MLS expansion could depend on taxpayer dollars

Expanding its number of franchises in the United States has become a priority for MLS, but the league needs to be careful about the details in a landscape that is becoming increasingly hostile to publicly-funded sport entertainment projects.

MLS expansion could be a boon for the league, but the way it goes about doing so is more important than how quickly and where the league expands to next.

There’s no better evidence of MLS’ tenuous situation in expansion than its recent dealings with one of the possible sites for expansion, Charlotte. According to Steve Harrison and Katherine Peralta of The Charlotte Observer, a scheduled meeting between city leaders, Mecklenberg County commissioners and MLS officials was cancelled because some of the government office holders objected to the meeting being closed to the media and the public. While MLS denies it insisted the meeting be private, much of the reason for the meeting with the government officials is that the proposed stadium project would cost millions of taxpayer dollars. From Harrison’s and Peralta’s article:

"Under state law, if a majority of council members or commissioners attend a meeting, it has to be open to the public. In other words, if more than four county commissioners attend, it is public, and if more than five council members attend, it is open to the public – taxpayers, media and residents."

When MLS is looking for free money to aid its expansion, the last thing it needs is for it to appear that such funds are being secured without the involvement of the taxpayers providing the funds. Charlotte may be the only possible expansion venue where shady activity might be ongoing right now, but it isn’t the only place where MLS is seeking public aid.

Garrett Brnger of KSAT San Antonio reports that the city is also a candidate for expansion. The city and Bexar county governments are looking at a potential expansion of Toyota Field to attract a MLS franchise opportunity, and while the San Antonio Spurs might be involved, significant funding for the project would be likely to come from the city and county coffers.

While details are fuzzy right now, Nashville’s city government is interested in a new soccer facility. Part of the murky details are whether, and how much, the city would contribute to the construction and maintenance of the facility. According to David Boclair of the Nashville Post, the aim is to attract an MLS franchise, however.

A potential renovation of Qualcomm Stadium, the former home of the now-Los Angeles Chargers, has been held up by the decision to discontinue involvement in the project by San Diego State University, a public school in California. While CBS 8 San Diego reports that the private entities involved appear to be moving forward without the involvement of SDSU, it’s apparent that the inclusion of SDSU and its tax dollars is the preferred course.

All these stories line up perfectly with the recently-negotiated MLS stadium deal in Miami. While construction of the facility will be completely privately funded, the project will nonetheless take advantage of government subsidies and procedural exemptions.

While free money is attractive to MLS and apparently MLS is attractive to government officials, there are multiple cautionary tales about relationships like these. From the City of Santa Clara, California’s strained partnership with the San Francisco 49ers to Miami, Florida’s cantankerous cohabitation with the Miami Marlins, bad deals can mean wasted tax dollars and ruined political careers.

Additionally, there’s a question of whether or not the model of expansion augmented by public dollars is sustainable. Public referendums on the matter are failing by larger and larger margins, and legislation has been proposed that would outlaw such usage of tax money.

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It’s hard to blame MLS for seeking to expand or take advantage of public funds being offered. If it piles one franchise built with taxpayer dollars on top of another, however, its business is in danger of being built on a model that is not only unsustainable, but could even become illegal. MLS and the government officials involved in these decisions need to tread carefully.