Rhode Island GOP: PawSox Stadium Big Waste of Money

For Immediate Release February 26, 2018

A NEW STADIUM WILL NOT PAY FOR ITSELF

Warwick, RI - For months the PawSox ownership and their allies have been trying to fool the public by claiming that a new PawSox stadium will pay for itself, and today their allies produced a poll trying to show the public would support their new stadium proposal.  In response, Rhode Island Republican National Committeeman Steven Frias commented: “The truth is that a new PawSox stadium will not pay for itself.   First, the PawSox currently do not generate enough tax revenues to pay for a new stadium. Under the proposed legislation, taxpayers will pay $3.2 million a year for 30 years or a total of $96 million. According to RI Commerce, the PawSox generate less than that now. They generate about $1.6 million a year in actual sales and income tax revenues, and some of this income tax revenue withheld during the year is refunded after state tax returns are filed.  Second, the tax revenue estimates are based, in part, on a surge of more than 40 percent in attendance. This is unlikely and certainly not sustainable in the long-run. Since the new Pawsox ownership bought the team, and began demanding a new taxpayer funded stadium, attendance has declined by 20 percent. Building a new stadium will not help bring back fans turned off by the new ownership’s demands for taxpayer subsidies.  Third, tax revenue estimates relied upon by the PawSox are not reliable and can be easily manipulated. When the PawSox wanted to build a new stadium in Providence, their consultants said the new stadium would generate more than $2 million a year. Now, these same consultants say a new stadium in Pawtucket will generate more than $3 million a year. These estimates can’t be trusted.  Lastly, economists are nearly unanimous in concluding that the economic benefits generated by sports stadiums are very small, smaller than stadium advocates say, and smaller than the size of the taxpayer subsidies. There is no reason why a new PawSox stadium would be any different.”

Rhode Island Republican Party | 1800 Post Rd, Ste 17-I | (401) 732-8282 |  WWW.RI.GOP

Rhode Island GOP to PawSox: Show Us The Money

For Immediate Release

PAWSOX OWNERS NEED TO SHOW RI THE MONEY

Warwick, RI - According to recent news reports, the PawSox ownership, which is still refusing to publicly disclose their profit and loss statements, is reporting losses, writing down the value of the team, and needs more money than the team currently generates in order to pay off any stadium bonds. Meanwhile, the R.I. Secretary of State appears to be investigating the failure of advocates for building a new PawSox stadium to disclose in reports a $171,400 lobbying campaign, which was funded, in part, by the PawSox.   In response, Rhode Island Republican Party Chairman Brandon S. Bell commented: “The current owners of the PawSox paid more for the team than it was actually worth, and they are now reporting losses. As a result, the PawSox owners are secretly spending thousands to lobby for Rhode Island taxpayers to spend millions to build them a new stadium to bail them out.” Bell concluded: “The PawSox ownership won’t publicly disclose their profit and loss statements and have been hiding their financial involvement in a lobbying effort to get Rhode Island taxpayers to bail them out. Rhode Island taxpayers deserve to know all the facts about the PawSox’s financial condition and the extent to which the PawSox ownership has attempted to influence legislators. Until the PawSox’s profit and loss statements are made public and until a thorough investigation of the lobbying efforts by the PawSox and their allies is completed, the General Assembly should not even consider voting on any legislation for the PawSox. Secret finances and hidden lobbying efforts remind me of 38 Studios.”  

Rhode Island Republican Party | 1800 Post Rd, Ste 17-I | (401) 732-8282 |  WWW.RI.GOP

Rhode Island Republican Party: Keep Your Paws off Tax Dollars for Pawtucket Pawsox Stadium

NO DEAL ON A $38 MILLION DOLLAR TAXPAYER SUBSIDIZED STADIUM

Two years after taxpayers widely rejected a $120 million taxpayer subsidized ballpark, the PawSox have come crawling back.  This time the PawSox owners are asking for a $38 million taxpayer subsidy ($23 million from state taxpayers and $15 million from Pawtucket taxpayers) to build a new ballpark.  

In response, Republican Party Chairman Brandon S. Bell stated: "This proposal is simply a bad idea.  Rhode Island taxpayers cannot afford to subsidize a new ballpark.  Rhode Island taxpayers are facing a budget revenue shortfall of about $100 million dollars.  Speaker Nicholas Mattiello is back tracking on his campaign promise to eliminate the car tax by saying he needs six years instead of five years to eliminate it.  Governor Gina Raimondo is talking about the possibility of cuts to social services to balance the budget. Does Mattiello and Raimondo really want to explain to the voters how they postponed car tax relief and pushed for cuts to social services while giving millionaires $38 million to build a new ballpark?!"

Bell continued:  "We all know that ballparks do not lead to economic development   In 2015, PolitiFact confirmed the assertion made by Steven Frias, the R.I. Republican National Committeeman, that: "Research performed by economists has shown no consistent, positive impact on jobs, income or tax revenues arising from stadiums or sports franchises."  

 

Bell concluded: "It is ironic that the Pawsox owners are now asking for a $38 million dollar taxpayer subsidy. The number 38 reminds Rhode Islanders of 38 Studios: the bright idea of a former Red Sox pitcher and some clueless politicians that cost Rhode Island taxpayers millions."