What happens if a government defaults on stadium payments to a team?

17 Comments

A lot of sports teams get payments from local governments to pay off stadium construction from diverted property taxes. The system is called tax increment financing – TIFs for short — and the decision of a government to offer that money to sports teams is based on the presumed rise in property tax revenues caused by the stadium being built. It’s a way for governments to claim that stadiums are paying for themselves, as the money wouldn’t have been coming in if the stadium hadn’t improved the overall area to begin with.

Except, often, that tax revenues don’t increase and the government just ends up paying for the stadium out of general tax dollars. By then, however, the stadium is built and people tend not to notice too much.

Neil deMause of Field of Schemes has a great post up today noting that, at least in Reno, Nevada, people are noticing. Indeed, there is at least some suggestion that the local government may just stop paying the Diamondbacks’ Triple-A affiliate for the new park out of general funds. deMause wonders what might happen if that actually were to occur.

It’s a great point about an often-overlooked side of public financing of sports facilities.

Bryce Harper finally gets his first spring training hit with Phillies

Mike Ehrmann/Getty Images
Leave a comment

Phillies outfielder Bryce Harper hasn’t had the best spring training showing. After a delayed start because he didn’t officially sign until early this month, Harper made his Phillies debut on March 9. Then Harper had an injury scare when he was hit in the ankle by a pitch on March 15. Harper returned on Sunday and finally registered his first hit of the spring on Wednesday — a line drive up the middle.

Harper finished 1-for-2 with a walk on the afternoon. In 10 official at-bats, Harper is batting .100/.438/.100. As you can see, five total walks are helping that on-base percentage. Spring stats are largely meaningless, though, so no one should be worried about Harper with the start of the regular season just a week away.