Chairman Watson & Task Force Members:
For the first 15 years of its existence the Stadium required an annual subsidy
amounting to 52 cents for each ticket sold. In 1980, as a member of the City
Council, I was instrumental in getting a majority of the council members to
raise the parking fees, over which the city had control. This eliminated
the annual subsidies until the renovation took place, after which the stadium
once again required subsidies.
When Mr. Spanos acquired the Chargers and began dealing with the city believed
that a first kiss would inexorably lead to a total surrender of virtue. He has
since proved that there is no limit to the number of times he can have his way
with the city. In short, the city, a string of Mayors and Councilmembers, and
the City Attorney’s Office are no match for the millionaires and billionaires in
the National Football League.
I was struck years ago by the fact that the executive director of the Holiday
Bowl for just this one event was paid substantially more money than the Director
of the city’s property department whose responsibilities include not only Jack
Murphy Stadium but also all the properties owned by the City of San Diego.
It would not be a surprise if each of the attorneys who work for the
millionaires and billionaires make substantially more money than the attorneys
working for the city. But that's not important, the city has extremely capable
attorneys. None of which, however, spend all or even most of their time on
Charger issues. For the Charger’s attorneys it's pretty much a full time job,
with the full resources of the NFL and tens of millions of dollars at stake, and
this gives them an enormous advantage over the City of San Diego.
The Sports Arena in its first years also hemorrhaged money. The City guaranteed
the bonds. Then Peter Graham sitting in his office in Canada, said he looked at
this “This Beautiful Lady,” as he phrased it, in San Diego and bought the lease,
relieving the city of its obligation. He made some changes and turned a profit.
You may recall the County had a $134 Million White Elephant in the San Marcos
Trash to Energy Plant that jeopardized the county's credit rating. The county's
solid waste system was sold for $184 million relieving the county of the
financial burden and it Moody's credit rating immediately jumped from Baa1 to
A2.
I discussed this some time ago with former City Manager Ray Blair who also is a
sports enthusiast and former sportscaster and he agreed that the best thing for
the city would be to put the stadium up for sale. Pit ambition against
ambition, as Thomas Jefferson might say. Let the billionaires of this country
match wits with each other. The city might advertise the stadium in the Wall
Street Journal, with a minimum bid of say $75 million, specify deed
restrictions, the right to reject any and all offers and see if the Chargers or
any its competitors respond. This is the only way to save the city, and its
taxpayers from the ongoing trauma for as far as the eye can see -- that’s
associated with Jack Murphy Stadium.
Fred Schnaubelt
Fred Schnaubelt, a former San
Diego Stadium Authority member and former City Councilman.
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