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. If I were a developer I would be looking at the Fountain Square and Fletcher Place neighborhoods instead of Broad Ripple. I would avoid the dysfunctional BRVA with all of their headaches. It's like deciding between a Blackberry or an iPhone 5s smartphone. BR is greatly in need of updates. It has become stale and outdated. Whereas Fountain Square, Fletcher Place and Mass Ave have become the "new" Broad Ripples. Every time I see people on the strip in BR on the weekend I want to ask them, "How is it you are not familiar with Fountain Square or Mass Ave? You have choices and you choose BR?" Long vacant storefronts like the old Scholar's Inn Bake House and ZA, both on prominent corners, hurt the village's image. Many business on the strip could use updated facades. Cigarette butt covered sidewalks and graffiti covered walls don't help either. The whole strip just looks like it needs to be power washed. I know there is more to the BRV than the 700-1100 blocks of Broad Ripple Ave, but that is what people see when they think of BR. It will always be a nice place live, but is quickly becoming a not-so-nice place to visit.

  2. I sure hope so and would gladly join a law suit against them. They flat out rob people and their little punk scam artist telephone losers actually enjoy it. I would love to run into one of them some day!!

  3. Biggest scam ever!! Took 307 out of my bank ac count. Never received a single call! They prey on new small business and flat out rob them! Do not sign up with these thieves. I filed a complaint with the ftc. I suggest doing the same ic they robbed you too.

  4. Woohoo! We're #200!!! Absolutely disgusting. Bring on the congestion. Indianapolis NEEDS it.

  5. So Westfield invested about $30M in developing Grand Park and attendance to date is good enough that local hotel can't meet the demand. Carmel invested $180M in the Palladium - which generates zero hotel demand for its casino acts. Which Mayor made the better decision?

ADVERTISEMENT