Slowly but surely, Indiana Pacers officials are releasing more information about their financial distress. Last month, Pacers
brass told me they had lost money in nine of 10 years at Conseco Fieldhouse, including the inaugural season and despite a
run to the NBA Finals. But they wouldn’t tell me the extent of those losses.
Yesterday, Capital Improvement Board member Pat Early said the loss this year is set to be $30 million. That’s more than triple any published estimates. Fans I talk to are split over the idea of the city and/or state raising tax revenue to help operate Conseco Fieldhouse. Many love and want to see the tradition of the Pacers continue in Indianapolis. They also appreciate all that co-owners Herb and Mel Simon have done for the community.
As for the $15 million annually Pacers officials want to operate Conseco Fieldhouse … Well, not all fans have shut the door on the idea. But most I’ve talked to that are willing to consider the idea want two things. First, they want year-by-year information about the extent of the Pacers’ financial losses. Those fans want to see to what extent the Pacers’ wounds have been self inflicted. In simple terms, fans want to see how much the Pacers were losing before the Detroit brawl and other off-court incidents, and how much the team lost after those events.
It's fair to point out that the Pacers-like the rest of the NBA-are struggling through an epic economic slump, which obviously is far from the team's control. NBA officials said 27 of 30 NBA teams will either freeze or lower ticket prices next season, and many are looking to trim their budgets. Some will make cuts as deep as 10 percent to 15 percent.
Secondly, the fans I have talked to want Pacers officials to stand up before the CIB, City-County Council and/or the state Legislature and make their request and plead their case. Pacers officials have not spoken at a CIB meeting since this issue erupted early this year.
Before I joined the IBJ in 1998, I covered politics for a decade. During that time, I found what taxpayers wanted most was a thorough debate of the issues. Not scripted dialogue, but honest debate by the people asking for money or relief and the elected officials (or their appointees) who have the power to grant it. Even though not everyone agreed with the outcome, most were willing to accept it as part of the process.
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Its not a public private partnership when the public is used as a doormat.
but face it, nothing is going to change, and Jimmy will load up the trucks and be in LA in 2 days. Bank that.
Pacers? Just a victim of NBA payroll BS.
Now here are my two issues; (1) We have had sports/concert/convention venues for many, many years has the CIB not learned anything on how to budget the annual events to cover the cost. At least the CIB should hit the mark closer that $20 million. (2) In my opinion this is the big one. Indy is commonly known as a small market when it comes to sports yet we have two of the premier, most expensive venues in the country which I am proud to have but we can't afford them. To me this comparison would be like the Simons building Keystone at the Crossing in Smalltownville, IN - population 2,500 where their biggest retailer in town is a dollar store. The Simons need top dollar for rent to cover the cost but the dollar store can only pay half of whats needed. Now, the genious that thought a fashion mall in Smalltownville, IN would work probably got fired and the building sits vacant. I don't think these venues sitting vacant is the answer but this is what we are faced with because someone felt two elite venues would be financially feasible in a small market.
I hope a solution can be found to help this situation without raising taxes. Higher restaurant and hotel taxes will start to seriously cut in to tourism revenue.
The CIB shortfall is a result of such a bad deal for the Colts. Realistically, the Colts aren't going to move to L.A. and get some sweet deal to do so. The stadium being built there is privately owned. Irsay won't be able to strong-arm Los angeles or Los Angeles county into paying his way. Los Angeles already let two NFL teams leave because they weren''t going to bow down.
Saying our venues are too nice isn't correct either. Much smaller markets than Indy support large basketball venues. (Louisville, Nashville, Oklahoma City and New Orleans)
It's simply been poor planning on the part of the CIB
Maybe if they got creative and used these venues more often, they could increase the revenue, and, um, yaa know, PAY THE BILLS!? :lol:
Hey Mel, I think we are close to making a profit, who should we give a big pay increase to or what do you want to spend it on?
I believe that is called managing earnings by the Pacer accounting staff.
Do the Simon's give their mall tenants a big bail out check when a store shows a loss because the retailers CEO took all the profits out of the company in salary and dividends?
Why should the insolvent CIB, which is the landlord for the Colts and Pacers, be expected to guarantee profits, subsidize excessive salaries, excuse any financial consequence of poor management decisions, and take potentially hundreds of millions of operating and overhead expenses for these private businesses regardless of performance by increasing taxes on struggling citizens and businesses?
And over the years the value of the franchise has increased greatly. That should play into the equation somehow, shouldnt it?
I suspect they could save at least $15 million a year by closing that team.