The Blues Have Given the Lauries the Blues
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When billionaire Wal-Mart heirs decide owning a major league team is too costly we have a problem. The problem is the City (and hence all of us tax paying residents) owns the Savvis Center where the Blues have a long term lease. Post-Dispatch columnist Bernie Miklasz argued yesterday
The Savvis Center however, won’t do jack for the city, and downtown interests, if there’s no hockey team or NBA team to fill valuable dates. That’s the reality. So really, it’s up to the city to decide what to do with this investment. Think short term, and stick with the 5 percent amusement tax. Or think long term and consider this: If there are no major league sporting events at Savvis Center, then where will the revenue come from? Surely, bright people can come up with a solution to satisfy hockey ownership while accommodating the city’s desire for a piece of the revenue.
I’ll summarize his entire article for you. We gave tax breaks to the Rams & Cardinals so why not the Blues? We need sports, regardless of cost. It is cheaper to buy the Blues now rather than replace them if they move to another city.
i guess I’m just not as wise as some. We pay hundreds of millions of dollars for facilities to create tax revenue and jobs. Do these things ever pay off as planned? Add up how much was spent on building the Savvis Center and then look at current debt, taxes received and jobs created. Does it work? Got me. The Post-Dispatch is reporting:
The Lauries, of Columbia, Mo., have owned the Blues and the team’s lease at the city-owned Savvis Center since September 1999. According to a source close to the Lauries, the Blues have lost $60 million over the past two years. And in recent conversations, Blues officials told the Post-Dispatch that combined cash deficits of the team and the Savvis Center have exceeded $225 million since the arena opened in 1994.
Previous owners also put in millions of dollars to keep the team afloat financially. Suppose I owned a popular retail store in the city that had a good customer base but it failed to turn a profit year after year. Sales provided tax revenue to the city and the business created jobs. Would the city be willing to build a new facility for me that I’d lease from them in the hopes I’d keep my business open?
If someone can prove to me the fiscal benefits outweigh the costs and risks then I’ll concede that sports is a good thing. Until then I see the Cardinals, Rams and Blues as big annoying problems. I believe if we spent our public time and money building great urban neighborhoods (including a downtown neighborhood) with great mass transit to connect them that we’d reap far greater benefits per public dollar.
Kansas City, if you want the Blues for your new publicly funded stadium I say fine. Pay us the balance of the lease on the stadium and best of luck. To Father Bondi at St. Louis University: you can stop building your stadium a few miles to the West because I think space just freed up at Savvis.
– Steve