4/29 10:19 AM – Doug Boxer has put out his Powerpoint slide deck summarizing the report.
Now this is what I’m talking about! Some data to dig into. Yes, economic impact reports should be read with a jaundiced eye, but it’s also important to understand the context by which the data is being presented. Sure, there are projections based on what would happen if the A’s moved to the JLS area. There are also estimates of the losses Oakland and Alameda County would face if the A’s left. Not trying to cherry-pick, but I found certain things interesting:
Debt service payment for the facility by the JPA was $9,143,741 for the 2008-2009 year. The current principal on the debt is approximately $180 million. The baseball team pays an annual rent of $1,025,000 to the JPA for the eighty-one (81) games it plays in the stadium, and for the use of the adjoining land for parking. The A’s also reimburse the JPA for the cost of cleaning the stadium, which in the 2008 playing season came to $1,185,893. The costs of converting the stadium from football to baseball games are substantial, and are borne by the JPA.
Thus, from an annual operating perspective, the rent paid to the JPA and the operating expenses borne by the Authority are pretty close to financial break-even. However, the costs of updating and maintaining the facility are paid by the Authority, and in the 2008-2009 fiscal year such costs came to slightly over $1.5 million. GG+A is not in a position to estimate how much, if at all, such capital improvement costs could be reduced if the A’s team leaves the Coliseum.
Because the rent paid by the A’s is close to the amount required to convert the stadium from football to baseball, and the cash outflow for debt repayment and needed maintenance are “sunk costs;” the JPA would not suffer financial loss from the departure of the baseball team. But the JPA would hate to see the A’s leave because the Authority realizes that Oakland’s job and income base is expanded by the operations of the ball club in the city. Further, the taxes and fees paid to Oakland and Alameda County by the ball club, the many vendors and service organizations that serve the team, and the fans who attend games flow much needed revenues into the treasuries of the City and the County.
This basically lines up with comments Ignacio De La Fuente has made about the impact of the A’s. If the A’s were to leave, the impacts to Oakland and Alameda County would be as follows:
- Oakland: -885 Jobs, -$29,452,000 Income
- Alameda County: -953 Jobs, -$32,566,000 Income
Next up, the proposed sites and impact. BTW, my initial thoughts are that the direct impacts are straightforward and in many cases quite conservative, while the indirect impacts, as usual for such reports, appear to be a bit specious.