Football season starts next month. The thousands of people who enjoy watching the Ravens compete and take pride in having an NFL affiliate should thank the Maryland Stadium Authority, established by state legislation in 1986, for that. The group helped to lure the Ravens to Baltimore ? and negotiated a long-term lease with the Orioles, its two founding missions. It fulfilled both its goals years ago. We?re grateful for its leadership. But its job is done.
Why does it still exist?
We think it relates to something Ronald Reagan said: “No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we will ever see on earth!”
The MSA didn?t just not disappear. It has expanded the scope of its activities, losing money the entire time and flouting the law in the process. Its projects include overseeing the design and construction of the Hippodrome Theatre and authorizing bonds for the renovation, expansion and operating costs of the Ocean City Convention Center. It is a major advocate for the proposed Maryland Horse Park on Naval Academy property in Anne Arundel County.
Last year, its operating expenses outpaced revenue earned from stadiums and convention centers by nearly $7 million. Its overall loss was about $31 million, before government subsidies fixed its budget hole. In 2004, its expenses outpaced its revenues by about $33 million, according to MSA annual reports. Its economic outlook: “The Authority will continue to closely monitor revenues and expenditures to the best of its ability.” Notice it did not say, “balance its budget,” or even ? gasp ? make money.”
Under its close monitoring regime the MSA spent more than $100,000 on outside counsel in 2005 to prepare a potential lawsuit against Major League Baseball to block the Washington Nationals from coming to the region. The hiring violated state procurement laws, according to officials at the Attorney General?s office. Due to cost, state lawyers must first approve hiring outside counsel. This was not the first time it did not follow the rules. A state audit in 2004 found that the MSA improperly awarded $66 million in construction projects, prompting the resignation of the executive director.
If the MSA spent money supporting organizations that actually filled the state?s tax coffers, arguments could be made to support its habitual money-losing operations. But it doesn?t. A growing body of research shows that professional sports teams and their facilities have a neutral or even negative impact on income and employment where they exist.
UMBC economist Dennis Coates, with co-author Craig Depken of the University of Texas at Arlington, recently reported that each regular season NFL game reduces sales tax revenue by $570,000. They are currently analyzing Major League Baseball events.
All of this points to the fact that Gov. Robert Ehrlich should move to dissolve the group and get out of the stadium and convention “business.” Those who use those facilities must be charged with finding a way to maintain them. We the people must not subsidize multimillion-dollar salaries of sports players and losses at underused convention centers.
