Indiana Blog Review

Expensive Circuses

A few choice posts on Indianapolis' financial mismanagement.

Leo Morris:

I may not know the intricacies of high finance or the subtleties of government economic models or the ins and outs of bonds and taxation, but I surely know when I'm getting screwed.

Abdul:

Do a little bit of checking and what you'll find is when you shell a few extra pennies for luxury seats you can also commandeer some primo parking. In addition, the players get some parking spaces as well. These were all promised to Mr. Irsay. So if you put it all together, the city and state, otherwise known as the taxpayers, are being asked to shell out millions for parking spaces, that they can't afford so some really rich folks can park close to the Stadium to make a rich guy even richer at your wallet's expense.

The Colts are already making out like bandits ($48 million contract buyout payback, $121 million in naming rights from Lucas Oil, $7 million annually in lease revenue, all game day revenue, up to $3.5 million in non-game revenue and the city has to maintain the stadium). This doesn't even count the millions in operating cost overruns. And the Colts were also opposed to keeping some ticket prices under $25 for regular folks. And they balked at a ticket fee to help pay for pubic safety in Marion County.

Fred McCarthy:

Instead of those activities providing ever increasing funds for the operation of local government, you are pleading poverty which would force you to close swimming pools, reduce trash removal services and endanger citizens by reducing law enforcement and fire protection personnel.  You are increasing city indebtedness for reasons which have nothing to do with your appropriate functions.  The servicing of that debt will continue to curtail funds needed for those functions . . .

Has it not become apparent after 20 to 30 years of these tax and spend policies that they are not successful, at least as far as municipal government is concerned?  Should not "investments" by the city at some time begin to produce a return favorable to the investor?  Is an increase of tax revenues which can be used only to retire increased debt really of value to the city?

As far as debt and revenues are concern, we have now had revealed just what kind of deal you most recently negotiated for the city.  You will raze a completely functioning, 22 year old building and replace it with one costing approximately ten times as much. 

Threatdown: Grizzlies!

Advance Indiana does some unusual sports reporting on the Rose-Hulman vs. Franklin College football game this past Saturday.

Being a Bad Sport

Fred McCarthy, on the economics of Indy's sports teams:

Professional sports franchises are competing for local dollars available for voluntary spending options of the consumer, including other sports operations.  They are shifting economic activity.  They are not making a huge addition to that activity.

The Power of Sampson

Terry Hutchins:

Kelvin Sampson has been saying for months how impressed he is with Indiana University. The IU basketball coach likes the campus, he likes the people, and he honestly believes Indiana is one of those places where you can win a national championship. His No. 1 gripe, however, both publicly and privately, has been IU's antiquated facilities . . .

Sampson was then asked if he was embarrassed by IU's basketball facilities. He took a long pause and then said, "Next question.''

There's no doubt that a practice facility like the one being discussed could do wonders for IU's chances to recruit . . .

v. and vs.

The Sports Law Blog: "Indiana’s Courts of Appeals have offered some of the most analytical 'sports tort' cases in recent years . . . "  (via ILB)

Are you kidding him?

Terry Hutchins, "I've received several emails in the last 24 hours from people suggesting that Kelvin Sampson committed a recruiting violation when he had dinner with Eric Gordon and Derrick Rose at Yogi's (10th and Indiana) on Friday night of last week."

A Good Investment

TDW reports:

Remember back when Lucas Oil got the naming rights to the new Indy stadium, and everyone was talking about whether the company would get more state business in exchange for the deal? The answer to that question is "yes."

According to the Indiana Department of Administration's online contracts database, the company received a $5,000 contract on May 26 "to determine if Lucas Oil products provide an enhanced economic benefit." The contract ends in December.

Nothing quite like being paid to study yourself to figure out whether yourself needs to receive more money from the entity that's paying you to study for yourself.

Colts Muppet

Jason Borneman has an excellent suggestion for naming the new Colts mascot.

A Slow Pace

Jason Borneman predicts that "The Pacers are going to be a disaster this season."

Relatedly, he's starting a contest, wherein he's, "come up with some HIGH-LARIOUS stats you can bet over or under."

Formula One

Advance Indiana:

Keeping up his tradition of providing welfare for the rich while ignorning the needs of every day Indy residents, Mayor Bart Peterson (D) thinks the taxpayers should subsidize Formula One racing in order to retain the Grand Prix race in Indianapolis. Never mind that Formula One is the world's most financially successful racing series and that its principal owner, billionaire Bernie Ecclestone, is one of the U.K.'s richest men. And never mind the fact that the Hulman-George family has never received any public subsidies in the past--because they've never asked for anything. But with Mayor Peterson, there's no mega-rich person he won't open up the taxpayers' wallet to support.

Radley Balko sounds the same note.