Glendale, Ariz., is selling about $136 million in debt in the municipal-bond market this week, just days after Moody’s Investors Service cut its bond rating because of the desert city’s obligations to cover losses on a National Hockey League franchise.

In exchange for the NHL’s promise to manage team operations and keep the team in Glendale until a new owner is found, the city agreed to compensate the league, the city’s executive communications director, Julie Frisoni, said.

The Coyotes filed for bankruptcy protection in 2009, and that spring, the NHL became the owner of the team. In exchange for keeping the team, the city signed an agreement to absorb up to $25 million of the team’s losses in both 2011 and 2012, in anticipation of finding a new owner, Moody’s analysts said.

Glendale is slowly sinking itself in a mountain of debt to pursue its insane strategy to subsidize every billionaire sports owner in Arizona.  The town of 225,000 people is spending $25,000,000 to fund the operating losses of a freaking hockey team — that’s nearly $500 a year for every 4-person family in the city.  Nuts.  And this is just their operating subsidy, it does not include debt service on the $300 million stadium it built for the team.

The problem is that the team is worth less than $100 million in Arizona (based on recent sales comps of other NHL franchises in warm cities like Atlanta) but might be worth $300-$400 million if moved to Canada (Jim Balsillie made an offer in this range, including an offer to pay down $150 million or so of the city’s debt, before RIM stock started to crash).  The NHL, which owns the team now, has promised owners that they will not take a penny less than $200 million for the team, and that they will not suffer any operating losses.

So, because they simply cannot admit they were wrong to subsidize the team the first time around, to keep the team in Glendale the city must either fund $25 million a year in team operating losses or it must pony up $100 million or so to bridge the team’s $100 million value in Arizona and the league’s $200 million price tag (something they tried and failed to do last year when the Goldwater Institute pointed out that such a subsidy was unconstitutional in AZ.

I repeat, what a big freaking mess.  How do you avoid it?  The only way is the Wargames strategy, ie the only winning move is not to lay the sports team subsidy game in the first place.

As I sit here, I might as well share with you some of the lessons we have learned in trying to land a spot playing college baseball.  I am not sure you should even listen to me, as I knew nothing about this 5 months ago and we still don’t know if our son will be successful, though we are gaining confidence.

First, if your kid is a total stud, he may be scouted in high school, either on his school team or on summer and fall teams built for that purpose.  If so, great.   But just because your kid has never been seen by a college scout, or goes to a school that is not a traditional baseball powerhouse, he is not somehow doomed.  Our son certainly has never seen a scout and goes to a school that almost never produces college baseball players.  Worse, he plays varsity soccer and basketball so he can’t even join a fall scouting team.  This probably rules him out for high-powered division 1 programs like ASU or Texas.  But there are a ton of schools out there who are likely not going to get even one scouted player.

My son is looking at small liberal arts colleges that tend to play division III (Williams, Amherst, Vassar, Pomona) and a few smart-school division I teams (e.g. Princeton).   He has a different equation than the top division 1 athletes.  They are hoping their skills will get them a scholarship and acceptance at a school that can offer them exposure to the pros.  My son is hoping his skills will put him over the top at a very selective school that is brutally hard to get accepted at, even with good grades.  And of course, he just loves to play baseball.

NCAA recruiting is a morass of sometimes non-intuitive rules.  And the rules are different for different size schools (e.g. div III vs. div I).  But the most important thing I can tell you is that your kid has to take the initiative to get in front of the schools.   You cannot rely on your coach or school or anyone else.   You can begin earlier, but we started around the middle of his Junior year:

2nd Semester Junior Year

Through much of his junior year, I video’d Nic’s games, and then he spliced together a 5 minute highlight video.  We put that on YouTube, and sent coaches a letter and a copy of the video.

Most schools have an online prospect form they want you to fill out, and you need to do that.  You also need your kid to register with the NCAA clearing house — it takes a few bucks and they want transcripts and test scores.

During spring break, when we visited schools, in addition to the admissions office tour, we tried also to either schedule a visit with or drop by the baseball coach.  Some said hi for 5 minutes, some gave him nearly an hour, but its important to show them you are interested.   In all of this, it is very important to have your son take the lead.  Yes, I know teenage boys and mine is no different than yours, so you may have to poke and prod in the background, but they need to make the contact.  In fact, whenever we meet a coach, I introduce myself, and then I leave my son alone with him.

If you take any message away, I would say this, and I have heard this from many people now:  The #1 mistake your kid can make is not being proactive enough in contacting coaches.  The #1 mistake you as a parent can make is being too involved with the coach — they want to see what your kid will be like, at college, out from under your parental umbrella.  They do not want to deal with your hopes and fears and anxieties as the overbearing sports parent.

Summer between Junior and Senior year

By NCAA or conference rules, at least atthe div III schools we visited, the coaches cannot give your son a tryout at school.  We thought we might obtain something like this when we visited, but it is against the rules.  So you need to find a forum to play in front of the coach.  The best is if that school has a showcase camp.  A lot of schools do — check their athletics web site.  The other great choice are camps held by third parties that have coaches from many schools attending.  Nic wrote the coaches at the schools he was interested in and asked them, by email, which camps they were attending so he could get in front of them.  If they don’t answer, try emailing the assistant coaches (many times the head coach has delegated most of the summer scouting to the assistants).

There are a lot of camps nowadays, because certain groups have found they can be money makers.  In fact, I would say baseball camp folks fall into two categories — there are ones run by baseball guys who really care about the kids and the game, but who can’t organize their way out of a paper bag.  And there are the commercial ones, that may run well, but tend to have way too many boys for the number of coaches and don’t seem to care much about the boys.  The exception I found was a group called  Headfirst, which runs a series of Honor Roll Camps, so named, I think, because they have coaches from a lot of “smart” schools.  These guys really care about the boys and run a fabulous camp.  If the schools you are interested attend these camps, I would highly recommend them.  Sign up early, they always sell out.

Here is how this camp runs, as an example.  In the first morning, the boys will do a number of skills workouts for the coaches (who are all on the field in folding chairs taking notes).  Outfielders will field four balls and make a few long throws to the plate.  Infielders will do the same from shortstop.  Catchers will be timed popping up and making the throw to second.  Everyone gets timed in the 60-yard dash.  Everyone gets to hit 9 balls in batting practice in front of all the coaches.  The rest of the two days the boys are organized into teams and play games, which are as much about pitcher evaluations as anything else. At this camp, all of the games are coached by the college coaches who are there recruiting. The coaches rotate so they see everyone.

These are weird events.  I have a ton of respect for all the kids.  Imagine hitting in a batting cage with one hundred coaches in folding chairs writing in notebooks all around the sides of the cage.  Or pitching when there is a net right behind the catcher, and right behind that are 50 guys taking notes, ten of whom are holding radar guns.

The kids get nervous, but one thing we have learned is that coaches are looking at something different than laymen might expect. What the kids may consider to be a screw-up may actually be a success.   You and I are impressed by the guy who lines a couple into the gap, vs. the guy who grounds out to the pitcher.   But the coaches are not even looking where the ball goes — they are locked on the batter and his swing.  That is why they do the hitting showcase in the cage now instead of on the field like they used to — the coaches just want to see the kid’s form.  Ditto the other stuff.   In the last camp, my son put himself down as an outfielder rather than pitcher (though he plays both in high school) because he felt like his hitting was his best path to college.  But in one of the early drills they put a radar gun on him, saw he threw 88mph, and asked him to pitch.  And then the second day the head coach wanted to see him pitch again.

By the way, before each camp, My son looked at the list of coaches attending the camp and sent them emails, and called a favored few, to tell them that he would be at the camp, that he is really interested in their school, and could they please look out for him.  At the camp, the kids really need to take the lead in walking up to coaches (who are all wearing their school’s gear) and introducing themselves.   No, your kid is not different from mine — it is hard to get them to do this.  To their credit, the Headfirst camps actually work with the kids to encourage them in this. The camp leaders are constantly walking up to kids and saying “have you introduced yourself to a coach yet?”

The Fall of Senior Year

The rules vary by sport, but apparently the kids cannot be called at their home by baseball coaches until July 1 (again, this is in div III, rules may vary by sport).  This reinforces the need for kids to be proactive.  Most coaches will wait until the summer camps are over and develop their short list of kids to call and recruit.  That is all Div III schools can do.  Div I schools can bring a few kids in for a university-paid campus visit.  If you get one of those (they only have a few to give out) that is the best sign of all that the coach is truly interested and not just blowing smoke to be nice.

We expect this to be our fall challenge — how do you figure out if the school is really interested?  In the common application era, it is absolutely critical to tell a college you are really interested and not just hitting the send button to the 29th school.  The best way to do this is by applying early admission, but you only get one of these.  We are hoping to match the school we pick for early admit with Nic’s interests as well as baseball coaches’ interest.  We’ll see how it goes.

Mind of the Coach

The following could be completely wrong.  It is put together not by someone who has experience with baseball or who has been a coach and player, but as someone acting as sort of a baseball anthropologist trying to figure out what is going on.  The following applies mainly to smaller schools not in the top 20 or 30 national programs — they have a completely different situation.

• The camps seem intimidating, because there are so many good kids playing.  Coaches seem like these Olympian figures deciding everyone’s fate based on inscrutable criteria.  But never forget this — coaches are just as desperate as you are.  As much as your son is desperately trying to land a spot, coaches are desperately trying to get good players.  Remember, someone probably needs your son.  And smaller school coaches have to sit back and wait for ASU and Texas to skim the cream before they can even get started with the task.
• They have to make decisions on very little data, or what you and I would consider little data.  Over and over again I hear that unless you are in a school or league with which they are familiar, your kid’s ERA or batting average and stats means almost nothing to them.  They will make most of their evaluation from looking at him for what seems a really brief time.  If your son is being encouraged to rework his swing, but he is worried that his stats will drop for a while as he makes the changes, remember that his form, not his stats, will likely get him a spot at a school
• Most schools allow the baseball coach to send a list of kids -3,5, maybe 7 names – to the admission office for special consideration.  Most of these kids will get in.  Being on that list at a school like Princeton or Amherst that have 8% admit rates is therefore a huge boost.   But, having a limited number of spots, the coach is not going to put a kid’s name on that list unless he is pretty sure that kid is going to come.  Getting five studs through admissions is useless if they all are headed to Duke or Stanford instead.  My son has picked a few schools and has really worked to make sure the coach understands he is likely to accept an admission.
• This is just a guess based on how organizations work, but my sense is that coaches have a certain “budget” as to how much they can ask the admissions office to bend their standards for their recruits.   This means that for selective schools, it still helps a LOT for your kid to have good academics and test scores.   The Headfirst camp we are at now actually asks for grades and scores in advance, and puts those on the cheat sheet every coach gets.   I can guarantee you that before a guy from Harvard falls in love with your kid’s swing, he looks down at those academics to see if he can afford to.
• Most medium and small school coaches have no idea on June 1 who they will be recruiting for the next class.  So if it is June 1 and your son is a rising senior, it is not at all too late.

As some of you may know, the NBA is heading into a protracted labor negotiation, with both parties acknowledging that the economics of the game have turned against owners.  Henry Abbot at ESPN argues that a large part of that economic change has been increasing taxpayer reluctance to subsidize sweetheart stadium deals for teams

Public money for stadiums has become scarce, and I have to believe that’s part of the owners’ pleas for financial relief from players. Huge moneymaking buildings for free or cheap have been no small part of what makes owning a team a no-brainer. Now teams in need of stadiums — like the Kings and whatever team may one day relocate to Seattle — face tough economics. Getting either deal done requires some kind of miracle. And in that context, if you ever fantasized about a world where taxpayers didn’t contribute so much to buildings — even if it meant players earned a little less — well, your time is now.

To his latter point, I hope he is right.

Glendale is throwing its support behind a regional bid to bring Super Bowl XLIX to the city in 2015.

In return for the prestige of hosting the National Football League game at University of Phoenix Stadium, Glendale must guarantee services such as public safety and sanitation for free and exempt game-day tickets from sales tax for the NFL.

When Glendale hosted its first Super Bowl in 2008, it saw $1.2 million boost in sales-tax revenue. But a city-commissioned study showed it cost the city $2.6 million in services.

The City Council on a 5-2 vote Tuesday approved the resolution. Councilwomen Joyce Clark and Norma Alvarez dissented.

Councilman Phil Lieberman asked for Glendale’s cost to host the Super Bowl in 2015, but Deputy City Manager Cathy Gorham said she didn’t want to speculate because “things change on a regular basis.” The needs in 2015 may be much different from 2008, she said.

These guys are beyond parody. We lost money last time so lets do it again, and by the way lets be sure not to estimate our costs before we make this decision.  Here is a bit more:

Clark said the NFL’s demands grow more “invasive” every year.

Clark ticked off requirements such as use of the stadium for nearly two months, final cleaning of the stadium and equipment as needed for free. The NFL doesn’t pay state or local levies such as payroll, sales, use and occupancy taxes.

Clark cited two former host cities, Arlington, Texas and Miami Gardens, Fla., which did not shoulder the costs of a Super Bowl. In both those cities, the states stepped in and reimbursed them, Clark said. She said that communities that hosted the NFL game didn’t see “big spikes” in their tax revenues.

“The city of Glendale should not be expected to pay the Super Bowl’s costs without recompense when it benefits the entire region,” she said. “We are at a disadvantage because the NFL is hosting in our city.”

Alvarez, an ardent opponent of using taxpayer money for professional sports, said the city was in no position to be spending money for the Super Bowl with the economic crisis. She said she couldn’t face her constituents if she supported the resolution when there are unmet community needs and employees are still taking unpaid days off.

Note the only alternative suggested – the alternative is not “let’s not do this, it makes no sense” but “let’s make sure we stick the costs on a larger group of taxpayers.

More articles on Glendale and sports subsidies here.

Well, duh.  This is what has driven me crazy about the whole steroid craze.  Steroids were not invented to as sports performance enhancing drugs.  They were invented because they had a variety of medical uses, including aiding recovery from certain injuries.   Is the sports world really better off if we deny, say, Tiger Woods the injury-recovery tools that any non-athlete would have access to?

I will add here, just to tick people off and highlight yet another area where I am grossly out of step from the rest of America, that I have no particular problem with PED’s in sports.  It’s fine if governing bodies for whatever reason want to ban them, but its not a straight forward case to me.  These drugs have dangers, but getting our panties in a knot about people’s informed choices on these dangers seems hypocritical to me as we routinely attend sports that have been demonstrated to cause, for example, major brain damage in athletes (e.g. football, hockey, boxing).

I suppose I get the comparability issue (people like records from 1900 to be comparable to those today) but to some extent this is outright hypocrisy as well.  Don’t modern training techniques, like altitude sleeping chambers, equally make a mockery of comparability?  Baseball cries the most about steroids messing up the record books, then it does stuff like lower the pitching mound to help hitters and add the DH.

On the plus side, isn’t there value to seeing our athletes play longer?  Wouldn’t it be nice (if you are not a Red Sox fan) to see Derek Jeter play a little longer?  To see Tiger Woods return quicker from injuries?

And don’t even get me started on the government’s campaign to throw steroid users like Barry Bonds in jail.  As I said earlier, I don’t have a particular problem if private governing bodies choose, for competitive or marketing reasons, to ban PED’s and enforce that ban within their community.  But throwing Barry Bonds in jail for choice he made with his own body?

The Phoenix Coyotes are expected to stay in Glendale at least one more season, with or without a permanent owner, if the City Council pledges another $25 million to the National Hockey League.

The cash would go to offset team and arena losses…..

The pledge is the second financial promise in as many years.

Glendale this week paid $25 million it pledged the league a year ago in hopes of keeping the Coyotes in town until a permanent owner was found.

The city paid this year’s $25 million from a utilities-repair account.

It’s unclear whether that same fund would be used again and when the city would have to pay.

The NHL says the team and arena lost $37 million last season.

Just to give you a sense of scale, $25 million a year is larger than the city’s fire department budget.  It is over $100 for every man, woman, and child in the city, each of the last two years.  Residents of the town are subsidizing a money-losing team mainly enjoyed, to the extent it has fans, by people outside of the city of Glendale.  It is a $25 million city annual expenditure that mainly helps three or four bars and restaurants next to the facility.  Just paying off those obviously politically connected retail owners a few hundred thousand each would be cheaper.

NHL Commissioner Gary Bettman agrees with McCain that the world is out of joint when people can second-guess the political class: “It fascinates me that whoever is running the Goldwater Institute can substitute their judgment for that of the Glendale City Council.” He will learn not to provoke Olsen, who says, “It happens to fascinate me greatly that the commissioner thinks a handful of politicians can substitute their judgment for the rule of law.”

I managed to come in 61st, or exactly in the middle.  That’s actually pretty good since I only got 6 of the sweet-16 right.  I lost, though, to every other member of my family.

The toughest competition for basketball and football players occurs at the Division I level. These sports have both large attendances at games-sometimes, more than 100,000 persons attend college football games– and widespread television coverage…. Absent the rules enforced by the NCAA, the competition for players would stiffen, especially for the big stars…

To avoid that outcome, the NCAA sharply limits the number of athletic scholarships, and even more importantly, limits the size of the scholarships that schools can offer the best players….

It is impossible for an outsider to look at these rules without concluding that their main aim is to make the NCAA an effective cartel that severely constrains competition among schools for players. The NCAA defends these rules by claiming that their main purpose is to prevent exploitation of student-athletes, to provide a more equitable system of recruitment that enables many colleges to maintain football and basketball programs and actively search for athletes, and to insure that the athletes become students as well as athletes.

Unfortunately for the NCAA, the facts are blatantly inconsistent with these defenses….

I expressed many of the same thoughts in this article at Forbes.  In addition to making the same points as Becker, I slammed on the whole concept of the “amateur athlete” as an outdated holdover from the British aristocracy and their disdain for commerce:

University presidents with lucrative athletic programs will do about anything to distract attention from just how much money their Universities are making off of essentially unpaid labor.  Their favorite mantra is to claim they are holding up an ideal of “amateurism.”

The whole amateur ideal is just a tired holdover from the British aristocracy, the blue-blooded notion that a true “gentleman” did not actually work for a living but sponged off the locals while perfecting his golf or polo game.  These ideas permeated British universities like Oxford and Cambridge, which in turn served as the model for many US colleges.  Even the Olympics, though,  finally gave up the stupid distinction of amateur status years ago, allowing the best athletes to compete whether or not someone has ever paid them for anything.

In fact, were we to try to impose this same notion of “amateurism” in any other part of society, or even any other corner of university life, it would be considered absurd.  Do we make an amateur distinction with engineers?  Economists?  Poets?

When Brooke Shields was at Princeton, she still was able to perform in the “amateur” school shows despite the fact she had already been paid as an actress.   Engineering students are still allowed to study engineering at a university even if a private party pays them for their labor over the summer.  Students don’t get kicked out of the school glee club just because they make money at night singing in a bar.  The student council president isn’t going to be suspended by her school if she makes money over the summer at a policy think tank.

In fact, of all the activities on campus, the only one a student cannot pursue while simultaneously getting paid is athletics.  I am sure that it is just coincidence that athletics happens to be, by orders of magnitude, far more lucrative to universities than all the other student activities combined.