Saints to get $5 million from state

Helping lure the Super Bowl to New Orleans will net the Saints franchise $5 million from state government during tight economic times.

The “economic consideration and reimbursement” is on page 16 of a 56-page contract between the National Football League Saints team and the state. The contract requires the state to pay the money “at the conclusion of the fiscal year in which the game is played in New Orleans.”

With the NFL Super Bowl kicking off Sunday in New Orleans, the state is required to make payment on June 30, six months after Gov. Bobby Jindal slashed the state budget by $166 million, partially to address declining revenue.

The budget cuts prompted the state to reduce funding for battered women’s shelters and to stop providing dental care to pregnant women on Medicaid. A $1.3 billion shortfall is expected next fiscal year.

The Jindal administration said it wants to make the payment to the Saints with hotel and motel tax dollars generated in the New Orleans area. Michael DiResto, spokesman for the Division of Administration, said legislators will be asked to appropriate the dollars in the upcoming session.

DiResto said the deal the governor signed with the Saints in 2009 saved the state money by ending large cash inducements. He estimated the savings will be more than $280 million over 17 years.

The Legislature approved the agreement four years ago.

The contract calls for the franchise to “use its best efforts to bring Super Bowl games to be played in New Orleans.” The state agreed to pay $5 million to the Saints for each Super Bowl that is played in or awarded to New Orleans. The contract states: “This obligation of the State shall survive the expiration or earlier termination of this Agreement.”

DiResto said money for health care or higher education will not be diverted to pay the Saints.

He said the Saints are slated to receive $16 million this fiscal year, not including the $5 million Super Bowl incentive or the state’s rent payments on Benson Towers.

He said the Saints will receive $2.3 million from out-of-state players’ tax revenue, $1.7 million from general fees and self-generated revenue and $12.2 million from game day revenue.

State Rep. Sam Jones, D-Franklin, said he cannot recall the $5 million payment being mentioned when Jindal presented his proposal four years ago to keep the Saints in Louisiana through 2025.

The proposal included $85 million in taxpayer-funded improvements to the Mercedes-Benz Superdome and the state’s signature on a lease agreement for office space in a building owned by Saints owner Tom Benson’s family.

Jones noted that the state is closing hospitals in a bid to save money.

“When you’re closing hospitals and clinics ..., it just flies in the face of reality that we continue to make Mr. Benson’s needs a priority. I just don’t understand that. I don’t think the administration made that clear,” Jones said.

State Rep. Kevin Pearson, R-Slidell, said a Super Bowl generates countless tax dollars for the state.

“I’d pay $5 million for each of the next 10 Super Bowls if I could,” he said.

Comments

1) Comment by Piyush W. Edwards - 02/02/2013

Way to go, Piyush! Take from the poor and give to the rich! Corporate welfare at its best! Who needs education when all you really need is to be born rich?

2) Comment by markedwardmarchiafava - 02/02/2013

REMEMBER: Bobby "jump ship" Jindal didn't install himself.

3) Comment by rockynoggin - 02/02/2013

As much as I enjoy football and the Saints, I have to say that if they can't sustain themselves without some government aid then they need to go. I've heard the NFL compared to organized crime, and while I wouldn't go that far, I think it is criminal that they bully local and state governments into giving them handouts - at a time when they are the leading sports franchise in America by almost every measure. Instead of giving them money, Jindal should have lived up to the "R" behind his name - but then again we know Jindal isn't really a Republican as much as he is an opportunist like every other political figure out there.

4) Comment by Manual - 02/02/2013

"State Rep. Kevin Pearson, R-Slidell, said a Super Bowl generates countless tax dollars for the state." Good, glad to hear it. Rep Pearson sits on the retirement committee in the House. Maybe he can use some of these "countless tax dollars" to pay down the pension liability for the State instead of trying unlawfully changing the rules for state workers reirement benefits like he has tried to do for the past two legislative sessions.

5) Comment by tradewinns - 02/02/2013

so $15 million for state. we already know $5 million of that is gone instantly so we're down to $10 million. now count up all the rest of the money (total) spent to get the bowl, prepare for the bowl, actually have the bowl and of course the clean up after the bowl. that $10 million starts disappearing fast. we will never know the actual bottom line figure as politicians do not and will not let that come up, it may throw cold water on their high fives.

6) Comment by markedwardmarchiafava - 02/02/2013

You people deserve every bit of government you allow to exist.

7) Comment by phil - 01/02/2013

mcBR - I cannot believe you introduced math into this subject. Of course I am kidding you and you make a valid point here. Sometimes things presented on the surface as being just wonderful do not look so wonderful if you do the research and crunch the numbers. Someone is making a lot of money on Super Bowl, but I seriously doubt that someone is a taxpayer in LA..

8) Comment by whyisthisnews - 01/02/2013

The Super Bowl in New Orleans is expected to have a $423 million economic impact, including a projected $15 million for state tax coffers and $12 million in tax revenues for the New Orleans area.

9) Comment by teacherguy - 01/02/2013

Lets give $38 million tax breaks to the Hornets/Pelicans (April legislative session 2012), give free cash to the Saints (2013)...and freeze teacher pay for 4 years and running and chastise them for wanting to leave the state. Love the priorities...

10) Comment by swinham - 01/02/2013

Welfare, baaaaaaaaaaaaad/Corporate Welfare, goooooooooooood.

11) Comment by tradewinns - 01/02/2013

super bowls do not generate the dollars everyone expects. why is the saints owner getting money because the super bowl is played in N.O.? the owner seems to be the only one winning the super bowl to me. very few cities make money on SB. something like NYC may do great cause they have everything already and just accept the game as another wekend entertainment venue. jacksonville fl hosted the SB a few years back. spent millions of dollares preparing the city and the "gator bowl" for the big game. last i heard the results were "national exposure" for the bold new city of the south or the new slogan where florida begins (which is stupid and untrue) but actual bottom line, it cost taxpayers millions.

12) Comment by mcBR - 01/02/2013

Sorry to keep piling on. "The Jindal administration plans to make the payment with hotel and motel tax dollars generated in New Orleans." Apparently the room tax is 13% and sales tax is 9.75%, an effective rate of 22.75%. You would need $21,978,021 in hotel revenues. If rooms average $200 per night, you would need 109,890 nights sold.

13) Comment by mcBR - 01/02/2013

I should add that there are additional positive revenues to take into consideration (for example, corporate / personal income tax receipts). Still, a check for $5 million puts a big dent in the economic stimulus.

14) Comment by mcBR - 01/02/2013

Do the math, folks. To generate $5 million in tax revenue, you would have to get $62.5 million in expenditures (assuming an 8% sales tax). How does that make any sense? We could be LOSING money on this deal.

15) Comment by zealer99 - 01/02/2013

"State Rep. Kevin Pearson, R-Slidell, said a Super Bowl generates countless tax dollars for the state." This is defective reasoning, the fact that the Super Bowl was held in New Orleans was not dependent on that $5 million. The State of Louisiana could get a better deal and they should have been more transparent with the agreement.

16) Comment by phil - 01/02/2013

What is there to explain about welfare for the very rich?