IBJNews

Latest CIB budget contains no new payments to Pacers

Back to TopCommentsE-mailPrintBookmark and Share

After receiving $30 million in taxpayer help the past three years, Pacers Sports & Entertainment isn't set to get any subsidies in a new budget that will be unveiled Monday afternoon by the Capital Improvement Board, according to the board’s chief financial officer.

Discussions, however, continue between CIB officials and Pacers officials on “future lease agreements” involving Bankers Life Fieldhouse, home arena for the Indiana Pacers and the Indiana Fever professional basketball teams, according to CFO Dan Huge.

CIB is the city-controlled entity that owns Bankers Life Fieldhouse. The board leases the arena in downtown Indianapolis to the Pacers for $1 per year, with the Pacers bearing the costs to operate it and keeping any profits it can earn while doing so.

In 2010, CIB agreed to provide the Pacers $30 million over three years to help cover the costs of operating the facility.

“The CIB and Pacers continue discussions about future lease agreements,” Huge said.

When asked if the Pacers had requested another installment of the loan, he said, “I am unaware of that," but reiterated that CIB and the team have had discussions about a future agreement.

A call to Pacers spokesman Greg Schenkel was not returned Monday morning.

The last of three $10 million payments was made by CIB to the Pacers in January, which was designed to help the team through the 2012-2013 season, Huge said.

The Pacers’ lease on the fieldhouse runs until 2019 and the team would have to pay back at least some of the subsidies if it leaves Indianapolis before then. The team is owned by Herb Simon, who made his fortune in the shopping mall development business.

During the 11 years after the fieldhouse opened in 1999, the Pacers organization said it lost money every year but one on its operations. Team officials said they spent $14 million to $18 million each year on operations, but did not recoup enough from hosting events at the venue to turn a profit.

The subsidy agreement, which also included at least $3.5 million and as much as $8.2 million for capital improvements, was opposed by only one of CIB’s members. Douglas Brown said he preferred that the city and team craft a longer-term deal right away, rather than delaying for three years.

The Pacers’ request for help—initially to the tune of $15 million per year—came while CIB was in the midst of its own financial crisis. The board was struggling to balance its budget mainly because of higher operating costs for the new Lucas Oil Stadium compared with the old RCA Dome.

CIB's 2013 budget will be released Monday at 3 p.m. The board's budget must eventually win approval from the City-County Council.

ADVERTISEMENT

  • Well said
    Taxpayer is correct. So why does the public treat Irsay like a star and the Simons like villans?
  • Public/Private Partnership doesn't mean Private Profits and Public Losses
    The CIB should be talking to the Colts about restructuring the Lucas Oil Stadium agreement to be more in line with the Pacers current agreement on Bankers Life Fieldhouse. It was the Colts that caused the CIB losses and fuels the Pacers demands to hose taxpayers like Jim Irsey.
  • Time to Repay The $30 Million Loan
    We were told that the $30 million was a short loan that needed to be repaid. Now everyone acts like it was a gift. Seems the city could use that money to plug the $70 million budget shortfall since the Pacers have a new NBA TV agreement and player contract concessions.
  • Common Sense
    How does anyone know if the Pacers lost money during any of these years and why should the citizens of Indianapolis pay for this? Have the Pacers ever shown their books to the city, the CIB or the public? Where's the outrage? You shut your libraries yet can't even get the Pacers to open their books?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

  2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

  3. It's empowering for this niche community to know that they have an advocate on their side in case things go awry. http://www.youtube.com/watch?v=Lrst9VXVKfE

  4. Apparently the settlement over Angie's List "bundling" charges hasn't stopped the practice! My membership is up for renewal, and I'm on my third email trying to get a "basic" membership rather than the "bundled" version they're trying to charge me for. Frustrating!!

  5. Well....as a vendor to both of these builders I guess I have the right to comment. Davis closed his doors with integrity.He paid me every penny he owed me. Estridge,STILL owes me thousands and thousands of dollars. The last few years of my life have been spent working 2 jobs, paying off the suppliers I used to work on Estridge jobs and just struggling to survive. Shame on you Paul...and shame on you IBJ! Maybe you should have contacted the hundreds of vendors that Paul stiffed. I'm sure your "rises from the ashes" spin on reporting would have contained true stories of real people who have struggled to find work and pay of their debts (something that Paul didn't even attempt to do).

ADVERTISEMENT