Thursday, March 25, 2004
Questions Haunt Pawlenty Stadium Plan
Minnesota Governor Tim Pawlenty insists that as a condition of public financing for new stadiums, the Twins and Vikings agree to share some of the resulting increase in franchise value with the taxpayers. Mike Meyers of the Minneapolis Star Tribune explains why this simple-sounding concept would be very hard to implement.
Using the Twins as an example, first, the state and the Pohlads would have to agree what the Twins are worth now. During the valuation process, the Pohlads would have a strong incentive to inflate the club's value. Then they would have to agree on a methodology for determining, when the Twins are sold in two or 20 years, what percentage of the increased value would be attributed to the new stadium, as opposed to inflation, a better local media deal or other factors. Then they would have to agree what percentage of that increase would go to the state.
Good luck...
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Minnesota Governor Tim Pawlenty insists that as a condition of public financing for new stadiums, the Twins and Vikings agree to share some of the resulting increase in franchise value with the taxpayers. Mike Meyers of the Minneapolis Star Tribune explains why this simple-sounding concept would be very hard to implement.
Using the Twins as an example, first, the state and the Pohlads would have to agree what the Twins are worth now. During the valuation process, the Pohlads would have a strong incentive to inflate the club's value. Then they would have to agree on a methodology for determining, when the Twins are sold in two or 20 years, what percentage of the increased value would be attributed to the new stadium, as opposed to inflation, a better local media deal or other factors. Then they would have to agree what percentage of that increase would go to the state.
Good luck...
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