From the Sports Business Journal...

How you see it:
Portland's only game is a win for all sides

While acknowledging the many benefits of Major League Baseball, John Genzale questions the priorities of a region that chooses to pursue an MLB franchise in times of economic distress ["Playing the status game," Jan. 27-Feb. 2].

For the record, the mission of the Oregon Sports Authority is to define the state of Oregon as the preferred location for select amateur and professional sports events, franchises and related activities in order to enhance the quality of life of Oregonians and to stimulate the state's economy.


MLB will inject $500 million in income tax revenue, more than enough to attract a team without tapping existing public resources.

Is Genzale suggesting that during an economic downturn, organizations of all kinds should abandon the purpose for which they were created? Following this logic, should I assume that the next issue of SportsBusiness Journal will ignore the sports business news of the week and include only stories about the lack of government funding for schools?

Genzale is correct in pointing out the need for Americans to collectively rally behind our public schools. What he fails to acknowledge (despite receiving our press release) is the Oregon Sports Authority Foundation has committed $100,000 to save spring sports in Portland public schools, as well as identify a long-term funding solution for school sports throughout the state.

Even as Genzale effuses the positive transformation that occurs in a community with a major league franchise, he questions the decision to use public resources for an Oregon ballpark. If Genzale had taken the time to fully analyze what is being proposed in Oregon, he might form an entirely different opinion.

The Oregon Sports Authority and all of those involved in the pursuit of Major League Baseball have made the commitment that no public funds will be diverted from any government services to pay for a new ballpark. Only public revenues generated as a result of Major League Baseball in Oregon will be dedicated toward the construction cost of a ballpark.

Because Oregon has a 9 percent state income tax rate, the arrival of Major League Baseball will inject more than $500 million in new income tax revenue to the state over a 30-year period. Allocating only a portion of this new revenue toward the cost of a ballpark will allow Oregon to attract an MLB team without tapping into any existing public resources.

Genzale also fails to distinguish between the economic impact produced by a new stadium for an existing franchise and the impact derived from a new franchise, in addition to a new stadium. In Oregon's case as a region without a team, all of the economic activity generated by the arrival of an MLB franchise and ballpark is new. Oregon would be the thankful recipient of a major tourist attraction, thousands of new jobs and new development. The city of Portland, the state of Oregon and other governments will benefit from a myriad of new public revenues.

Support for the MLB campaign is swelling as Oregonians become informed about specific financing plans being proposed. We hope readers of SportsBusiness Journal are now fully informed as well.

Drew Mahalic
Portland

Drew Mahalic is CEO of the Oregon Sports Authority