James Skeffington, PawSox Owner. |
Proposed Site of New Stadium. |
THE OWNERSHIP
The new owners of the PawSox are all known players in the corrupt system that is the Rhode Island government. The most problematic persona in the circus is Mr. Skeffington. As a lawyer at the law firm Edwards Angell Palmer and Dodge, he has been instrumental in arranging financing deals that have resulted in the tax payer getting the raw end of the stick, such as the arrangements for the Providence Place Mall and the Rhode Island Convention Center. The Convention Center is of particular note because, in the fine print, Mr. Skeffington arranged for taxes to fund the operation until they should get out of the red. Founded in 1994, the Rhode Island tax payer continues to subsidize this debacle.
THE ENVIRONMENT
Following the removal of the de-comissioned sections of the interstate, Providence began a project to re-design the sewer system. In order to accommodate a new stadium, this newly-laid sewer would need to be renovated, which could cause further leaks and pollution of the waterfront. Furthermore, construction of such magnitude would cause air, water, and noise pollution. This in and of itself would be a disaster.
THE FINANCING
The owners have argued that they will require what they call 'public-private' financing, a scheme that local businessman Michael G. Riley has described as 'gobbledygook'. In essence, the taxpayer foots the bill and the owners reap the profits. The details of the actual financing are galling and seem like a nightmare from the mind of Charles Dickens. They want $5 million per year from the taxpayer. They want a 30-year lease, $1 per year, and the option to buy the land at fair market value at the end of the lease. And no doubt, if the team does not do fantastic, they will include a sub-clause to move the team to greener pastures at their whim, leaving Providence with a monstrosity that has no chance of being re-purposed. In the case of the 38 Studios debacle, the offices and computers were easily re-sold and re-purposed. It is very difficult to do the same with a baseball stadium.
THE POLITICS
This move will bring Brown University one step closer to it's goal of re-designing the voting districts in Providence so to disenfranchise the poor and minority populations of South Providence. Such types of gerry-mandering are commonplace on the agenda of the rich and privileged. This will eventually result in an end to efforts to make the various colleges in the city pay property taxes, something former Brown President Ruth Simmons was dragged kicking and screaming to. Ultimately, a new stadium will mean that the black/brown or poor in Providence get a bat over the back of the head.
THE ECONOMICS
Holy Cross economics Professor Victor Matheson and Lake Forest Professor Robert Baade collaborated on a 2011 white paper titled FINANCING PROFESSIONAL SPORTS FACILITIES, available here. Matheson and Baade make clear that there is absolutely no financial benefit for the governments that subsidize these ventures. Of course, Speaker Nicholas Matiello has hired Smith College economics professor Andrew Zimbalist, a yes-man who is well-respected by the leadership of the Major League Baseball organization, including former Commissioner Bud Selig, a man who did not notice a twenty-plus year scandal involving steroids until half the players in the league had ballooned to the size of small blimps.
THE PRINCIPLE
Gore Vidal once said America is “a unique society in which we have free enterprise for the poor and socialism for the rich." This scheme is a brilliant example of such a move. We are a state that has operated in the red for decades. Our schools are disasters. Our pension system is getting marauded by the Wall Street fat cats brought in by Gina Raimondo. The police force is almost totally made up of white males while the general population is composed of African, Latino, and various other minority populations. Of the millions of things that could be done with this amount of money, subsidizing a bail-out for Skeffington and Co. is the last thing that should be done.
Do the common sense thing. Say NO to Skeff-O-Nomics.
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