MLS Stadium Funding: A classic chicken or the egg debate

My favorite writer, Benjamin Hochman (laughter uncontrollably ensues) posted a predictable article today on STLToday.com, begging for support for public tax dollars at the state and local levels for a new MLS stadium in St. Louis. The funding of a new stadium, and the aid and profits it locks in for the potential owners of the new SC STL owners, are a hot topic debate currently as a deadline to get the possible funding on ballots in April looms closer.

Of course this is a hot topic and very touchy right now in St. Louis. And it is of course for a simple reason. It is a classic chicken or the egg example of public dollars interfering with private business.

Let me explain.

A new stadium for a MLS team is the chicken. The idea, one that has been tried time and time again, is if St. Louis and the state of Missouri invest in this chicken, then the eggs (more businesses relocating to St. Louis, population growth) will come, resulting in a higher tax base to support schools, police, roads and other public goods.

Hochman makes all of the right arguments in his piece. He points out the jobs this will create. He highlights how important this will be for already established local businesses. He likens MLS and its millennial following to be a reason for those same millennials to purchase jerseys and suddenly wanting to pay rents, and the city earnings tax, within St. Louis city limits. This chicken has so much of the same allure that the chicken previously (the Rams) promised too.

And how did that work out for St. Louis, when the Rams were given a sweetheart deal to relocate from Los Angeles and a new, publicly financed stadium was built?

What was the population growth of St. Louis City during the time the Rams were in St. Louis?

How many Fortune 500 companies moved out of St. Louis, or were purchased by outside entities? How many Fortune 500 companies reside in the County instead?

The definition of insanity is trying the same thing time and time again while expecting different results, no?

So lets talk about that egg. What does that look like?

Well, that is pretty simple. The egg is that unaccredited public school system that St. Louis City boasts.

I’m pretty sure we can agree that the current status of St. Louis City’s school system represents something closer to scrambled eggs rather than a future, beautiful rooster.

This is a sports blog obviously, so you may be stunned to see this type of opinion here.

But if the residents of St. Louis City want to make a major investment (keep in mind, I live in the suburbs, so a soccer stadium would personally benefit myself more), it should be in its school system and kids.

A strong school system will allure residents, which will boost property values. More residents will allow for private investments by small businesses. Larger businesses will be more willing to invest closer to where their employees live. And if the egg truly does hatch in to a beautiful chicken (a strong school system), someone may find the investment opportunity worthwhile enough to fork over their own dollars for a soccer stadium because the return on investment will be worth it on its own merit.

I can’t blame you for believing in Hochman’s, and the SC STL’s agenda. It is a formula that makes sense, it just HAS NOT WORKED here in St. Louis in the recent past.

So why would I believe it will work in the not so distant future too?

It truly is the chicken or the egg. I just think it is important to understand that a new soccer stadium is the chicken and the schools and kids of St. Louis are the eggs worth investing in.

Finally, just so I am clear, when it comes to what the Blues are asking in regards to the Scottrade Center, my thoughts are quite different.

St. Louis is obligated to protect its investment in this case.

While I find the announcement of this request by the Blues precarious (one day after the city was on national display with the Winter Classic), it is something I can get behind because it was already a commitment pledged by the city and its tax payers and there is a good faith obligation to honor that pledge.

Thanks for reading. I hope your temper has not flared too much. @CoreyRudd