Performance-Based Sports Stadium Act
The Performance-Based Sports Stadium Financing Act ensures that public financing for professional sports stadiums is tied to the team’s on-field performance. The legislation requires teams to have achieved a .500 or above record in three of the last five seasons to be eligible for public funding, promoting accountability and responsible use of taxpayer dollars. New teams are exempt from this requirement for their first five years but must demonstrate competitive performance before seeking additional financing. The Act also mandates public reporting on team performance and financial requests, ensuring transparency and fostering public trust. Penalties are established for teams that misrepresent their eligibility, protecting taxpayers from misuse of public funds.
Key Provisions
Eligibility Requirement for Public Financing: A professional sports team must have achieved a .500 or above record (winning at least half of their games) in three out of the last five seasons to be eligible for public financing consideration for stadium construction, renovation, or maintenance. Applies to all professional sports teams seeking state or local government financial assistance.
Exemption for New Franchises: Teams that have been in existence for less than five years are exempt from the performance requirement but must demonstrate competitive performance in at least two seasons before applying for additional public financing.
Review and Verification: The state Department of Economic Development, in consultation with the relevant sports league, will verify the team’s performance records before approving public financing eligibility. A public report must be issued by the state Department of Economic Development detailing the team’s performance history, financial request, and compliance with the Act before any public hearings on the financing proposal.
Penalty for Misrepresentation:Teams found to have misrepresented their performance history or eligibility may face fines of up to $500,000 and be barred from applying for public financing for a period of five years.
Model Language
Section 1. Short Title: This Act shall be known as the "Performance-Based Sports Stadium Financing Act.
Section 2. Purpose: The purpose of this Act is to ensure that public financing for professional sports stadiums is contingent upon the team’s on-field performance. By tying eligibility to demonstrated competitive success, this legislation aims to promote accountability, protect taxpayer dollars, and encourage professional sports teams to invest in long-term performance.
Section 3. Definitions
(a) Professional Sports Team means any organization participating in a professional sports league that seeks public financing for stadium construction, renovation, or maintenance.
(b) Public Financing refers to any direct or indirect financial assistance provided by the state or local government, including grants, loans, tax incentives, or bond issuance.
(c) .500 Record means a winning percentage of .500 or greater during a regular season, calculated by dividing the total number of wins by the total number of games played.
Section 4. Eligibility Requirement for Public Financing
(a) To be eligible for public financing, a professional sports team must have achieved a .500 or above record in at least three out of the last five regular seasons.
(b) The eligibility requirement applies to all requests for public financing related to: (i) Stadium construction; (ii) Stadium renovation; (iii) Stadium maintenance
(c) Teams that have been in existence for less than five years are exempt from the requirement in subsection (a) but must demonstrate competitive performance by achieving a .500 or above record in at least two out of their first five seasons before applying for additional public financing.
Section 5. Verification Process
(a) The state Department of Economic Development, in consultation with the relevant sports league, shall verify the team’s performance history for the past five seasons.
(b) The Department shall issue a public report confirming the team’s eligibility before any consideration of public financing by the state or local government.
Section 6. Public Reporting Requirement
(a) Prior to any public hearing on a proposal for public financing, the state Department of Economic Development shall publish a report detailing:
(i) The team’s performance record over the last five seasons.
(ii) The total amount of public financing requested.
(iii) The projected economic impact of the proposed financing on the local community.
(b) The report shall be made publicly available on the Department’s website at least 30 days prior to the public hearing.
Section 7. Penalties for Misrepresentation
(a) Any team found to have intentionally misrepresented its performance record or eligibility criteria shall be subject to: (i) A fine of up to $500,000; (ii) A ban on applying for public financing for a period of five years.
(b) The state Attorney General may pursue legal action to enforce penalties under this section.
Section 8. Severability: If any provision of this Act is found to be invalid or unconstitutional, the remaining provisions shall remain in full force and effect.
Section 9. Effective Date: This Act shall take effect 90 days after its enactment.