Posts tagged ‘nfl’

Kevin Drum's Sensible Thoughts on Ray Rice: Why Doesn't The Same Logic Apply to Universities?

Kevin Drum has some sensible thoughts on Ray Rice, discipline and the NFL -- "Sensible" defined in this case as largely mirroring my own:

Ray Rice committed a crime. We have a system for dealing with crimes: the criminal justice system. Employers are not good candidates to be extrajudicial arms for punishing criminal offenders, and I would be very, very careful about thinking that they should be.

Now, I'll grant up front that the NFL is a special case. It operates on a far, far more public level than most employers. It's a testosterone-filled institution, and stricter rules are often appropriate in environments like that. Kids take cues from what they see their favorite players doing. TV networks and sponsors understandably demand a higher level of good behavior than they do from most employers.

Nevertheless, do we really want employers—even the NFL—reacting in a panic to transient public outrage by essentially barring someone for life from ever practicing their craft? Should FedEx do that? Should IBM do that? Google? Mother Jones? Perhaps for the most serious offenses they should, and it's certainly common to refuse to hire job candidates with felony records of any kind. (Though I'll note that a good many liberals think this is a misguided and unfair policy.) But for what Ray Rice did?

I just don't know about that. Generally speaking, I think we're better off handling crimes through the criminal justice system, not through the capricious judgments of employers—most of whom don't have unions to worry about and can fire employees at a whim. I might be overreacting, but that seems like it could become a dangerous precedent that hurts a lot more people than it helps.

I agree 100%.  The NFL  was simply insane to venture into the role as a shadow legal system to apply punishments based on their investigation and judgement in parallel with those of the legal system.  They would have been much better off simply establishing a schedule of internal penalties that were based on the outcomes of the legal system.

That being said, I wish other writers on the Left would read Drum's column and ask themselves why this same logic wouldn't apply to colleges as well. It is unbelievable to me that Liberals of all people -- who have largely defended due process rights in the legal system for years against Conservative attempts to trim them -- would suddenly wage a campaign to substitute kangaroo courts run by university administrators in the place of normal police and judicial procedures for crimes as serious as rape.  I am historically skeptical of the legal system and the people in it, but all of these problems would only be worse trying to have a bunch of amateurs at universities setting up a parallel system.

There is certainly a problem to be solved -- though the 1 in 5 statistic is completely bogus and exaggerated -- but the diagnosis of the problem has been all wrong.  The problem is that Universities have historically created internal police forces and disciplinary processes for the express purpose of protecting their students from the normal legal system.  This is a practice and tradition that goes all the way back to the Middle Ages.  And it worked fine, at least as far as I am concerned, when the University was protecting students from marijuana or underage drinking busts by town police.

But institutions develop a culture, and the culture of university disciplinary processes has been to 1.  keep the student out of the legal system and 2.  get the student to graduation.  I have friends who have been kicked out of top universities a few times, but the University in the end bent over backwards to take them back and get them over the finish line.

So it is disappointing, but not surprising, that universities approached more heinous crimes with this same culture and mindset.  And some egregious sexual assaults got swept under the rug.  Again, I think some folks are exaggerating these numbers by assuming there are tens or hundreds of these cases for every one we hear about.  But we can agree on the core fact, I think, that the typical college disciplinary culture of protecting students from the legal system has failed some victims of sexual assault.

But this is where everyone seems to be going off track.  The Obama Administration solution for this problem is to demand that universities develop more robust fact-finding and disciplinary processes for such felonies, and remove procedural protections for the accused as a way to offset the historic university culture to go to far in protecting wrongdoers.

This is nuts.  Seriously.  Given the set of facts, a far simpler solution, fairer to both accused and victims, would have been for the Obama Administration simply to demand that Universities hand over evidence of crimes to police and prosecutors trained to know what to do with it.  If the University wants to take special steps to get victims help coping with their recovery using University resources, or help victims and the accused who are University students cope with the rough edges of the legal process, great.

Postscript:  Another problem is that punishments meted out by universities are going to always be wrong, by definition.  Let's say a student is accused of rape and kicked out.  Two possibilities.  If he is innocent of the charge, then he was punished way too much.  If he was guilty, if he really raped someone, he was punished way too little -- and by the University screwing around with it and messing up the chain of evidence and taking statements without following the correct process, they may have killed any chance of a conviction in the legal system.    The current process the Obama Administration is forcing punishes the innocent and protects the truly guilty.

Private Justice and the New Vigilantism of the Left

In the 1970's, Hollywood produced a number of movies that drew from a frustration that the criminal justice system was broken.   Specifically, a surprisingly large number of people felt that due process protections of accused criminals had gone too far, and were causing police and prosecutors to lose the war on crime.  In the Dirty Harry movies, Clint Eastwood is constantly fighting against what are portrayed as soft-hearted Liberal protections of criminals.  In the Death Wish movies, Charles Bronson's character goes further, acting as a private vigilante meeting out well-deserved justice on criminals the system can't seem to catch.

There are always folks who do not understand and accept the design of our criminal justice system.  Every system that makes judgments has type I and type II errors.  In the justice system, type I errors are those that decide an innocent person is guilty and type II errors are those that decide a guilty person is not guilty.  While there are reforms that reduce both types of errors, at the margin improvements that reduce type I errors tend to increase type II errors and vice versa.

Given this tradeoff, a system designer has to choose which type of error he or she is willing to live with.  And in criminal justice the rule has always been to reduce type I errors (conviction of the innocent) even if this increases type II errors (letting the guilty go free).

And this leads to the historic friction -- people see the type II errors, the guilty going free, and want to do something about it.  But they forget, or perhaps don't care, that for each change that puts more of the guilty in jail, more innocent people will go to jail too.  Movies cheat on this, by showing you the criminal committing the crimes, so you know without a doubt they are guilty.  But in the real world, no one has this certainty.  Even with supposed witnesses.  A lot of men, most of them black, in the south have been put to death with witness testimony and then later exonerated when it was too late.

This 1970's style desire for private justice to substitute for a justice system that was seen as too soft on crime was mainly a feature of the Right.  Today, however, calls for private justice seem to most often come from the Left.

It is amazing how much women's groups and the Left today remind me of the Dirty Harry Right of the 1970's.  They fear an epidemic of crime against women, egged on by a few prominent folks who exaggerate crime statistics to instill fear for political purposes.  In this environment of fear, they see the criminal justice system as failing women, doing little to bring rapist men to justice or change their behavior  (though today the supposed reason for this injustice is Right-wing patriarchy rather than Left-wing bleeding heartism).

Observe the controversies around prosecution of campus sexual assaults and the bruhaha around the video of Ray Rice hitting a woman in an elevator.  In both cases, these crimes are typically the purview of the criminal justice system.  However, it is clear that the Left has given up on the criminal justice system with all its "protections" of the accused.  Look at the Ray Rice case -- when outrage flared for not having a strong enough punishment, it was all aimed at the NFL.  There was a New Jersey state prosecutor that had allowed Rice into a pre-trial diversion program based on his lack of a criminal record, but no one on the Left even bothered with him.  They knew the prosecutor had to follow the law.   When it comes to campus sexual assault, no one on the Left seems to be calling for more police action.  They are demanding that college administrators with no background in criminal investigation or law create shadow judiciary systems instead.

The goal is to get out of the legally constrained criminal justice system and into a more lawless private environment. This allows:

  • A complete rewrite in the rules of evidence and of guilt and innocence.  At the behest of Women's groups, the Department of Justice and the state of California have re-written criminal procedure and required preponderance of the evidence (rather than beyond a reasonable doubt) conviction standards for sexual assault on campus.   Defendants in sexual assault cases on campus are stripped of their traditional legal rights to a lawyer, to see all evidence in advance, to face their accuser, to cross-examine witnesses, etc. etc.  It is the exact same kind of rules of criminal procedure that Dirty Harry and Paul Kersey would have applauded.  Unacknowledged is the inevitable growth of Type I errors (punishing the innocent) that are sure to result.  Do the proponents not understand this tradeoff?  Or, just like the archetypal southern sheriff believed vis a vis blacks, do women's groups assume that the convicted male "must be guilty of something".
  • Much harsher punishments.   As a first offender, even without pre-trial diversion, Ray Rice was unlikely to get much more than some probation and perhaps a few months of jail time.  But the NFL, as his employer (and a monopoly to boot) has a far higher ability to punish him.  By banning Ray Rice from the league, effectively for life, they have put a harsh life sentence on the man (and ironically on the victim, his wife).  They have imposed a fine on him of tens of millions of dollars.

Postscript:  For those who are younger and may not have experienced these movies, here is the IMDB summary of Death Wish

Open-minded architect Paul Kersey returns to New York City from vacationing with his wife, feeling on top of the world. At the office, his cynical coworker gives him the welcome-back with a warning on the rising crime rate. But Paul, a bleeding-heart liberal, thinks of crime as being caused by poverty. However his coworker's ranting proves to be more than true when Paul's wife is killed and his daughter is raped in his own apartment. The police have no reliable leads and his overly sensitive son-in-law only exacerbates Paul's feeling of hopelessness. He is now facing the reality that the police can't be everywhere at once. Out of sympathy his boss gives him an assignment in sunny Arizona where Paul gets a taste of the Old West ideals. He returns to New York with a compromised view on muggers...

I guess I was premature in portraying these movies as mainly a product of the 1970s, since this movie just came out.

Inevitably necessary note on private property rights:  The NFL and private colleges have every right to hire and fire and eject students for any reasons they want as long as those rules and conditions were clear when players and students joined those organizations.  Of course, they are subject to mockery if we think the rules or their execution deserve it.  Public colleges are a different matter, and mandates by Federal and State governments even more so.  Government institutions are supposed to follow the Constitution and the law, offering equal protection and due process.

Unionizing NCAA Players: A Simple Question in a Free Society, But A Total Mess In Ours

This week, the NLRB agreed to allow the players on the Northwestern University football team to unionize.   This is one of those issues that is simple and straightforward in a free society and a total mess in our less-than-free society.  Here are a few thoughts:

  1. In a free society, this is a no-brainer.  The Northwestern players are welcome to create an association among themselves and call it anything they like, including "union".  That association is free to try to negotiate with the university for better terms  (they are also free to fail at this and make no progress).
  2. However, it is clear that we are not a free society because the players had to go to the government and ask permission to form this particular type of association.  The reason is that associations called "unions" have been granted special powers and privileges under the law not available to other associations.  There are also a large body of very particular rules for how such associations may conduct business and how other groups (in this case the University) can or cannot interact with it.  It is a very tricky legal and philosophical question whether this package of benefits and privileges should be accorded to a group of college football players
  3. In a free society, the fact that the players don't get paid cash and that their universities make millions off the football program would be irrelevant.  The players freely agreed to the deal (in most cases, playing in exchange for free tuition and perhaps a chance to land an NFL job) so there is nothing inherently unfair about it.
  4. However, in our society, we have all sorts of government interventions.  I consider many of these interventions to be counter-productive, even occasionally insane.  But if one is to navigate such a society (rather than, say, go off and live in Galt's Gulch), I think the principle of equal protection is critical.  Arbitrary government interventions in free exchange are FAR worse when applied unevenly.  From an equal protection standpoint, I think the players may have a good case.
    • The law generally does not allow profit-making businesses (and the NCAA and college footfall are certainly those) to accept unpaid labor.  Many folks who don't deal with the Fair Labor Standards Act every day will say: "players are paid, they get free tuition."  But this is not how the FLSA works.  It counts non-cash wages only in very specific circumstances that are enumerated in the law (e.g. lodging).  Think of it this way -- McDonald's could not legally just pay all its employees in french fries and claim to be compliant with the law.  Also, large numbers of Division 1 football and basketball players never graduate, which shows a fair amount of contempt by players for this supposedly valuable "free tuition" compensation.
    • On the other hand, most college athletics are not profit-making.  My son plays baseball at Amherst College -- it would be laughable to call this a profit center.  I am not sure there are but a handful of women's teams in any sport that generate profits for their school, and even on the men's side money-making is limited to a few score men's football and basketball teams.   But the few that do make money make a LOT.  University of Texas has its own TV network, as do most major conferences.
    • The law generally does not allow any group of enterprises to enter into agreements that restrict employment options.  Google et. al. are getting flamed right now, and likely face criminal anti-trust charges and lawsuits, for agreements to restrict hiring employees from each other's firms.  The NCAA cuts such deals all the time, both severely restricting moves between schools (transfer provisions in Division I are quite onerous) and preventing poaching at least of younger players by professional leagues like the NBA and NFL.   The notion that top players in the NCAA are playing for their education is a joke -- they are playing in college because that is what they have to do in order to eventually be allowed in a league where they can get paid for their skills.
    • Actually trying to pay players would be a real mess.  In a free society, one might just pay the ones who play the most profitable sports and contribute the most value.   But with Title IX, for example, that is impossible.  Paying only the most financially valuable players and teams would lead to 99% of the pay going to men, which would lead to Title IX gender discrimination suits before the first paycheck was even delivered.  And 99% of college athletes probably don't even want to be paid
    • Part of the pay problem is that the NCAA is so moronic in its rules.  Even if the university does not pay players, many outsider would if allowed.  Boosters love to pay football and basketball players under the table in cash and cars and such, and top athletes could easily get endorsement money or paid for autographs by third parties.  But NCAA rules are so strict that athletes can be in violation of the rules for accepting a free plane ticket from a friend to go to his mother's funeral.  When I interview students for Princeton admissions, I never buy them even a coffee in case they are a recruited athlete, because doing so would violate the rules.
    • Much of this is based on an outdated fetish for amateurism, that somehow money taints athletic achievement.  It is hilarious to see good progressive college presidents spout this kind of thing, because in fact this notion of amateurism was actually an aristocratic invention to keep the commoners out of sports (since commoners would not have the means to dedicate much of their life to training without a source of income).  The amateur ideal is actually an exclusionist aristocratic tool that has for some reason now been adopted as a progressive ideal.   Note that nowhere else in college do we require that students not earn money with their skills -- business majors can make money in business over the summer, artists can sell their art, musicians can be paid to perform.  When Brooke Shields was at Princeton, she appeared in the school amateur play despite making millions simultaneously as a professional actress.  Only athletes can't trade their skill for money in their free time.

I am not sure where this is all going, but as a minimum I think the NCAA is going to be forced to allow athletes to earn outside income and accept outside benefits without losing their eligibility.

Back in 2011 I wrote an article in Forbes on this topic

Why Peyton Manning is an Icon

I friend sent me a note analyzing data on NFL quarterbacks past and present, and came up with this top five based on a points system that ranked the top 40 all time quarterbacks on a number of dimensions, such that the lowest score is the best:

1. Joe Montana - 54 Points
1. Tom Brady - 54 Points
3. John Elway - 68 Points
4. Terry Bradshaw - 84 Points
5. Peyton Manning - 86 Points
Even without going through the numbers, I can live with this.  The conundrum is that Peyton feels to many, including me, like he may be the greatest of all time, but nearly any numerical or scientific analysis puts him behind other quarterbacks, including Tom Brady.  So why do our hearts tell us something else?  I have two hypotheses:
  1.  He is the most interesting guy in the history of the NFL before the ball is snapped.  This is a criteria I never would have thought even existed 10 years ago.  But Peyton has made watching the team at the line of scrimmage before the play starts totally compelling.  No one in history is even close.   Think of all the great quarterbacks in history -- you think of them throwing, right?  With Montana, for example, I see those slants to Jerry Rice, hitting him in stride.  Now, how do you picture Peyton?  Yelling Omaha at the line of scrimmage.
  2.  He is money in advertisements and live appearances (e.g. Saturnday Night Live).  Have you seen Joe Montana's and Farvre's ads?  Stiff.  How much better would Peyton have been in There's Something About Mary?  Only Bradshaw is close.

Peyton gets dinged for being a poor bad-weather quarterback.  I am not sure if the numbers support this hypothesis, but he would have to go a long way to being worse than Aikman was.  I was in Dallas during their three Aikman-era superbowls (actually I lived in Denver for their 2, and St Louis for theirs, and Arizona for theirs, all of which is payback for growing up an Oiler fan).   Aikman always disappointed in bad weather.  The one year of their four year run in the 90's that they did not go to the Superbowl, they lost to SF in the Conference championships.  That day, the moment I saw it was raining, I knew the Cowboys were doomed.

This is a Scandal??

How is this a scandal?

While fans can also purchase pink [NFL Branded] clothing and accessories to support the cause, a shockingly small amount of the fans' money is actually going towards cancer research.

According to data obtained from the NFL by Darren Rovell of ESPN, the NFL "takes a 25% royalty from the wholesale price (1/2 retail), donates 90% of royalty to American Cancer Society."

In other words, for every $100 in pink merchandise sold, $12.50 goes to the NFL. Of that, $11.25 goes to the American Cancer Society (ACS) and the NFL keeps the rest. The remaining money is then divided up by the company that makes the merchandise (37.5%) and the company that sells the merchandise (50.0%), which is often the NFL and the individual teams.

How is this "shockingly small"?  A donation of 11.25% of the retail price, and 22.5% of the wholesale price,  of a piece of clothing is a pretty hefty.  What do they expect?  All the author is doing is demonstrating his (her?)  ignorance of retail and clothing net profit margins.  In particular, how can you try to make the NFL the bad guy for donating 90% of the money they actually get?  It's their program, they can't donate the clothing manufacturer's money.

And besides, the NFL should be congratulated for being open about the numbers -- there is often zero transparency in such charitable promotional programs.  How much of the money in the last charity gala you attended do you think actually made it to the charity rather than just help fund the self-aggrandizement of their socialite sponsors?

On The Looming Death of American Football

Death by tort lawyer in 3...2...1

A Colorado jury has awarded $11.5 million in a lawsuit originally brought against helmet maker Riddell and several high school administrators and football coaches over brain injuries suffered by a teenager in 2008.” While the jury rejected the plaintiff’s claim of design defect, it accepted the theory that the helmet maker should have done more to warn of concussions.

If the helmet makers are getting nailed, wait until every high school and college in the country is sued, not to mention the massive suit looming against the NFL.  Expect to see a debate soon, beginning in state legislatures, over tort protection for football.  Texas, for example, has several of the country's tort hellholes but if Friday night high school football is threatened, you can bet that the legislature will be moved to action.

Is The NFL Doomed?

I think Megan McArdle is being naive about the tort system in this country when she writes

So Junior Seau's family is suing the NFL over head injuries, which lead to chronic brain damage, and possibly his suicide.

...

But this lawsuit strikes me as pretty out there.  Junior Seau can't possibly have been unaware that football caused head injuries.  Nor even that multiple concussions are probably bad for you.  Note how many people are still playing, even though we now know this all too well.

Really?  I know of cases where people have successfully sued for drownings that occurred within feet of a no swimming sign.  I could easily ask if there are really people unaware that water can cause drownings.   Any sense of individual responsibility has been stripped from the tort system, such that it has become a way for folks who had bad outcomes of some sort to cash in from deeper pockets, irrespective of any reasonable sense of justice.

The NFL knows this and is clearly running scared.  How do we know?  Just look at Saints coach Sean Payton, who just went back to work after a one year suspension, a historically really large penalty for a coach.  He was accused of tangential association with a bounty system players and coaches had in place for great plays that may also have been a bounty system for injuring opposing players.  The NFL knows this goes on all the time, but must now prepare for the day they are in court getting sued for having an unsafe work environment.  They do not want a case based on negligence to be made far worse by accusations that the league was actively promoting behavior that created injuries.  So they threw the book at him.  The other folks who were suspended threatened the NFL with suits for all sorts of due process errors, but the NFL didn't care.  They can survive a judgement on an unjustified suspension of one or two players.   They cannot survive a judgement on causing hundreds to have brain damage.

Quoting from Walter Olson, who spends most of his time studying the tort system in this country:

 if subjected to the same injury liability rules that American courts apply to other businesses, organized football is unlikely to survive.

The Media's Role in Promoting the Corporate State

I found this article in the Arizona Republic, our local rag, almost criminal.  As far as it goes, I think the facts are correct.  What is amazing is what it leaves out.  First, the article:

Glendale administrators propose cutting nearly a quarter of the city's employees, or 249 positions, if voters approve a ballot measure in November to repeal a sales-tax hike.

Repeal of the 0.7 percentage-point tax hike that took effect last month would mean the loss of $11 million this year and $25 million annually through 2017, according to city estimates.

The City Council had approved the temporary increase to shore up its deficit-ridden general fund after laying off 49 employees and cutting $10 million from departments at the start of this fiscal year....

Proposed cuts include shuttering two of the three city libraries, one of its two aquatic centers, the TV station and all city festivals, including Glendale Glitters.

The article continues with the usual panic about cuts in police and firefighters and libraries and parks,  etc. etc.  What the article does not mention except in passing in paragraph 12 is the reason for the tax increase and the budget problems in the first place.  Over heated opposition in the community, the City Council, which has enjoyed pretending to be big shot Donald Trumps over the last few years with taxpayer money, handed a private individual $25 million a year to keep the ice hockey team in town, an ice hockey team that has the lowest attendance in the league despite doing fairly well the last few years.  This is on top of years of other subsidies and the taxpayer-funded $300 million stadium.   The numbers line up exactly -- a new $25 million a year subsidy and a new $25 million a year tax, and the paper cannot even connect these dots, even when they were directly connected in real time (ie the tax was specifically justified to pay for the subsidy).

What the article entirely fails to mention is that, given no voice in these corporatist extravagances in Glendale (the tiny town of 250,000 has also subsidized an NFL franchise and a couple of MLB teams), the only way the citizens of this town have any way to exercise accountability is to vote down the tax that enables this corporate handout.  They were not allowed to vote on the deal itself.  This is not a bunch of wacky red-staters voting to decimate the parks departments, as the city and the paper would like you to believe, but a citizenship that is tired of the idiotic corporate cronyism in the Glendale city council and are looking for some way, any way, to enforce some accountability.

This is the media and the state in bed together promoting the larger state.  Glendale's problems are entirely self-imposed, spending huge amounts of tax money on subsidizing sports teams and real estate ventures.  When these all failed like so many Solyndras, they are trying to make this out to be a tax shortfall, when in fact it is spending idiocy.

The media always seems to participate as a cheerleader in this statism, but local papers have a special interest in promoting this sort of sports corporatism.  Just about the only thing that sells dead-tree newspapers any more is the sports section.  I would love to see what would happen to circulation rates if they cut the sports section.  So any state actions that add professional sports franchises or keeps them in town contribute directly to the newspapers' survival.

Enjoy the NFL This Weekend, You May Not Have It For Long

I think Walter Olson is dead on with this:

Steve Chapman at the Chicago Tribune looks at the cultural and legal responses to the mounting evidence that professional football inflicts brain damage on many of its players. He quotes my view that if the litigation system carries over to football the legal principles it applies to other industries, the game isn’t likely to survive in its current form.  [sorry for quoting the whole thing Walter, I just couldn't figure out how to excerpt it]

There is a very good chance that the NFL could go the way of Johns Manville or Dow Corning.  Those companies still exist after being sued into bankruptcy, but that is only because they had other businesses to shift into.  The NFL just has football.  And after reading the concussion stories recently, plaintiff's lawyers are going to have a hell of a lot better scientific case than they had with breast implants.    I honestly think it will take an act of Congress to keep the NFL alive, giving them some sort of liability exemption similar to what ski resorts got years ago.

And don't think the NFL does not know this.  If you are wondering why they handed out insanely over-the-top penalties for bounty-gate in New Orleans, this is why.  They are working to establish a paper trail of extreme diligence on player safety issues for future litigation.

As an aside, I find it frustrating that there is not a better helmet solution.

As a second aside, there is a guy here in Phoenix who was showing off an accelerometer for football helmets, with some kind of maximum single g-force or cumulative g-force trigger that would cause a player to be pulled from a game, sort of like how a radiation badge works.  Good idea.  Look for these to be mandatory equipment in high schools in colleges.    Takes the absurd guess work out of concussion diagnosis today, particularly since this diagnosis is done by people (the player and their team) who have strong incentives to decide that there was no concussion.

As a third aside, there are those who argue helmets are the problem.  Just as people drive less safely with seat belts and air bags in cars, helmets lead to less care on the field.  I will say I played rugby for years (without a helmet of course) and never had one concussion, or any head hit anywhere close to a concussion.  In amateur rugby in the leagues I played in, reckless behavior that might lead to injuries was strongly frowned upon and punished by the group.  Teams that played this way quickly found themselves without a game.  There were plenty of ways to demonstrate toughness without trying to injure people.

Phoenix Coyotes Sale

Well, it looks like the NHL may have a buyer for the Phoenix Coyotes.  I have not seen all the terms, but the problem in finding a buyer has been this:  based on comps from other recent sales (e.g. Atlanta) the price for sunbelt teams is something like $100 million max, but the NHL has promised its owners it would not sell it for less than $200 million.  The NHL has to find a sucker, and if billionaire buyers are not willing to be a sucker, then they have to find a third party sucker to just kick in $1oo million of present value to make the deal work.

Enter the city of Glendale.  It has tried very hard on multiple occasions to be that sucker, and only was stopped from doing so by efforts of the Goldwater Institute to enforce a state Constitutional injunction on corporate welfare.

Glendale has apparently found a new way to subsidize the transaction by promising to pay an above-market stadium management fee.  I have talked to some sports executives, including one very familiar with this stadium, and they have all said that in a free market, a third party might take the stadium management contract for free, because though it carries operational costs, it also yields offsetting revenues (like stadium rentals for concerts).

By paying an above-market rate for stadium management services, Glendale can provide a corporate subsidy but retain the fiction that this is a service contract rather than crony welfare.  Over the last two years, Glendale has paid the NHL $25 million a year in stadium management fees, a payment everyone understands to actually be a subsidy to keep the team in town.

I presume the new buyer has met the NHL's $200 million price tag.  But that is obvriously overpaying.  So Glendale is going to kick a bunch of money back to the buyer to make it work, in the form of $306 million in stadium management fees.  Via the Sporting News:

Longtime Glendale city councilor Phil Lieberman on Monday, in an interview with Sportsnet.ca, estimated that arena management fees paid by the city to Jamison under terms of the deal would total $306 million over the next 21 years, or an average of $14.6 million. A large chunk of that money, Lieberman says, is front-loaded, with Glendale on the hook for $92 million over the next five years. Nearby University of Phoenix Stadium, home to the Arizona Cardinals of the NFL, carries a $9.2-million management fee annually.

By the way, University of Phoenix Stadium is far larger and more expensive to operate, so one would expect the Coyotes arena management payment to be less than $9.2 million.   And the $9.2 million, since it comes from Glendale as well, likely has a subsidy built in.  But let's for a second assume something like $8 million a year is the high end for what a market rate for such a contract would be.  This would be $168 million over 21 years, implying $138 million minimum in subsidy built into the management contract.  There you go, there is the sucker payment to make up the difference between market value of the team and the NHL's price.

In fact, according to numbers at the WSJ, the city would have been better off leaving the stadium empty and just paying off the note  (and they certainly would have been better taking Jim Balsillie's offer to move the team but help them pay down their note).

The NHL has announced a tentative sale to a group headed by former San Jose Sharks executive Greg Jamison, under terms that would essentially institutionalize Glendale's commitments. Under the proposal that the NHL has laid out for city council members, the city would continue paying an arena-management fee that would average about $14.5 million a year.

On top of the city's average $12.6 million in debt service, that amounts to annual expenses of about $27.1 million—to be offset by anticipated Coyotes-related revenue of $14.2 million, according to projections by Glendale's city management department. That adds up to a projected annual loss for Glendale of $12.9 million.

Of course, Glendale wants to keep the team because it cut a crony deal with a few real estate developers to build a retail and condo complex around the stadium.  Of course, these ventures have also gone bankrupt.  So the city is trying to bail out and keep a bankrupt hockey team to sustain an already bankrupt retail developer.

The logic of course is that Glendale wants to attract retail businesses to Glendale from nearby Peoria and Phoenix.  But in the end, they are just messing up their own goal:

Some Glendale business owners may also oppose the deal, including David Kimmerle, owner of Sanderson Ford car dealership in Glendale. A longtime sponsor and fan of the Coyotes, Kimmerle felt betrayed when Glendale officials recently proposed raising the city's sale tax, in large part to support the cost of the team. The proposed increase would make a $30,000 car on Kimmerle's lot $330 more expensive than in the neighboring suburb of Peoria. "No one is going to pay a premium to shop in Glendale," Kimmerle said. "If it is choosing between the Coyotes or a business that is been in my family since 1955 and employs 500 people, I have to choose my business."

So, which would you bet on:  That retail buyers will choose a location based on prices and taxes, or based on its proximity to a hockey team?  Glendale is betting hundreds of millions of dollars its the latter.  Which is why they are idiots.

Oh, and those Goldwater folks.  Per the Sporting News article:

As for Goldwater Institution opposition to the deal, the league, Jamison and Glendale are aggressively striving to craft a sale that avoids Goldwater opposition and possible legal action.

And how are they doing this?

The NHL, city and Jamison are also not producing public documents on their deal so they can avoid records falling into Goldwater's hands.

Your transparent government at work.  Its not breaking the law if no one can prove it.

More Glendale Follies

I almost hate beating on the silly folks who run the City of Glendale even further, but they keep screwing up.

One of the reasons I think that city officials like those in Glendale like to dabble in real estate and sports stadiums is what I call the "bigshot effect."  They don't have any capital of their own, and they don't have the skills such that anyone else would (voluntarily) trust them to invest other people's money, but with a poll of tax money they get to play Donald Trump and act like they are big wheels.  The Glendale city council did this for years, and when their incompetence inevitably led to things starting to fall apart, they have simply thrown more money at it to try to protect their personal prestige.

But unfortunately, incompetence generally is an infinite reservoir, and apparently the City has screwed up again.  Years ago, when the City promised the rich people who owned the AZ Cardinals a new half billion dollar stadium, they put a contract to that effect on paper.  Granted, this was a sorry giveaway, spending hundreds of millions of dollars for a stadium that would be used by the Cardinals for 30 hours a year, by the Fiesta Bowl for 3 hours a year, and by the NFL for a Superbowl for 3 hours every 6-7 years.  But, never-the-less, the City made a contractual agreement.

And then, in its rush to be real estate bigshots, the city turned about 3700 parking spaces promised contractually to the Cardinals over to a developer to create an outlet mall (of the sort that has been quietly going bankrupt all over the country over the last few years).  Incredibly, the city did this without any plan for how to replace the parking it owed the Cardinals.  To this day, it has no plan.

Apparently, there were also some shenanigans with $25 million that had been escrowed to build a parking garage.

The demand letter also blames the parking problem on the city's dealings with Steve Ellman, Westgate's former developer and a one-time co-owner of the Phoenix Coyotes. The letter states that Ellman's relationship with the city has been "characterized by a lack of transparency."

The letter raises questions about a January 2011 arrangement in which the city and Ellman equally split a $25million escrow fund that had been earmarked to build a parking garage in Westgate, the team said.

Ellman put that money in escrow in 2008 after failing to keep a promise to the city to provide a set amount of permanent parking in Westgate.

By early 2011, half of that money went back to Ellman's lenders as part of a deal to try to keep the Coyotes in Glendale, while the city received the other $12.5 million in the account.

What a mess.  This is what happens when politicians try to be bigshots with our money.

 

 

Glendale Keeps Throwing Money After Sports

I have no idea why this town of 250,000 people is so fired up to hand money over to sports enterprises.  This time, its a Superbowl bid:

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.

Kudo's to the Cardinal's Darnell Dockett

Local NFL star Darnell Dockett apparently got pulled over by the police today.  Dockett live-tweeted the encounter, including gems like this:

-I don't know why the police always messing w/me I'm never gonna let them search my car with out a search warrant! No matter what!

-Police sitting here waiting on back up cuz I told them YOU NOT SEARCHING MY CAR! PERIOD! & now I'm sitting here! Owell I aint got shit 2 do!

-There R 3police cars and they are talking! I don't see A search warrant they won't see inside this escalade! I got all day hope they don't!

-Police said "do you mind if we look around in your Vehicle?" I said I sure DO! He said "I'm gonna call back up" I said u wanna use my phone?

You go Darnell.  Everyone who stands up for his Constitutional rights makes it easier for the rest of us to do so.

The Last Frontier in Worker Exploitation

Name a multi-billion dollar industry where all the competitors in the industry have formed a single cartel.  This cartel performs many functions, but one of its highest profile functions is to aggressively punish any member who pays its employees more than a cartel-enforced maximum.

Believe it or not, there is such an industry in the US... college sports.  The cartel is the NCAA, and whenever the NCAA makes the news, it usually is with an enforcement action punishing a school for allowing any of its athletes to make more than the agreed maximum salary, which is generally defined as free tuition.  As folks are learning at Ohio State, even trading your autograph for a free tattoo is not too small a transaction to attract ruthless NCAA retaliation.

This ESPN page (via Phil Miller) shows 2010 athletic revenue by school.  Take the top school on the list, the University of Texas.  In 2010 its athletic program brought in over $143 million in revenues.  It paid its workers (athletes) who helped generate this revenue $8.4 million (in the form of tuition), or 5.9% of revenues.  Its hard to decide whether this is high or low, though this percentage of labor for a service business seems low.  Looking for an analog, we can turn to the NFL, which is currently negotiating a revenue split with players.  The issue is still under negotiation, but for years players have been guaranteed over 50% of total revenues.

Even the Olympics finally gave up its stupid distinction of amateur status, allowing the best athletes to compete whether or not someone has ever paid them for anything.  This only makes sense - we don't have amateur engineers who work for free before they give up their amateur status for the professional ranks.  I can still continue to earn my degree at college in programming while being paid by outside companies to do programming.   I can still participate in the school glee club if I make money in a bar singing at nights.  I can still be student council president if I make money in the summers at a policy think tank.  Of all the activities on campus, the only one I cannot pursue if someone is willing to pay me for the same skill is athletics.

Only the NCAA holds out with this dumb amateur distinction, and the purpose is obvious -- it provides cover for what otherwise would be rightly treated as worker exploitation.  And they get away with it because most of the members of this cartel are actually state governments, who are really good at exempting themselves from the same standards the rest of us have to follow.

Taxpayer Money and Professional Sports

My column is up this week at Forbes, and discusses the role of taxpayer money in professional sports.

A  critical battle is underway challenging the very heart of the professional sports economics model — and it is not the NFL labor negotiations.  The unlikely fight is between a struggling league (the NHL), a suburb with delusions of grandeur (Glendale, Arizona), and a small, regional think tank (the Goldwater Institute).   At stake is an important source of value for nearly every professional sports team:  taxpayer subsidies....

Consider the Arizona Cardinals new football stadium in Glendale, for example.  In part due to the promise of a Superbowl bid, the local taxpayers paid $346 million of the total $455 million cost of the facility — a building that will be used just three hours a day on ten days a year for its primary purpose.  By contrast, in 2010 Forbes valued the Arizona Cardinals at $919 million, meaning well over a third of the franchise’s value accrues from the public subsidy of its retractable roof palace.  It can be argued that much of the increase in player salaries and team owner wealth in the NFL over the last twenty years has come at the expense of taxpayers.

If anything, this example from the NFL understates the importance of public funding of stadiums.  Why?  Because of all the major sports leagues, the NFL gets the lowest percentage of its total revenues from its stadiums.  Leagues like the NBA, and in particular the NHL, are far more dependent on stadium revenue for their well-being.

Let’s return to precocious Glendale.  In 2003, the city agreed to publicly fund $180 million of the $220 million cost of building a new arena for the Phoenix Coyotes hockey team.  Whereas Glendale’s subsidy of the Cardinals represented about a third of that franchise’s value, their $180 million subsidy of the Coyotes represents over 130% of the current $134 million value of the team.  Stuck in Arizona and losing as much as $40 million a year, the team is literally worthless without ongoing public subsidies.

The column goes on to discuss yet another bond issue proposed by Glendale to subsidize these teams.

Ethanol of the Entertainment Industry

Great post from SM Oliva via Tom Kirkendal at Houston Clear Thinkers.  They both make a point I have been making for years -- that the large growth of major sports team revenues and player salaries is attributable, in large part, to enormous public subsidies

The NFL encapsulates, perhaps better than any other single business entity, the popular conceptions -- and misconceptions -- about capitalism and the nature of markets. The league is the epitome of statist "crony" capitalism. Its franchise operators demand huge government subsidies for stadiums while jealously guarding its prerogatives as a "private" business. Governments (and their media enablers) largely go along with this because they've been led to believe the NFL's popularity is so immense that no respectable city can go without a franchise.

Professional football is the ethanol of the entertainment industry. Since 1990, nearly every NFL franchise has either opened a new stadium, made substantial renovations to existing stadiums, or is currently in the process of obtaining a new stadium. Over this 20-year period the league's franchises obtained over $7 billion in taxpayer subsidies raging from direct taxes to publicly backed bonds. Ten stadiums are 100% government-financed, while another 19 are at least 75% government-financed. Every single franchise receives some amount of government subsidies.

Here is a great way to think about it -- many new NFL stadiums cost in the one billion dollar range.  That is a billion dollars for a building that is used 3 hours per day for 10 days a year (8 regular season and 2 preseason games).  A billion dollars for a building with 0.3% occupancy.  How can a private entity afford such an investment and still pay multi-million dollar salaries to their employees?  They can't.  Which is why you and I as taxpayers are so often on the hook for the costs.

Heck, here in the Phoenix area, we are hundreds of millions of dollars in the tank for a for-god-sakes hockey team, and about to spend hundreds of millions of more to support it.

Update: This reminds me of my Forbes article on triumphalism and large building projects

Mark Thornton of the Mises Institute wrote a few years ago about the “skyscraper index,” a correlation first studied by economist Andrew Lawrence, which purports to connect downturns in the business cycle with the construction of the world’s largest skyscraper. Thornton did not suggest the “skyscraper index” was an infallible predictor of economic downturns, but there was ample empirical evidence to suggest “the cause of skyscrapers reaching new heights and severe business cycles are related to instability in debt financing and that the institutions that regulate debt financing should be reevaluated, if not replaced with more efficient and stabilizing institutions.”

Cowboys Stadium may prove to be the NFL’s version of the Chrysler Building, where the groundbreaking occurred a month before the stock market crash of 1929. By most accounts “Jerry World” is the most opulent, luxurious stadium ever built for an NFL team. Not surprisingly, it is also a debt-ridden project that exists only because Jerry Jones had easy access to a government-backed credit card.

An Agency Problem?

Kevin Drum wonders whether the proposed $700 million bid by Farmers Insurance for naming rights on a prospective LA NFL stadium makes any economic sense.   It is an interesting question.  I wrote:

This has always struck me as one of those agency problems, where the executive's incentives are different from the shareholders. Executives get a ton of benefits personally from this -- higher profile for the company which improves their profile and marketability, they get a prime box for the games, parties, etc.

Before the audience here slips into a round of corporate executive bashing, my sense is that the same perverse incentives are working for municipal leaders who have a mismatch with taxpayer interests when they shove huge amounts of taxpayer funds to owners in stadium deals (deals which economists speak with one voice on -- they never pay off for the community in full). One of the dirty secrets of these deals is that they generally include a sort of kickback in the form of boxes and club seats for the Mayor and city council's use (and sometimes multiple boxes for leaders of other government agencies in the town).

Un-Freaking-Believeable

A month ago, the Arizona Cardinals mailed me (as a season ticket holder) my playoffs tickets.  I usually don't advertise myself as an Arizona Cardinals season ticket holder, just because numerous academic studies have demonstrated that this fact is not highly correlated with the average person's perceptions of intelligence.

Because of logistics and time limitations, when one gets NFL playoff tickets one typically gets a ticket for every possible game the team could play in.  Because there was an oddball small statistical chance the Cardinals could host an NFC championship game if a) the Cardinals won two playoff games, which has never happened in franchise history and b) all the top 3 seeds lost, they sent me NFC championship game tickets.  My son and I literally laughed out loud when we saw them.  Hosting an NFC championship game with a franchise that has not hosted any sort of playoff game for 60 years seemed, well, laughable.

Well, I just ran to my desk to make sure I actually kept the tickets, because with the Eagle's win today the Cardinals will actually be hosting the NFC championship game next week.  Go Cards!

Thoughts on Green Bay

I really enjoyed the game last night in Green Bay.  It is impossible on TV to communicate the energy and decibel level of that crowd, particularly in the first half before Dallas opened up a large lead.  But even with victory pretty much out of reach with 5 minutes to play, virtually no one left  (our Arizona fans would already have been out of the parking lot by then).

The game featured a 72,000 person crowd in a town of 100,000.  In a world where traditional groups are increasingly fragmented, the entire town is united in their dedication to the team.  The Packers are ubiquitous in town, so much so I can't even think of any good major-city analogy.  The best analogy I can come up with is that the game was more like a
high school football game in west Texas than a typical NFL game.  Even the cheerleaders look like a high-school cheer squad with girls in jumpers and guys with megaphones, in a world where the other 30+ teams all have pinup girls with breast enhancement. 

At the Superbowl

Yesterday, I had what will likely (given ticket prices) be a once in a lifetime experience for me -- I got to take my son to the Superbowl.  Our ability to afford this event really was a result of our living in the same city as the Superbowl.  The obvious reason for this is that we did not incur any significant travel costs and did not have to pay peak demand level hotel pricing.  The less obvious, but ultimately more important, reason was because we could afford to watch the ticket prices on the secondary market up until the absolute last minute.  If your were bringing a group from New York, waiting until Friday or Saturday to buy tickets might have been a bit uncomfortable, given other sunk costs. 

As it turned out, Superbowl ticket prices this year on the secondary market  (e.g. TickCo, Stubhub, et al) followed a parabola.  They were below their peak early-on, particularly since sellers did not have the tickets in hand.  You can buy tickets weeks before the Superbowl, but they will be listed as "for this general area."  You could end up in the front row or the back -- it is a bit of a crap shoot.  So they are cheaper because of this.  The peak pricing came the week before the AFC and NFC championship games when many sellers had tickets in hand and could advertise specific seats.  All along, I was looking for a ticket to just get in the door, so I was looking for the cheapest seats (likely upper deck end zone).  At their peak, there was nothing gong for less than about $3800 (when you included the seller commission or transaction fees, typically 10-20% for this type of ticket).  Beginning the Monday before the game, prices started falling  -first 10%, then 20-30%, and finally as much as 50%.  I jumped in towards the end of the week because a pretty good (or at least better than the worst) seat came up for a good price.  I am told by a friend who showed up on game day at the ticket company office that he got in for less than $1500.

Anyway, here is the stadium - yes it is kind of odd looking.  This was taken about halfway through our walk from the car to the stadium.  We just barely parked in the same county.  We showed up about 6 hours before game time and were in the last half of arrivals:
Sb8_2

The stadium is a taxpayer-funded boondoggle that is a good hour away (on the complete opposite side of a very large city) from old Scottsdale where most of the parties and social activities and player hotels were. 

The security included a ban on any bag over 12x12x12 inches, a pat down, and a metal detector.  And the NFL did a MUCH better job than the TSA.  MUCH.  It is hard to see, but the tent on the left is about 1/4 of the length of the full security screening area.   They had  at least 25 lanes open in parallel.  Despite thousands of people, we had no wait at all (the lines below are all moving briskly and continuously).
Sb7

And look!  We must be in the front row!  Well, of the upper deck, but these turned out to be great seats and, having watched prices for weeks, a very good price-value point (in context).  My son braves the wrath of all the surrounding Giants fans by wearing his Cowboys jersey.
Sb6

I thought the fast set up and takedown of the stages was pretty amazing, and something you miss on TV.  Here is Tom Petty's stage going out (or in, I can't remember).  The funniest part was the crew of NFL guys who followed along with rags and buckets to dust off the grass after the equipment passed to make sure it looked good for TV.
Sb2

Sb10

We had a decent view of Tom Petty's back, which once I saw his scraggly beard was probably a good thing.  The crew of screaming fans at the stage was pretty funny.  They ran these folks out for Alicia Keyes, then kicked them out of the stadium, then ran them back in for Tom Petty, and then back out again.  I saw one show on TV last night, and the audience looked young, but to my eye the great mass of the crowd was middle aged women, which I thought was kind of funny.
Sb3

And here is the last play and confetti burst:

It was a great, perhaps historic game, and we loved the whole experience.  Now back to work to pay those bills.

So, here are the [sports-related] events on my must-see list I have tackled:

Baseball all-star game, Superbowl, game at Fenway, game at Yankee stadium, 16th hole at the Phoenix Open, center court at Wimbledon, BCS Championship game, Daytona 500, personally playing golf at St. Andrews, Big 10 home football game, Rose Bowl, Cowboys home game [update: and an original 90s-vintage American Gladiators filming live]

Yet to be tackled:

the Masters, Packers home game, game at Wrigley, NCAA final four, SEC home football game (maybe Tennessee or the cocktail party), maybe at World Series, maybe a World Cup

What else?

Notice: All the World's Major Problems Have Been Solved

Clearly, all the major problems of the world have been solved, because Arlen Specter wants to focus the Senate's time on the New England Patriots' violation of NFL rules for which they were severely punished and which violations in no way tread on any law, just NFL rules.

In a telephone interview Thursday morning, Senator Arlen Specter,
Republican of Pennsylvania and ranking member of the committee, said
that Goodell would eventually be called before the committee to address
two issues: the league's antitrust exemption in relation to its
television contract and the destruction of the tapes that revealed
spying by the Patriots.

"That requires an explanation," Specter
said. "The N.F.L. has a very preferred status in our country with their
antitrust exemption. The American people are entitled to be sure about
the integrity of the game. It's analogous to the C.I.A. destruction of
tapes. Or any time you have records destroyed."

Please, to the friends of Arlen Specter:  It is time for an intervention, before the man hurts himself any more. 

Next Up:  Kay Bailey Hutchison calls Jerry Jones in front of Congress to explain why the Cowboys gave up on the running game in the fourth quarter of this year's playoff game against the Giants.

The New Stadium Lie

This week, we in Phoenix are supposedly getting our payoff for subsidizing the hapless Arizona Cardinals with a billion dollar football stadium that is used for its intended purpose (football games) for 33 hours per year  (3 hours per game times 11 games:  2 Cardinals pre-season, 8 home regular season, Fiesta Bowl).  In exchange we get a nicer stadium (if I were to want to see a Cardinals game live) but worse TV options (because instead of the best game of the week, we have to see our home team).

The big selling point, the cherry on top of the sundae the NFL uses to push new stadiums, is a Superbowl.  Which is in town this week.  So far, the huge economic stimulus has not really poured into our household, but I guess I need to be patient.  Anyway, the timing seems good to link this article, which comes via the Sports Economist:

If you build it, they will come. This is usually the mantra of those in
favor of publicly financed sports stadiums, including the current
proposal for a new soccer stadium in Chester. In this case they
are visitors whose spending would turn devastated cities and
neighborhoods into exciting destination points. Local schools,
merchants, and residents all would benefit as municipal coffers swelled.

There's only one problem with this scenario. It's not true. Never has been. They
do come, but cities are not saved. Over the past two decades, academic
research has generated literally hundreds of articles and books
empirically challenging the alleged economic wonders of new stadiums,
even when they're part of larger development schemes. I have been
studying and writing about publicly financed stadiums for more than 10
years and cannot name a single stadium project that has delivered on
its original grandiose economic promises, although they do bring
benefits to team owners, sports leagues and sometimes players....

Why, then, given the overwhelming academic research challenging
stadium-centered economic development do political leaders (if not
average citizens) still support such projects? In a just-released
article in the Journal of Sport and Social Issues, my colleagues and I
studied media coverage of 23 publicly financed stadium initiatives in
16 different cities, including Philadelphia. We found that the
mainstream media in most of these cities is noticeably biased toward
supporting publicly financed stadiums, which has a significant impact
on the initiatives' success.

This bias usually takes the form of uncritically parroting stadium
proponents' economic and social promises, quoting stadium supporters
far more frequently than stadium opponents, overlooking the numerous
objective academic studies on the topic, and failing to independently
examine the multitude of failed stadium-centered promises throughout
the country, especially those in oft-cited "success cities" such as
Denver and Cleveland.

I can attest to the latter.  During the run up to various stadium-related referenda, the media was quite rah-rah for the stadium subsidies.  In fact, on radio, several talk show hosts denigrated voters who opposed the stadium subsidies as "stupid old retired people."  I remember calling in to a couple of talk shows opposing the stadium bills and being treated like a Luddite.

My article on sports team relocations and stadium subsidies as a prisoners dilemma game is here.

Thanks, Trial Lawyers

Because of the all-to-prevalent theory (which may become even more common if Jon Edwards becomes our next AG) that every accident must be the fault of the nearest person with deep pockets, I wasted an hour today.

I visited the NFL experience today with my son.  The NFLX is a kind of football-themed fair or amusement park that the NFL sets up near the site of each Superbowl  (HA HA NFL -- I said it.  I said "Superbowl" and not "the big game."  Come and get me).  After waiting in a reasonable line to enter, we found that to play the games (e.g. throw the football through a hoop) every participant (read 10,000+ people) had to individually fill out and sign a liability waiver and get a wristband attesting to the fact.  There were about 16 clerks at work, but it still was about an hour-long wait. 

It struck me that the NFL could have come up with a much better process.  Why not have people with Internet access (about everyone, since almost 98% seemed to be there with tickets they bought on the internet) print out the waiver and bring it with them already filled out?  The manager on-site claimed that Arizona state law and the Arizona AG required that the process proceed the way it did.  I give that explanation about a 50-50 between being correct and just covering their butt for something stupid.

Anyway, once signed, we had a good time at the event, and it was well worth the effort.

NFL Playoffs, Baby

The NFL playoffs are absolutely my favorites sporting event of the year.  So of course I have to get on an airplane Sunday afternoon to get to a Monday morning meeting.  To get in the spirit, here is one of my favorite NFL spoofs, Peyton Mannings United Way commercial on SNL:

Entertaining Libertarian Voice

One of the problems with us libertarians is that we all sound like a bunch of academic dweebs when we talk.  Well, thanks to YouTube and Human Advancement, I saw Mike Lee, who I found unpolished but curiously entertaining as a defender of individual rights (though he's bit hawkish internationally for my tastes).  Anyone who can, in about 2 minutes, shift from Duke Lacrosse to North Korea to jury nullifaction has got to be interesting to listen to.

By the way, it is increasingly clear that Google and YouTube don't really want to be a free speech outlet, as they seem to be banning stuff as fast as it can be posted.  They are private concerns, and so can do whatever they like, and I can understand from their perspective why they want to avoid controversy  (though if they ban everything the RIAA wants banned and political groups of every stripe want banned and end up with just home videos of pet tricks, I am not sure it will remain as popular).  This in turn got me thinking about Neal Stephenson  (and I accused Mike Lee of rambling?)

In Cryptonomicon, one of the plot lines is a group of guys trying to create an offshore data haven free from threats by government censors, tax inspectors, and, I presume, copyright enforcers from the RIAA and the NFL.  While such a comprehensive haven may be out of reach, I do think there could be a great role for an offshore blogging/podcasting/video haven that would protect identities and be immune or out of reach from third party censorship.  The problem is that as an officer of such an endeavor, you would likely be subject to immediate arrest in many countries once you landed there.  Oh, that would never happen in a free country like the US would it?  Yeah, right.