Shorting The Tab
By Mitch Berg
At this blog (and much moreso at Gary Gross’ Let Freedom Ring and Mr. D’s eponymous Neighborhood), we’ve been trying to unpack the fabrications behind the Dayton / Bakk stadium proposal – including the fantasy that electronic pull tabs are going to cover the state’s contribution.
One thing I haven’t done is look into what the team supposedly contributes in terms of taxes.
Paul Udstrand at Thoughtful Bastards has, though:
According to [MinnPost’s Joe Kimball] a group going by the name: “Home Team Advanage” has issued a “report” claiming that MN stands to loose $533 million dollars if the Vikings leave the state. HTA claims that the Vikings have generated $320 million in sales tax revenue, and $360 in income tax revenue from Vikings players since 1982.
There’s really no way to avoid the conclusion that these numbers are flat out distortions and fabrications. The $320 million figure comes from a 2009 RSM McGradrey report that was commissioned the Metropolitan Sports Facilities Commission. I’ve excerpted the relevant table and provided it below:
Udstrand includes a bit of spreadsheetery:
Spreadsheet courtesy the thoughtful bastards at "Thoughtful Bastards", where it's probably much easier to read.
As you can see, the tax contributions since the Metrodome opened are listed in columns starting with the Twins. If you look at the totals you see that the Vikings total has been $166,514,612. So where does HTA get the $320? Notice the total for ALL sports in the very last column is $319,306,727. HTA rounded it (wrongly) up to $320. In other words they almost doubled amount the Vikings have paid by included ALL taxes generated by ALL pro sports activity. The actual vikings contribution once you subtract personal income tax is $52 million. I find it hard to believe a bunch of business boys can’t read a basic spreadsheet so one has to suspect this is NOT an innocent mistake. At best it’s beyond sloppy research.
HTA also claims that the Vikings pay $20 million a year in state income taxes. The actual figure for 2010 was $12 million.
There’s much more. I’ll urge you to read the whole thing.
And then remember that every single portion of the Dayton / Bakk stadium plan fails to add up – the City of Minneapolis’ contribution, the expected doubling in gambling revenue, or the projected benefits.
Nothing!
April 3rd, 2012 at 7:21 am
I would slightly challenge Paul’s assertion that people would find something else to do if the Vikings weren’t here. First, let me say that I basically object to taxpayers being on the hook for the full costs of building and maintaining a stadium, but even the most vehement protester has to admit that there is at least some economic benefit to the city and state for them being here.
For instance, as a 20 year Vikings season ticket holder and dedicated tailgater, I can tell you that at every game, I meet at least 5 people that came to Minneapolis from more than 100 miles away. Many of these are couples that make it a shopping/game weekend. They stay in hotels, eat at restaurants, rent cars and buy clothes,etc; paying the usurious tourist taxes that are the highest of any major city.
These people would probably not make the trip just to shop.
I also believe that the stadium would be better off being in Arden Hills. That land is sitting there, vacant and contaminated. How long will it stay that way? I would rather tailgate where the funds are used by the stadium for maintenance than paying the Red Star outrageous fees to use their lots, when they are empty otherwise. That said, we found one that is not owned by them. It’s a little bit longer walk to the Humpy Dump, but it feels good to know that I’m not contributing to the DemocRATs.
April 3rd, 2012 at 8:52 am
Bosshoss, I have to agree that they generate some additional tax revenue, but the trick is determining what percentage is actually an increase over what was redirected from other spending (or would be redirected to other spending if the Vikings were not here). It isn’t 100% and is more than 0%. I would guess that (pulling a number out of my nether regions without any way to back it up) no more than 20% is actual spending in the metro that would not otherwise occur.
April 3rd, 2012 at 11:32 am
We’re promoting gambling for expensive Big Boy recreation. Why not just open strip clubs and whorehouses along the boulevard? The Romans did it. I would applaud any politician with the honesty to propose a street full of brothels, strip clubs, casinos and bars to be able to tax and fund football.
April 3rd, 2012 at 1:04 pm
I’m behind the times. What’s an “electronic pull-tab”? Is that a slot machine? I thought only Indians could have them because their ancient and sacred religious gambling practices were protected under treaties that ended the Indian wars.
April 3rd, 2012 at 3:19 pm
nate;
“I thought only Indians could have them because their ancient and sacred religious gambling practices were protected under treaties that ended the Indian wars.”
LOL! Now that is funny!