Sacto media in-the-bag for arena deal debt?

Sacto media in-the-bag for arena deal debt?

Examples of local media bias in favor of the Sacramento Kings arena subsidy, as well as their vehemence against the people’s right to vote on the subsidy, can be found everywhere — the Sacramento Bee, ABC, CBS, NBC and Fox News affiliates, and local radio stations.

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No longer is reporting the news enough apparently — the local media seems to want to be a part of the news. And why not? They stand to benefit handsomely should a new basketball arena be built in downtown Sacramento.

Most recently, Sacramento’s ABC Channel 10 News reporter Bryan May, who says he has been covering the Sacramento Kings and the arena story for 10 years, posted a comment on Twitter calling a Sacramento Taxpayers Opposed to Pork signature gatherer a liar, for saying that the arena deal will cost of the public $800 million.

From Twitter:

Wow, just had someone from STOP knock on my door & ask me to sign petition “before city spends $800m of your money.” When will the lies end

Sacramento Taxpayers Opposed to Pork is collecting signatures from Sacramento residents who want the arena subsidy to be decided with a public vote. STOP and other Sacramento proponents of the public vote have until Dec. 16 to turn in 22,000 valid signatures from registered voters located within the city of Sacramento.

Looking out for Sacramento taxpayers

Public policy watchdog Eye On Sacramento, recently researched and did a story on the Goldman Sachs documents showing that the City of Sacramento intends to borrow $304 million — $92 million more than the $212 million that the public were led to believe.

Eye on Sacramento estimates that the average Sacramento family’s share of arena bond costs will amount to a whopping $5,200. The watchdog group said because the city is not using a traditional 25-year term bond with fully amortizing annual payments, and “instead plans to issue an exotic 35-year bond that doesn’t start to fully amortize for 21 years, the city will incur $196 million in higher, unnecessary interest costs over its term, a stunning 73 percent hike in public costs.”

The watchdogs are lapdogs

“When you’re playing a shell game, you keep everything spinning,” wrote Paul Glegg on his blog, Game to 100. Clegg is a former editor and writer with The Sacramento Bee. “You use whatever diversionary tactics you can to distract attention. You put shills in the crowd to whip up excitement. You never want the suckers to figure out they’re being taken for a ride.”

Glegg, who was with the Bee for 32 years, was referring to the new arena project for the Sacramento Kings basketball team.

“The manipulators trying to rip off at least $258 million from the public to build a downtown arena have been playing fast and loose to keep their shell game going. Led by Mayor Kevin Johnson, they’ve sidestepped a public vote on the issue, concocted ridiculous economic benefit projections and pushed a city deeply in debt toward financial peril.”

Glegg explained how arena proponents have been greatly assisted by a local media “willing to sacrifice their watchdog role because of their own self-interest.”

“The Sacramento Bee and local television stations have a big stake in keeping the Sacramento Kings in town,” Clegg said. “The media are the cheerleaders whipping up the crowd.”

Sadly, Clegg is right. News 10’s Brian May is just one of many local sportscasters and journalists who have been pushing the heavily subsidized arena, while on-air, on the radio and in newspapers.

And Clegg doesn’t sugarcoat his former employer’s major role in this con. “The Bee has gotten on its high horse and is demanding the kind of accountability, transparency and accuracy from STOP that it has never demanded from Mayor Johnson and his back-room buddies,” Clegg said. “The newspaper’s front-page placement of the stories is designed to suggest major skullduggery by power players in the arena fight. Innuendo and guilt-by-association are used to up the journalistic ante.”

“I guess the newspaper’s editors realize that many residents are finally becoming aware how much their quality of life will deteriorate if the city siphons millions and millions of dollars from the public treasury to pay for an arena. The editors know voters will reject a subsidy to help billionaires and big developers reap a profit, and they know their own vested interests in the project will suffer.

Eye on Sacramento

“In January, city treasurer Russ Fehr issued a stunning report on the city’s expanding debt obligations: The city was approaching $2 billion in debt, half in outstanding borrowings, the other half in rapidly rising liabilities for employee pensions and retiree health care costs,” Powell recently explained.

“The city’s ratio of total debt to general fund revenue ($372 million) ranks among the highest in the country, which puts the city at greater risk of insolvency, particularly during economic downturns (like the one we’re slowing exiting),” Powell wrote in “Red Ink: Proposed Arena Bond Would Add To City’s Rising Debt.

And here’s the real kicker:

“An NBA arena typically becomes functionally obsolete just 18 to 20 years after it’s built,” Powell said. “As a result, annual payments will likely be payable on the bond for 15 to 17 years after the new arena has reached functional obsolescence, putting the city in the likely position of having to finance a second arena (to keep the team) while still making jumbo payments on the first one (if it even still exists).”

He added: “By that time, of course, every current councilmember and senior city manager will have almost certainly moved on. But city taxpayers will still be here, scrambling to handle the arena deal’s heavy legacy costs.”

6 comments

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  1. LetitCollapse
    LetitCollapse 4 December, 2013, 16:30

    Do you think the media in Sacramento in an anomaly compared to the rest of the media throughout America? lol. This is the new ‘business as usual’ model for journalism today. Take practically any local, state or national political news item, stand back and watch the spin! Oh, and the conservatives are just as bad as the liberals!

    For example, remember when the media jumped all over Arizona for SB1070 when they tried to protect their own citizens from an invading army of illegals? I mean the media absolutely crucified the Arizona legislators and it’s governor for allegedly making it’s own immigration laws! lol.

    Then California lawmakers pass a law that provides illegals with Calfornia DL’s with the DP designator that identifies the license holder as an illegal and in the law FORBIDS California employers from discriminating against an illegal who applies for work at their business and used the DP driver’s license to identify himself!!! lol!

    Oh, and the new Ca law called the “Trust Act” FORBIDS jail personnel from turning over jailed illegals to federal authorities for deportation unless they’ve been convicted of VIOLENT felonies. The ones who only committed misdemeanors of non-violent felonies must be released back into our neighborhoods after they’ve served their jail time!!! lol!!

    TALK ABOUT A STATE MAKING UP IT’S OWN IMMIGRATION LAWS IN DEFIANCE OF FEDERAL STATUTES!!! lol.

    Did you see anybody in the conservative media demand that the Federal government apply ‘equality under the law’ and hold the California legislators and the Jerry Brown to the same standard that they forced on the Arizona legislators. lol. Nope! Nada!!! Silent as Trappist monks!!! lol.

    And remember when the California legislators passed a resolution to forbid all interstate business relations with Arizona because Arizona had the gall to enact it’s own immigration law via SB1070???

    Now these California hypocrites commit even more heinous and blatant acts by approving laws that CLEARLY violate Federal immigration statutes and the media completely overlooks it!!! lol.

    So the blind eye by the media in Sacramento is simply the new professional journalistic standards endorsed by media everywhere!

    It’s not the exception! IT’S THE RULE!!! lol.

    Reply this comment
  2. Steve Mehlman
    Steve Mehlman 4 December, 2013, 19:37

    Unlike the “Dog, the Sacramento media cares about the future of their city. You attack them because they don’t join the NIMBY, anti government, anti-tax mob. They should be applauded for not doing so.

    The Watchdog is the perfect example of the truth of Oscar Wilde’s great quote. You know the cost of everything and the value of nothing.

    Reply this comment
    • Karen
      Karen 5 December, 2013, 19:39

      Subsidy proponents seem to only be able to malign the citizens who want to hold their City government accountable for our resources (“NIMBY, anti government, anti-tax mob”). Not much of an argument, is it? Oh, and they are also capable of repeating their unsubstantiated “4,000 jobs” (this has already been debunked – by the City and the Kings) and “$7 billion economic activity”. What they can’t do is justify the proposed government subsidy for the professional sports industry.

      Reply this comment
  3. Katy Grimes
    Katy Grimes Author 5 December, 2013, 07:30

    Steve,

    Only an out-of-control government would tax its citizens to build an entertainment facility, while staggering under $2 billion in debt, and still cutting services.

    This is a scheme by a sham government. And remember Oscar Wilde also said: “When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” Apparently the government elite already know this.

    Katy

    Reply this comment
  4. Craig Powell
    Craig Powell 5 December, 2013, 11:46

    According to Goldman Sachs financial projections on the proposed arena bond, the total payments on the contemplated $304 million arena bond will amount to $770 million (of which $466 million is interest), not counting the value of the non-cash arena subsidies that the city falsely claims amounts to only $45 million. Eye on Sacramento estimates that the the real market value of the non-cash subsidies have a value of at least $138 million.

    So, based on the city’s own numbers, the public will bear a cost of:

    Arena bond principal $304MM
    Arena bond interest 466MM
    City’s value of
    non-cash subsidies 45MM

    Total Arena Subsidy $815MM

    If Eye on Sacramento estimates of the real value of non-cash subsidies are used, the total cost to the public will amount to $908 million.

    Who is the liar, Mr. May?

    Reply this comment
  5. Dave M
    Dave M 5 December, 2013, 19:49

    FYI, your “real kicker” is factually inaccurate. The majority of teams in the NBA are in arenas that are 20 years old or older (many built in the early 1990’s), and doing just fine. Oracle Arena in Oakland and MSG in New York were both built over 45 years ago. They have since undergone major renovations …which is impossible with Sleep Train. The only reason Sacramento needs a new arena is because the original construction was privately financed, and as a result, many corners were cut to make the project as inexpensive as possible. You can debate the current arena all you want, but my first point is irrefutable, and makes your “real kicker” a real lie.

    Reply this comment

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