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The Pittsburgh Post-Gazette reported that Allegheny County Controller Mark Patrick Flaherty has warned the Rooney family that a change in the team’s ownership could result in the state and county asking for the return of its $281 million share of Heinz Field’s construction costs.
“As the financial watchdog for the County, I will not permit a material change in ownership of this regional asset to occur without an equitable repayment of the funds contributed by the taxpayers or [will] require a new agreement with the new owners group that the team must remain in Pittsburgh for the next 75 years,” Flaherty told the paper.
Flaherty cites an article an the lease the team signed with the Sports & Exhibition Authority that states the state and county can seek those funds if the team were to be sold outside the Rooney and McGinley families, even if the new ownership doesn’t plan on relocating the franchise.
In 1998, Forbes assessed the Steelers’ worth at $300 million compared with $929 million last year. Flaherty said taxpayers should be able to reap some of the profits the Rooney family would receive from that increase in value.
July 16th, 2008 at 3:08 pm
can someone explain this more? Florio? other commenting genuises? general dorks?
I read the article on espn.com and I thought I understood it, but then I read that one of the Rooney’s was none too thrilled with it. This sounds like a move that would be a step towards keeping an outside investor from purchasing a share of the team.
Maybe it was one of the brothers attempting to sell that was upset, they all seem to have the same names.
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Rating: 1 / 5 with 1 rating(s)
July 16th, 2008 at 3:16 pm
Maybe the Allegheny County controller should force the Rooneys to go Home Depot and buy some grass seed for their piss-poor field. They have a $150 million dollar stadium but turf that would be an embarrassment to most junior high school programs.
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Rating: 4 / 5 with 4 rating(s)
July 16th, 2008 at 3:28 pm
interesting wrinkle in franchise/city relationships.
Being that the city taxpayers fund the stadium, the team then becomes a type of investment for the poopulation. Team profits = city profits. Owners won’t like it, but it makes sense.
Definitely throws a wrench in the sale here.
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Rating: 5 / 5 with 2 rating(s)
July 16th, 2008 at 3:28 pm
Not sure how PA’s tax system works, but doesn’t the club have to pay taxes to a certain point that’s reflective of their profits?
As a Pats fan I’m also an NFL fan, it would be a bad thing to see the Steelers leave Pittsburgh. It wouldn’t make any sense considering the loyalty of that base. It would be like seeing the Sox or Yanks leaving their respective cities.
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July 16th, 2008 at 3:44 pm
Heh.
Smart one to insert an article like that into the lease agreement, although I’d guess (hope, actually) that most other cities/counties would have a similar clause to provide at least some possibility that the taxpayers hard-earned tax dollars wouldn’t go to waste because some gazillionaire decided he liked the scenery (read: tax breaks) elsewhere.
Of course, a gazzilionaire’s upmtymillionaire lawyer would fight the thing tooth-and-nail for years before finally getting the county to settle for a fraction of the value.
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July 16th, 2008 at 3:45 pm
Nice poison pill to prevent team movement. It doesn’t sound like it should stop the sale though, sounds like the County will be satisfied if Druckzilla agrees not to move the team for the next 75 years.
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July 16th, 2008 at 4:13 pm
Makes sense from a city stand point to protect the team…but just because he sells his shares to another person doesn’t mean they should have to pay the $260 million..it’s not as if the team is leaving the city and the stadium would not be used…as long as the new shareholder doesn’t move the team, i don’t know why they would be entitled to the money…the only money the city should get is the tax on the capital gains the Rooney’s would receive from the transaction…I would assume that a new agreement would be made between new ownership and the city to make all parties happy
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Rating: 5 / 5 with 1 rating(s)
July 16th, 2008 at 4:52 pm
Please no!!!! This kind of news will destroy the mind set of steeler fans everywhere! They can’t have a distraction like this with the toughtest sched in the NFL. The team is already thinking 3 rd place at best so please stop the presses!!!!!!!!!!!!!!!
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July 16th, 2008 at 4:52 pm
Part of the reason the Steelers have tripled in value over the past 10 years is because of their new stadium. The new stadium was partially paid for by taxpayers. Taxpayers should see a return on their investment also.
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July 16th, 2008 at 7:20 pm
I just think it is ridiculous that we as the taxpayers spend all this money on these stadiums and enrich these owners. Let’s say the Steelers would be worth $600 million in the old stadium, now the owners have basically pocketed $300 million on an investment by the PEOPLE. That is wholly ridiculous. If the taxpayers pay for the stadium we should a portion of the value that the team goes up in value.
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Rating: 5 / 5 with 2 rating(s)
July 16th, 2008 at 9:02 pm
Not a lawyer, but…
Sounds like he needs the new prospective ownership to explicitly agree to the existing condition not to move the team, or else he will revoke or void the county’s agreement not to require repayment of the funds to build the team’s stadium.
It also sounds like he thinks he can enforce it…
F2B
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July 16th, 2008 at 9:07 pm
it happened in cleveland it can happen anywhere. most of the younger people on here have no clue how important the browns were to the nfl back in the 50s and 60s, they were dominant until the packers. all it takes is one idiotic incompetent owner like fart moe-dell and they could be gone.
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July 16th, 2008 at 9:20 pm
Someone asked how the PA tax system works. Here it is.
The state, county, city and school district(s) tax the crap out of anything not nailed down.
Anything nailed down gets taxed twice.
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