Episode Transcript
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Speaker 1 (00:03):
Here we go in down our number two of the program.
All kinds of stuff to get to in this hour.
We're going to talk about Draymond Green and his stuff
coming up. Bill Belichick is still in the news with
his girlfriend more so than UNC football. But the newspaper
this week, the Express News, had something where Peter Holt
junior Peter Jay was talking and said something along the
(00:27):
lines that as we get closer to Project Marvel, that
he wants the community to be rest assured that this
is going to be a venue tax that the spurs
in the city may be asking for, it is not
going to be a tax on its citizens. And basically
a venue tax is usually fees on tickets, which every
venue has, and hotels and car rentals. So if you're
(00:48):
not going to the games, or if you're not rinding
a car, or if you're not staying in a hotel
in a staycation.
Speaker 2 (00:53):
In town, you're not paying anything.
Speaker 1 (00:55):
It's about about getting your organization to be as competitive
as they can and as financially stable as they can.
Look in any situation in sports, the team controls the venue,
that the team gets most of the revenue off the venue,
that's important to their success. And you have to ask yourself,
do you want to be a major league city or
(01:16):
do you not? And the Spurs are fortunate very much
like Salt Lake City and Portland in the NBA to
have professional team, a professional team, but Salt Lake City
has a second one with hockey. But there's a lot
of situations where you don't have a Sacramento has an
NBA team, but they don't have any other professional not
(01:37):
necessarily they have minor league teams, they don't have major
league teams. So I want to talk about this for
a little bit on a number of number of fronts.
I originally saw the story posted online, and I don't
remember I saw it yesterday. I don't remember who it
was that posted it, but I saw some of the
comments after it, and one of the comments in the
post and in the response was I would hate to
(02:00):
see this team end up in Austin. And I know
that there's a lot of people that are all of
a sudden, for the last ten or fifteen years, having
an inferiority complex about Austin. But the world in Austin
revolves around the University of Texas, and Texas may think
that they can pull this off, but I'd be willing
to bet large sums that if a professional football or
(02:25):
basketball or baseball team ended up in Austin at any
point in any time in the next century, that it
would be detrimental to the University of Texas athletic department.
And the evidence of that is that it happened in
Oklahoma City because when the thunder came, especially for basketball,
women's basketball, and some of the other non rev sports,
(02:49):
the attendance dropped dramatically for a lot of those games
because of the thunder. I think OU softball does well,
but it doesn't make a lot of money, and oh
you baseball does well, but it doesn't make a lot
of money, and the same for Oklahoma State. It's still
not a big revenue producer. But the revenue producers at
most colleges are football, basketball, and occasionally women's basketball and
(03:10):
sometimes baseball. So if you're going to produce revenue, and
Texas needs to continue to do that, having a pro
team in your city is difficult. I think the only
team that I think Memphis, the University of Memphis, does
not do as well as it did prior to the
Grizzlies moving from Vancouver.
Speaker 2 (03:30):
And if you look at their numbers.
Speaker 1 (03:32):
The Memphis was when a conference USA had schools that
are now like Louisville and Houston that are now in
Power four conferences. I think there's a reason that Memphis
is not in a Power four conference. I think Memphis
would like to be in the Big Twelve, but for
some reason, the Big Twelve doesn't necessarily want them. So
(03:53):
I think that's just another situation where the Grizzlies are
going to get the majority of the money Memphis basketball.
University basketball does okay, but Memphis football is and it
does okay, but they're not set in the world on fire,
and a lot of that has to do that. It's
now a professional city. So understand that if Austin is
ever going to play for a team like that, that
(04:14):
there's obstacles in the way. And the University of Texas
is one, and the fact that there's no arena for
them to play in is number two. Because remember what
I just said a few minutes ago. The professional team
is going to have all of the revenue sources that
come from that arena, and that in the University of
Texas has that for the Moody Center, they would not
be at any way shape or form and willing to
(04:35):
give up or even share that revenue for a professional team.
So I don't think it's Austin that you got to
worry about. I think Vegas is something that you may
have to worry about in the future. I think there
may be other cities that would want to have put
an ownership group together that could purchase it. Remember, the
current group of investors, the Holt family and the other
investors that are still owners collectively paid about two hundred
(04:58):
and seventy million dollars for this franchise, and by conservative estimates,
it's worth over three and a half billion dollars. So
the cash out you're making, you know, over ten times
on your investment, and we're talking billions of dollars now
that are at stake. So I think one of the
things that is going to happen this summer, once the
mayor race has decided and we're down to Gino Ortiz
(05:20):
Jones and Rolando Pablos in the runoff, you do either
one of these potential mayors want to be the guy
or the girl that says, well, I don't care about
the spurs and it's going to require city council and
it's going to require the mayor to be behind this,
and I would probably suggest that if you're a Spurs
fan or a sports fan, I don't really care who
(05:41):
you vote for, but whoever you think is the most
sports friendly would be making an easier, easier path to
get this done. And there may be some people that
have that don't understand it, that are have some restrictions
on it. I know that there's a lot of people
that don't like the Spurs over the last few years,
and I think there's some disc connect between some of
the fans and the team, mainly because of the fact
(06:04):
that they're not winning.
Speaker 2 (06:05):
Winning cures all evils. You can be.
Speaker 1 (06:09):
The you can have disconnect and win and you'll reconnect.
You can have disconnect and lose and you're going to
probably have more disconnect. But I do think that at
the end of the day, most sports fans in this
community want to be known as a professional town, and
I think it is vital to the structure of the city,
to the reputation of the city to not only improve
(06:31):
the facilities for sports venues for things that are not
basketball related or not NBA basketball related. But the main
thing is for the rest of our foreseeable futures that
the Spurs are San Antonio's team and remain in San Antonio.
I'm not a big fan of the two games a
year that are played in Austin. I understand why they are,
(06:51):
but I would rather you play forty one games at
home because I think those home games are really really important.
So as we as we get closer to the June
runoff in I think it's June seventh, Is that right?
In June seventh is when they're yes, they're voting on
this on the mayor, so we'll have a mayor on
June seventh. I would hope that those that are that
(07:13):
there'll be some conversation started to be able to get
this on a ballot at the latest next may but
hopefully in November, and make sure that we educate people
on what you're voting for.
Speaker 2 (07:24):
Yes, it is a tax.
Speaker 1 (07:26):
Yes you do have to create additional revenue for this
to happen, but that has to come from people who
are not paying are struggling to pay their bills every day,
and most of the citizens of San Antonio are not
coming to a hotel for the weekend or for a
week and are not rinting a car unless there's breaks down,
it's going to be on the onus of the of
(07:46):
the visitors that come to San Antonio. And there's a
lot of people that say, well, you know that that
makes you less of a tourist traction. Well, I make
a golf trip pretty much every year, and not one
time have I ever said, you know, going to go
to that city because their car tax, in their hotel
motel tax is too high. I don't even know what
it is. I don't even know where to go to
look it up. And quite frankly, I don't care. If
(08:09):
the golf rates are what I want to pay and
the airfare is accessible to get there, I'm going to go.
And if you're coming to San Antonio from a tourism
standpoint to see the river Walk, or to go to
six Flags in SeaWorld, or to play one of our
golf courses, or to do whatever you do in South Texas,
I don't know that there's one individual family that's ever
looked up what the hotel and motel tax is to
(08:31):
be the determining factor in whether or not they show
up and come visit the city or not. And if
you're visiting from downtown and staying in the downtown area.
You may not even need a vehicle. You can probably
uber everywhere you go, and if you want one to
take you to the golf course or something, just take
public transportation for that or our ride share. So I
don't even think that that's an issue. But I do
(08:52):
think the biggest thing that we have to do and
that we will do on this show, and that I
encourage everybody that's listening to me that is on my
side on this, I want to know why you're not
on the side of the Spurs if you're a Spurs
or sports fan. But number two, to be able to
tell your friends, hey, when you go vote for this, remember, yes,
it's a tax, but it's not a tax that you
(09:13):
and I are going to pay. It's a tax that
visitors are going to pay when they stay in a hotel.
And we talked about this about two or three months
ago when Project Marvel was first floated out there by
current Mayor Ron Nurnberg. And we're going to continue to
do this up until election day. Whenever that election day comes.
They is about an education process to make sure that
(09:34):
people realize that this is important and it's not just
about paying a bunch of billionaire billionaires and giving millionaires
a place to play basketball. They are good for your community,
even if you're not a sports fan. The games themselves
forty one nights a year or more than that if
they're in the playoffs and preseason employ people that have
seasonal part time jobs that are very sought after and
(09:59):
very lucrative. In terms of a part time job. I
mean there's some people on forty one nights that can
make forty one thousand dollars or more. That's a pretty
good part time job. So I would encourage everybody to
educate themselves on what the lay of the land is
going to be. And over the next three or four months,
I would imagine we're going to get plans and costs
(10:19):
on funding, how much it's going to cost, and then
how we're going to raise that money in for how long.
But at the end of the day, you have to
make a decision on whether you want to be a
major league town or not. And if you don't care,
then it's going to probably affect your lifestyle in a
negative way that you're not even thinking right now. There's
people out there that say, well, I don't go to
Spurs games I don't even watch them on TV anymore.
(10:40):
Why should I care? Well, it's also going to be
an economics. You're going to lose a lot of economic
status and a lot of economic opportunities without a professional sports.
Speaker 2 (10:50):
Team in San Antonio.
Speaker 1 (10:51):
And I don't know that they would pack up and
leave immediately, but they would be certainly more open to
listing to offers if this is not something that ends
up going through.
Speaker 3 (11:00):
Well. I think the thing is is people that are
opposed to this are only looking at one particular side
and singling out the Spurs. And granted, a majority of
this is to benefit the Spurs, but the but the
new arena, proposed arena is not going to just hold
(11:21):
forty one Spurs home games.
Speaker 1 (11:23):
It's also but I think the one thing that people
don't understand a lot of a lot of uneducated sports fans,
and there's a difference between being you know, ignorant and
being stupid or dumb or whatever. Stupid or dumb means
you don't have the ability to learn. Ignorant means you
haven't been told what the facts are. And I think
when the people hear the word tax, they automatically assume
(11:44):
it's money coming out of their pocketbook. And it's not
it's about if you go to the game, Yes, there's
gonna be an arena fee. There is on any game
you go to. Now, if you if you rent a
car because your car broke down, yes you're gonna you're
gonna pay a tax there. And if you're if you're
going to stay at a hotel for three nights instead
of going someplace else. But if you go to Dallas
(12:04):
or Houston or or Oklahoma or whatever, you're paying attacks
there to the thing.
Speaker 2 (12:08):
You're paying the exactly. You may be paying.
Speaker 1 (12:11):
Less or more, but you're still paying a tax to
fund their venues. That's how these communities do that. And
because San Antonio is such a good tourist town, that's
where the revenue is going to come from. And so
it's an education process for everybody to understand, Yes, it's
a tax. It's not a tax that we're going to pay,
but we need you to vote yes so we can.
Speaker 2 (12:32):
Tax the visitors. Again, it's people that are too.
Speaker 3 (12:38):
I hate to say that we're narrow minded, but when
there's so like you mentioned, when it's just oh, well,
this city is going to bow down and do everything
for the Spurs again. The SBC Center, the AT and
T Center, the Frost Bank Center was more than just
a basketball arena. You had concerts in there, you had
(12:59):
box matches, you had rodeo, you had rodeo, you had
wrestling events there. That's what the particular, the potential that
the city winds up losing as well. You don't get
Jelly Roll or George Strait or Bad Bunny or.
Speaker 2 (13:17):
You know your favorite artist is.
Speaker 3 (13:19):
You don't get these boxing matches that I mean, you
told me san Antonio is one of the most highest
rated when it comes to Yeah, if if you are
against all of that, like you mentioned, oh well, I
don't go to Spurs games.
Speaker 2 (13:33):
I don't watch Spurs.
Speaker 1 (13:35):
I think the biggest thing with with with a lot
of people, whether you're a Spurs fan or not. Okay,
the team hasn't been great since Duncan left in twenty seventeen.
They've been competitive in some years, but for the most
part they've been.
Speaker 2 (13:46):
A lottery team or a non playoff team.
Speaker 1 (13:49):
And there's others out there that don't like when coaches
and players have political opinions and choose the NBA stage
to do it, so that can drive some people away.
But at the end of the day, you have to
ask yourself, do I want professional sports in my town
or not? And guess what, most towns the answer to
that question is yes. And if you want that to
be your if you want that to be you, then
(14:12):
you're going to have to do what is necessary that
other cities are willing to do. Because everything that you
may you may think that you're going to vote, know
for there's somebody in your position that's exactly like you
that would vote yes. And people don't may not realize this,
but in nineteen ninety nine, the Spurs were for sale
if that if that arena didn't go through, and fortunately
(14:33):
we were about fifty seven forty three to the good
on the then SBC Center now Frost Bank Center being built,
and it's it's saved the Spurs. And that was Cindy
Kryer and Judge Wolf and they said, the city leadership
is a very good right now and we're not going
to get this done there, so we've got to save
them ourselves. Unfortunately, I don't think there's really any area
(14:56):
of San Antonio that currently exists right now that is
going to see the growth that it needs. Infrastructurally around
a proposed arena site. So yeah, you could refurbish the
AT and T Center, but you need places for people
to go and things for them to do, and I
just don't see it happening at the coliseum site. Those
places are already in existence on the river Walk in downtown.
(15:20):
And that's why downtown is so important, because everybody in
city Council knows that downtown is where we all go
to congregate when there's a big thing going on, whether
it's a Spurs game or whether it's an event.
Speaker 2 (15:31):
And I understand that.
Speaker 1 (15:32):
People say, well, I can understand the Spurs taking the
revenue when the Spurs play there, but why doesn't somebody
else get the revenue when a concert runs there. Well,
SS and E is not just a basketball team anymore.
It's a multi level entertainment division and the Spurs are
part of it. That's why it's called Spurs Sports and Entertainment.
It's Spurs games, it's sporting events, and it's entertainment venues,
(15:54):
and you need somebody to run those events. A person
on city Council can't run a sport event. They've got
other things to do or their own business to run.
Or city council meetings to attend to. That's not a
city job. That is a contracted, outsourced job to a
company that is going to manage the events of the arena.
So while the Spurs were the Spurs up until about
(16:16):
nineteen ninety five or ninety six, they have become an
entertainment and promotion of coordinating arm and so they're going
to create the revenue opportunities and thus take a lot
of the revenue that comes from that. And that's no
different than any other NBA team or Major League Baseball stadium.
When the Houston Astros put concerts in Minute Made or
(16:37):
whatever it's called.
Speaker 2 (16:37):
Now, what's the new name of it. It starts with
an E. It's not Enron. What is it? You know
what it is, Shane, I don't. It's like Mini mad Yeah,
well you should be made. But they change the sponsorship
to it. Yeah, I think it's a Japanese company. Now
it's like Exion or something like that. Whatever it is.
Speaker 1 (16:53):
That whenever somebody comes into plays there in December and
there's no baseball game going on, the Astros still manage
and run that event. Their entertainment division still runs that.
When something happens in Jerry world. Yeah, it's not a
cowboy game, but Jerry's running the event. And so that's
where that's the reason why the professional team, slash LLC
(17:16):
or incorporated business of that community is kind of in
charge of that, and that's why the revenue streams go
to them to be distributed out after they cover their
expenses and profit.
Speaker 2 (17:26):
Yeah.
Speaker 3 (17:27):
Again, that's why I pushed the notion of you can
say I'm not a Spurs fan, I don't watch sports
or whatever.
Speaker 1 (17:33):
Okay, probably not listening to us if you're not a
sports or Spurs fan, but you have friends that are
in that same boat.
Speaker 3 (17:38):
But not even that, because I'm going to go to
the whole notion of Okay, well do you like to
go to concerts? Oh?
Speaker 2 (17:43):
Yeah, I go to the.
Speaker 3 (17:45):
Frost Bank Center concerts all the time. I go to
rodeo all the time. Okay, Well, if you decide you
don't want the Spurs to have the new arena.
Speaker 1 (17:54):
Rodeos are going to leave, Well Rodeo, that's going to happen.
Rodeo will likely stay at the AT and T Center.
But now you have two venues. When the Spurs arena
is busy with a football game then I mean, I
mean a basketball game, and you know, bad Bunny or
whoever's coming to your arena, you can you can put
them in the other arena. Those those arenas are going
(18:14):
to coexist. And I'm sure S. S and E would
still run the frost Bank Center while also playing basketball
on the other one. You'd have the opportunity to put
both in there, and I think both would be in
a in a good spot.
Speaker 3 (18:25):
Hey, hey, maybe maybe the frost Bank Center can be
a potential, uh partial home whenever they decide to update
the convo. Of course, we have to have the lights though,
we need to if nothing else, we need to.
Speaker 2 (18:36):
Have to wait, you know, we need to get rid
of the b I love the combo.
Speaker 1 (18:40):
That's because you don't have to be in it, all right,
that's a that's a whole nother story. And hopefully that
the UTSA is able to get a basketball arena down
the road. I do think that's something necessary. But lots
of other things to get to too. Okay, we're way
over on time on this segment. The next one will
be about Bill Belichick, and it's going to be the
next one because there's not a lot to talk about
(19:01):
but we need to touch on it.
Speaker 2 (19:03):
That's next. It's the Andy Everage Show. On the tickets,