The rich are different from you and me

Let me tell you about the very rich. They are different from you and me. They possess and enjoy early, and it does something to them, makes them soft where we are hard, and cynical where we are trustful, in a way that, unless you were born rich, it is very difficult to understand. They think, deep in their hearts, that they are better than we are because we had to discover the compensations and refuges of life for ourselves. Even when they enter deep into our world or sink below us, they still think that they are better than we are. They are different.

F. Scott Fitzgerald, “The Rich Boy,” All the Sad Young Men (1926).

To which I might add, "The rich are greedier than you and me." Consider this:

When Forbes first analyzed ... the value of NFL teams in 1998, the magazine valued the 49ers at $254 million... A rising economic tide of network television contracts and new stadiums has been raising the NFL's boats ever since... Forbes pegs the 49ers' value at $799 million in 2007.

"New stadiums lift NFL teams' value," Mike Swift, SJ Mercury News, 09/20/2007.

That's more than 3X increase in 9 years, or about 13% per year. Try to find that in your neighborhood bank's CD offerings.

Even the stock market didn't do nearly that well in the same time period: not the Dow, not the S&P500, not even the NASDAQ came close to doubling between January 1998 and 2007.

So what would you call this?

greed, n. An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material wealth.

TheFreeDictionary.com

Commonwealth Club discussion on "The Future of the 49ers"

Two weeks ago, I was invited to be a guest at a Commonwealth Club panel discussion entitled “After Further Review: The Future of the San Francisco 49ers.” The panelists were: Michael Cohen, Director of Base Reuse and Development, City and County of San Francisco; Ann Killion, Sportswriter, San Jose Mercury News; Patricia Mahan, Mayor, Santa Clara; and Carmen Policy, Former President and CEO, San Francisco 49ers and Cleveland Browns. The moderator was Dan Ashley of ABC7 News.

It was a fascinating discussion.

I was most surprised by two issues. First, the San Francisco stadium plan is quite serious and moving ahead quickly. Michael Cohen, who is in charge of the redevelopment efforts at Hunters Point, made it clear that while they were shocked at the Yorks' sudden withdrawal from negotiations last November, they quickly regrouped and developed an aggressive stadium development schedule. They met with the 49ers organization last December to present their new timetable, and to date they have met every one of the benchmarks on that new schedule.

The second surprise was the very strong sentiment expressed by three of the four panelists that the 49ers should stay in San Francisco. While I expected Michael Cohen to be in favor of the site, it was probably Carmen Policy who painted the most vivid picture of the possibilities of the Hunters Point location. Policy was clear in his belief that the 49ers’ first priority is a new stadium, but he was also clear that even if the San Francisco deal is not quite as good, the team should stay in San Francisco. In fact, Policy indicated that “if the NFL had its druthers, the 49ers would stay in San Francisco,” as Mercury News reporter Mike Swift noted in his article about the discussion – “49ers Decision a Year Away.”

Cohen answered many of the objections that I have heard about the site and outlined the plans for transportation improvements in the area.

Ann Killion also expressed strong support for the team staying in San Francisco, and she knocked down many of the myths promoted by stadium supporters in Santa Clara.

While Patricia Mahan talked about an “entertainment district” in Santa Clara, Killion replied that football stadiums are not like other types of professional sports facilities. She said that with a football stadium, 70,000 people come in 10 times a year to see the game, and then they turn around and leave. They don’t stick around and spend money.

She also noted that public subsidies for stadiums are a very hard sell in this area because we have the examples both of what can happen when public subsidy goes wrong (see Raiders, Oakland) and of how stadiums can be built without public subsidies (see Giants, San Francisco.)

Mayor Mahan started reading a list of cities smaller than Santa Clara that host NFL football teams, but the moderator interrupted to say that it wasn’t about the size of the city, it was about the money. [As we’ve discussed here before – "A tale of two cities."]

I would highly recommend tuning in for the broadcast of the discussion. It will be aired this Thursday, September 20, on 1590AM. Here are the full details:

Thursday, Sept. 20, 2007
KLIV-AM 1590 kHz
7:00 PM and 10:00 PM

If you miss the broadcast, you may be able to listen to it or purchase a recording of it at the Commonwealth Club website. It’s not yet available there, but I will update this post with a link as soon as it’s available.

If you want to learn more about the stadium issue, this discussion provides an excellent analysis of the situation and the state of the current proposals.

Three million Benjamins

Photographer Chris Jordan has a new series of works entitled "Running the Numbers: An American Self-Portrait."

He created this portrait of Benjamin Franklin using images of 125,000 $100 bills — $12,500,000 representing "the amount our government spends every hour on the war in Iraq."

To depict the $222,000,000 subsidy that the San Francisco 49ers have requested from the City of Santa Clara to build a football stadium, we'd need about 18 of these expensive portraits. [And if you include the value of the land the City has been asked to donate — for a grand total of about $287,000,000 in subsidy— we'd need 23.]

Either way, that's a lot of Benjamins.

The 700 Pound Gorilla

Funny you should mention Great America, and their parent company Cedar Fair.

Back in January, the Santa Clara Mayor and City Council formally adopted a set of principles for evaluating the 49ers stadium proposal. These included a requirement that Cedar Fair agree in writing to not interfere with the stadium feasibility study, and that this agreement was required prior to pursuing discussions with the 49ers.

Here it is September, with no agreement in sight. The Mayor is saying that Cedar Fair's opposition is "the most substantive" problem delaying the feasibility study. However, "We haven't come up against one obstacle, or one factor, that violates our principles for going forward," Mahan said. (SJMN, Sept 4 2007)

Hmm... I think we have a touch of selective amnesia going on here.

The Odd Couple, or Here We Go Again

It's more than two months old this time and it's getting stale. But in fact, it's just a reprise of the idea that first floated to the surface back in January: A marriage of convenience between Al Davis' Raiders and the York family's 49ers.

Now, the problem isn't the Raiders themselves, but the team's owner, Al Davis, who has been hauling multiple parties into court and suing them since before the Raiders split from Los Angeles. Millions of dollars in legal fees have been squandered by all sides - and that level of litigiousness certainly makes this Santa Claran wonder why the idea is even being proposed - again.

We thought this was properly dealt with back in January by Raiders Chief Executive Amy Trask, who simply said in essence that the Raiders would be concentrating on the current season in a stadium they're simply thrilled with, and that they are not actively seeking out the 49ers as business partners.

But like a zombie, this 'joint stadium' idea has come to life once again, walking the streets by night and claiming more victims, many of them credulous 49er Faithful. This time, on May 29, a columnist from the Sacramento Bee blew some more zombie powder in the creature's face.

True 49ers-Raiders synergy? Not a chance - and to their credit, neither author above really attempts to make such a limp case. Rather, the 'sticker shock' of what will likely be a one-billion-dollar stadium proposed for our City of Santa Clara has some 49ers business-office people looking for more ways to make others feel their pain.

But what the article fails to underscore is that any such partnership of the Yorks and Al Davis makes Davis a partner of the City of Santa Clara as well. Santa Clarans should be looking at any such agreement with deep suspicion, based on Davis' past dealings with the County of Alameda. Such a cooperative venture involving Mr. Davis may turn out to be anything but "cooperative".

In fact, Al Davis' latest lawsuit against the NFL was finally thrown out by the California Supreme Court only on July 2. If all we have to look forward to in any future dealings with Mr. Davis is more frivolous litigation, this Santa Claran strongly suggests that our guest be handed his hat and escorted to the door.

Note also that the Raiders' lease at McAfee Coliseum is over in 2010; they'll have to do some real tap-dancing to keep themselves there year-to-year until 2012. But Alameda County and the City of Oakland are still on the hook for the $200M worth of debt they used to fix up the Coliseum in 1996 - and that debt, on which Oakland and the County pay roughly $11M per year, will not be retired until the year 2025.

The likelihood of the NFL allowing another franchise into McAfee, with two teams just down the road? Just about nil. If Lew Wolff does finally get the green light to move the A's to Fremont, only the Warriors will be left in the smaller Oracle Arena. We note a similar situation from the 1990s, when both the Rams and the Raiders left Los Angeles.

All of this makes one wonder how long the 49ers will commit to staying in Santa Clara. Now, that will be at least until Santa Clara pays off its obligations in the years 2033 or 2038, right? Hello?

You could also ask Oaklanders about their likely reaction to Al Davis and his Raiders skipping out on yet another dinner check in any move to Santa Clara - but you'll probably want your kids out of earshot first.

Now, there is an idea in the latest article that that should get honorable mention: Having Al Davis and the Raiders be full contributing partners in any stadium - as long as that lets the City of Santa Clara completely off the hook.

That's mere speculation on the part of one sportswriter right now. So kindly permit this reader to take his suggestion one step further: If the two teams prove they're serious about this - that they'll (1) finance the entire stadium cost privately, (2) assume total ownership of the stadium, (3) mitigate its use of all City services such as police overtime and (4) waive any and all tax abatements - this stadium opponent might get on board.

But if Al Davis, whose team is in financially worse shape than most of the other NFL franchises, jets down from Oakland demanding the currently-proposed level of corporate welfare from the City of Santa Clara, we residents should be up in arms: If the millionaire owners of the 49ers are not entitled to a public dole of over two hundred million dollars, the Raiders - after the litany of abuses by their owner in Oakland - certainly are not entitled to benefit from that giveaway either.

Al Davis could end up costing the City of Santa Clara a lot more than he's worth. Just ask the Alameda County Board of Supervisors.

Remembering Bill Walsh

First, I’d like to express my condolences to Bill Walsh’s family, the San Francisco 49ers and their fans on the death of this great man.

Bill Walsh was a man I admired. He brought intelligence and creativity to football. Each game was like a carefully planned chess match, but with a difference. He taught his players to adapt quickly to changing situations and to take advantage of opponents’ mistakes. He motivated them to strive to be better than they ever imagined they could be.

In the early 80’s the 49ers under Walsh’s tutelage were truly golden. I know; I was a fan. I saw “The Catch” and couldn’t believe my eyes. My then ten-year-old son and I bonded by planning and hosting a party for Superbowl XVI. I was a single mom and scored major “cool” points with my son and his friends for doing this.

However, we never attended any games; we couldn’t afford to. My salary barely paid the rent and other bills; we lived month-to-month. But we cheered for the team when we watched them on TV.

Now my son has a family of his own. He works in a blue-collar job in the Pacific Northwest. They can’t afford to go to football games either. Ticket prices are too high. Concessions are too expensive. Parking fees prevent them from parking anywhere near the stadium. And the kids get too tired walking long distances to and from the game.

Instead, they attend their local baseball teams’ games. The team offers “family packages” at an affordable price that include four tickets, hot dogs, and drinks. There’s a playground at the stadium for the kids. Parking is free. Players are accessible. There are even fireworks after every game.

So you see I’m not against sports, the 49ers, or football stadiums in general. I just don’t want my city to be burdened by even further debt when by 2012 (according to the city’s own budget projections-see note below) Santa Clara’s general fund will once again show a deficit.

And I want a stadium that is accessible to all, not just a few.

Using the new Arizona Cardinals stadium as an example I did a search for tickets in the “nosebleed” seats for the Cardinals vs. 49ers game in Arizona on Nov. 25, 2007. Single tickets cost $67.00 each. In addition, they add a $10.10 “convenience charge” and a $4.50 “building facility fee” for each ticket. That adds up to $326.40 for four people for one game not counting food or parking.

I understand, of course, that perhaps a ticket for a child may not cost as much, but the Cardinals’ web site doesn’t indicate that. And season ticket holders would pay a bit less per ticket. Still, that’s one heck of a lot of money for one day’s amusement. That would be far beyond the reach of many, many people in our community.

Surely in our pursuit of projects for our “entertainment district” north of Bayshore the city could be smart and creative like Bill Walsh. Let’s be flexible and wise and perhaps we, too, can be better than we could ever have imagined ourselves to be.

Erlinda Anne Estrada

Note: From the table “Twelve Year Resource and Expenditure Trend, General Operating Funds” in City of Santa Clara's Proposed Capital Improvement Project Budget 2007-08

The Primary Fuse - On the OpEd by Mike Swift, SJMN, Aug. 2

Mike Swift's informative piece in this morning's Mercury News is a reminder that any decision on a stadium in Santa Clara for the 49ers won't be made in a vacuum. The politics of primary voter turnout will have an big influence on that question - and on all of us who live in Santa Clara.

I have not a clue of how Santa Clarans would vote on a stadium in February 2008 or next June. But I would urge all City residents: If you live in Santa Clara and you are not registered to vote, please do so with the County Registrar immediately. If you don't vote, others will be making the stadium decision on your behalf - and on behalf of future generations of Santa Clarans.

I appeal to residents North of U.S. 101 in particular. I note that no one from the North Side is seated on our City Council. One way to assure that your neighborhoods are not treated as mere extensions of an overblown entertainment district is massive, all-out participation in any election that is held.

Finally, as to any question of an 'advisory' vote - which would simply permit our City Council to do anything it pleases after merely tolerating the noise and haste of citizen input - please write, email, telephone the City Council, and make abundantly clear that any 'advisory' vote is completely unacceptable:

MayorandCouncil@ci.santa-clara.ca.us

For the sheer size of the commitment on the part of us as Santa Clarans, and due to the several generations of Santa Clarans who will end up paying for our folly today, we have earned nothing less than a BINDING resolution on any billion-dollar public project - a project which includes a $222M sudsidy to a private, profit-making corporation owned by a millionaires. It doesn't matter whether the City Council raids the Utility Reserve Fund or it makes Silicon Valley Power move the Tasman electric substation out of the utility's own pocket - we're absolutely entitled to a binding vote on any expenditure for a stadium.

We can only repeat what we have long held, and what the pro-stadium forces refuse to address: The Yorks should be buying their stadium themselves, and not demanding welfare from the City of Santa Clara merely in order to squeeze more out of the NFL. And if stadium ownership were the generator of jobs and income that they claim, they would have no problems owning and running such a facility themselves. But this they will not do - and Santa Clarans are asking them just why they will not.

Please. Get involved. Register. Join Stadium Facts and our sister organization, Not With My Money. Make your voices - and your votes - heard.

Many thanks.