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Is OKC Thunder's $50M contribution a fair comparison to other NBA arenas?

With $850 million in taxpayer money now up for a vote, KOCO 5 investigated the amount of private investment other NBA team owners are making.

Is OKC Thunder's $50M contribution a fair comparison to other NBA arenas?

With $850 million in taxpayer money now up for a vote, KOCO 5 investigated the amount of private investment other NBA team owners are making.

NBA TEAM OWNERS ARE MAKING. JUST TO BE CLEAR, ARE YOU SAYING THAT IF THE VOTERS TURN THIS DOWN, THAT YOU DO BELIEVE THAT THE THUNDER WOULD END UP LEAVING OKLAHOMA CITY AT SOME POINT? WELL, IT’S BASICALLY SELF-EVIDENT. OKLAHOMA CITY MAYOR DAVID HOLT SAYS THERE’S TWO ERRORS BEFORE THE THUNDER AND AFTER THE THUNDER TO DENY THAT THE OKLAHOMA CITY THUNDER HAVE BEEN A WORLD CHANGING EVENT FOR OKLAHOMA CITY. IS TO BASICALLY INSIST THAT WE DON’T LISTEN TO OUR LYING EYES. HOLT WANTS VOTERS TO GIVE THE GREEN LIGHT IN DECEMBER TO A NEW DOWNTOWN ARENA, BUT SOME HAVE BEEN CRITICAL OF THE AMOUNT OF GREEN BEING OFFERED BY THE TEAM ITSELF. THE $50 MILLION CONTRIBUTION FROM THE THUNDER IS ABSOLUTELY LAUGHABLE. IT’S EMBARRASSING. THE OWNER SHOULD BE EMBARRASSED THAT THEY’RE ONLY ASKING FOR $50 MILLION. LIKE THAT’S A MEANINGFUL CONTRIBUTION. J.C. BRADBURY IS A PROFESSOR OF ECONOMICS AT KENNESAW STATE UNIVERSITY AND ONE OF THE LEADING CRITICS OF PUBLICLY FUNDED STADIUMS AND ARENAS. HE SAYS RECENT NBA HISTORY IS TRENDING TOWARDS ARENAS BEING BUILT WITH MUCH MORE PRIVATE MONEY THAN WHAT’S ON THE TABLE IN OKC. THE PUBLIC IS GOING TO PAY FOR IT AND THE PRIVATE PART OF IT IS GOING TO KEEP ALL THE MONEY. THAT’S NOT A PARTNERSHIP, THAT’S EXPLOITATION. SO HERE’S THE LIST OF NEW NBA ARENAS OPENS SINCE 2010. ONE TEAM, THE GOLDEN STATE WARRIORS IN SAN FRANCISCO, THEY CHOSE TO PAY 100% OF THE CONSTRUCTION COSTS, BUT THEY’RE AN OUTLIER. ORLANDO OWNERS. THEY PAID AROUND 10% OF THE TOTAL PRICE. IN BROOKLYN, PRIVATE MONEY PAID ABOUT HALF. SACRAMENTO’S OWNERS CONTRIBUTED AROUND 41%. IN DETROIT, 62% WAS PAID FOR WITH PRIVATE MONEY AND PRIVATE MONEY PAID FOR ABOUT 52% OF MILWAUKEE’S NEW ARENA, WHICH OKC CITY LEADERS TOURED LAST YEAR. THE OFFER FROM THUNDER OWNERSHIP. JUST 5.5%. AND SO PEOPLE SAY THEY’RE TAKING ADVANTAGE OF THAT FEAR THAT OKLAHOMA CITY RESIDENTS MIGHT HAVE OF LOSING THE TEAM IN THEIR LEVEL OF INVESTMENT. SO HOW DO YOU RESPOND TO THAT? AND IS THAT IS THAT TRUE, DO YOU THINK IS A LOT OF LAYERS TO IT? I MEAN, FIRST OF ALL, DETROIT HAS OVER 4 MILLION PEOPLE, BUT MAYOR HOLTZ AND OTHERS HAVE SPOKEN TO CLOSE TO THE TEAM SAY THIS SORT OF COMPARISON IS NOT REALLY FAIR, THAT EVERY ARENA DEAL IS DIFFERENT WITH DIFFERENT REVENUE STREAMS, DIFFERENT FACTORS, DIFFERENT INCENTIVES, HOLT SAYS BETTER CURRENT COMPARISONS ARE NEW ORLEANS AND MEMPHIS, WHICH ARE CLOSER TO OKLAHOMA CITY’S POPULATION, WHICH OPENED ARENAS IN 1999 AND 2003. AND WERE PAID FOR ENTIRELY BY TAXPAYERS, AS THOUGH A CLOSER LOOK DOES REVEAL THE COMPARISONS. THERE ARE ALSO NOT IDEAL BECAUSE NEW ORLEANS BUILT THEIR ARENA BEFORE THE ARRIVAL OF THE PELICANS AND MEMPHIS AGREED TO BUILD THEIR ARENA IN ORDER TO SECURE THE GRIZZLIES FROM VANCOUVER. BUT REALLY THE REAL COMPARISON IS US VERSUS THE CITIES THAT DON’T HAVE A TEAM. THAT’S THE FREE MARKET, RIGHT? THAT’S WHAT WE’RE COMPETING AGAINST. LAS VEGAS IS. RIGHT. ANY TEAM THAT CHOOSES TO OPERATE IN OKLAHOMA CITY HAS TO WEIGH WHAT WE HAVE VERSUS THE OPPORTUNITY COST OF OF NOT BEING IN LAS VEGAS OR SEATTLE OR THE OTHER 16 METROS THAT ARE BIGGER THAN OKLAHOMA CITY. BUT HOLTZ IS ALSO PUSHING BACK AGAINST CLAIMS FROM BRADBURY AND OTHER ECONOMISTS WHO SAY DECADES OF STUDIES HAVE SHOWN PRO SPORTS TEAMS AND ARENAS DO NOT CREATE ECONOMIC GROWTH. AND THIS IS LARGELY BECAUSE MOST OF THE SPENDING RELATED TO A STADIUM OR A SPORTS TEAM IS JUST REALLOCATED. LOCAL SPENDING. SO THAT IS MOST PEOPLE WHO WOULD SPEND THEIR MONEY AT A BASEBALL GAME, BASKETBALL GAME, FOOTBALL GAME WOULD OTHERWISE BE SPENDING IT AT MOVIE THEATERS, RESTAURANTS, GROCERY STORES AROUND TOWN. SO WE TEND NOT TO FIND LARGE ECONOMIC IMPACTS. MAYOR HOLT SAYS HE’S SEEN THE STUDIES, BUT SAYS MOST OF THEM INVOLVE CITIES THAT ALREADY HAVE OTHER MAJOR PROFESSIONAL SPORTS TEAMS IN OKC. HE SAYS THE IMPACT IS GREATER BECAUSE THE THUNDER IS THE ONLY GAME IN TOWN. I THINK WHEN YOU WANT TO LOOK AT THE REAL CHANGE AND YOU WANT TO PUT IT IN ECONOMIC TERMS, OUR GDP IN OUR CITY SINCE 2008 HAS INCREASED 62%. AND JUST SO THAT’S NOT IN A VACUUM, TULSA’S HAS INCREASED 44% OVER THAT SAME TIME PERIOD. IT’S SO NIGHT AND DAY THAT I MEAN, SHOW ME ALL THE REPORTS YOU WANT TO SHOW ME. BUT BUT I LIVED IT. WE’VE ALL LIVED IT. SO IT’S INTERESTING IF VOTERS SAY YES TO THIS IN DECEMBER, IT WILL BE THE FOURTH ARENA BUILT WITH TAXPAYER MONEY HERE IN OKLAHOMA CITY IN THE LAST CENTURY. THOUGH, IN FAIRNESS, THIS IS THE FIRST TIME THAT WE’VE HAD AN NBA TEAM ALREADY IN TOWN. AND SPEAKING OF THE THUNDER, JESS, I DID REQUEST A COUPLE OF TIMES TO SPEAK WITH THE THUNDER OWNERSHIP FOR THIS STORY, BUT THEY DECLINED. OKAY.
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Is OKC Thunder's $50M contribution a fair comparison to other NBA arenas?

With $850 million in taxpayer money now up for a vote, KOCO 5 investigated the amount of private investment other NBA team owners are making.

The Oklahoma City Thunder's $50 million contribution to build a new arena pales in comparison to other NBA arenas built in the last 15 years.But is that a fair comparison? With $850 million in taxpayer money now up for a vote, KOCO 5 investigated the amount of private investment other NBA team owners are making.KOCO 5 asked Mayor David Holt if voters turn the arena, will the Thunder leave OKC?| MORE | Oklahoma City Thunder previews upcoming season during Media Day"Well, it's basically self-evident," Holt said.Holt said there are two eras: before the Thunder and after the Thunder. "To deny that the Oklahoma City Thunder has been a world-changing event for Oklahoma City is to basically insist that we don't listen to our lying eyes," Holt said.Holt wants voters to give the green light in December to a new downtown arena. Some have been critical of the amount of green being offered by the team itself."The $50 million contribution to the Thunder is absolutely laughable. It's embarrassing. The owners should be embarrassed that they only put out $50 million like that's a meaningful contribution," said J.C. Bradbury, an economist at Kennesaw State University.Bradbury was one of the leading critics of publicly funded stadiums and arenas. He said recent NBA history is trending toward arenas being built with more private money than what's on the table in OKC. "The public's going to pay for it, but the private part will keep all the money. That's not a partnership. That's exploitation," Bradbury said.| MORE | Group forms to fight Oklahoma City's new arena proposalHere is a list of new NBA arenas opened since 2010.The Golden State Warriors in San Francisco chose to pay 100% of the construction costsOrlando's owners paid around 10% of the total priceIn Brooklyn, private money paid about halfSacramento's owners contributed around 41%In Detroit, 62% was paid for with private moneyPrivate money paid for about 52% of Milwaukee's new arena, which OKC city leaders toured last yearThe offer from Thunder ownership comes out to just 5.5%. KOCO 5 said some people said they're taking advantage of the fear that OKC residents might have of losing the team in their level of investment."There's a lot of layers to it. First of all, Detroit has over four million people," Holt said.Holt and others who KOCO 5 spoke with who are close to the team said the comparison isn't fair because every arena deal is different with different revenue streams and incentives. Holt said better current comparisons are New Orleans and Memphis, which opened arenas in 1999 and 2003 and were paid for entirely by taxpayers.However, a closer look reveals the comparisons are also not ideal because New Orleans built their arena before the arrival of the Pelicans and Memphis agreed to build their arena in order to secure the Grizzlies from Vancouver.| MORE | OKC City Council votes to approve special election asking for public funding for new downtown arena"But really, the real comparison is us versus the cities that don't have a team. That's the free market, right? That's what we're competing against. Right? Right. Any team that chooses to operate in the city has to weigh what we have, versus the opportunity cost of not being in Las Vegas or Seattle or the other 16 metros that are bigger than Oklahoma City," Holt said.Holt pushed back against claims from Bradbury and other economists who said decades of studies have shown professional sports teams and arenas do not create economic growth."And this is largely because most of the spending related to a stadium where a sports team is just reallocated local spending, so that is most people who would spend their money at a baseball game, basketball game, football game would otherwise be spending in movie theaters, restaurants, grocery stores around town, so we tend not to find large economic impacts," Bradbury said.Holt said he's seen the studies but said most of them involve cities that already have other major professional sports teams. In OKC, he said the impact is greater because the Thunder is the only game in town."I think when you want to look at the real change and you want to put it in economic terms, our GDP in our city since 2008, has increased by 62%. And just so that's not in a vacuum, Tulsans have increased 44% over that same time period," Holt said.Top HeadlinesTIMELINE: Risk for severe storms on the risk as Oklahoma sees hail, tornado threatA ransom note, fingerprints and cell phone pings led to missing 9-year-old girl and suspect in her disappearanceOHP: Woman dies after deer hits windshield on northeastern Oklahoma highwaySea lion escapes enclosure at Central Park Zoo due to New York floodingThese popular fall-scented candles are on sale for 40% off

The Oklahoma City Thunder's $50 million contribution to build a new arena pales in comparison to other NBA arenas built in the last 15 years.

But is that a fair comparison? With $850 million in taxpayer money now up for a vote, KOCO 5 investigated the amount of private investment other NBA team owners are making.

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KOCO 5 asked Mayor David Holt if voters turn the arena, will the Thunder leave OKC?

| MORE | Oklahoma City Thunder previews upcoming season during Media Day

"Well, it's basically self-evident," Holt said.

Holt said there are two eras: before the Thunder and after the Thunder.

"To deny that the Oklahoma City Thunder has been a world-changing event for Oklahoma City is to basically insist that we don't listen to our lying eyes," Holt said.

Holt wants voters to give the green light in December to a new downtown arena. Some have been critical of the amount of green being offered by the team itself.

"The $50 million contribution to the Thunder is absolutely laughable. It's embarrassing. The owners should be embarrassed that they only put out $50 million like that's a meaningful contribution," said J.C. Bradbury, an economist at Kennesaw State University.

Bradbury was one of the leading critics of publicly funded stadiums and arenas. He said recent NBA history is trending toward arenas being built with more private money than what's on the table in OKC.

"The public's going to pay for it, but the private part will keep all the money. That's not a partnership. That's exploitation," Bradbury said.

| MORE | Group forms to fight Oklahoma City's new arena proposal

Here is a list of new NBA arenas opened since 2010.

  • The Golden State Warriors in San Francisco chose to pay 100% of the construction costs
  • Orlando's owners paid around 10% of the total price
  • In Brooklyn, private money paid about half
  • Sacramento's owners contributed around 41%
  • In Detroit, 62% was paid for with private money
  • Private money paid for about 52% of Milwaukee's new arena, which OKC city leaders toured last year

The offer from Thunder ownership comes out to just 5.5%. KOCO 5 said some people said they're taking advantage of the fear that OKC residents might have of losing the team in their level of investment.

"There's a lot of layers to it. First of all, Detroit has over four million people," Holt said.

Holt and others who KOCO 5 spoke with who are close to the team said the comparison isn't fair because every arena deal is different with different revenue streams and incentives. Holt said better current comparisons are New Orleans and Memphis, which opened arenas in 1999 and 2003 and were paid for entirely by taxpayers.

However, a closer look reveals the comparisons are also not ideal because New Orleans built their arena before the arrival of the Pelicans and Memphis agreed to build their arena in order to secure the Grizzlies from Vancouver.

| MORE | OKC City Council votes to approve special election asking for public funding for new downtown arena

"But really, the real comparison is us versus the cities that don't have a team. That's the free market, right? That's what we're competing against. Right? Right. Any team that chooses to operate in the city has to weigh what we have, versus the opportunity cost of not being in Las Vegas or Seattle or the other 16 metros that are bigger than Oklahoma City," Holt said.

Holt pushed back against claims from Bradbury and other economists who said decades of studies have shown professional sports teams and arenas do not create economic growth.

"And this is largely because most of the spending related to a stadium where a sports team is just reallocated local spending, so that is most people who would spend their money at a baseball game, basketball game, football game would otherwise be spending in movie theaters, restaurants, grocery stores around town, so we tend not to find large economic impacts," Bradbury said.

Holt said he's seen the studies but said most of them involve cities that already have other major professional sports teams. In OKC, he said the impact is greater because the Thunder is the only game in town.

"I think when you want to look at the real change and you want to put it in economic terms, our GDP in our city since 2008, has increased by 62%. And just so that's not in a vacuum, Tulsans have increased 44% over that same time period," Holt said.


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