Blog Entry

Report: SEC investigating Marlins' stadium deal

Posted on: December 3, 2011 9:29 am
Edited on: December 3, 2011 1:04 pm
 
By C. Trent Rosecrans

The Marlins have been the most aggressive team in wooing free agency and they've been able to do that not only because the team is readying to open a new ballpark, but also because the new stadium was built with a sweetheart of a deal from the city of Miami that has cost the team relatively little. That deal, though, is now being investigated by the SEC -- not the one with Georgia and LSU, but the big one, the U.S. Securities & Exchange Commission.

The Miami Herald reports the SEC has opened what it called a "wide-ranging investigation" into the Marlins' ballpark deal with the city of Miami and Miami-Dade County. The city and county have until Jan. 6 to "deliver everything from minutes of meetings between government leaders and Marlins owner Jeffrey Loria and Major League Baseball Commissioner Bud Selig, to records of Marlins finances dating back to 2007." The SEC also wants documents about stadium parking garages built by the city government.

The city and county are paying for nearly 80 percent of the $634 million stadium. The subpoenas focus, the report says, on the Marlins trying to determine the team's ability to pay for the financing of the stadium. Last year, the Marlins' financial records were leaked and they showed that the team had received the most money in Major League Baseball from its revenue-sharing system, while not investing it back into the team. The team said it was financial strapped and needed help from the city and county to build the stadium, which it ultimately received.

The subpoenas, the report says, say:

"We are trying to determine whether there have been any violations of federal securities laws. The investigation and the subpoena do not mean that we have concluded that Miami-Dade County or anyone else has broken the law."

The city is already under a two-year investigation by the SEC for bond dealings. The newspaper says that case has already cost the city $1.4 million.

The deal with the city for the stadium has been controversial from the start, leading to a court fight in 2009 to stop construction of the stadium and the recall of Miami mayor Carlos Alvarez, a proponent of the stadium.

The stadium is scheduled to be ready for opening day 2012, with the Marlins and Cardinals playing the first game of the season at the new stadium.

Marlins vice president PJ Loyello told the Palm Beach Post's Joe Capozzi that the probe would have "no affect whatsoever on our roster plans," when asked if the investigation could slow the team's pursuit of the top free agents on the market.

The Marlins released this statement on Saturday (via MLB.com):

Yes, we are aware of the investigation that the SEC is conducting on the issuance of the county's and city's stadium and parking bonds. Of course we will fully cooperate with the SEC's investigation as needed and assist in whatever way possible. Because this is an on-going matter, it is not appropriate to comment further.
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Comments

Since: Jan 29, 2007
Posted on: December 3, 2011 11:04 am
 

Report: SEC investigating Marlins' stadium deal

 
Last year, the Marlins' financial records were leaked and they showed that the team had received the most money in Major League Baseball from its revenue-sharing system, while not investing it back into the team

Imagine that..........one of the League's pity-party "poor" teams that can't compete with the big bad Evil Empire because they don't have the wherewithal!  That sentence right there is why MLB doesn't need a salary CAP....it needs a salary FLOOR!  That will make these owners take the revenue sharing monies and invest them back in their teams in the form of salaries rather then just sticking it in their pockets and laughing all the way to the bank!



Since: Nov 20, 2007
Posted on: December 3, 2011 10:40 am
 

Report: SEC investigating Marlins' stadium deal

this smells of some serious dirty pool.  the Marlins will cease to exist in 5-10 years and will cost MLB (and tax-payers) a huge chunk of change.  it is no surprise that MLB and the city of Miami would lie, cheat and steal to get this new stadium built, it is politics after all.  here is a big factor that should have gone into the consideration of building this $600M mulah-orifice:  Miami is in the top 5 of largest US cities regarding unemployment.  these people have NO JOBS, how are they going to pay for the new stadium?  no doubt, this probably was brought up at some point in the discussion (maybe a town hall meeting), but as we all know, money talks.  we can't let real facts and statistics dampen the prospects of making money in sunny South Florida.  this story will be one of many to come to light, but it will not change the way these stadium deals get done.  remember, money and politics are one and the same.  palm greasing, back-sliding and looking the other way are common practice.  its just too bad the vicitims in all of this are the tax-payers who cannot afford to foot this bill.  while they're at it, someone should investigate the new Marlins uniforms too.



Since: Oct 9, 2011
Posted on: December 3, 2011 10:38 am
 

Report: SEC investigating Marlins' stadium deal

Wow what a suprise that's something's wrong with something that Loria and his evil step-son Sampson have anything to do with. The city of Montreal still oozes in the slime these 2 left behind.



Since: Mar 12, 2008
Posted on: December 3, 2011 10:18 am
 

Report: SEC investigating Marlins' stadium deal

There is probably funny business going on here.  But I would really love the SEC to investigate Congress.  I urge everyone to read "Throw them all out".  The book featured on 60 minutes a few weeks ago.  It will change the way you look at our government forever.  What Congress does makes this look like childs play.



Since: Aug 31, 2006
Posted on: December 3, 2011 10:01 am
 

Report: SEC investigating Marlins' stadium deal

The public knows the city/county gave the taxpayers a bad deal by giving the Marlins a sweet deal and that was evident by the recalling of the mayor soon after the stadium construction started.  What will be interesting is to see what kind of details comes out of this and more specifically what line of BS Loria and the MLB fed the politicians regarding their finances.



Since: Dec 12, 2010
Posted on: December 3, 2011 9:54 am
 

Report: SEC investigating Marlins' stadium deal

uh o something fishy here...lol


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