Bengals telling the truth

[jjakq27]

http://news.enquirer.com/apps/pbcs.dll/art...EWS01/506150384

Wednesday, June 15, 2005

County: Books show Bengals' deceit

Filing claims team was in top half of NFL profits

By Dan Horn

Enquirer staff writer

The Cincinnati Bengals repeatedly misled Hamilton County officials about the team's profits during negotiations to build a new stadium at taxpayer expense, a top county lawyer claimed Tuesday.

Attorney James Harper said in a sworn statement that team financial records show the Bengals' annual profits consistently ranked in the top half of the National Football League before the county built Paul Brown Stadium.

Harper said the Bengals did not share those financial records during negotiations in the mid-1990s and instead told county officials the team required a new stadium to remain economically viable.

He said more recent records show that the team has used additional profits generated from the stadium to enhance the value of the team for its shareholders -not to keep the team viable.

Harper's comments were filed in federal court Tuesday in support of the county's federal antitrust lawsuit against the team and the NFL.

"I believe that the Bengals' representations regarding their financial status during negotiations were misleading," Harper, the county's lead lawyer in negotiations, said in his statement.

"Had I known the Bengals' profitability prior to negotiations," Harper said, "I would have advised the county administrator and the board of county commissioners to make fewer financial concessions to the Bengals."

His statement marks the first time a county official has publicly discussed the Bengals' confidential financial records, which the county obtained while pursuing its lawsuit.

County officials have accused the team of using the league's monopoly power to force a new stadium and favorable lease terms from the county. Team officials have denied the charges and have said the $450 million stadium was necessary to put the team on sound financial footing.

"The whole issue is what the Bengals knew and what the county knew during negotiations," said Stan Chesley, the county's lawyer in the case.

He said he could not discuss Harper's statement further because the Bengals' financial records remain sealed under a court order. The records may be discussed in more detail today at a hearing.

The hearing will be before U.S. District Judge S. Arthur Spiegel.

Bengals lawyer Stuart Dornette said he would address Harper's claims in court today.

But he cited previous comments from team officials in which they said they negotiated in good faith with the county.

Earlier this year, Bengals vice president Troy Blackburn said figures the county might consider "profits" are misleading because those figures fail to subtract taxes, player signing bonuses and other multimillion-dollar expenses.

Blackburn, who could not be reached Tuesday, also has said that the team had about $1 million to show for five years of operations prior to construction of the stadium.

Without the new stadium, he said, the Bengals would not have remained financially competitive or viable in the NFL.

Harper did not immediately return a phone call Tuesday evening. But in his sworn statement, he said the Bengals had repeatedly told county officials a new stadium was critical to the team's survival in Cincinnati.

"On every issue the Bengals came back to the point that they were in a small market, were economically disadvantaged, and needed a certain provision to be economically viable in Cincinnati," Harper said.

He said county negotiators asked to see the Bengals' financial records during negotiations but "were not able to obtain them."

Both the county and the Bengals are asking Spiegel for summary judgment - an immediate ruling in their favor.

While the judge is expected to hear arguments today, a ruling is not immediately expected.

The county is seeking to recover damages from the team and the NFL of $600 million or more.

The Bengals have filed their own lawsuit against the county, seeking $30 million worth of stadium improvements and cash to cover repairs of alleged shoddy work on Paul Brown Stadium.

Earlier this week, the team filed court papers outlining its concerns about the stadium construction.

An architectural firm hired by the team concluded that the county's contractors did not pour concrete, construct support columns or build escalators in a "good and workmanlike manner."

County officials dispute the claim, saying any repairs needed at the stadium are not the fault of the county and have not hurt the team or affected attendance at Bengals' games.

[The_Next_Big_Thing]

What I don't understand is, why does the county get to sue because they negotiated poorly?

As for the profits, if you aren't including million dollar plus signing bonuses in your "expense" columns (the county didn't), or include Taxes as an expense, you aren't really looking at profits.

[Kirkendall]

Politics at its best. If election season weren't coming up, this wouldn't happen.

[ArmyBengal]

OK, I'm not the legal eagle some may be on this board, so I ask the question that rattles around my head after reading this...

If the county wins, how does this affect the team being here in Cincinnati and would if affect any of the players ?? This just sounds like it has "BAD" written all over it. Can someone clear this up a bit ?? Thanks...

WHODEY !!!

[bengalboomer7]

I never thought of that, Army, but I would say that Mike is in no position to move the team and I don't think the NFL wouild want to put him in a bigger market anyway. This seems kind of bogus to me. Basically the county is saying that the Bengals didn't negoiate in "good faith" Well, who the hell does that anymore. The county didn't do their homework and are now asking for a deal cause they originally got burned.

[Kirkendall]

OK, I'm not the legal eagle some may be on this board, so I ask the question that rattles around my head after reading this...

If the county wins, how does this affect the team being here in Cincinnati and would if affect any of the players ??  This just sounds like it has "BAD" written all over it.  Can someone clear this up a bit ??  Thanks...

WHODEY !!!

From my understanding, and this has been going on back and forth between team and county for awhile now, is that the team would have to repay some (as high half) of the money recieved from the county.

[Kirkendall]

but I would say that Mike is in no position to move the team and I don't think the NFL wouild want to put him in a bigger market anyway.

Agreed. The Bengals can't move, legally. There's an agreement between county and team to keep the team here for some 30 years (not exact) -- unless someone takes the other to court claiming a breach of contract which would be economically stupid on county's half because they're already tight on cash and residency continues to drop off.

And I seriously doubt the county, or city, will do anything to jeopardize that; and the team hasn't said anything about a willingness to want to leave. All county wants is some of their tax payer money back.

PS, none of this is fact; just stuff read over time about the Bengals defending from "politically charged opportunists". But I digress.

[bengalskyspy]

If anything, someone should go after Bob Beddinghaus for corruption, or least rampant stupidity. This is a clear example of why Cincinnati and Hamilton County get their butts kicked by NKY on a regular basis. They are simply too ignorant to get anything done. As a city and a region, we are very second rate, and it is due to the political leadership (oxymoronic).

The county leaders are so moronic that they are willing to go public with the fact that they were so naive in their negotiations with the Bengals. We should hold the politicians accountable for their imcompetence by summarily voting them out of office.

[cover2]

I'm with you Bengalskyspy! Bedinghaus should be put in jail for selling the City of Cincinnati down the river. He is an absolute criminal and for his reward Mike Brown puts him on the payroll. It's disgraceful. I think Mike is going to have to give some money back. The County has Stan Chesley on their side and he takes no prisoners. The team is in no jeopardy here. Don't worry!

We are all now going to see the dirty laundry. What we should have seen in the first place!!!

[Jet23]

If anything, someone should go after Bob Beddinghaus for corruption, or least rampant stupidity. This is a clear example of why Cincinnati and Hamilton County get their butts kicked by NKY on a regular basis. They are simply too ignorant to get anything done. As a city and a region, we are very second rate, and it is due to the political leadership (oxymoronic).

The county leaders are so moronic that they are willing to go public with the fact that they were so naive in their negotiations with the Bengals. We should hold the politicians accountable for their imcompetence by summarily voting them out of office.

Thank you, you nailed it. quote: He said county negotiators asked to see the Bengals' financial records during negotiations but "were not able to obtain them." What the hell is that? How hard would it have been to say, show us your financials or no stadium?

The County Commissioners presented the deal to the tax payers and we voted for it. If anyone was duped it was us being duped by the county, because for some damn reason, we thought they were actually competent. They presented the deal to us, not the Bengals. If they negotiated a crappy deal than shame on them!

[The_Next_Big_Thing]

Why should the Bengals be required to show their financial records? As a business, they said "We need a new stadium. Is the county going to build us one? If not we might be forced to leave." The county said ok, lets put it up for a vote and see if the residents want to pay for a new stadium. We are going to build the Reds a stadium anyway, and tear down Riverfront.

The voters said Yes, we want to have our team here, despite their woes, and then the Bengals negotiated a great deal for them with the county.

Now the county realizes damn we were had. Our sales guys weren't as good as their sales guys. Lets sue!

If I go hunting for a house, and the listing price is $250,000, and I walk in and make them an offer or $250,000 and they sell it to me saying "We had another couple looking at the home this morning and they were going to call us tomorrow with their offer", DO I HAVE A RIGHT TO SUE THEM FOR OUTNEGOTIATING ME AND GIVING ME WHAT I WANTED? NO. They made me think that someone else might want what I did, and I bought.

[HoosierCat]

IMHO, the bottom line is that the taxpayers of Hamilton County are the ones that took it up the tailpipe, and that the reaming was done jointly by the Bengals and the local government.

Not to put too fine a point on it, but any time government and industry start talking, the rest of us need to keep a hand on our wallets and purses.

The Bengals' stadium deal differed from any other sweetheart government-industry deal only in the large amount of money involved. For example, it's common practice for cities and towns to lure companies to build facilities in their area by offering them all manner of tax breaks and incentives. Municipalities will sell them land for pennies on the dollar, agree to build/extend water, power, sewage services at no charge, waive property taxes for 10, 20, 50 years, etc. In the end, maybe that company generates enough jobs to recoup that cost, maybe they don't. Those analyses are rarely done.

It does appear that the Hamilton County politicos who did the deal were particularly incompetent (or corrupt), but hey, isn't it a truism that "gummint work" doesn't exactly attract the best and the brightest? Were the Bengals deceptive? Definitely. Unethical? Probably. Did they do anything illegal. Doesn't look that way to me. Just business as usual.

[CP#9]

I look at it this way! They did,nt have to put it on the ballet to build a new stadium. Look at it this way they did it because it a election boost. The city of Cincinnati is a sports town its all about the sports there and they knew if it was something on the ballet that stricks the voters interest , they would come to vote. However I think they are trying to cover up there @sses because their is money that is unaccounted for and this way they can get some of the money they spent on the stadium. The Government is crooks we should know this by now LOOK AT MY PAY CHECK EACH WEEK!

[HoosierCat]

The plot thickens...

http://news.cincypost.com/apps/pbcs.dll/ar...EWS01/506250359

...a Federal judge orders the Bengals and the NFL to turn over buckets of info on profits. The Bengals are cooperating but the league is balking (no surprise).

I remember saying a long time ago, when the whole lawsuit thing first got started, that this was a potential nightmare for the NFL owners. If they are collectively forced to open their books, it will make future sweetheart stadium deals much more difficult, and will doubtless spawn copycat claims in other cities that built arenas and now feel "ripped off." I always thought that the lawsuit was the real reason that Tags and the owners put pressure on Mikey to improve the team's performance, in the hopes that some wins would mollify an angry fan base (mission accomplished, it seems) and help pave the way for a settlement (by reducing the amount of political gain to be had from pursuing the deal).

Per the Post piece, the county wants $600 million. But in another article here:

http://www.heartland.org/Article.cfm?artId=17327

...it's said that the city is really looking for just $200 million from the Bengals in order to put bond repayments back on schedule. I think I see a settlement starting to take form.

[BengalszoneBilly]

Whoa...this little ice cube floating in a puddle is quickly turning into an iceberg!