1998-11-09
Mike Piazza now makes $91 million for playing baseball, for seven years. How on earth can they do it? Only 30 years ago, the entire New York Yankees baseball club was valued at only $12,000,000.
Well, it's a free country. If a baseball owner wants to pay an athlete $17 million a year to play a game, why shouldn't he?
They can pay Mike Piazza $91 million because fans continue to flock to the stadiums and plop themselves in front of their television sets to watch Mike Piazza play baseball. From that money, the New York Mets pays its players. And like every other business, they pay all their other expenses, like administrative staff, office space, scouts, managers, and rent or mortgage for the stadium... and taxes.
Well, wait a minute. Yes, yes, the Blue Jays pay $11 million dollars a year in taxes on the Skydome. But who built the Skydome? You did. With your tax money. We paid $321 million to build the Skydome and then we rented it to the Jays for considerably less than it costs to operate it. That is why the Skydome Corporation is now bankrupt.
This year, Hartford, Conn. is donating $350 million to the New England Patriots. And Maryland is donating $220 million to the Baltimore Ravens NFL team, and kicked in an extra $80 just to make owner Art Modell happy.
At least the Blue Jays paid their taxes last year. And so did the Expos. But the Cardinals and the White Sox, and the Red Sox, and the Reds, and the Dodgers, and the Rockies, and the Mets, and all the other teams? Not a penny.
How can that be? This is a multi-million dollar business! These owners are filthy rich. They pay their players absurdly extravagant sums of money to do what most of us would gladly do for nothing. And they don't pay taxes?!
No, they don't. They don't pay taxes, because foolish citizens and even more foolish politicians have decided to use tax payer money to subsidize professional sports teams.
You see, Mike Piazza doesn't care who he plays for. You do. You are a fan. You want your team to win. You are loyal to your team even if they lose. Loyalty is a good quality. Baseball players have the loyalty of rats. If the New York Mets didn't offer to pay Mike Piazza more money, he was going to go play for someone else!
But the New York Mets didn't have enough money for Mike Piazza. How would the owners of the Mets make a profit if they had to pay Mike Piazza more money?
Well, they can cut other expenses, like those horrific stadium costs. But if the team cuts those costs from its budget, who is going to pay for it? Why the city, of course! But where does the city get its money? From property taxes. And where do property taxes come from?
Right-- you. You with your $45,000 a year. You are going to give tax money to the New York Mets (if you are citizen of New York) so that they can give Mike Piazza an additional $4 million per year.
But the tax payer would think that is a dumb idea. So instead of the city giving a check to the Mets, it gives them a deduction on their taxes. And then it chips in for a stadium. And then it provides police and traffic services for free.
This is all no secret, by the way, though you would think it would be almost unimaginable that voters would be so stupid as to approve these arrangements. Sports Illustrated has been ranting about this devious little scam for years. A few smart politicians and journalists have caught on as well. And the voters in Minnesota caught on, and recently turned down a proposal to make a gift of a $100 million stadium to the billionaire owner of the Twins, who then threatened to move the Twins to some town with more idiots in it.
It is one of the biggest scandals in modern history: taxpayers subsidizing multi-million dollar contracts for spoiled athletes! And you just know that some of these same owners and athletes and sports journalists and politicians who approve of these arrangements would be among the first to complain bitterly about their hard-earned tax dollars going to a single mother on welfare. Freeloader! Parasite! Give us back your $500 a month and go find a job! Maybe you can park Mike Piazza's spare Rolls Royce for him, if you're good.
The problem is that too many cities give in to owner blackmail: build me a stadium or I move to a different city. And the city fathers weep and wail-- "Alas, we cannot be without our sports team!" and issue a bond or debenture and build a stadium and forgive them their annual property taxes. Cities without sports teams plead with the Expos or the Twins: move here and we will give you millions of dollars. Millions of YOUR dollars.
And you voters stand for this??? You re-elect these guys? Are you insane?
The Baltimore Orioles, thank you, paid for their own stadium. Hurray for Baltimore! But they still don't pay any taxes. [According to the Toronto Star of Nov. 29, 1998, the taxpayers paid $254 million for Baltimore's stadium. When I find out who's telling the truth, I'll update this.]
Now, you will hear many supporters of these professional sport teams argue that the teams generate a great deal of revenue, including tax revenue, and attract jobs, and therefore, more than "pay for themselves". Right. You can apply this argument to absolutely any business you like: banks, car makers, theatre companies, insurance companies, computer makers, anybody. They all generate revenue and taxes. Big deal. Pay your taxes and shut up.
The only solution is for all the cities to get together and agree that none of them will subsidize major league professional sports in any shape or form whatsoever. No subsidized stadiums. No tax concessions. No free police guards. Not even a parade (a long civic advertisement for the team). Tell the major leagues to conduct their businesses like everyone else: you balance out your income vs. your expenditures, and if you can't afford to pay Mike Piazza $91 million, you offer him less.
Even better, the federal governments in both Canada and the U.S. should outlaw civic funding of sports stadiums.
Copyright © 1998 Bill Van Dyk All rights reserved.