Rays response to Stadium Funding approval: “More money please!”

Local politicians have given the Rays organization hundred of millions of dollars. Why stop now?

After two hurricanes ravaged the Tampa Bay area, local politicians decided to take a rare moment of introspection and ask an important question: Does the local government really want to give a multi-billion dollar private company hundred of millions of dollars when tens of thousands of residents are under financial duress?

The answer was yes, and it took 49 days to be sure.

Now the Rays want more.

Following the County vote to approve issuing the bonds — which must be sold in time for the County to fulfill it’s obligation to have funds available by the end of April — Tampa Bay Rays co-President Matt Silverman issued the following statement:

“It was unsurprising to see the Commissioners acknowledge how important the Tampa Bay Rays and our stadium development agreement are to this community and its citizens. As we have made clear, the County’s delay has caused the ballpark’s completion to slide into 2029. As a result, the cost of the project has increased significantly, and we cannot absorb this increase alone. When the County and City wish to engage, we remain ready to solve this funding gap together.”

The increase in costs is not yet substantiated — the Rays claim, per the Tampa Bay Times, that the increased costs are at least $150 million, but they have thus far produced no evidence.

The Rays would have you believe this was all the local politicians fault, but to be clear: it was the Rays who claim to have halted all stadium plans while the County and City deliberated, and it was the Rays claiming the stadium deal was “dead” until the County’s lawyers asked for that in writing.

The reason the deal has not died is clear, and it has everything to do with what the Rays are set to receive beyond the cold hard cash.

How much is too much?

Exactly how much the Rays will already receive through the agreement signed in July 2024 is hard to calculate, but rest assured it’s sure to be an extraordinary profit.

First there’s the $600 million that was delayed these seven weeks, as well as nearly $150 million in city infrastructure improvements. These were the bonds that caused all of the drama these last two months.

Then there’s the sweetheart deal to pay only $100 million for 60-plus acres of real estate in downtown St. Petersburg, and the property tax free arrangement for the stadium anchoring the development. (Why no property taxes? Because the county will retain ownership). The arrangement is designed to make sure that the $6.5 billion redevelopment project is as profitable as possible for the Rays/Hines group.

Then there’s all the profits that come from controlling and owning the “Historic Gas Plant District.” That full redevelopment will take something like 20 years to complete, and the profit to be made off controlling 20%+ of downtown St. Petersburg will last generations, with Rays owners, and in particular Sternberg, reaping most of the profits.

With all of that in mind, you can see why Mayor Ken Welch, who has brokered the redevelopment project, has repeatedly said the Rays organization will not be getting a penny more in public funds.

On the other hand, if you’re the Rays, you can see why they’d ask for more, particularly when the powers that be have been so willing to give so much. What’s $150 million more in comparison to how much the clearly deep pockets in Pinellas County are willing to give away?

Conclusion

Ultimately, the question is whether the Rays will stand by their claim that the deal is dead.

The reason why the County approved their bonds was that MLB Commissioner Rob Manfred flew to Pinellas County to meet with Commissioners, evidently promising the Rays will never leave Tampa Bay.

If the deal were dead, you’d expect the team to take their ball and leave, but as Rays co-President Brian Auld testified before the City Council when asked why the team hasn’t terminated their deal, there’s a lot of “good work” the Rays executives would like to see completed through the redevelopment. No doubt they would!