“ These people made almost $2.7 billion and they're going to tell us they can't afford a billion dollar venue? » Real estate agent based in Oklahoma City, Nick Singer, is among those who are wondering locally about the potential financing plan for a new hall for the Thunder.
The franchise owners, a group of local businessmen who purchased the team for $325 million (the team is now valued at more than $3 billion according to Forbes), will contribute $50 million. on an amount of 900 million dollars. Or 5% of the total.
Seventy million additional dollars tied to a previously approved sales tax earmarked for improvements to the current venue are also to be injected. The rest ? It is up to the local population to decide. Oklahoma City voters are expected to vote Tuesday on whether they approve a 1 percent sales tax (a type of VAT) over six years to help finance construction.
The risk, in the event of an unfavorable vote, would be that the city would suffer the same fate as Seattle: losing the Thunder team to another market. Because the franchise would also agree to stay in the city for 25 years, in their new home, which is scheduled to open before the 2029-30 season.
No ceiling?
But some residents and experts who have studied public-private partnerships say the deal is far more beneficial to the team's wealthy owners than the average resident. “ This is a huge amount being imposed on citizens, which doesn't seem like a very responsible use of our money », denounces a resident, quoted by Associated Presswhich worries about the most modest households.
Nick Singer, who started a “Buy Your Own Hall” opposition group, and others say there is no absolute guarantee that the Thunder's owners will decide to stay in OKC regardless. And also question the absence of price ceilings in infrastructure cost forecasts
“ The person who negotiated this project for the city of Oklahoma City should be fired for incompetence “, exclaims JC Bradbury, professor of economics at the University of Kennesaw in Georgia, a good expert on the issue, who elaborates: ” When you tell me that a stadium will cost a minimum of $900 million without any cap, you have just committed to building a stadium worth $2 billion. This is by far the worst deal for a venue I have ever seen negotiated from a public perspective. »
Unfavorable economists
According to Oklahoma City Mayor David Holt, a letter of intent between the city and the Thunder's owners specifies that any surplus generated by the famous tax will be used to complete the new arena or will be placed in a fund for future work maintenance or improvement.
“ Having a top professional sports team commands respect, and people realize that the city must have enough residents, businesses and resources to accommodate one of the biggest brands in the world », continues the elected official who notes, in his discussions with investors, that OKC has a weight that it did not have before obtaining the franchise.
While for some, the future economic benefits of such construction are undeniable, others are much more skeptical. A group of about 20 local economists published a letter in early December to encourage a negative vote on the new hall, which they said would not have a significant impact on economic growth and would instead distract from public money from other needs while contracting new debts…
