Details

Yesterday the morning paper carried an editorial by Governor Daniels headed, “We’re reaping the benefits of sports investments.”  We thought some of the statements by the governor needed a little clarification.  At one point he says, “This year, the sports and convention business will generate more than $30 million (tax revenues) per year for the state.”

Question, Governor.  Is that net income, after all revenues diverted to the CIB, the Colts and the Pacers through all the secret agreements and tax allowances and variations are taken into account?  And if the figure is “net,” just how much has been siphoned off?

Another statement, parenthetically. “(By the way, most folks are surprised to learn that more than 90 percent of the stadium events are not Colts games.)”  We would suggest that most folks also would be surprised to learn that the stadium structure contains a good many regular meeting rooms with no connection to the arena itself.  They also might be surprised to learn that many of these other “events” are held in those rooms, despite being listed as “stadium” events.  How many is unknown, since the stadium website does not show an estimated attendance per event.

The stadium website shows events for the coming year.  As of today, 6/21/11, there are 72 days booked from 6/21/11 to 6/20/12.  15 are for football, including high school, college, Big Ten, the Colts and the Super Bowl.  That’s 20.8 percent for football.

The Governor goes on to say that, having put the state into the picture, “The keys were cutting back the proposed cost of the facilities, and enlisting Indy’s surrounding counties to participate voluntarily through a 1 percent restaurant tax.  No taxpayer anywhere else was asked for a nickel....”

Two points here.  We’re not sure how “cutting back” on costs managed to include a $70 million sliding roof which, to date, has done damned little sliding.  But he’s right about Indy taxpayers.  They weren’t “asked” for a nickel.  As a matter of fact, they’ve never been asked for anything.  They’ve been told what is going to be done, and that their tax dollars will be used to finance it.  Just pay up and shut up!

Aside from these little details - and the fact that we’ve never really understood how they arrive at some of the astronomical revenue estimates - the Guv’s article was pretty interesting.

Comments

[Leslie Baker]

My reaction to the "not asked for a nickel" justification(?) was the same as yours. The implication is that the rest of us *have* been asked - ha! If only someone would extend us that courtesy! Isn't there something way back in the history books...what was that called...oh, yes - taxation without representation. Weren't we AGAINST that??

[Larry Calloway]

What's sad is that many people believe this disinformation and propaganda because it emanates from the orifice of "My Man Mitch."

[Kay S. Desmond]

Don't all events in the stadium generate some kickback revenue for the Colts, even if they have nothing to do with football? The Colts are REALLY "reaping the benefits" of our tax investments.

[Vox Populi]

Just a couple of quick comments, did the governor get to see the books of either the Pacers or the Colts and how does over a billion dollars of tax payer money become an investment when we get all of the bills and literally none of the revenue?

[Paul Ogden]

Kay, the Colts get 50% of non-Colts revenue from events at the stadium.

Apparently the Governor is unaware that the political tide has turned against these sports subsidies that he praises here. At least he was smart enough to steer clear of mentioning professional sports as a good investment, a conclusion directly opposite to what economists say.