past. All they see is what this team has done since Mediocre Marv has been here. They do not want to hear about the past. Too bad, you will continue to hear it from the likes of me until MFB is dead and gone!

[TigerJ@w]

oh, I forgot to add, MFB made $45M in profit last year according to Forbes. Why is nobody on here talking about this? They more than doubled the Ravens and Steelers. but hey, MFB is not the problem here. LOL

[Hofbraunow]

It's ironic the MFB's profit more than doubled that of teams that win more often,
(especially including the Steelers)...

I'm no student of finance
(worked on calculating simple interest once in grade school, then went to recess and never looked back),

but in the net process/result of it all, did MFB really make more money, or did he just spend less,socking away more of that sweet revenue-sharing?

---------------------------------------

On another note, free enterprise,
i.e. capitalism, means

not subsidizing communism, not doing business with forms of government that do not play by the same rules that a free and fair society does (including labor laws, etc)...

When the U.S businesses outsource unchecked, to huge, commie China, we circumvent the very laws and regulations that define our way of life...

...and China does not become more like us, instead, we become much more like them, lowering our standards, in more than one way...

...'Profit' is just one aspect of 'utility', utility being the ultimate goal of any economic activity...even the most profit-driven entities are served by working toward more than just maximum gain in the short-term...

Not only does Mike Brown fail at this, but so does (has) our MF'ing country

[Hofbraunow]

btw, won't be ranting like that again;

in the future
I'll stick to being incoherent at worst,
instead of explicitly off-topic as in the previous post.

[WhoDeyFans]

Ha, Tiger. You are like Mel Gibson in the movie conspiracy theory. I have proof Mike Brown blah, blah, blah. Crazy how you can state such "facts" with no proof. What did you do? Did you google something and find all the answers? You should be a detective.

I have proof!!!!

ha.

[Hofbraunow]

I believe TigerJ@w cited Forbes to support the statement that the Bengals were more than twice as profitable as either the Ravens or even---the Steelers (the winningest NFL team, from a Superbowl standpoint).

Not only does Mike Brown spend less, but he also gets shared revenue,
and a stadium paid for by the taxpayers.

He's the worst abuser of welfare ever.

And, hey, it's another blackout for Sunday...lol

[TigerJ@w]

I do have documented proof. I have even sent some of the articles to the people that run this site years ago. I keep them to make sure nobody will ever forget what a MONGER MFB really is! The reason I keep them is because googling will not work after years go by. This is what MFB wants to happen. He wants everyone to forget. Keep sticking up for that CLOWN, WDF, it just continues to make you look foolish! You may think you are not sticking up for him, but you really are. Thanks Hofbraunow! I did state it was Forbes. I am glad this site is here to keep those old articles too, but I have my own because this site may disappear one day.